MKS (MKSI) AI Stock Analysis

• Market Cap: $9.51B
• Dividend Yield: 0.63%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 34.7
• Beta (1Y): 2.62
• Revenue Growth: 4.47%
• EPS Growth: 2887.37%
• Country: US
• Employees: 10,200
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.77
• Shares Outstanding: 67,159,004
• 10 Day Avg. Volume: 1,084,162
• 30 Day Avg. Volume: 1,393,543
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: 13.50
• 1Y Price Target: $138.60
• Price Target Upside: -1.51% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: $119.00 ▼(-15.44% Downside)

MKS Instruments demonstrates strong financial performance and positive technical indicators, supported by robust earnings call highlights. The high debt level and valuation concerns slightly offset these strengths. Continued focus on reducing leverage and improving profitability will be crucial for sustaining growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand across key markets, supporting long-term business expansion and market position.

Semiconductor Market Growth

Strong performance in the semiconductor market underscores MKS's competitive edge and positions it well for future technological advancements.

Successful Deleveraging

Reducing debt enhances financial flexibility and stability, allowing MKS to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in future growth.

Tariff Impact on Margins

Tariff-related margin pressures could affect profitability, necessitating strategic adjustments to maintain competitive pricing and margins.

Specialty Industrial Market Challenges

Challenges in the Specialty Industrial market may hinder growth prospects, requiring strategic focus to capitalize on emerging opportunities.

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 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 shows strong revenue growth and efficient cash flow management, with a solid gross profit margin. However, the high debt-to-equity ratio poses a risk, and there is room for improvement in net profit margins.

Income Statement

MKS has demonstrated a solid revenue growth rate of 2.35% in the TTM, recovering from a slight decline in the previous year. The gross profit margin remains strong at 47.33%, indicating efficient cost management. However, the net profit margin is relatively low at 7.11%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting consistent operational performance.

Balance Sheet

The company's debt-to-equity ratio is high at 1.84, indicating significant leverage, which could pose a risk if not managed carefully. However, the return on equity has improved to 11.05%, showing better utilization of equity. The equity ratio stands at 28.92%, suggesting a moderate level of financial stability.

Cash Flow

MKS has shown a healthy free cash flow growth rate of 8.47% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.78, and the free cash flow to net income ratio is 0.81, both reflecting efficient cash flow management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.74B	3.59B	3.62B	3.55B	2.95B	2.33B
Gross Profit	1.77B	1.71B	1.64B	1.55B	1.38B	1.05B
EBITDA	794.00M	873.00M	-1.18B	826.00M	794.00M	551.30M
Net Income	266.00M	190.00M	-1.84B	333.00M	551.00M	350.00M
Balance Sheet
Total Assets	8.83B	8.59B	9.12B	11.49B	4.54B	3.90B
Cash, Cash Equivalents and Short-Term Investments	674.00M	714.00M	875.00M	910.00M	1.04B	836.00M
Total Debt	4.70B	4.78B	5.02B	5.17B	1.03B	1.03B
Total Liabilities	6.27B	6.27B	6.65B	7.01B	1.65B	1.54B
Stockholders Equity	2.55B	2.32B	2.47B	4.48B	2.89B	2.36B
Cash Flow
Free Cash Flow	525.00M	410.00M	232.00M	365.00M	552.80M	428.30M
Operating Cash Flow	645.00M	528.00M	319.00M	529.00M	639.50M	513.20M
Investing Cash Flow	-118.00M	-117.00M	-84.00M	-4.55B	-204.60M	-202.40M
Financing Cash Flow	-699.00M	-549.00M	-259.00M	3.97B	-65.00M	-121.50M

MKS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.73
• 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 140.73 is above the 20-day moving average (MA) of 131.76, above the 50-day MA of 118.35, and above the 200-day MA of 98.86, indicating a bullish trend. The MACD of 5.74 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 89.49 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	79 Outperform	$7.07B	28.40	11.58%	―	5.87%	20.66%
MKSI	74 Outperform	$9.51B	34.70	11.12%	0.63%	4.47%	2887.37%
ITRI	73 Outperform	$6.13B	22.89	18.92%	―	3.90%	44.95%
VNT	71 Outperform	$6.32B	16.20	35.63%	0.23%	1.16%	0.98%
CGNX	70 Outperform	$7.94B	64.44	8.10%	0.66%	10.14%	57.53%
ST	67 Neutral	$4.63B	41.21	3.78%	1.51%	-7.23%	1278.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

MKS Corporate Events

MKS Instruments Announces Executive Changes and Name Update

On May 12, 2025, MKS Instruments announced key executive appointments effective August 1, 2025, with James A. Schreiner becoming Executive Vice President and Chief Operating Officer and David P. Henry taking on the role of Executive Vice President, Global Strategic Marketing and General Manager, Materials Solutions Division. These appointments are accompanied by salary increases and stock unit awards for the executives. Additionally, at the 2025 Annual Meeting, shareholders approved amendments to the company’s Restated Articles of Organization and By-Laws to lower voting requirements and change the company’s name to MKS Inc., effective May 16, 2025. This change reflects the company’s expanded market presence and capabilities.

The most recent analyst rating on (MKSI) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on MKS Instruments stock, see the MKSI Stock Forecast page.