MKS (MKSI)
NASDAQ:MKSI
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MKS
(NASDAQ:MKSI)
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Rating:69Neutral
Price Target:
$308.00
▲(10.56% Upside)
Action:DowngradedDate:02/18/26
MKSI scores a 69 primarily on improving financial performance (profitability and free cash flow recovery with much lower leverage) supported by strong technical uptrend signals. The score is moderated by expensive valuation (high P/E and low yield) and momentum indicators that look stretched, while earnings-call guidance and refinancing actions add a positive but secondary boost.
Positive Factors
Strategic Market Position
MKS supplies essential process-control components (vacuum, gas, plasma, photonics) to OEMs and chipmakers, creating durable demand linked to semiconductor wafer fab investment cycles and long OEM relationships. That embedded position supports recurring aftermarket and upgrade revenue over multiple cycles.
Negative Factors
Elevated Net Leverage
Despite meaningful paydowns, net leverage near 3.7x remains elevated for a capital-intensive electronics supplier. Higher leverage constrains capital allocation, raises refinancing and covenant risk in a downturn, and means future free cash flow must prioritize debt reduction rather than growth investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic Market Position
MKS supplies essential process-control components (vacuum, gas, plasma, photonics) to OEMs and chipmakers, creating durable demand linked to semiconductor wafer fab investment cycles and long OEM relationships. That embedded position supports recurring aftermarket and upgrade revenue over multiple cycles.
Read all positive factors
MKS (MKSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.92B
Dividend Yield0.54%
Average Volume (3M)1.06M
Price to Earnings (P/E)36.5
Beta (1Y)2.43
Revenue Growth8.13%
EPS Growth780.20%
CountryUS
Employees10,200
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.47
Shares Outstanding67,321,700
10 Day Avg. Volume941,824
30 Day Avg. Volume1,062,342
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 Cap0.98
Enterprise Value/Revenue4.72
Enterprise Value/Gross Profit10.44
Enterprise Value/Ebitda21.33
Forecast
1Y Price Target
$295.91Price Target Upside6.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)9.85
Revenue Forecast (FY)$4.48B
MKS Business Overview & Revenue Model
Company Description
MKS Inc. provides instruments, systems, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of manufacturing processes worldwide. Its Vacuum & Analysis segment offers pressure a...
How the Company Makes Money
MKS makes money primarily by selling hardware, subsystems, and enabling technologies that OEMs and manufacturers integrate into or use alongside capital equipment—especially semiconductor manufacturing tools. A major revenue stream comes from supp...
MKS Key Performance Indicators (KPIs)
MKS Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted broad-based top-line growth across all three end markets (10% revenue growth, strong semiconductor and Electronics & Packaging performance), improved free cash flow (+21% YoY), active deleveraging and favorable capital structure moves that reduce interest expense. The company also provided constructive near-term guidance and outlined capacity investments to support an anticipated industry upcycle. Headwinds include year-over-year margin pressure from tariffs and palladium pass-through, softness in the automotive portion of specialty industrial, and an elevated but improving leverage profile. On balance, the positive operational execution, cash generation, and refinancing actions outweigh the described headwinds.Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 revenue of $1.03 billion, up 5% sequentially and 10% year-over-year; full-year 2025 revenue of $3.9 billion, up 10% year-over-year.
Negative Updates
Gross Margin Pressure Year-over-Year
Full-year gross margin declined 90 basis points year-over-year to 46.7%, driven by tariffs, product mix (record chemistry equipment sales) and higher palladium costs (palladium pass-through at zero margin). Management noted tariffs continue to impact gross margin by ~50 basis points going forward.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Q4 revenue of $1.03 billion, up 5% sequentially and 10% year-over-year; full-year 2025 revenue of $3.9 billion, up 10% year-over-year.
Read all positive updates
Company Guidance
MKS guided first-quarter revenue of $1.04 billion ± $40 million (semiconductor $150M ± $15M; Electronics & Packaging $305M ± $15M; Specialty Industrial $285M ± $10M), Q1 gross margin of 4%–6% ±100 bps, operating expenses of $270M ± $5M, adjusted EBITDA of $251M ± $24M, capex of ~4%–5% of revenue through 2026, a Q1 tax rate of ~21% (FY tax rate 18%–20%), and Q1 diluted EPS of $2.00 ± $0.28; they also noted ~$1.4B liquidity (cash $675M, undrawn revolver $675M), year-end net debt of $3.6B and net leverage of 3.7x on FY2025 adjusted EBITDA of $966M, expected annual interest savings of ~$27M from recent refinancing, and dividend actions (paid $0.22/sh; next dividend up 14%).MKS Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.93B | 3.59B | 3.62B | 3.55B | 2.95B |
| Gross Profit | 1.59B | 1.71B | 1.64B | 1.55B | 1.38B |
| EBITDA | 860.00M | 870.00M | -1.11B | 832.00M | 794.00M |
| Net Income | 295.00M | 190.00M | -1.84B | 333.00M | 551.00M |
Balance Sheet | |||||
| Total Assets | 8.80B | 8.59B | 9.12B | 11.49B | 4.54B |
| Cash, Cash Equivalents and Short-Term Investments | 675.00M | 714.00M | 875.00M | 910.00M | 1.04B |
| Total Debt | 4.69B | 4.78B | 5.02B | 5.17B | 1.03B |
| Total Liabilities | 6.08B | 6.27B | 6.65B | 7.01B | 1.65B |
| Stockholders Equity | 2.72B | 2.32B | 2.47B | 4.48B | 2.89B |
Cash Flow | |||||
| Free Cash Flow | 497.00M | 410.00M | 232.00M | 365.00M | 552.80M |
| Operating Cash Flow | 645.00M | 528.00M | 319.00M | 529.00M | 639.50M |
| Investing Cash Flow | -145.00M | -117.00M | -84.00M | -4.55B | -204.60M |
| Financing Cash Flow | -562.00M | -549.00M | -259.00M | 3.97B | -65.00M |
MKS Technical Analysis
Positive
278.59
Price Trends
242.33
Positive
211.76
Positive
165.29
Positive
Market Momentum
11.62
Negative
68.26
Neutral
86.50
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 278.59 is above the 20-day moving average (MA) of 246.83, above the 50-day MA of 242.33, and above the 200-day MA of 165.29, indicating a bullish trend. The MACD of 11.62 indicates Negative momentum. The RSI at 68.26 is Neutral, neither overbought nor oversold. The STOCH value of 86.50 is Negative, 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 | $10.49B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
71 Outperform | $9.06B | 46.06 | 7.72% | 0.89% | 10.23% | 25.53% | |
69 Neutral | $18.92B | 36.46 | 11.54% | 0.54% | 8.13% | 780.20% | |
68 Neutral | $3.92B | 13.96 | 18.49% | ― | 0.14% | 14.12% | |
68 Neutral | $6.08B | 155.81 | 1.11% | 1.43% | -8.07% | 63.50% | |
65 Neutral | $5.12B | 13.43 | 34.02% | 0.26% | 1.76% | 4.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MKSI
MKS
280.98
207.53
282.56%
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SANM
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192.16
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138.03%
ST
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41.69
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98.09%
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MKS Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
MKS Refinances Debt and Extends Credit Facility Maturities
Positive
Feb 5, 2026
On February 4, 2026, MKS Inc. completed a €1.0 billion private offering of 4.250% senior notes due 2034 placed with institutional investors under Rule 144A and Regulation S, and used the proceeds, together with cash on hand, to prepay approx...
Business Operations and StrategyPrivate Placements and Financing
MKS Prices €1 Billion Senior Notes to Refinance Debt
Positive
Jan 28, 2026
On January 26, 2026, MKS Inc. announced plans for a private offering of €1.0 billion in senior unsecured notes due 2034, followed on January 28, 2026, by the announcement of pricing for the issue, which is being placed with qualified institu...
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.