olivLaw · US equity research
MKS Inc. MKSI
Industrial Instruments For Measurement, Display, and Control · SIC 3823 · Vertical: Industrial Instruments For Measurement, Display, and Control (SIC 3823)
MKS Inc. supplies instruments, process control, lasers and specialty chemicals for semiconductor, electronics and specialty industrial manufacturing. With AI-related investment rising, the company reported second-quarter 2026 revenue of 1,248 million USD, after net revenues of 3,931 million USD in fiscal 2025.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, MKS Inc. (MKSI) stock was 194.95 USD (−4.99% on the day), with market capitalisation 13.2 bn USD, P/E 31.1 on diluted EPS of 6.26 USD over the last 12 months, dividend yield 0.48%, beta 2.58, 52-week range 138.49–444.80 USD. Latest reported quarter (Q2 2026): revenue of 1.2 bn USD (+28.3% YoY), net income of 175.0 m USD (+182.3% YoY), diluted EPS 2.41 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 34.4
- weak (30–45)
- Bollinger (20, 2)
- 176.94 – 261.36
- in the lower half of the band · %B 0.21 · band width 38.5%
- SMA 50 / 200
- 243.61 / 278.02
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -15.03 / -14.55
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −30.5% | −1.1% | −29.4 pp | — |
| 3 months | −37.7% | −0.5% | −37.3 pp | — |
| 6 months | −33.6% | +4.4% | −38.0 pp | — |
| Year to date | +22.0% | +12.3% | +9.7 pp | — |
| 1 year | +42.1% | +13.5% | +28.5 pp | +27.8% |
| 3 years | +184.7% | +76.4% | +108.3 pp | +5.2% |
| 5 years | +21.6% | +63.7% | −42.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 896.0 m | 934.0 m | 936.0 m | 973.0 m | 988.0 m | 1.0 bn | 1.1 bn | 1.2 bn |
| Cost of revenue | 464.0 m | 493.0 m | 492.0 m | 520.0 m | 527.0 m | 554.0 m | 571.0 m | 653.0 m |
| Gross profit | 432.0 m | 441.0 m | 444.0 m | 453.0 m | 461.0 m | 479.0 m | 507.0 m | 595.0 m |
| Research & development | 70.0 m | 65.0 m | 70.0 m | 76.0 m | 76.0 m | 77.0 m | 81.0 m | 76.0 m |
| SG&A | 167.0 m | 176.0 m | 185.0 m | 175.0 m | 180.0 m | 185.0 m | 190.0 m | 200.0 m |
| Operating income | 128.0 m | 136.0 m | 111.0 m | 135.0 m | 138.0 m | 143.0 m | 149.0 m | 251.0 m |
| Depreciation & amortisation | 87.0 m | 86.0 m | 85.0 m | 87.0 m | 85.0 m | 86.0 m | 85.0 m | 85.0 m |
| Interest expense | 64.0 m | 54.0 m | 53.0 m | 55.0 m | 53.0 m | 50.0 m | 45.0 m | 38.0 m |
| Pre-tax income | 60.0 m | 80.0 m | 59.0 m | 72.0 m | 84.0 m | 89.0 m | 102.0 m | 213.0 m |
| Income tax | -2.0 m | -11.0 m | 7.0 m | 10.0 m | 10.0 m | -18.0 m | 18.0 m | 38.0 m |
| Net income | 62.0 m | 91.0 m | 52.0 m | 62.0 m | 74.0 m | 107.0 m | 84.0 m | 175.0 m |
| Diluted EPS | 0.92 | 1.34 ≈ | 0.77 | 0.92 | 1.10 | 1.57 ≈ | 1.18 | 2.41 |
| Operating cash flow | 163.0 m ≈ | 176.0 m | 141.0 m | 165.0 m ≈ | 197.0 m ≈ | 142.0 m | 53.0 m | 243.0 m ≈ |
| Capex | 22.0 m ≈ | 51.0 m | 18.0 m | 29.0 m ≈ | 51.0 m ≈ | 50.0 m | 25.0 m | 54.0 m ≈ |
| Dividends paid | 14.0 m ≈ | 15.0 m | 15.0 m | 15.0 m ≈ | 14.0 m ≈ | 15.0 m | 17.0 m | 17.0 m ≈ |
| Share repurchases | 0 ≈ | 0 | 45.0 m | 0 ≈ | 0 ≈ | 0 | 0 | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 77 percentile of its own 35-quarter history (min 9.0, median 22.8, max 1,345.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.1 bn | 1.9 bn | 2.3 bn | 3.0 bn | 3.5 bn | 3.6 bn | 3.6 bn | 3.9 bn |
| Revenue YoY | +8.3% | −8.4% | +22.6% | +26.6% | +20.2% | +2.1% | −1.0% | +9.6% |
| Net income | 392.9 m | 140.4 m | 350.0 m | 551.0 m | 333.0 m | -1.8 bn | 190.0 m | 295.0 m |
| Net income YoY | +15.9% | −64.3% | +149.3% | +57.4% | −39.6% | −652.9% | unavailable | +55.3% |
| Diluted EPS | 7.14 | 2.55 | 6.33 | 9.90 | 5.56 | -27.54 | 2.81 | 4.37 |
| Diluted EPS YoY | +15.9% | −64.3% | +148.2% | +56.4% | −43.8% | −595.3% | unavailable | +55.5% |
| net % | 18.9% | 7.4% | 15.0% | 18.7% | 9.4% | -50.8% | 5.3% | 7.5% |
| Free cash flow | 350.9 m | 180.6 m | 428.0 m | 553.0 m | 365.0 m | 232.0 m | 410.0 m | 497.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 418.0 m USD
- Financial debt
- 4.2 bn USD
- Net debt
- 3.8 bn USD
- Equity
- 2.7 bn USD
- Total assets
- 8.8 bn USD
- Debt / equity
- 1.55x
- Current ratio
- 2.71x
- ROE
- 11.7%
- ROA
- 3.4%
- FCF margin
- 12.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.3 bn | 3.0 bn | 3.5 bn | 3.6 bn | 3.6 bn | 3.9 bn | SEC (XBRL)· 24 Feb 2026verified |
| Cost of revenue | 1.3 bn | 1.6 bn | 2.0 bn | 2.0 bn | 1.9 bn | 2.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Gross profit | 1.0 bn | 1.4 bn | 1.5 bn | 1.6 bn | 1.7 bn | 1.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Research & development | 173.0 m | 200.0 m | 241.0 m | 288.0 m | 271.0 m | 299.0 m | SEC (XBRL)· 24 Feb 2026verified |
| SG&A | 353.0 m | 385.0 m | 488.0 m | 675.0 m | 674.0 m | 724.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Operating income | 454.0 m | 699.0 m | 617.0 m | -1.6 bn | 498.0 m | 528.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Depreciation & amortisation | 99.0 m | 104.0 m | 216.0 m | 397.0 m | 348.0 m | 344.0 m | SEC (XBRL)· 24 Feb 2026verified |
| EBITDA | 553.0 m ≈ | 803.0 m ≈ | 833.0 m ≈ | -1.2 bn ≈ | 846.0 m ≈ | 872.0 m ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Interest expense | 29.0 m | 25.0 m | 177.0 m | 356.0 m | 284.0 m | 212.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Pre-tax income | 423.0 m | 665.0 m | 433.0 m | -1.9 bn | 180.0 m | 304.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Income tax | 73.0 m | 114.0 m | 100.0 m | -87.0 m | -10.0 m | 9.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Net income | 350.0 m | 551.0 m | 333.0 m | -1.8 bn | 190.0 m | 295.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Diluted EPS | 6.33 | 9.90 | 5.56 | -27.54 | 2.81 | 4.37 | SEC (XBRL)· 24 Feb 2026verified |
| Weighted average diluted shares | 55.3 m | 55.7 m | 59.9 m | 66.8 m | 67.6 m | 67.7 m | SEC (XBRL)· 24 Feb 2026verified |
| Dividend per share | 0.80 | 0.86 | 0.88 | 0.88 | 0.88 | 0.88 | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 608.3 m | 966.0 m | 909.0 m | 507.0 m | 420.0 m | 418.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Receivables | 392.7 m | 443.0 m | 720.0 m | 603.0 m | 615.0 m | 651.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Inventories | 501.4 m | 577.0 m | 977.0 m | 991.0 m | 893.0 m | 921.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Current assets | 1.8 bn | 2.1 bn | 2.8 bn | 2.7 bn | 2.5 bn | 2.5 bn | SEC (XBRL)· 24 Feb 2026verified |
| Property, plant & equipment, net | 284.3 m | 326.0 m | 800.0 m | 784.0 m | 771.0 m | 810.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Goodwill | 1.1 bn | 1.2 bn | 4.3 bn | 2.6 bn | 2.5 bn | 2.6 bn | SEC (XBRL)· 24 Feb 2026verified |
| Intangibles (excl. goodwill) | 512.2 m | 576.0 m | 3.2 bn | 2.6 bn | 2.3 bn | 2.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Total assets | 3.9 bn | 4.5 bn | 11.5 bn | 9.1 bn | 8.6 bn | 8.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Accounts payable | 110.6 m | 168.0 m | 426.0 m | 327.0 m | 341.0 m | 407.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Short-term debt | 14.5 m | 9.0 m | 93.0 m | 93.0 m | 50.0 m | 51.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Long-term debt | 815.0 m | 825.0 m | 5.1 bn | 5.0 bn | 4.5 bn | 4.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Current liabilities | 373.9 m | 460.0 m | 952.0 m | 848.0 m | 775.0 m | 927.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Total liabilities | 1.5 bn | 1.7 bn | 7.0 bn | 6.6 bn | 6.3 bn | 6.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Equity | 2.4 bn † | 2.9 bn † | 4.5 bn † | 2.5 bn † | 2.3 bn † | 2.7 bn † | SEC (XBRL)· 24 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 513.0 m | 640.0 m | 529.0 m | 319.0 m | 528.0 m | 645.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Capex | 85.0 m | 87.0 m | 164.0 m | 87.0 m | 118.0 m | 148.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Free cash flow | 428.0 m ≈ | 553.0 m ≈ | 365.0 m ≈ | 232.0 m ≈ | 410.0 m ≈ | 497.0 m ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Investing cash flow | -202.0 m | -205.0 m | -4.6 bn | -84.0 m | -117.0 m | -145.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Financing cash flow | -122.0 m | -65.0 m | 4.0 bn | -259.0 m | -549.0 m | -562.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Dividends paid | 44.0 m | 47.0 m | 52.0 m | 59.0 m | 59.0 m | 59.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Share repurchases | — | — | — | 0 | 0 | 45.0 m | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 42 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 13.2 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation39
- Returns44
- Quality81
- Balance sheet24
- Growth15
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 80.94 – 243.04 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)80.94 – 163.89 (Mid 111.94)WACC 8.4% · starting FCFF 622.7 m USD · terminal value share of EV 76%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 22.5%
- Peers: EV/EBITDA187.38 – 239.94 (Mid 218.15)4 companies used · median multiple 17.8x · quartiles 15.8x – 19.3xAME, FTV, ROP, ST
- Peers: P/E162.75 – 243.04 (Mid 209.45)7 companies used · median multiple 33.4x · quartiles 26.0x – 38.8xAME, CGNX, DHR, FTV, KEYS, ROP, ST
- Dividend discount (DDM)outside the aggregate11.56 – 15.55 (Mid 13.26)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 42/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 9.5% | 82 (vs peers) | 10% |
| Net margin · Quality | 10.1% | 60 (vs peers) | 6% |
| FCF conversion · Quality | 103.4% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 3.5% | 29 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -7.7% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 3.4x | 17 (on a fixed band) | 10% |
| Interest coverage · Balance sheet | 3.7x | 33 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.1x | 29 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 31.1x | 75 (vs peers) | 10% |
| EV/EBITDA · Valuation | 16.3x | 0 (on a fixed band) | 10% |
| FCF yield · Valuation | 3.5% | 43 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 0.5% | 7 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 13.8% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet24/100 · 3/3 factors with a value
- Growth15/100 · 2/2 factors with a value
- Quality81/100 · 3/3 factors with a value
- Returns44/100 · 2/2 factors with a value
- Valuation39/100 · 3/3 factors with a value
Memo
MKS INC. (MKSI). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 3.9 bn USD in 2025; YoY growth 9.6%; net margin 10.1%; ROE 15.9%; net debt/EBITDA 3.4x.
The estimated value range is 162.75–239.94 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 209.45 USD, the price of 194.95 USD leaves a potential of 7.4% (value / price − 1) and a margin of safety of 6.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 42/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 9.5%
- FCF conversion: 103.4%
- P/E (TTM): 31.1x
- Payout ratio (FCF): 13.8%
What contradicts it
- Revenue CAGR 3Y: 3.5%
- EPS CAGR 3Y: -7.7%
- Net debt / EBITDA: 3.4x
- Current ratio: 1.1x
- EV/EBITDA: 16.3x
- Shareholder yield (distributions): 0.5%
Versus the vertical median
Industrial Instruments For Measurement, Display, and Control (SIC 3823) · same industry (4-digit SIC) · compared with 15 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| DHRDanaher Corporation | 165.3 bn | 38.4 | 8.3% | 16.9% | +2.9% | +4% / +5% |
| AMEAMETEK, Inc. | 54.4 bn | 33.4 | 14.7% | 19.9% | +6.6% | +20% / +53% |
| ROPRoper Technologies, Inc. | 48.7 bn | 19.4 | 13.2% | 30.7% | +12.3% | +10% / −9% |
| KEYSKeysight Technologies, Inc. | 48.7 bn | 39.2 | 20.6% | 19.1% | +8.0% | +44% / +110% |
| FTVFortive Corporation | 20.3 bn | 32.5 | 10.5% | 14.8% | +1.9% | +28% / +31% |
| MKSIMks Inc. | 13.2 bn | 31.1 | 15.9% | 10.1% | +9.6% | +42% / +185% |
| CGNXCognex Corp | 8.9 bn | 51.3 | 11.1% | 16.1% | +8.7% | +39% / +41% |
| RALRalliant Corporation | 7.9 bn | — | -51.8% | -52.1% | −4.0% | +45% / unavailable |
| STSensata Technologies Holding PLC | 6.0 bn | 16.5 | 12.7% | 9.5% | −5.8% | +28% / +26% |
| MLABMesa Laboratories Inc | 706.1 m | 148.1 | 2.7% | 1.9% | +3.4% | +57% / +48% |
| SENSSenseonics Holdings, Inc. | 476.9 m | — | -118.2% | -225.3% | +56.9% | +46% / −24% |
| HURCHurco Companies, Inc. | 137.6 m | — | -3.3% | -3.6% | −4.3% | +31% / +1% |
| SYPRSypris Solutions, Inc. | 29.2 m | — | -69.9% | -9.2% | −14.5% | −42% / −33% |
| CLIRClearsign Technologies Corporation | 16.5 m | — | -51.7% | -96.1% | +45.6% | −67% / −80% |
| FCUVFocus Universal Inc. | 2.2 m | — | -106.0% | -637.2% | −35.9% | −98% / −99% |
| POASPhaos Technology Holdings (Cayman) Limited | — | — | -363.8% | -4,662.3% | −19.3% | −98% / unavailable |
1- and 3-year price returns: for MKSI from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 118.49 Total return -39% · Per year -39% | 209.59 Total return 8% · Per year 8% | 315.84 Total return 63% · Per year 63% |
| 3 years | 112.67 Total return -41% · Per year -16% | 224.46 Total return 17% · Per year 5% | 371.72 Total return 93% · Per year 24% |
| 5 years | 107.13 Total return -43% · Per year -11% | 240.38 Total return 26% · Per year 5% | 437.49 Total return 128% · Per year 18% |
- Exit P/E± 56.11
- Net margin± 39.28
- Annual revenue growth± 32.56
- Annual dilution± 3.30
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
In brief
MKS Inc. supplies instruments, process control, lasers and specialty chemicals for semiconductor, electronics and specialty industrial manufacturing. With AI-related investment rising, the company reported second-quarter 2026 revenue of 1,248 million USD 3, after net revenues of 3,931 million USD in fiscal 2025 1.
SWOT
Strengths
Weaknesses
- High dependence on international markets and a few large customers, increasing exposure to regional shocks 1.
- Significant debt with variable-rate loans that could limit financial flexibility 1.
- Past goodwill and intangible impairments after acquisitions show the risk of integrating large businesses 1.
Opportunities
Risks
- China exposure and trade restrictionshigh
Export controls and tariffs could affect sales in Asian markets, where a significant share of revenue is concentrated 1.
- Debt and interest costshigh
Variable-rate credit could increase the financial burden if rates stay high, and convertible notes could affect liquidity 13.
- Cyclicality of semiconductor investmentmedium
Equipment demand can fall abruptly, and difficulty in forecasting makes planning hard 1.
- Acquisition and integration riskmedium
Integrating acquired businesses could prove costly and could lead to goodwill write-downs, as has happened before 1.
- Supply chainlow
Supplier disruptions or component shortages could delay deliveries, especially for products with long lead times 12.
Investment thesis
What would need to be true (bull case)
- If AI-related demand holds, quarterly revenue could keep rising, and the company recently came in above its guidance 3.
- A position as a broad subsystem supplier in semiconductor manufacturing could offer an edge over smaller rivals 1.
- Gross margin and cash flow could support debt repayment and further investment 3.
What to watch
- Delivery against third-quarter revenue and margin guidanceQ3 2026
- Trend in AI-related orders and semiconductor revenueQ3 2026
- Effect of trade restrictions on sales in Chinanext 10-Q
- Pace of debt repayment and conversion of convertible notes2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
The business
MKS Inc., formerly MKS Instruments, Inc., was founded in 1961 in Massachusetts and describes its business as delivering foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications 1. It creates instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance and productivity 1. Its strategy rests on offerings such as Surround the Wafer and Optimize the Interconnect 1.
The company reports through three divisions: Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD) and Materials Solutions Division (MSD), plus Global Service for installation, maintenance and calibration 1. VSD focuses on pressure and flow measurement, gas delivery and plasma generation, PSD on lasers, photonics and PCB laser systems, and MSD on plating and surface finishing chemistry 1.
The business is heavily international: in 2025, about 81% of net revenues came from outside the United States, mainly from China, South Korea, Singapore, Taiwan and Japan 1. With manufacturing sites in many countries, including Romania, MKS relies on short lead times, as many orders are shipped within 90 days 1.
Segments
VSD - Vacuum Solutions Division
VSD delivers foundational technologies for semiconductor, electronics and specialty industrial manufacturing, including pressure measurement, materials delivery and high-frequency power systems for etch and deposition processes 1. In the second quarter of 2026, semiconductor capital equipment sales for deposition and etch applications supported results 2.
Market context
Semiconductors accounted for about 43% of net revenues in 2025, and electronics and packaging for about 28% 1. The company says it addresses over 85% of the wafer fabrication equipment ecosystem 1. In the first half of 2026, semiconductor demand grew on AI-related investment, which could sustain growth if the cycle holds 2.
Market risks include rapid shifts in semiconductor capital equipment demand and trade restrictions, particularly affecting China, where the company has significant exposure 1. For the third quarter of 2026, management guided to revenue of 1,350 million USD with a gross margin of about 47% 3.
Trends
- AI-related investmenttailwind
Demand for AI infrastructure supports sales of semiconductor and advanced packaging equipment, and management expects order volumes to grow rapidly 3.
- Trade restrictions and tariffsheadwind
US tariffs and retaliatory measures by other countries could raise costs and limit market access, and the company is diversifying suppliers and logistics routes 1.
- Shift to smaller, denser device geometriestailwind
Smaller critical dimensions and 3D structures increase the need for precise process control, which benefits subsystem suppliers 1.
- High debt and financing costsmixed
Leverage and variable-rate borrowings could add pressure on cash flow if rates stay high, although the company has made voluntary prepayments 13.
Competitive position
The analysed sources do not name direct competitors or market shares. The company presents itself as the broadest critical subsystem provider in the wafer fabrication equipment ecosystem 1. Competition is intense, and the advantage could depend on portfolio depth and customer relationships in the electronics ecosystem 1.
Competition plays out in fast-changing technology markets, where developing new products and meeting customer demand are decisive 12. The company notes it adapts its strategy to protect supply chain continuity against regulatory risks 1.
- Semiconductor capital equipment suppliers (unnamed in sources)
The sources do not name competitors; such suppliers could compete in subsystems and instruments.
- Lithography and inspection equipment makers (unnamed in sources)
Competition in metrology and inspection is referenced only indirectly in the PSD discussion.
- Plating chemistry suppliers (unnamed in sources)
The MSD segment competes in electronics and finishing chemistry, but the sources do not identify firms.
- Industrial laser suppliers (unnamed in sources)
Laser applications for PCB and substrates could attract competitors from industrial photonics.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report04 Nov 2026Results of operations · Amendments to articles or bylaws · Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report19 Oct 2026Other events · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report12 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Current report06 Apr 2026Departure or appointment of officers
- Proxy statement31 Mar 2026
- Annual report24 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / MKS Inc. · 24 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / MKS Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / MKS Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.