Mks Inc. (MKSI)
NASDAQ:MKSI
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MKS
(NASDAQ:MKSI)
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Rating:65Neutral
Price Target:
$452.00
▲(62.25% Upside)
Action:Reiterated
Date:06/23/26
MKSI’s score is driven primarily by improved financial performance and a positive, guidance-supported earnings outlook, but is held back by stretched valuation and overbought technical signals. Softening free cash flow consistency and elevated leverage remain key risks despite strong margins and momentum.
Positive Factors
High Margins and Profitability
Sustained high gross and operating margins reflect strong product-level pricing power and efficient cost structure across instruments and subsystems. Durable margin elasticity supports reinvestment in R&D and capacity, cushioning earnings through industry cycles and improving long-run cash generation.
Negative Factors
Elevated Net Leverage
While leverage has improved, a ~3.5x net leverage ratio leaves limited cushion if semiconductor capital spending weakens. Elevated debt increases interest expense sensitivity and constrains capital allocation choices, making the company more vulnerable to cyclical downturns and delaying structural deleveraging goals.
Read all positive and negative factors
Positive Factors
Negative Factors
High Margins and Profitability
Sustained high gross and operating margins reflect strong product-level pricing power and efficient cost structure across instruments and subsystems. Durable margin elasticity supports reinvestment in R&D and capacity, cushioning earnings through industry cycles and improving long-run cash generation.
Read all positive factors
MKS Key Performance Indicators (KPIs)
MKS (MKSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.29B
Dividend Yield0.54%
Average Volume (3M)1.11M
Price to Earnings (P/E)78.4
Beta (1Y)2.47
Revenue Growth11.44%
EPS Growth44.67%
CountryUS
Employees10,200
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)4.87
Shares Outstanding67,544,130
10 Day Avg. Volume1,182,399
30 Day Avg. Volume1,111,358
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)3.96
Price to Sales (P/S)2.74
P/FCF Ratio21.64
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue7.07
Enterprise Value/Gross Profit16.22
Enterprise Value/Ebitda32.07
Forecast
1Y Price Target
$376.27Price Target Upside35.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)11.7
Revenue Forecast (FY)$4.80B
MKS Business Overview & Revenue Model
Company Description
MKS Inc. (MKSI) functions as a worldwide supplier of sophisticated instruments, integrated systems, specialized components, and advanced process control solutions. The company's products are engineered to precisely measure, observe, deliver, evalu...
How the Company Makes Money
MKS makes money primarily by selling hardware, subsystems, and materials that are designed into and consumed by customers building or operating advanced manufacturing tools—especially semiconductor wafer fabrication equipment. Key revenue streams ...
MKS Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call emphasized broad-based, above-guidance revenue growth across semiconductor and electronics & packaging segments, strong margins (47%), healthy order momentum, and disciplined capital actions (dividend increase, debt paydown, liquidity). Key near-term headwinds include Q1 seasonally low free cash flow and working-capital build, residual tariff/palladium impacts (~30–40 bps), and an elevated net leverage ratio (3.5x). Management conveyed confidence in capacity (Malaysia supercenter) and sustained AI-driven demand, and provided constructive Q2 guidance across revenue, margins and EPS.Positive Updates
Strong Overall Revenue Growth
Q1 revenue of $1.08B, up 4% sequentially and 15% year-over-year; Q2 revenue guidance of $1.2B (±$40M) indicating continued momentum.
Negative Updates
Free Cash Flow Seasonality and Working Capital Build
Q1 free cash flow only $29M (company noted Q1 is typically the low point due to variable compensation timing and increases in working capital related to demand ramp).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Revenue Growth
Q1 revenue of $1.08B, up 4% sequentially and 15% year-over-year; Q2 revenue guidance of $1.2B (±$40M) indicating continued momentum.
Read all positive updates
Company Guidance
During the call MKS gave detailed Q1 results and Q2 guidance: Q1 revenue was $1.08 billion (up 15% YoY, +4% sequentially) with semiconductor revenue $466M (+13% YoY, +7% QoQ), Electronics & Packaging $321M (+27% YoY, +6% QoQ; chemistry +22% YoY ex‑FX/palladium) and Specialty Industrial $291M (+8% YoY, -2% QoQ); Q1 gross margin was 47%, operating income ≈ $235M (21.8% operating margin), operating expenses $271M, adjusted EBITDA $277M (25.7% margin), net interest $37M, effective tax rate 20.9%, net earnings $157M or $2.30 diluted EPS, free cash flow $29M, cash $569M plus $1.0B undrawn revolver ($1.5B liquidity), net debt $3.6B, trailing 12‑month adj. EBITDA >$1B (net leverage 3.5x), and dividend increased 14% to $0.25/share ($17M); Q2 guidance: revenue $1.2B ± $40M with semiconductor $550M ± $15M (management expects semi to accelerate—high‑teens sequential growth and >25% YoY), E&P $350M ± $15M (management expects high‑single‑digit QoQ and >30% YoY), Specialty Industrial $300M ± $10M, gross margin 47% ±100 bps, OpEx $275M ± $5M, adjusted EBITDA $328M ± $26M, Q2 tax ≈20% (FY 18–20%), capex 4–5% of revenue, and EPS $2.90 ± $0.30.MKS Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.07B | 3.93B | 3.59B | 3.62B | 3.55B | 2.95B |
| Gross Profit | 1.78B | 1.59B | 1.71B | 1.64B | 1.55B | 1.38B |
| EBITDA | 898.00M | 860.00M | 870.00M | -1.11B | 832.00M | 794.00M |
| Net Income | 327.00M | 295.00M | 190.00M | -1.84B | 333.00M | 551.00M |
Balance Sheet | ||||||
| Total Assets | 8.73B | 8.80B | 8.59B | 9.12B | 11.49B | 4.54B |
| Cash, Cash Equivalents and Short-Term Investments | 569.00M | 675.00M | 714.00M | 875.00M | 910.00M | 1.04B |
| Total Debt | 4.29B | 4.69B | 4.78B | 5.02B | 5.17B | 1.03B |
| Total Liabilities | 5.92B | 6.08B | 6.27B | 6.65B | 7.01B | 1.65B |
| Stockholders Equity | 2.81B | 2.72B | 2.32B | 2.47B | 4.48B | 2.89B |
Cash Flow | ||||||
| Free Cash Flow | 401.00M | 497.00M | 410.00M | 232.00M | 365.00M | 552.80M |
| Operating Cash Flow | 557.00M | 645.00M | 528.00M | 319.00M | 529.00M | 639.50M |
| Investing Cash Flow | -152.00M | -145.00M | -117.00M | -84.00M | -4.55B | -204.60M |
| Financing Cash Flow | -519.00M | -562.00M | -549.00M | -259.00M | 3.97B | -65.00M |
MKS Technical Analysis
Positive
278.59
Price Trends
314.53
Positive
276.60
Positive
215.06
Positive
Market Momentum
23.97
Negative
60.92
Neutral
76.06
Neutral
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 278.59 is below the 20-day moving average (MA) of 347.56, below the 50-day MA of 314.53, and above the 200-day MA of 215.06, indicating a bullish trend. The MACD of 23.97 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 76.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKSI.
MKS Risk Analysis
MKS disclosed 32 risk factors in its most recent earnings report. MKS reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MKS Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $10.64B | 74.00 | 9.56% | 0.89% | 13.81% | 23.79% | |
72 Outperform | $13.24B | 51.73 | 10.88% | ― | 44.48% | 8.59% | |
66 Neutral | $3.60B | 12.79 | 17.44% | ― | -3.99% | 14.06% | |
65 Neutral | $26.29B | 78.36 | 12.24% | 0.54% | 11.44% | 44.67% | |
64 Neutral | $4.23B | 10.61 | 33.42% | 0.26% | 4.08% | 15.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $7.10B | 141.76 | 1.72% | 1.43% | -3.37% | -59.55% |
* Technology Sector Average
MKSI
MKS
381.62
283.49
288.88%
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SANM
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248.81
153.56
161.22%
ST
Sensata
48.20
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67.58%
VNT
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MKS Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
MKS Shareholders Approve Amended Stock Plan and Governance Changes
Neutral
May 12, 2026
At the May 11, 2026 annual meeting, shareholders of MKS Inc. approved an amended and restated 2022 Stock Incentive Plan, increasing the share reserve for equity awards by 6.2 million shares and updating the plan to reflect the company’s 2025...
Executive/Board Changes
MKS Announces Retirement of Executive Vice President and Counsel
Neutral
Apr 6, 2026
On March 31, 2026, MKS Inc. announced that Kathleen F. Burke will retire from her roles as Executive Vice President, General Counsel and Secretary, effective June 1, 2026. The move marks a planned leadership transition in the company’s top l...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.