MKS (MKSI) AI Stock Analysis

• Market Cap: $7.01B
• Dividend Yield: 0.84%
• Average Volume (3M): 886.31K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 2.50
• Revenue Growth: -1.14%
• EPS Growth: N/A
• Country: US
• Employees: 10,200
• Sector: Technology
• Sector Strength: 87
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.71
• Shares Outstanding: 67,072,200
• 10 Day Avg. Volume: 1,046,201
• 30 Day Avg. Volume: 886,311
• PEG Ratio: 1.38
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.57
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 2.01
• 1Y Price Target: $117.50
• Price Target Upside: 12.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: $110.00 ▲(5.20%Upside)

MKS Instruments demonstrates strong financial performance and positive technical indicators, contributing to a solid overall score. However, a relatively high P/E ratio and concerns over tariff impacts and industrial market softness slightly temper the outlook.

Positive Factors

Debt Management

Improving free cash flow generation should continue to fund debt paydown, which could help close MKSI’s valuation discount to peers.

Financial Performance

MKS posted stronger-than-expected Q1 results driven by strength in Semi and Electronics & Packaging.

Market Demand

MKS demand commentary remains consistent and positive, which is a key driver of shares.

Negative Factors

Specialty Industrial Segment

There are risks in a sluggish Specialty Industrial recovery, which is down 7% year over year and where core auto and industrial end markets may be adversely impacted by tariffs.

Trade Policy Impact

Potential tariff demand impacts remain unknown, affecting visibility into a material demand recovery.

MKS Business Overview & Revenue Model

Company Description

MKS Instruments, Inc. is a global provider of instruments, systems, subsystems, and process control solutions that measure, control, power, monitor, and analyze critical parameters of advanced manufacturing processes. The company serves a variety of markets, including semiconductor, industrial technologies, life sciences, and research and defense. MKS Instruments offers a wide range of products, including vacuum and analysis products, power solutions, and laser-based systems, catering to the needs of its diverse clientele.

How the Company Makes Money

MKS Instruments generates revenue through the sale of its broad array of products and services designed to enhance productivity and improve process performance for its customers. Key revenue streams include the sale of precision control systems, such as pressure and flow measurement devices, vacuum technology products, and gas and power solutions. Additionally, the company offers advanced laser systems and photonics solutions used in various applications across industries. MKS Instruments also benefits from service contracts, software solutions, and consumables that complement its product offerings. The company's earnings are significantly influenced by its strategic partnerships and collaborations with leading technology firms and manufacturers, as well as its ability to innovate and adapt to the evolving needs of its markets.

MKS Financial Statement Overview

Summary

MKS Instruments shows solid financial performance with a strong cash flow position and robust equity backing. The income statement indicates good cost management with a healthy gross profit margin and a recovering net profit margin. However, there is room for improvement in operational efficiency as reflected by moderate EBIT and EBITDA margins.

Income Statement

The income statement shows a healthy gross profit margin of 47.5% for TTM, indicating good cost management. The net profit margin is 6.2%, which is a recovery from negative margins in previous years. Revenue growth is stable with a slight increase in TTM compared to the previous year. However, EBIT and EBITDA margins are moderate at 13.7% and 17.9%, respectively, showing room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 27.5%. The debt-to-equity ratio is low at 0.11 in TTM, suggesting manageable leverage levels. Return on equity is moderate at 9.6%, indicating fair profitability. Overall, the balance sheet shows a stable financial position with adequate equity backing.

Cash Flow

Cash flow analysis highlights a strong operating cash flow to net income ratio of 2.65, indicating excellent cash generation relative to profits. Free cash flow growth is robust with a 18% increase in TTM. The free cash flow to net income ratio stands at 2.13, showcasing strong cash conversion capabilities. Overall, the cash flow position is solid with strong cash generation and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.65B	3.59B	3.62B	3.55B	2.95B	2.33B
Gross Profit	1.74B	1.71B	1.64B	1.55B	1.38B	1.05B
EBITDA	655.00M	873.00M	-1.18B	826.00M	794.00M	551.30M
Net Income	227.00M	190.00M	-1.84B	333.00M	551.00M	350.00M
Balance Sheet
Total Assets	8.56B	8.59B	9.12B	11.49B	4.54B	3.90B
Cash, Cash Equivalents and Short-Term Investments	655.00M	714.00M	875.00M	910.00M	1.04B	836.00M
Total Debt	261.00M	4.78B	5.02B	5.17B	1.03B	1.03B
Total Liabilities	6.20B	6.27B	6.65B	7.01B	1.65B	1.54B
Stockholders Equity	2.35B	2.32B	2.47B	4.48B	2.89B	2.36B
Cash Flow
Free Cash Flow	484.00M	410.00M	232.00M	365.00M	552.80M	428.30M
Operating Cash Flow	602.00M	528.00M	319.00M	529.00M	639.50M	513.20M
Investing Cash Flow	-117.00M	-117.00M	-84.00M	-4.55B	-204.60M	-202.40M
Financing Cash Flow	-657.00M	-549.00M	-259.00M	3.97B	-65.00M	-121.50M

MKS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 104.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKSI, the sentiment is Positive. The current price of 104.56 is above the 20-day moving average (MA) of 95.26, above the 50-day MA of 86.94, and above the 200-day MA of 97.22, indicating a bullish trend. The MACD of 4.59 indicates Negative momentum. The RSI at 71.76 is Negative, neither overbought nor oversold. The STOCH value of 93.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKSI.

MKS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNT	75 Outperform	$5.69B	15.66	35.88%	0.26%	-3.59%	-11.30%
MKSI	74 Outperform	$7.01B	31.16	9.50%	0.84%	-1.14%	―
ITRI	74 Outperform	$6.19B	24.74	17.73%	―	7.10%	58.52%
LFUS	72 Outperform	$5.84B	54.85	4.39%	1.18%	-3.43%	-50.48%
NOVT	71 Outperform	$4.80B	68.21	9.73%	―	6.52%	1.60%
CGNX	68 Neutral	$5.46B	47.56	8.02%	0.98%	8.56%	18.99%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%

MKS Corporate Events

MKS Instruments Announces Executive Changes and Name Update

On May 12, 2025, MKS Instruments announced key executive appointments effective August 1, 2025, with James A. Schreiner becoming Executive Vice President and Chief Operating Officer and David P. Henry taking on the role of Executive Vice President, Global Strategic Marketing and General Manager, Materials Solutions Division. These appointments are accompanied by salary increases and stock unit awards for the executives. Additionally, at the 2025 Annual Meeting, shareholders approved amendments to the company’s Restated Articles of Organization and By-Laws to lower voting requirements and change the company’s name to MKS Inc., effective May 16, 2025. This change reflects the company’s expanded market presence and capabilities.

The most recent analyst rating on (MKSI) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on MKS Instruments stock, see the MKSI Stock Forecast page.