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MKSIMKS Inc.
$260.37$17.6B
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  3. MKSI
  4. Financial Ratios

MKS Inc. (MKSI) Financial Ratios

Latest Ratios: P/E Ratio 59.6x · EV/EBITDA 23.8x · ROE 11.7%. (1998–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

MKSI Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$17.6B$10.8B$7.1B$6.9B$5.1B$9.7B$8.3B$6.1B$3.6B$5.2B$3.2B
Enterprise Value$21.6B$14.8B$11.1B$11.0B$9.3B$9.8B$8.7B$6.6B$3.3B$5.3B$3.6B
P/E Ratio →59.5836.5737.15—15.2417.5923.7743.149.0515.3430.62
P/S Ratio4.472.751.971.901.433.293.573.191.712.722.48
P/B Ratio6.483.983.042.781.133.363.523.001.903.282.59
P/FCF35.3921.7717.2129.6213.9117.5519.4433.5710.1316.0719.94
P/OCF27.2716.7713.3721.549.5915.1716.2224.808.5914.6517.83

P/E links to full P/E history page with 30-year chart

MKSI EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—3.773.103.042.633.313.753.471.572.752.77
EV / EBITDA23.7716.3213.15—11.2112.1615.8120.005.6710.7616.10
EV / EBIT38.2428.7521.31—15.1514.1519.3529.736.5411.0022.66
EV / FCF—29.8527.1347.5025.5717.6620.4336.539.2816.2522.33

MKSI Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin40.4%40.4%47.6%45.3%43.6%46.8%45.0%43.7%47.2%46.5%43.7%
Operating Margin14.4%14.4%13.9%-42.9%17.4%23.7%19.5%11.6%23.8%21.2%12.1%
Net Profit Margin7.5%7.5%5.3%-50.8%9.4%18.7%15.0%7.4%18.9%17.7%8.1%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE11.7%11.7%7.9%-52.9%9.0%21.0%16.0%7.2%22.7%24.0%8.7%
ROA3.4%3.4%2.1%-17.9%4.2%13.1%9.6%4.7%15.6%14.7%6.0%
ROIC6.5%6.5%5.7%-15.2%7.9%18.3%12.7%8.0%23.0%18.6%9.2%
ROCE7.2%7.2%6.2%-16.5%8.4%18.4%13.7%8.1%22.1%19.8%10.0%

MKSI Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity1.731.732.062.031.150.360.440.470.190.250.49
Debt / EBITDA5.165.165.65—6.201.281.872.880.610.802.74
Net Debt / Equity—1.481.751.680.950.020.180.26-0.160.040.31
Net Debt / EBITDA4.424.424.81—5.110.080.771.62-0.520.121.72
Debt / FCF—8.089.9217.8811.670.110.992.96-0.850.182.38
Interest Coverage2.432.431.51-3.573.4827.6015.594.3728.7515.205.18

MKSI Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.712.713.193.182.934.674.834.515.564.274.21
Quick Ratio1.711.712.042.011.913.413.483.064.103.103.05
Cash Ratio0.730.730.921.030.962.272.241.652.731.871.76
Asset Turnover—0.450.420.400.310.650.600.560.790.790.59
Inventory Turnover2.542.542.102.002.052.722.552.312.853.022.65
Days Sales Outstanding—60.4562.6060.7774.0954.8161.5265.5351.9757.2170.09

MKSI Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield0.3%0.5%0.8%0.9%1.0%0.5%0.5%0.7%1.2%0.7%1.1%
Payout Ratio20.0%20.0%31.1%—15.6%8.6%12.6%31.0%10.8%11.3%34.7%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield1.7%2.7%2.7%—6.6%5.7%4.2%2.3%11.1%6.5%3.3%
FCF Yield2.8%4.6%5.8%3.4%7.2%5.7%5.1%3.0%9.9%6.2%5.0%
Buyback Yield0.3%0.4%0.0%0.0%0.0%0.0%0.0%0.0%2.1%0.0%0.0%
Total Shareholder Yield0.6%1.0%0.8%0.9%1.0%0.5%0.5%0.7%3.3%0.7%1.2%
Shares Outstanding—$68M$68M$67M$60M$56M$55M$55M$55M$55M$54M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrong
Balance SheetStrained
Cash FlowImproving
Top Statement Risk

Elevated leverage and cyclicality

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Margin Expansion Signals Operating Leverage

Gross margin jumped to 47.7% in 2026Q2 from 41.2% in 2026Q1, a 650 bps sequential improvement, according to the income statement data, indicating favorable product mix and operational efficiency.

The sequential gross margin expansion of 650 bps to 47.7% in 2026Q2, as reported in the latest quarterly filing, suggests that the company is benefiting from a favorable product mix shift and better absorption of fixed costs as revenue accelerates. Operating margin expanded to 20.1%, the highest in the reported period, implying that the incremental revenue is flowing through to the bottom line at a high incremental rate. However, the net margin of 14.0% is still below the operating margin due to interest expense and amortization of intangibles, which are significant given the acquisition-heavy strategy. Investors should monitor whether this margin expansion is sustainable as the product mix normalizes and whether the company can maintain this level of profitability through the semiconductor cycle.

Return on Capital Inflecting Upward

ROIC improved to 2.9% in 2026Q2 from 1.2% in 2024Q1, as per the ratio data, indicating that the company is beginning to generate returns on its acquisition-heavy capital base.

ROIC has been on a steady upward trajectory, rising from 1.2% in 2024Q1 to 2.9% in 2026Q2, according to the quarterly ratio data. This improvement is driven by both margin expansion and better asset utilization, as asset turnover increased from 0.10 to 0.14 over the same period. Despite this progress, the absolute ROIC remains low relative to the cost of capital, which suggests that the company is still in the early stages of realizing the full value of its acquisitions. The high level of goodwill and intangibles from the Newport and Atotech deals means that the return on invested capital will be depressed until the acquired businesses generate sufficient operating income to justify the purchase price. The trend is encouraging, but the company needs to sustain this momentum to create value for shareholders.

Working Capital Efficiency Improving

Cash conversion cycle shortened to 128 days in 2026Q2 from 197 days in 2024Q1, as per the ratio data, reflecting better inventory and receivables management.

The cash conversion cycle has improved significantly, dropping from 197 days in 2024Q1 to 128 days in 2026Q2, according to the quarterly ratio data. This improvement is primarily driven by a reduction in days inventory outstanding (DIO), which fell from 197 days to 138 days over the same period, suggesting that the company is managing its inventory more efficiently as it integrates the Atotech business. Days sales outstanding (DSO) has remained relatively stable around 60 days, while days payable outstanding (DPO) has increased slightly, indicating that the company is taking longer to pay suppliers, which is a source of short-term financing. The overall improvement in working capital efficiency is a positive sign, but the company still has a relatively long cash conversion cycle compared to more asset-light peers, which warrants continued monitoring.

Leverage Declining but Still Elevated

Debt-to-equity fell to 1.40 in 2026Q2 from 2.29 in 2024Q2, as per the balance sheet data, but remains high relative to peers like Entegris at 0.98.

The company has made meaningful progress in reducing its leverage, with debt-to-equity declining from 2.29 in 2024Q2 to 1.40 in 2026Q2, according to the balance sheet data. Interest coverage has also improved to 6.07 in 2026Q2 from 1.18 in 2024Q1, indicating that the company is generating sufficient operating income to service its debt. However, the absolute level of debt remains high, with total debt of $4.2B, and the debt-to-EBITDA ratio of 16.42 is still elevated, suggesting that the company has limited capacity for additional borrowing. The recent earnings beat and maintained guidance suggest that cash flows are adequate to service debt, but any downturn in the semiconductor cycle could strain the balance sheet. Investors should monitor the pace of deleveraging and the company's ability to generate free cash flow to reduce debt further.

Liquidity Cushion Thinning

Current ratio dropped to 1.14 in 2026Q2 from 3.69 in 2024Q1, as per the balance sheet data, indicating a tighter liquidity position.

The current ratio has declined sharply from 3.69 in 2024Q1 to 1.14 in 2026Q2, according to the balance sheet data, while the quick ratio fell to 0.72, indicating that the company's liquid assets are barely covering its short-term liabilities. This deterioration is partly due to the use of cash to fund acquisitions and debt repayment, as well as an increase in current liabilities. The quick ratio below 1.0 suggests that the company could face liquidity challenges if it were to experience a sudden downturn in demand or a disruption in its ability to access credit. However, the company has a committed revolving credit facility and generates strong operating cash flow, which provides some cushion. Nevertheless, the thinning liquidity position is a concern, and investors should monitor the company's ability to maintain adequate liquidity through the cycle.

Misapplied Metric: P/E on GAAP Earnings

The trailing P/E of 71.11 is misleading due to significant amortization of intangibles from acquisitions, as per the valuation data, which depresses GAAP earnings.

The most commonly misapplied ratio for MKSI is the trailing P/E, which is based on GAAP earnings that include substantial amortization of intangible assets from the Newport and Atotech acquisitions. This non-cash charge makes GAAP earnings appear artificially low, inflating the P/E to 71.11, as per the valuation data. A more appropriate metric is EV/EBITDA or adjusted earnings, which exclude these non-cash charges and provide a clearer picture of the company's underlying earning power. On a forward basis, the P/E of 26.37 is more reasonable, but investors should still focus on cash flow-based metrics, such as P/FCF, which stands at 42.23, to assess valuation. The company's high leverage and cyclicality also mean that earnings-based multiples can be volatile, so a normalized earnings or cash flow approach is preferable.

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MKSI — Frequently Asked Questions

Quick answers to the most common questions about buying MKSI stock.

What is MKS Inc.'s P/E ratio?

MKS Inc.'s current P/E ratio is 59.6x. The historical average is 22.5x. This places it at the 100th percentile of its historical range.

What is MKS Inc.'s EV/EBITDA?

MKS Inc.'s current EV/EBITDA is 23.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.7x.

What is MKS Inc.'s ROE?

MKS Inc.'s return on equity (ROE) is 11.7%. The historical average is 8.2%.

Is MKSI stock overvalued?

Based on historical data, MKS Inc. is trading at a P/E of 59.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is MKS Inc.'s dividend yield?

MKS Inc.'s current dividend yield is 0.33% with a payout ratio of 20.0%.

What are MKS Inc.'s profit margins?

MKS Inc. has 40.4% gross margin and 14.4% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does MKS Inc. have?

MKS Inc.'s Debt/EBITDA ratio is 5.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.