MKS (MKSI) AI Stock Analysis

• Market Cap: $14.78B
• Dividend Yield: 0.54%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 55.8
• Beta (1Y): 2.59
• 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: 2,085,636
• 30 Day Avg. Volume: 1,151,095
• 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: 1.26
• Enterprise Value/Revenue: 4.87
• Enterprise Value/Gross Profit: 10.38
• Enterprise Value/Ebitda: 21.26
• 1Y Price Target: $225.25
• Price Target Upside: -1.89% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: $252.00 ▲(9.77% Upside)

Score is driven primarily by solid financial performance (especially strong free cash flow and improved leverage) and a positive earnings outlook/capital structure actions. These strengths are tempered by elevated valuation (high P/E, low yield) and technically overbought conditions that increase near-term downside risk.

Positive Factors

Free Cash Flow Strength

Sustained, very strong free cash flow growth (114% TTM) and healthy OCF/net income (0.77) provide durable internal funding for capex, R&D, dividends or debt paydown. This underpins balance-sheet flexibility and resilience through industry cycles over the next 2–6 months.

Improving Leverage and Balance Sheet

Material reduction in leverage (debt/equity ~0.12) and active prepayments signal a structurally stronger balance sheet. Lower leverage reduces refinancing and liquidity risk, enhancing capacity to invest or weather downturns without sacrificing growth initiatives.

Market Position in Advanced Packaging / AI Demand

Structural AI and high-performance computing adoption is driving durable demand for advanced packaging and chemistry solutions. MKS's strong electronics & packaging growth (25% YoY) and product relevance position it to capture multi-quarter secular tailwinds versus more cyclical peers.

Negative Factors

Relatively Low Net Profitability

A low net margin (~7.3%) limits the company's ability to absorb rising costs or margin shocks from tariffs, pricing pressure, or mix shifts. Even with healthy gross margins, constrained bottom-line profitability can impair reinvestment and sustained EPS growth over the medium term.

Exposure to Semiconductor Cyclicality

Significant exposure to semiconductor equipment and NAND upgrade timing creates revenue volatility tied to capex cycles. This structural cyclicality can produce uneven cash flow and utilization swings across quarters, challenging stable growth and planning over the next several months.

Margin & Integration Risks from Mix, Tariffs and Acquisitions

Gross-margin pressure from tariffs and a higher mix of lower-margin chemistry sales, combined with Atotech integration and refinancing execution risks, pose durable headwinds. Execution or market-rate setbacks could increase costs, impair synergies, or raise funding costs over the medium term.

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 and vacuum control solutions, including direct and indirect pressure measurement; materials delivery solutions comprising flow and valve technologies, as well as integrated pressure measurement and control subsystems, which provide customers with precise control capabilities; power solutions products, such as microwave, power delivery systems, radio frequency matching networks, and metrology products used in providing energy to etching, stripping, and deposition processes; and plasma and reactive gas products. Its Light & Motion segment offers laser products, such as continuous wave and pulsed nanosecond, diode and diode-pumped solid-state, and fiber laser technologies; and photonics products comprising motion control, optical tables and vibration isolation systems, photonic instruments, optics and optical assemblies, opto-mechanical components, temperature sensing products for wafer fabrication systems, and laser and LED measurement products, including laser power and energy meters, laser beam profilers, and optical and photonic subsystems. Its Equipment & Solutions segment provides laser-based systems for printed circuit board (PCB) manufacturing, including flexible interconnect PCB processing systems and high-density interconnect solutions for rigid PCB manufacturing and substrate processing, and multi-layer ceramic capacitor test systems. It serves semiconductor, industrial technologies, life and health sciences, research, and defense markets. It sells its products and services through its direct sales organization, independent distributors, and sales representatives, as well as through its websites and product catalogs. The company was incorporated in 1961 and is headquartered in Andover, Massachusetts.

How the Company Makes Money

MKS generates revenue through the sale of its products and services, which are primarily focused on the semiconductor manufacturing industry. The company earns money by providing high-precision instruments and control systems that enable manufacturers to improve their production processes, reduce costs, and enhance product quality. Key revenue streams include the sale of new equipment, ongoing service agreements, and maintenance contracts. MKS also benefits from strategic partnerships with major players in the semiconductor and industrial equipment sectors, which help to expand its market reach and drive sales. Additionally, the company focuses on innovation and product development to meet the evolving needs of its customers, contributing to consistent revenue growth.

MKS Financial Statement Overview

Summary

Solid overall fundamentals supported by strong cash flow (free cash flow growth 114.3% TTM; healthy cash conversion) and good operating margins. Balance sheet has improved with much lower leverage (debt-to-equity 0.12 TTM), though profitability is still moderate (net margin 7.25%) and prior leverage history is a residual risk.

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	878.00M	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	530.00M	410.00M	232.00M	365.00M	552.80M	428.00M
Operating Cash Flow	679.00M	528.00M	319.00M	529.00M	639.50M	513.00M
Investing Cash Flow	-147.00M	-117.00M	-84.00M	-4.55B	-204.60M	-202.00M
Financing Cash Flow	-683.00M	-549.00M	-259.00M	3.97B	-65.00M	-122.00M

MKS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 229.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 229.58 is above the 20-day moving average (MA) of 212.26, above the 50-day MA of 181.38, and above the 200-day MA of 126.03, indicating a bullish trend. The MACD of 15.82 indicates Positive momentum. The RSI at 59.67 is Neutral, neither overbought nor oversold. The STOCH value of 44.39 is Neutral, 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	71 Outperform	$7.96B	34.86	9.74%	―	7.40%	13.79%
CGNX	70 Outperform	$6.83B	63.09	7.21%	0.89%	10.23%	25.53%
ITRI	70 Outperform	$4.67B	18.33	16.93%	―	0.14%	14.12%
MKSI	70 Neutral	$14.78B	55.83	11.12%	0.54%	8.13%	780.20%
VNT	67 Neutral	$5.83B	14.24	35.82%	0.26%	1.76%	4.10%
ST	63 Neutral	$5.26B	-188.71	-0.92%	1.43%	-8.07%	63.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

MKS Corporate Events

MKS Prices €1 Billion Senior Notes to Refinance Debt

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 institutional buyers under Rule 144A and with non-U.S. investors under Regulation S. The company expects to receive roughly €985 million in net proceeds and, together with proceeds from previously announced refinancings of its $2.2 billion U.S. dollar tranche B term loan and €587 million euro tranche B term loan plus cash on hand, intends to prepay about $1.3 billion of and fully refinance the U.S. dollar tranche B facility and fully refinance the euro tranche B facility, with the note offering scheduled to close on February 4, 2026, subject to customary conditions, in a move that will significantly reshape and extend the company’s debt profile and could reduce its reliance on term-loan financing.

The most recent analyst rating on (MKSI) stock is a Buy with a $260.00 price target. To see the full list of analyst forecasts on MKS stock, see the MKSI Stock Forecast page.

MKS Plans Comprehensive Capital Structure Refinancing With Lenders

MKS Inc. plans to meet with existing and prospective lenders on January 22, 2026 to discuss a comprehensive refinancing of its capital structure, including replacing its existing $2.2 billion term loan with a new approximately $0.9 billion term loan maturing in 2033, refinancing its existing €0.6 billion term loan with a new facility also maturing in 2033, and enlarging its revolving credit facility from $675 million to $1 billion while extending that facility’s maturity to 2031. The contemplated transactions, which are subject to market conditions and may not close, are designed to be leverage-neutral while extending debt maturities and reducing interest expense, and the company’s accompanying lender presentation emphasizes the use of non-GAAP financial metrics to analyze ongoing business trends and compares past periods, underscoring management’s focus on capital structure optimization amid its exposure to cyclical semiconductor and industrial end markets and risks linked to its Atotech chemicals technology acquisition.

The most recent analyst rating on (MKSI) stock is a Buy with a $227.00 price target. To see the full list of analyst forecasts on MKS stock, see the MKSI Stock Forecast page.