MKS Instruments Inc

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MKSI : NASDAQ : Technology
$45.68 | %
Today's Range: 45.29 - 47.40
Avg. Daily Volume: 351,100
07/29/16 - 4:00 PM ET

Financial Analysis


MKS INSTRUMENTS INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. MKS INSTRUMENTS INC is extremely liquid. Currently, the Quick Ratio is 3.20 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.61% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)325.86217.97
EBITDA ($mil)0.051.8
EBIT ($mil)37.5346.25
Net Income ($mil)9.2133.22


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)431.21355.75
Total Assets ($mil)2243.431280.33
Total Debt ($mil)709.580.0
Equity ($mil)1181.611129.44


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin42.147.09
EBITDA Margin0.023.76
Operating Margin11.5221.22
Sales Turnover0.40.64
Return on Assets3.6510.17
Return on Equity6.9411.53
Debt Q2 FY16 Q2 FY15
Current Ratio4.826.14
Debt/Capital0.380.0
Interest Expense0.00.04
Interest Coverage0.01217.18


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)53.3153.37
Div / share0.170.17
EPS0.170.62
Book value / share22.1721.16
Institutional Own % n/a n/a
Avg Daily Volume332882.0264510.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 37.46 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 25.07. To use another comparison, its price-to-book ratio of 2.17 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 4.41. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, MKS INSTRUMENTS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MKSI 31.17 Peers 37.46   MKSI NA Peers 29.39

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MKSI is trading at a discount to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MKSI 16.55 Peers 19.61   MKSI NM Peers 4.05

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

MKSI is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MKSI's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MKSI 2.17 Peers 4.41   MKSI -36.89 Peers -8.28

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MKSI is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, MKSI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MKSI 2.87 Peers 5.09   MKSI 8.47 Peers 4.19

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MKSI is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

MKSI has a sales growth rate that significantly exceeds its peers.

 

 

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