📊 MKSI Key Takeaways
Is MKSI a Good Investment? Thesis Analysis
MKS demonstrates solid fundamental strength with 9.6% revenue growth, robust free cash flow generation ($497M, 12.6% FCF margin), and healthy liquidity metrics. However, the flat net income growth despite revenue expansion and elevated leverage (1.53x Debt/Equity) warrant cautious optimism rather than enthusiastic conviction.
Why Buy MKSI? Key Strengths
- Strong revenue growth of 9.6% YoY in industrial measurement and control sector shows market demand
- Exceptional free cash flow generation of $497M (12.6% FCF margin) demonstrates cash conversion efficiency
- Healthy gross margin of 46.7% indicates strong pricing power and operational efficiency
- Solid liquidity position with 2.71x current ratio and $418M cash provides financial flexibility
- Operating cash flow of $645M exceeds capital requirements, supporting potential shareholder returns
MKSI Investment Risks to Consider
- Flat net income growth (0.0% YoY) despite 9.6% revenue expansion suggests margin compression or operational headwinds
- Elevated leverage with 1.53x Debt/Equity ratio and $4.2B long-term debt constrains financial flexibility
- Marginal interest coverage of 2.5x indicates limited cushion for earnings volatility or rate increases
- Modest ROE of 10.8% and ROA of 3.4% suggest suboptimal capital efficiency for the debt level carried
- Operating margin of 13.4% is reasonable but leaves limited room for operational improvement
Key Metrics to Watch
- Net income growth trajectory - critical to validate if revenue growth translates to bottom-line expansion
- Operating margin expansion - need to confirm 13.4% is a floor or ceiling
- Debt reduction progress - monitor if excess free cash flow is deployed to deleveraging below 1.4x
- Free cash flow sustainability - ensure $497M is repeatable and not inflated by working capital timing
MKSI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.71x current ratio provides a solid financial cushion.
MKSI Profitability Ratios
MKSI vs Industrial Sector
How MKS INC compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MKSI Overvalued or Undervalued?
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.
MKSI Balance Sheet & Liquidity
MKSI 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
MKSI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $765.0M | -$42.0M | $2.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MKSI Capital Allocation
MKSI SEC 10-K & 10-Q Filing 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 an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MKSI's key strengths?
Claude: Strong revenue growth of 9.6% YoY in industrial measurement and control sector shows market demand. Exceptional free cash flow generation of $497M (12.6% FCF margin) demonstrates cash conversion efficiency.
What are the risks of investing in MKSI?
Claude: Flat net income growth (0.0% YoY) despite 9.6% revenue expansion suggests margin compression or operational headwinds. Elevated leverage with 1.53x Debt/Equity ratio and $4.2B long-term debt constrains financial flexibility.
What is MKSI's revenue and growth?
MKS INC reported revenue of $3.9B.
Does MKSI pay dividends?
MKS INC pays dividends, with $59.0M 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 $4.37.
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 April 2026, MKS INC has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MKSI stock overvalued or undervalued?
Valuation metrics for MKSI: ROE of 10.8% (sector avg: 15%), net margin of 7.5% (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 BUY 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 $645.0M, with capital expenditures of $148.0M. FCF margin is 12.6%.
How does MKSI compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 7.5% (avg: 10%), ROE 10.8% (avg: 15%), current ratio 2.71 (avg: 1.8).