MKS (MKSI) AI Stock Analysis

• Market Cap: $10.81B
• Dividend Yield: 0.56%
• Average Volume (3M): 962.09K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 2.66
• 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: 715,172
• 30 Day Avg. Volume: 962,085
• 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: 1.13
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 6.81
• Enterprise Value/Ebitda: 13.96
• 1Y Price Target: $173.91
• Price Target Upside: 8.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 7.65
• Revenue Forecast (FY): $3.89B

• Rating: 69 Neutral
• Price Target: $151.00 ▼(-6.19% Downside)

MKS's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in revenue growth and cash flow generation. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals, contributing to a moderate overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand in key markets, enhancing MKS's market position and supporting long-term business expansion.

Cash Flow Generation

Robust cash flow generation provides MKS with the financial flexibility to invest in growth opportunities and reduce debt, ensuring long-term financial health.

Deleveraging Efforts

Continued deleveraging strengthens MKS's balance sheet, reducing financial risk and improving the company's ability to navigate economic fluctuations.

Negative Factors

Semiconductor Revenue Decline

A decline in semiconductor revenue could signal challenges in a key market segment, potentially impacting future growth if not addressed.

Mixed Gross Margin Performance

Mixed gross margin performance due to external costs could pressure profitability, necessitating strategic cost management to maintain margins.

Challenges in Specialty Industrial Market

Stagnation in the specialty industrial market suggests limited growth prospects, requiring strategic initiatives to revitalize this segment.

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

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	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: 160.97
• 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 160.97 is above the 20-day moving average (MA) of 148.42, above the 50-day MA of 139.98, and above the 200-day MA of 103.75, indicating a bullish trend. The MACD of 4.44 indicates Negative momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 93.78 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	$8.29B	34.10	10.81%	―	7.40%	13.79%
MKSI	69 Neutral	$10.81B	39.15	11.12%	0.56%	8.13%	780.20%
VNT	67 Neutral	$5.17B	13.09	35.82%	0.28%	1.76%	4.10%
CGNX	66 Neutral	$6.36B	58.61	7.21%	0.85%	10.23%	25.53%
ITRI	66 Neutral	$4.46B	17.51	16.93%	―	0.14%	14.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ST	59 Neutral	$4.73B	―	-0.92%	1.50%	-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.