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MKS (MKSI)
NASDAQ:MKSI
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MKS (MKSI) AI Stock Analysis

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MKSI

MKS

(NASDAQ:MKSI)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
$119.00
▼(-2.57% 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 (MKSI) vs. SPDR S&P 500 ETF (SPY)

MKS Business Overview & Revenue Model

Company DescriptionMKS 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 MoneyMKS 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in key markets like Semiconductor and Electronics & Packaging, driven by AI applications and effective cost management. However, challenges such as tariff impacts on margins and mixed results in the Specialty Industrial market were noted. Overall, the positive aspects, including revenue growth and successful deleveraging, outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Strong Revenue Performance
MKS delivered strong revenue in Q2 2025, with total revenue of $973 million, up 4% sequentially and 10% year-over-year, exceeding the high end of the guidance.
Semiconductor Market Growth
Semiconductor revenue was $432 million, up 5% sequentially and 17% year-over-year, driven by strong demand for RF power solutions and vacuum products.
Electronics & Packaging Market Expansion
Electronics & Packaging revenue reached $266 million, up 5% sequentially and 16% year-over-year, boosted by growth in chemistry and equipment sales related to AI applications.
Successful Deleveraging
MKS made two prepayments on its term loan totaling $200 million, reducing leverage and demonstrating strong free cash flow management.
Recognition as an Employer
MKS was named the Best Company to Work for by U.S. News & World Report and included among America's Best Midsized Companies by TIME.
Negative Updates
Tariff Impact on Gross Margins
Incremental tariffs negatively impacted gross margin by 115 basis points in Q2 2025, although mitigation strategies are being implemented.
Specialty Industrial Market Challenges
Revenue from the Specialty Industrial market showed only modest growth and was affected by continued softness in the industrial market.
NAND Upgrade Cycle Volatility
The semiconductor revenue is expected to moderate in Q3 due to anticipated lumpiness in NAND upgrade activity.
Company Guidance
During the MKS Second Quarter 2025 Earnings Conference Call, the company reported strong financial performance, exceeding the high end of their guidance with $973 million in revenue, a 4% sequential and 10% year-over-year increase. The Semiconductor and Electronics & Packaging end markets significantly contributed to this growth, with semiconductor revenue at $432 million, a 5% sequential and 17% year-over-year rise. Electronics & Packaging revenue was $266 million, up 5% sequentially and 16% year-over-year. The Specialty Industrial market revenue was $275 million, showing a 2% sequential increase despite a 5% year-over-year decline. MKS highlighted their solid gross margin of 46.6%, though impacted by tariffs, and a net earnings per diluted share at the high end of guidance at $1.77. Looking forward, MKS projects third-quarter revenue of $960 million, plus or minus $40 million, maintaining a strong position in their key 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
75
Positive
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
65
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.74B3.59B3.62B3.55B2.95B2.33B
Gross Profit1.77B1.71B1.64B1.55B1.38B1.05B
EBITDA794.00M873.00M-1.18B826.00M794.00M551.30M
Net Income266.00M190.00M-1.84B333.00M551.00M350.00M
Balance Sheet
Total Assets8.83B8.59B9.12B11.49B4.54B3.90B
Cash, Cash Equivalents and Short-Term Investments674.00M714.00M875.00M910.00M1.04B836.00M
Total Debt4.70B4.78B5.02B5.17B1.03B1.03B
Total Liabilities6.27B6.27B6.65B7.01B1.65B1.54B
Stockholders Equity2.55B2.32B2.47B4.48B2.89B2.36B
Cash Flow
Free Cash Flow525.00M410.00M232.00M365.00M552.80M428.30M
Operating Cash Flow645.00M528.00M319.00M529.00M639.50M513.20M
Investing Cash Flow-118.00M-117.00M-84.00M-4.55B-204.60M-202.40M
Financing Cash Flow-699.00M-549.00M-259.00M3.97B-65.00M-121.50M

MKS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price122.14
Price Trends
50DMA
106.76
Positive
100DMA
99.96
Positive
200DMA
96.69
Positive
Market Momentum
MACD
5.54
Positive
RSI
62.08
Neutral
STOCH
38.87
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 122.14 is above the 20-day moving average (MA) of 116.33, above the 50-day MA of 106.76, and above the 200-day MA of 96.69, indicating a bullish trend. The MACD of 5.54 indicates Positive momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 38.87 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$6.08B24.4310.13%5.87%20.66%
77
Outperform
$7.69B64.098.10%0.70%10.14%57.53%
76
Outperform
$6.18B16.0632.88%0.24%1.16%0.98%
74
Outperform
$8.18B30.9611.12%0.72%4.47%2887.37%
73
Outperform
$5.67B21.1816.73%3.90%44.95%
63
Neutral
$4.40B39.823.87%1.59%-7.23%1278.91%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MKSI
MKS
122.14
18.53
17.88%
CGNX
Cognex
45.55
6.20
15.76%
ITRI
Itron
124.16
19.08
18.16%
SANM
Sanmina-Sci
115.11
48.23
72.11%
ST
Sensata
30.55
-4.02
-11.63%
VNT
Vontier
41.76
8.34
24.96%

MKS Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
MKS Instruments Announces Executive Changes and Name Update
Neutral
May 15, 2025

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.

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.Date of analysis: Aug 26, 2025