MKS (MKSI) AI Stock Analysis

• Market Cap: $10.40B
• Dividend Yield: 0.64%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 37.6
• Beta (1Y): 2.71
• Revenue Growth: 8.13%
• EPS Growth: 780.20%
• Country: US
• Employees: 10,200
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.93
• Shares Outstanding: 67,169,470
• 10 Day Avg. Volume: 1,237,462
• 30 Day Avg. Volume: 1,089,819
• PEG Ratio: -0.34
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 17.14
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 6.81
• Enterprise Value/Ebitda: 13.88
• 1Y Price Target: $172.80
• Price Target Upside: 8.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 7.12
• Revenue Forecast (FY): $3.83B

• Rating: 74 Outperform
• Price Target: $174.00 ▲(9.50% Upside)

MKS Instruments exhibits strong financial performance and impressive cash flow management, which are the most significant factors contributing to the score. Technical analysis supports a positive outlook with bullish momentum. However, the valuation suggests the stock is relatively expensive, and there are challenges in certain market segments as highlighted in the earnings call.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand in key markets, enhancing MKS's market position and supporting future expansion.

Cash Flow Management

Effective cash flow management provides MKS with financial flexibility for investments and debt reduction, strengthening long-term stability.

Deleveraging Efforts

Reducing leverage through debt prepayments improves financial health and reduces interest expenses, enhancing future profitability.

Negative Factors

Semiconductor Revenue Decline

A decline in semiconductor revenue could indicate challenges in maintaining growth in a key segment, affecting overall performance.

Mixed Gross Margin Performance

Tariff-related costs and lower-margin sales mix can pressure profitability, potentially limiting margin expansion in the near term.

Specialty Industrial Market Challenges

Stagnation in the specialty industrial segment suggests limited growth opportunities, potentially hindering overall revenue diversification.

MKS Business Overview & Revenue Model

Company Description

MKS Instruments, Inc. (MKSI) is a global provider of instruments, systems, and services that enable advanced processes and manufacturing across a range of industries including semiconductor, industrial technologies, and life sciences. The company specializes in delivering solutions related to vacuum technology, pressure measurement, gas analysis, and semiconductor manufacturing equipment, thereby supporting the production of high-tech devices and materials.

How the Company Makes Money

MKS generates revenue primarily through the sale of its products and services, which include vacuum solutions, pressure control instruments, and gas management systems. Key revenue streams consist of direct sales of equipment and instruments to manufacturers in the semiconductor and industrial sectors, as well as recurring revenue from service contracts and aftermarket support. Significant partnerships with major manufacturers in the semiconductor industry enhance their market reach and contribute to consistent revenue growth. Additionally, MKS benefits from expanding its portfolio through strategic acquisitions, which allows them to offer integrated solutions and tap into new markets.

MKS Financial Statement Overview

Summary

MKS demonstrates strong financial performance with consistent revenue growth and effective cost management. The balance sheet shows improved leverage, enhancing financial stability. Cash flow performance is particularly impressive, providing a solid foundation for future growth and resilience against potential market fluctuations.

Income Statement

MKS has shown a steady revenue growth with a TTM increase of 2.46%. The gross profit margin remains strong at 46.95%, indicating efficient cost management. However, the net profit margin is relatively low at 7.25%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.12 in the TTM, indicating reduced leverage and a stronger balance sheet. Return on equity is decent at 11.31%, showing effective use of equity. The equity ratio is stable, suggesting a balanced asset structure. However, past high leverage could pose potential risks.

Cash Flow

MKS has demonstrated robust cash flow management with a free cash flow growth rate of 114.3% in the TTM. The operating cash flow to net income ratio is strong at 0.77, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also healthy, supporting future investments and debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.83B	3.59B	3.62B	3.55B	2.95B	2.33B
Gross Profit	1.80B	1.71B	1.64B	1.55B	1.38B	1.05B
EBITDA	883.00M	870.00M	-1.11B	832.00M	794.00M	551.00M
Net Income	279.00M	190.00M	-1.84B	333.00M	551.00M	350.00M
Balance Sheet
Total Assets	8.78B	8.59B	9.12B	11.49B	4.54B	3.90B
Cash, Cash Equivalents and Short-Term Investments	697.00M	714.00M	875.00M	910.00M	1.04B	836.00M
Total Debt	4.58B	4.78B	5.02B	5.17B	1.03B	1.03B
Total Liabilities	6.18B	6.27B	6.65B	7.01B	1.65B	1.54B
Stockholders Equity	2.60B	2.32B	2.47B	4.48B	2.89B	2.36B
Cash Flow
Free Cash Flow	531.00M	410.00M	232.00M	365.00M	552.80M	428.30M
Operating Cash Flow	679.00M	528.00M	319.00M	529.00M	639.50M	513.20M
Investing Cash Flow	-147.00M	-117.00M	-84.00M	-4.55B	-204.60M	-202.40M
Financing Cash Flow	-684.00M	-549.00M	-259.00M	3.97B	-65.00M	-121.50M

MKS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 158.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 158.9 is above the 20-day moving average (MA) of 142.26, above the 50-day MA of 129.82, and above the 200-day MA of 100.96, indicating a bullish trend. The MACD of 6.32 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 90.91 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
SANM	78 Outperform	$9.07B	38.19	10.38%	―	7.40%	13.79%
MKSI	74 Outperform	$10.40B	37.65	11.12%	0.64%	8.13%	780.20%
ITRI	69 Neutral	$4.82B	18.94	16.93%	―	0.14%	14.12%
CGNX	66 Neutral	$6.58B	60.65	7.21%	0.77%	10.23%	25.53%
VNT	63 Neutral	$5.51B	13.94	35.82%	0.27%	1.76%	4.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ST	61 Neutral	$4.52B	―	-0.92%	1.51%	-8.07%	63.50%

MKS Corporate Events

MKS Inc. Reports Strong Q3 2025 Financial Results

MKS Inc. is a global provider of enabling technologies for semiconductor manufacturing, electronics and packaging, and specialty industrial applications, offering solutions that enhance process performance and productivity. In its third quarter of 2025 financial results, MKS Inc. reported revenue of $988 million, reaching the high end of its guidance, with a GAAP net income of $74 million and an adjusted EBITDA of $240 million. The company also achieved a free cash flow of $147 million, which has allowed it to focus on debt prepayment, reducing its net leverage ratio to 3.9x.

MKS Instruments Reports Strong Q3 Earnings Amid Market Challenges

MKS Instruments’ recent earnings call highlighted a positive sentiment, underscored by robust revenue growth and strong cash flow generation. The company showcased notable achievements, particularly in the electronics and packaging segment, driven by AI-related demand. Despite these successes, challenges were noted in the semiconductor sector due to the timing of NAND upgrades and mixed gross margin performance influenced by tariffs and equipment sales mix.

MKS Inc. Reports Strong Q2 2025 Financial Results

MKS Inc., a prominent player in the semiconductor and electronics manufacturing industry, specializes in providing advanced technology solutions that enhance process performance and productivity. In its latest earnings report for the second quarter of 2025, MKS Inc. announced a revenue of $973 million, surpassing its guidance expectations. The company also reported a GAAP net income of $62 million and an adjusted EBITDA of $240 million, both exceeding the high end of their guidance range.

MKS Instruments Reports Strong Earnings Amid Market Challenges

The recent earnings call for MKS Instruments painted a generally positive picture, highlighting strong revenue performance in key segments such as Semiconductor and Electronics & Packaging. The company showcased effective cost management and strategic deleveraging efforts. However, there were concerns regarding the impact of tariffs and softness in specific market segments like Specialty Industrial.