📊 MKSI Key Takeaways
Is Mks Inc. (MKSI) a Good Investment?
MKS demonstrates solid 9.6% revenue growth and healthy 47% gross margins, but fundamental efficiency metrics are deeply concerning with ROE of 3%, ROA of 1%, and minimal FCF generation ($28M or 2.6% of revenue). The severe divergence between operating income ($149M) and operating cash flow ($53M) signals potential working capital stress or earnings quality issues that offset the positive growth narrative.
MKS shows solid gross margins, resilient free cash generation, and strong liquidity, supporting ongoing operations and investment. However, flat net income despite near-10% revenue growth and elevated leverage with modest 2.5x interest coverage temper the outlook. Deleveraging and margin expansion are needed to unlock stronger earnings power.
Why Buy Mks Inc. Stock? MKSI Key Strengths
- Steady revenue growth of 9.6% YoY in stable industrial instruments sector
- Strong gross margin of 47% indicates pricing power and operational cost control
- Moderate leverage at 0.94x Debt/Equity with adequate interest coverage of 3.3x
- Robust cash generation with 12.6% FCF margin and OCF > net income
- Healthy gross margin (46.7%) and improving top-line (+9.6% YoY)
- Strong liquidity profile (current 2.71x, quick 1.71x)
MKSI Stock Risks: Mks Inc. Investment Risks
- Critically low returns: ROE of 3% and ROA of 1% indicate severe capital inefficiency
- Operating cash flow ($53M) trails operating income ($149M) by 64%, suggesting working capital drain or earnings quality deterioration
- Quick ratio of 0.70x below 1.0x threshold signals liquidity constraints; weak FCF ($28M) limits flexibility to service $2.6B debt
- High leverage (D/E 1.53x; $4.15B LT debt) limits flexibility
- Low interest coverage (2.5x) increases downside risk in downturns
- Flat net income suggests margin pressure and execution risk despite growth
Key Metrics to Watch
- Operating cash flow to operating income ratio - monitor earnings quality and working capital management
- Return on equity and return on assets - must improve from 3%/1% to justify capital structure
- Free cash flow generation and net working capital trends - critical for debt sustainability
- Interest coverage
- Operating margin
Mks Inc. (MKSI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.6% FCF margin may limit capital allocation flexibility.
MKSI Profit Margin, ROE & Profitability Analysis
MKSI vs Industrial Sector: How Mks Inc. Compares
How Mks Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Mks Inc. Stock Overvalued? MKSI Valuation Analysis 2026
Based on fundamental analysis, Mks Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Mks Inc. Balance Sheet: MKSI Debt, Cash & Liquidity
MKSI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Mks Inc.'s revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $-27.54 indicates the company is currently unprofitable.
MKSI Revenue Growth, EPS Growth & YoY Performance
MKSI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $936.0M | $52.0M | $0.77 |
| Q3 2025 | $896.0M | $15.0M | $0.92 |
| Q2 2025 | $887.0M | $15.0M | $0.33 |
| Q1 2025 | $868.0M | $15.0M | $0.22 |
| Q3 2024 | $896.0M | $15.0M | $0.58 |
| Q2 2024 | $887.0M | $15.0M | $0.33 |
| Q1 2024 | $794.0M | $15.0M | $0.22 |
| Q3 2023 | $932.0M | $6.0M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Mks Inc. Dividends, Buybacks & Capital Allocation
MKSI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Mks Inc. (CIK: 0001049502)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MKSI
What is the AI rating for MKSI?
Mks Inc. (MKSI) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MKSI's key strengths?
Claude: Steady revenue growth of 9.6% YoY in stable industrial instruments sector. Strong gross margin of 47% indicates pricing power and operational cost control. ChatGPT: Robust cash generation with 12.6% FCF margin and OCF > net income. Healthy gross margin (46.7%) and improving top-line (+9.6% YoY).
What are the risks of investing in MKSI?
Claude: Critically low returns: ROE of 3% and ROA of 1% indicate severe capital inefficiency. Operating cash flow ($53M) trails operating income ($149M) by 64%, suggesting working capital drain or earnings quality deterioration. ChatGPT: High leverage (D/E 1.53x; $4.15B LT debt) limits flexibility. Low interest coverage (2.5x) increases downside risk in downturns.
What is MKSI's revenue and growth?
Mks Inc. reported revenue of $1.1B.
Does MKSI pay dividends?
Mks Inc. pays dividends, with $17.0M distributed to shareholders in the trailing twelve months.
Where can I find MKSI SEC filings?
Official SEC filings for Mks Inc. (CIK: 0001049502) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MKSI's EPS?
Mks Inc. has a diluted EPS of $1.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MKSI a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Mks Inc. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MKSI stock overvalued or undervalued?
Valuation metrics for MKSI: ROE of 3.0% (sector avg: 15%), net margin of 7.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy MKSI stock in 2026?
Our dual AI analysis gives Mks Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MKSI's free cash flow?
Mks Inc.'s operating cash flow is $53.0M, with capital expenditures of $25.0M. FCF margin is 2.6%.
How does MKSI compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 7.8% (avg: 10%), ROE 3.0% (avg: 15%), current ratio 1.11 (avg: 1.8).