Mks Inc. (MKSI)
NASDAQ:MKSI
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MKS
(NASDAQ:MKSI)
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Rating:69Neutral
Price Target:
$343.00
▲(23.12% Upside)
Action:Downgraded
Date:05/09/26
The score is driven by improving fundamentals and a strong earnings-call outlook (above-guidance results and constructive Q2 guidance), reinforced by bullish technical trend signals. These positives are tempered by expensive valuation (high P/E, low yield) and remaining balance-sheet/cash-flow execution risks (elevated leverage and softer recent free cash flow).
Positive Factors
Broad-based Revenue Growth
Sustained, multi-segment revenue acceleration—notably semiconductor and E&P—signals durable demand driven by AI and advanced packaging. Broad end-market momentum reduces reliance on any single cycle, supports backlog and capacity utilization, and underpins revenue visibility over the next 2–6 months.
Negative Factors
Elevated Net Leverage
Though improved, leverage near 3.5x leaves limited margin for error if end-market demand softens. Elevated indebtedness increases sensitivity to slower cashflow conversion or cyclical WFE declines, constraining capital allocation flexibility and potentially slowing deleveraging absent sustained free cash flow recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based Revenue Growth
Sustained, multi-segment revenue acceleration—notably semiconductor and E&P—signals durable demand driven by AI and advanced packaging. Broad end-market momentum reduces reliance on any single cycle, supports backlog and capacity utilization, and underpins revenue visibility over the next 2–6 months.
Read all positive factors
MKS Key Performance Indicators (KPIs)
MKS (MKSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.97B
Dividend Yield0.54%
Average Volume (3M)1.21M
Price to Earnings (P/E)46.1
Beta (1Y)2.42
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. Volume1,563,891
30 Day Avg. Volume1,211,255
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 Cap1.11
Enterprise Value/Revenue5.43
Enterprise Value/Gross Profit12.02
Enterprise Value/Ebitda23.93
Forecast
1Y Price Target
$364.45Price Target Upside30.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)11.65
Revenue Forecast (FY)$4.79B
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 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 | 1.84B | 1.59B | 1.71B | 1.64B | 1.55B | 1.38B |
| EBITDA | 924.00M | 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 | 1.64B | 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
262.90
Positive
241.07
Positive
186.14
Positive
Market Momentum
11.66
Positive
54.01
Neutral
36.93
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 292.86, above the 50-day MA of 262.90, and above the 200-day MA of 186.14, indicating a bullish trend. The MACD of 11.66 indicates Positive momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 36.93 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 | $10.30B | 39.87 | 9.56% | 0.89% | 13.81% | 23.79% | |
70 Outperform | $12.07B | 18.96 | 10.88% | ― | 44.48% | 8.59% | |
69 Neutral | $19.97B | 46.10 | 12.24% | 0.54% | 11.44% | 44.67% | |
67 Neutral | $6.95B | 14.72 | 1.72% | 1.43% | -3.37% | -59.55% | |
66 Neutral | $3.58B | 18.75 | 17.44% | ― | -3.99% | 14.06% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $3.94B | 13.30 | 33.42% | 0.26% | 4.08% | 15.31% |
* Technology Sector Average
MKSI
MKS
311.51
226.96
268.45%
CGNX
Cognex
63.37
33.85
114.70%
ITRI
Itron
81.35
-33.45
-29.14%
SANM
Sanmina-Sci
231.18
149.07
181.55%
ST
Sensata
47.74
22.52
89.28%
VNT
Vontier
28.42
-7.13
-20.05%
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...
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.