MKS Instruments, Inc. ($MKSI) Possible Buy to $124 Confident Investor Rating: Good

Company name MKS Instruments, Inc.
Stock ticker MKSI
Live stock price [stckqut]MKSI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $146.42
Target stock price (averages with growth) $193.68
Target stock price (averages with no growth) $131.56
Target stock price (manual assumptions) $144.42

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/mksi

MKS Instruments, Inc., incorporated on June 14, 1961, is a global provider of instruments, subsystems and process control solutions that measures, controls, powers, delivers, monitors and analyzes critical parameters of advanced manufacturing processes. The Company operates through two segments, including the Vacuum & Analysis segment and the Light & Motion segment. The Vacuum & Analysis segment provides a range of instruments, components, subsystems and software, which are derived from its core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control and information technology, ozone generation and delivery, radio frequency (RF) and direct current (DC) power, reactive gas generation and vacuum technology. The Light & Motion segment provides a range of instruments, components and subsystems, which are derived from its core competencies in lasers, photonics and optics.

The Company groups its products into seven product groups, which include Analytical and Controls Solutions Products; Materials Delivery Solutions Products; Power, Plasma and Reactive Gas Solutions Products; Pressure and Vacuum Measurement Products; Photonics Products; Optics Products, and Laser Products. Its products are derived from its core competencies in automation and control, gas composition analysis, lasers, materials delivery, optics, photonics, pressure, power, reactive gas and vacuum. It also provides services relating to the maintenance and repair of its products, software, service and maintenance, installation services and training. Its primary served markets are manufacturers of capital equipment for semiconductor manufacturing, electronic thin films, life and health sciences, process and industrial technologies, as well as research and defense. Its manufacturing facilities are located in the United States, China, Mexico, Korea, Germany, Austria, France, Romania, the United Kingdom, Israel and Italy.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in MKS Instruments, Inc. as long as the indicators that I describe in my book The Confident Investor are favorable. I am adding this company to my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of MKS Instruments, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $95.1
  • Growth: 0.2
  • Current EPS (TTM): $7.19
  • P/E: 13
  • Future EPS Calc: $17.89
  • Future Stock Price Calc: $232.58
  • Target stock price: $144.41

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I hope that this makes you a Confident Investor.

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