MKS Inc.
MKS Inc. Fundamental Analysis
MKS Inc. (MKSI) shows weak financial fundamentals with a PE ratio of 59.05, profit margin of 7.51%, and ROE of 11.54%. The company generates $3.9B in annual revenue with weak year-over-year growth of -0.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MKSI's fundamental strength across five key dimensions:
Efficiency Score
WeakMKSI struggles to generate sufficient returns from assets.
Valuation Score
WeakMKSI trades at a premium to fair value.
Growth Score
WeakMKSI faces weak or negative growth trends.
Financial Health Score
ExcellentMKSI maintains a strong and stable balance sheet.
Profitability Score
WeakMKSI struggles to sustain strong margins.
Key Financial Metrics
Is MKSI Expensive or Cheap?
P/E Ratio
MKSI trades at 59.05 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MKSI's PEG of 9.38 indicates potential overvaluation.
Price to Book
The market values MKS Inc. at 6.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.54 times EBITDA. This signals the market has high growth expectations.
How Well Does MKSI Make Money?
Net Profit Margin
For every $100 in sales, MKS Inc. keeps $7.51 as profit after all expenses.
Operating Margin
Core operations generate 13.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.54 in profit for every $100 of shareholder equity.
ROA
MKS Inc. generates $3.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MKS Inc. produces operating cash flow of $643.75M, showing steady but balanced cash generation.
Free Cash Flow
MKS Inc. generates strong free cash flow of $495.04M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.37 in free cash annually.
FCF Yield
MKSI converts 2.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
59.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How MKSI Stacks Against Its Sector Peers
| Metric | MKSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 59.05 | 35.19 | Worse (Expensive) |
| ROE | 11.54% | 1155.00% | Weak |
| Net Margin | 7.51% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 2.71 | 4.71 | Strong Liquidity |
| ROA | 3.35% | -314918.00% (disorted) | Weak |
MKSI outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MKS Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.45%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
10.01%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
75.56%
Industry Style: Growth, Innovation, High Beta
High Growth