# MKS Instruments (MKSI.US)

Canonical: https://gigainvestors.com/s/MKSI

Analysis as of: 2026-10-16T07:30:14.792Z. Financial observations: FY1998–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $228.52 per share; close as of 2026-10-15.

Estimated value: low $90.05 per share, central $101.40 per share, high $116.50 per share. Buy at or below the central value $101.40 per share. Valuation as of 2026-10-16T07:30:14.792Z; scenarios are not confidence intervals.

Expected annual return: 5.9% at the stated quote. About 5.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 1.62×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.21×

- FY2018: 0.24×

- FY2019: 0.12×

- FY2020: 0.19×

- FY2021: 0.24×

- FY2022: 0.17×

- FY2023: -0.43×

- FY2024: 0.14×

- FY2025: 0.14×

### moat: fail

- ROIC median below threshold

- Recent gross margin fell 4.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 14.2%

- ROIC, second-lowest year: 10.7%

- Typical minus recent gross margin: 4.7 pp

- Typical gross margin (annual median): 45.2%

- Recent gross margin (lower of latest and 3-year median): 40.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 8.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 15.2%

- FY2017: 36.4%

- FY2018: 44.1%

- FY2019: 12.5%

- FY2020: 25.2%

- FY2021: 35.2%

- FY2022: 10.7%

- FY2023: -30.2%

- FY2024: 12.7%

- FY2025: 13.2%

### economics: pass

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $333M

- Net income, five-year total: -$472M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.0 pp

- Working capital / revenue, change between three-year averages: 1.4 pp

- Working capital / revenue, final three-year average: 32.4%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $568M

- FY2022: $385M

- FY2023: -$1.5B

- FY2024: $420M

- FY2025: $491M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 36.4% vs 12.7%

- Per-share earnings: 2.28 to 2.81 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.4%

- Ordinary dilution, 5-year annual growth: 4.1%

- Market cap gain: $7.6B

- Cumulative retained earnings: $216M

- Diluted shares, 10-year annual growth: 2.4%

- Diluted shares, 5-year annual growth: 4.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.6%

- Per-share value change: $0.53

- Per-share value, starting three-year median: $2.28

- Per-share value, ending three-year median: $2.81

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.9%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: $6.7B

- Cumulative net income, 10 years: $855M

- ROIC, first three-year median: 36.4%

- ROIC, last three-year median: 12.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.94

- FY2017: $6.16

- FY2018: $7.14

- FY2019: $2.55

- FY2020: $6.33

- FY2021: $9.89

- FY2022: $5.56

- FY2023: -$27.56

- FY2024: $2.81

- FY2025: $4.36

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -4.0%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 8.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.19×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.73×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.4%

- FY2017: -0.7%

- FY2018: -0.8%

- FY2019: -3.0%

- FY2020: -4.2%

- FY2021: -1.9%

- FY2022: -1.7%

- FY2023: -23.7%

- FY2024: -3.9%

- FY2025: -4.0%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 49% since Jun 2026 · sales +9.6%

Story as of 2026-10-16T09:59:10.134Z; price observation 2026-10-15.

Price needs cash profits to grow 11.7% a year for ten years

- 2025-08-07: Earnings call transcript: MKS Instruments Q2 2025 beats earnings estimates ([investing.com](https://www.investing.com/news/transcripts/earnings-call-transcript-mks-instruments-q2-2025-beats-earnings-estimates-93CH-4177883))

- 2026-01-27: Surging Earnings Estimates Signal Upside for MKS (MKSI) Stock ([finance.yahoo.com](https://finance.yahoo.com/news/surging-earnings-estimates-signal-upside-172002171.html))

- 2026-02-05: MKS Debt Refinance Cuts Interest Costs But Raises Valuation Questions ([finance.yahoo.com](https://finance.yahoo.com/news/mks-debt-refinance-cuts-interest-081012948.html))

- 2026-05-10: Assessing MKS Instruments (MKSI) Valuation After Q1 2026 Beat And AI Semiconductor Demand Momentum ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/assessing-mks-instruments-mksi-valuation-060838353.html))

- 2026-09-29: MKS (MKSI) Gains on Rising AI Semiconductor Demand ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/mks-mksi-gains-rising-ai-160857374.html))

### Sales · FY2024–2025

sales +9.6%; source https://www.sec.gov/Archives/edgar/data/1049502/000119312526066820/mksi-20251231.htm; observed 2026-02-24.

- FY2016: $1.3B 

- FY2017: $1.9B 

- FY2018: $2.1B 

- FY2019: $1.9B 

- FY2020: $2.3B 

- FY2021: $3.0B 

- FY2022: $3.5B 

- FY2023: $3.6B 

- FY2024: $3.6B 

- FY2025: $3.9B 

### Gross margin · FY2025

gross margin 40.4%; source https://www.sec.gov/Archives/edgar/data/1049502/000119312526066820/mksi-20251231.htm; observed 2026-02-24.

- FY2016: 43.7% 

- FY2017: 46.5% 

- FY2018: 47.2% 

- FY2019: 43.7% 

- FY2020: 45.0% 

- FY2021: 46.8% 

- FY2022: 43.6% 

- FY2023: 45.3% 

- FY2024: 47.6% 

- FY2025: 40.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in scientific & technical instruments; annual sales are USD 3.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1049502/000119312526066820/mksi-20251231.htm (filed 2026-02-24); FY2025: revenue 3931000000; grossProfit 1590000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MKSI.US: MKS Inc. provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications in the United States, China, South Korea, Japan, Taiwan, Singapore, and internationally. The company operates through Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Material Solutions Division (MSD) segments. Its VSD segment provides foundational technology solutions, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and fiber optic temperature and position sensing. The PSD segment offers range of solutions, which include lasers, photonics, optics, precision motion control, and vibration control. Its MSD segment develops, process, and manufactures technologies comprising advanced surface modification, electroless and electrolytic plating, and surface finishing for chemistry, equipment, and services markets, as well as high-technology applications. In addition, the company sells its products and services through direct sales, network of independent distributors, and sales representatives, as well as websites, including product catalogs. MKS Inc. was formerly known as MKS Instruments, Inc. and changed its name to MKS Inc. in May 2025. The company was incorporated in 1961 and is based in Andover, Massachusetts.

### Why customers stay

Margins ranged from 40.4% to 47.6% during 2023–25; it earns 14.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 45.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 47.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1049502/000119312526066820/mksi-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 40.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.15200049710366698],[2017,0.36351300784433194],[2018,0.44068556407022774],[2019,0.12498405294931134],[2020,0.2519957860087943],[2021,0.35207989578810245],[2022,0.10703942559712507],[2023,-0.30185886402753875],[2024,0.1273983115886416],[2025,0.1317014235685298]]; median 0.1418509603360984. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 45 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 19123000; cash acquisitions 939591000; owner earnings 151612000. Growth capex plus acquisitions / owner earnings = 6.197339260744532.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 31287000; owner earnings 390401000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 62941000; owner earnings 409755000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 63900000; cash acquisitions 988600000; owner earnings 186500000. Growth capex plus acquisitions / owner earnings = 5.300804289544236.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 84900000; cash acquisitions 0; owner earnings 364100000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 86700000; cash acquisitions 268000000; owner earnings 568300000. Growth capex plus acquisitions / owner earnings = 0.4715819109625198.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 164000000; cash acquisitions 4473000000; owner earnings 385000000. Growth capex plus acquisitions / owner earnings = 11.618181818181819.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 118000000; cash acquisitions 0; owner earnings 420000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1049502/000119312526066820/mksi-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 148000000; owner earnings 491000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,36361000],[2017,38178000],[2018,42405000],[2019,43500000],[2020,44000000],[2021,47600000],[2022,52000000],[2023,59000000],[2024,59000000],[2025,59000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1049502/000119312526066820/mksi-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 45000000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MKSI.US SharesStats.PercentInsiders = 0.483 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.7% yearly over ten years; actual growth was 11.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.15568963581318906. Price 228.52; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.464264376400299 → FY2025 7.25258493353028. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $50.45 per share

- 2016-11: $57.55 per share

- 2016-12: $59.40 per share

- 2017-01: $65.90 per share

- 2017-02: $65.60 per share

- 2017-03: $68.75 per share

- 2017-04: $78.25 per share

- 2017-05: $81.75 per share

- 2017-06: $67.30 per share

- 2017-07: $83.65 per share

- 2017-08: $82.35 per share

- 2017-09: $94.45 per share

- 2017-10: $108.65 per share

- 2017-11: $94.30 per share

- 2017-12: $94.50 per share

- 2018-01: $102.30 per share

- 2018-02: $111.35 per share

- 2018-03: $115.65 per share

- 2018-04: $102.40 per share

- 2018-05: $112.20 per share

- 2018-06: $95.70 per share

- 2018-07: $94.30 per share

- 2018-08: $92.90 per share

- 2018-09: $80.15 per share

- 2018-10: $73.69 per share

- 2018-11: $78.46 per share

- 2018-12: $64.61 per share

- 2019-01: $81.63 per share

- 2019-02: $82.87 per share

- 2019-03: $93.05 per share

- 2019-04: $91.01 per share

- 2019-05: $71.46 per share

- 2019-06: $77.89 per share

- 2019-07: $85.13 per share

- 2019-08: $78.29 per share

- 2019-09: $92.28 per share

- 2019-10: $108.22 per share

- 2019-11: $106.28 per share

- 2019-12: $110.01 per share

- 2020-01: $104.82 per share

- 2020-02: $100.19 per share

- 2020-03: $81.45 per share

- 2020-04: $100.23 per share

- 2020-05: $105.63 per share

- 2020-06: $113.24 per share

- 2020-07: $127.44 per share

- 2020-08: $119.53 per share

- 2020-09: $109.23 per share

- 2020-10: $108.39 per share

- 2020-11: $137.98 per share

- 2020-12: $150.45 per share

- 2021-01: $158.07 per share

- 2021-02: $164.90 per share

- 2021-03: $185.42 per share

- 2021-04: $179.11 per share

- 2021-05: $188.23 per share

- 2021-06: $177.95 per share

- 2021-07: $156.44 per share

- 2021-08: $147.18 per share

- 2021-09: $150.91 per share

- 2021-10: $150.05 per share

- 2021-11: $152.16 per share

- 2021-12: $174.17 per share

- 2022-01: $155.33 per share

- 2022-02: $150.60 per share

- 2022-03: $150.00 per share

- 2022-04: $113.98 per share

- 2022-05: $123.50 per share

- 2022-06: $102.63 per share

- 2022-07: $118.20 per share

- 2022-08: $99.61 per share

- 2022-09: $82.64 per share

- 2022-10: $82.15 per share

- 2022-11: $83.86 per share

- 2022-12: $84.73 per share

- 2023-01: $102.32 per share

- 2023-02: $96.93 per share

- 2023-03: $88.62 per share

- 2023-04: $83.87 per share

- 2023-05: $97.31 per share

- 2023-06: $108.10 per share

- 2023-07: $109.17 per share

- 2023-08: $100.23 per share

- 2023-09: $86.54 per share

- 2023-10: $65.66 per share

- 2023-11: $82.55 per share

- 2023-12: $102.87 per share

- 2024-01: $106.45 per share

- 2024-02: $122.76 per share

- 2024-03: $133.00 per share

- 2024-04: $118.98 per share

- 2024-05: $126.59 per share

- 2024-06: $130.58 per share

- 2024-07: $125.90 per share

- 2024-08: $119.23 per share

- 2024-09: $108.71 per share

- 2024-10: $99.33 per share

- 2024-11: $113.64 per share

- 2024-12: $104.39 per share

- 2025-01: $113.28 per share

- 2025-02: $91.82 per share

- 2025-03: $80.15 per share

- 2025-04: $70.14 per share

- 2025-05: $82.19 per share

- 2025-06: $99.36 per share

- 2025-07: $95.18 per share

- 2025-08: $103.34 per share

- 2025-09: $123.77 per share

- 2025-10: $143.71 per share

- 2025-11: $156.39 per share

- 2025-12: $159.80 per share

- 2026-01: $235.41 per share

- 2026-02: $244.46 per share

- 2026-03: $229.81 per share

- 2026-04: $283.75 per share

- 2026-05: $324.26 per share

- 2026-06: $444.80 per share

- 2026-07: $297.45 per share

- 2026-08: $256.24 per share

- 2026-09: $265.36 per share

- 2026-10: $228.52 per share

## Annual estimated value (USD per share)

- FY2016: low $39.21 per share, central $45.24 per share, high $51.47 per share

- FY2017: low $75.06 per share, central $91.97 per share, high $105.84 per share

- FY2018: low $88.68 per share, central $112.16 per share, high $129.11 per share

- FY2019: low $75.95 per share, central $93.07 per share, high $107.17 per share

- FY2020: low $105.72 per share, central $141.87 per share, high $163.99 per share

- FY2021: low $165.80 per share, central $233.77 per share, high $271.68 per share

- FY2022: low $132.99 per share, central $174.47 per share, high $202.00 per share

- FY2023: low $76.34 per share, central $85.21 per share, high $97.02 per share

- FY2024: low $86.96 per share, central $110.67 per share, high $127.84 per share

- FY2025: low $83.14 per share, central $93.39 per share, high $107.03 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1049502/000119312526066820/mksi-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.