MKS Inc. Common Stock
MKSI
$285.31
-9.63%
MKS Inc. provides foundational technology solutions for leading-edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications, offering instruments, components, subsystems, and process control solutions. As a critical enabler in the semiconductor capital equipment ecosystem, the company differentiates itself through its broad portfolio spanning vacuum, photonics, and materials solutions that address miniaturization and complexity challenges. The current investor narrative centers on the company's strong revenue growth trajectory, driven by robust demand in semiconductor capital equipment and expanding margins, with analysts closely watching its ability to sustain momentum amid cyclical industry dynamics.…
MKSI
MKS Inc. Common Stock
$285.31
MKSI 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on MKS Inc. Common Stock's 12-month outlook, with a consensus price target around $412.31 and implied upside of +44.5% versus the current price.
Average Target
$412.31
0 analysts
Implied Upside
+44.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$265 - $600
Analyst target range
MKS is covered by 13 analysts, with a consensus leaning bullish as indicated by ratings such as Outperform, Overweight, and Buy from firms like Mizuho, Morgan Stanley, Keybanc, and B of A Securities. The average target price is $412.31, implying approximately +25.3% upside from the current price of $329.18. The consensus recommendation is not explicitly provided but appears to be bullish based on the ratings. The target range spans from a low of $265.00 to a high of $600.00, indicating significant dispersion in analyst expectations. The high target of $600 assumes continued strong growth and multiple expansion, while the low target of $265 suggests risks such as margin compression or cyclical downturn. Recent ratings have been reaffirmed, with no downgrades noted, and firms like Morgan Stanley and Keybanc have maintained Overweight ratings. The wide spread between low and high targets (over 100% difference) signals high uncertainty about the company's future performance, typical for a cyclical semiconductor equipment company.
Drowning in data?
Find the real signal!
Bulls vs Bears: MKSI Investment Factors
MKSI presents a compelling growth story with strong revenue acceleration, improving margins, and a PEG ratio suggesting undervaluation relative to growth. The analyst consensus is bullish, with an average target implying 25% upside. However, the stock carries significant risks: a high trailing P/E, recent sharp pullback, high beta, and moderate debt. The single most important tension is whether the company can sustain its revenue growth and margin expansion to justify its valuation. If growth decelerates or margins compress, the stock could face severe multiple compression. Conversely, if the company delivers on earnings expectations, the forward P/E of 21.4x appears reasonable and supports further upside. Overall, the bull case has stronger evidence given the growth trajectory and analyst support, but investors must be prepared for high volatility.
Bullish
- Strong Revenue Growth Trajectory: Revenue grew 15.2% YoY to $1,078M in Q1 2026, accelerating from $887M in Q2 2024. This consistent growth is driven by demand in semiconductor capital equipment, positioning MKSI as a key beneficiary of industry expansion.
- Attractive PEG Ratio of 0.65: With a PEG ratio of 0.65, the stock appears undervalued relative to its earnings growth rate. This suggests the market is not fully pricing in the expected EPS growth, offering potential upside.
- Analyst Consensus Bullish with 25% Upside: The average analyst target price of $412.31 implies approximately 25.3% upside from the current price of $329.18. Ratings from firms like Mizuho, Morgan Stanley, and Keybanc are Overweight/Buy, reflecting confidence in the company's prospects.
- Improving Operating Margins: Operating margin improved to 16.0% in Q1 2026 from 11.9% a year earlier, demonstrating operating leverage as revenue scales. This trend supports earnings growth and valuation expansion.
Bearish
- High Trailing P/E of 36.4x: The trailing P/E of 36.4x is elevated relative to the broader market, implying high growth expectations. Any disappointment in earnings could lead to multiple compression and significant downside.
- Recent Price Pullback of 13.7% in 1 Month: The stock has declined 13.7% in the past month, underperforming the S&P 500 by 14.5%. This sharp correction may signal profit-taking or concerns about near-term demand, increasing volatility.
- High Beta of 1.93 Amplifies Market Risk: With a beta of 1.93, MKSI is nearly twice as volatile as the market. In a downturn, the stock could fall significantly more than the broader market, posing substantial risk for investors.
- Moderate Debt-to-Equity of 1.73: The debt-to-equity ratio of 1.73 indicates moderate leverage. While free cash flow covers debt, rising interest rates could pressure earnings and reduce financial flexibility.
MKSI Technical Analysis
MKS stock is in a strong long-term uptrend, with a 1-year price change of +230.7%, significantly outperforming the S&P 500's +16.5%. The current price of $329.18 sits at 73.5% of its 52-week range ($88.49 low to $447.62 high), indicating the stock is in the upper half of its range but off the highs, suggesting a consolidation phase after a powerful rally. This positioning implies the market still has a positive bias, but the pullback from the peak may signal profit-taking or a pause before the next leg. Over the past 3 months, the stock has gained 17.2%, while the 1-month change is -13.7%, showing a sharp short-term pullback that diverges from the longer-term uptrend. This divergence could indicate a temporary correction or mean reversion, especially given the stock's high beta of 1.93, which amplifies market moves. The relative strength versus the S&P 500 over 1 month is -14.5%, confirming recent underperformance. Key support lies near the 52-week low of $88.49, but more immediate support may be around the $300 level, while resistance is at the 52-week high of $447.62. A breakout above $447.62 would signal a resumption of the uptrend, while a breakdown below $300 could indicate further weakness. With a beta of 1.93, MKS is nearly twice as volatile as the market, requiring careful risk management.
Beta
1.93
1.93x market volatility
Max Drawdown
-35.9%
Largest decline past year
52-Week Range
$88-$448
Price range past year
Annual Return
+178.8%
Cumulative gain past year
| Period | MKSI Return | S&P 500 |
|---|---|---|
| 1m | -26.6% | +1.6% |
| 3m | +7.5% | +4.1% |
| 6m | +17.0% | +6.8% |
| 1y | +178.8% | +16.3% |
| ytd | +69.5% | +8.6% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
MKSI Fundamental Analysis
MKS's revenue trajectory is strongly growing, with the most recent quarterly revenue of $1,078 million representing a 15.2% year-over-year increase. Over the past five quarters, revenue has risen from $887 million (Q2 2024) to $1,078 million (Q1 2026), demonstrating consistent acceleration. The company's product segment generated $954 million of revenue, while service contributed $124 million, indicating that product sales are the primary growth driver. This growth trajectory supports the investment case as MKS benefits from increasing semiconductor capital equipment demand. The company is profitable, with net income of $84 million in the most recent quarter and a net margin of 7.8%. Gross margin has been relatively stable around 41-47% over the past year, with the latest quarter at 41.2%, slightly below the prior year's levels. Operating margin improved to 16.0% in Q1 2026 from 11.9% a year earlier, indicating operating leverage. While net margin is modest, the trajectory is positive, and the company is generating solid profits. MKS has a debt-to-equity ratio of 1.73, indicating moderate leverage, but free cash flow (TTM) of $401 million provides ample coverage. The current ratio of 2.71 suggests strong liquidity, and ROE of 10.8% reflects decent shareholder returns. The company generated $53 million in operating cash flow in the latest quarter, with free cash flow of $28 million, sufficient to fund capital expenditures of $25 million. Overall, the balance sheet appears healthy, with manageable debt and positive cash generation.
Quarterly Revenue
$1.1B
2026-03
Revenue YoY Growth
+15.2%
YoY Comparison
Gross Margin
41.2%
Latest Quarter
Free Cash Flow
$401000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is MKSI Overvalued?
Since net income is positive, we lead with the P/E ratio. The trailing P/E is 36.4x, while the forward P/E is 21.4x, implying the market expects significant earnings growth. The gap between trailing and forward P/E suggests that earnings are expected to increase substantially, which aligns with the company's strong revenue growth and margin expansion. Compared to the industry, MKS's trailing P/E of 36.4x is above the sector average (data not provided), but the forward P/E of 21.4x may be more in line if growth is superior. The PEG ratio of 0.65x indicates that the stock is undervalued relative to its growth rate, supporting the case for further upside. Historically, MKS's trailing P/E has ranged from negative (during loss periods) to over 200x, with the current 36.4x near the lower end of its recent history. The P/B ratio of 3.96x is above the sector average (data not provided), but given the company's strong ROE and growth, a premium may be justified. The EV/Sales multiple of 6.64x and EV/EBITDA of 17.2x reflect a premium valuation, but the company's growth trajectory and profitability support these levels.
PE
36.4x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 11x~46x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
17.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: MKSI's trailing P/E of 36.4x is elevated, implying high growth expectations. If revenue growth slows or margins compress, the stock could experience multiple compression. The debt-to-equity ratio of 1.73 indicates moderate leverage, and while TTM free cash flow of $401M covers interest, rising interest rates could increase debt costs. Net margin of 7.8% is modest, leaving little room for error in cost management. The company's reliance on the cyclical semiconductor industry means any downturn could sharply reduce earnings, as seen in historical drawdowns.
Market & Competitive Risks: With a beta of 1.93, MKSI is highly sensitive to market movements. A broad market correction could lead to outsized losses. The stock's recent 13.7% monthly decline and underperformance vs. the S&P 500 suggest shifting sentiment. The wide analyst target range ($265-$600) indicates high uncertainty. Competitive pressures from larger players in semiconductor equipment could erode market share or pricing power. Regulatory risks, such as export controls on semiconductor technology, could impact revenue from key markets like China.
Worst-Case Scenario: In a severe cyclical downturn or company-specific miss, the stock could fall to the analyst low target of $265, representing a 19.5% decline from the current price of $329.18. The 52-week low of $88.49 is an extreme worst-case, implying a 73% loss, but that level was reached during a prior market panic. A more realistic worst-case, given the company's growth, is a drop to $265, which would still be above the 52-week low. Investors could lose up to 20% in a moderate adverse scenario, but the high beta means losses could be larger in a market crash.
