| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 44 | 32.3x | 17.3x | Around median | |
Growth | 79 | 16.3% | 7.1% | Top tier | |
Quality | 72 | 9.1% | 4.5% | Top tier | |
Safety | 53 | 3.3x | 2.6x | Around median | |
Capital Return | 47 | 0.46% | 0.06% | Around median | |
Momentum | 39 | 89.1% | -1.6% | Bottom tier | |
Sentiment | 46 | 10 | 3 | Around median |
The floor: what the company is worth if growth stopped today
92% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
MKS Inc. enables advanced electronics manufacturing through three market groups. In Semiconductors, it sells vacuum, plasma, power, radio frequency, and reactive gas systems, along with optical components and photonic systems used in etching, deposition, lithography, metrology, and inspection. In Electronics and Packaging, it generates revenue from laser drilling systems, printed circuit board chemistry equipment, and its proprietary chemicals, which are tied to high utilization rates among equipment buyers; meanwhile, the Specialty Industrial business serves data communications, defense, automotive, and industrial market applications.
In Q2 fiscal 2026, revenue reported on the earnings call reached $1.25 billion, up 16% sequentially and 28% year over year. Semiconductors contributed approximately $554 million, Electronics and Packaging approximately $381 million, and Specialty Industrial Markets approximately $313 million, representing about 44%, 31%, and 25% of total segment revenue, respectively. The segments grew 28%, 44%, and 14% year over year, demonstrating that the acceleration was not confined to a single business.
Gross margin was 47.6% in Q2 fiscal 2026, while the GAAP financial statements reported gross profit of $595 million, net income of $175 million, and earnings per share of $2.41. On the adjusted basis presented on the earnings call, operating income was approximately $320 million at a 25.6% margin, net earnings were $232 million, and diluted earnings per share were $3.30. Free cash flow was $188 million, or approximately 15% of revenue, with liquidity exceeding $1.6 billion.
The analyst consensus is “Buy,” with an average price target of $408.14 and a wide range of $265 to $600; the average is approximately 8.8% below the 52-week range high of $447.62, while the highest target exceeds that high by approximately 34%. The wide 52-week range of $97.50 to $447.62 and the dispersion in targets indicate that the valuation is sensitive to expectations for the semiconductor and artificial intelligence cycle, and the assessment cannot be supported by a price-to-earnings ratio because the data do not provide a current multiple.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached $1.25 billion, up 16% sequentially and 28% year over year in Q2 fiscal 2026. Semiconductors increased 28% year over year to $554 million due to DRAM, advanced logic, and NAND upgrades, while Electronics and Packaging jumped 44% to $381 million. Specialty Industrial Markets also grew 14% to $313 million, supported by data communications and defense.
MKS provides the vacuum, plasma, power, and optics components needed to manufacture advanced chips, as well as the circuit board equipment and chemicals used for the boards on which those chips are integrated. On the August 6, 2026 call, management estimated that artificial intelligence applications had grown to represent between 15% and 20% of the chemicals business. The company also linked strength in chemistry equipment, optical modules, and data communications to investments in artificial intelligence servers and data centers.
The company expects Q3 fiscal 2026 revenue of $1.35 billion, plus or minus $40 million. The outlook includes $630 million for Semiconductors, $385 million for Electronics and Packaging, and $335 million for Specialty Industrial Markets. It also expects a gross margin of 47%, an operating margin of 26.3%, and adjusted diluted earnings per share of $3.58, plus or minus $0.31.
Automated analysis for informational purposes only — not investment advice.
The Malaysia facility recorded its first shipments in Q2 fiscal 2026, and management says it is intended primarily to meet demand in fiscal 2027 and beyond. The company believes completing Penang capacity will support a wafer fabrication equipment market valued at $200 billion to $250 billion. In chemistry equipment, MKS reactivated Germany capacity and is targeting the doubled Guangzhou expansion to become operational in Q3 fiscal 2027, although the plants are currently operating near their capacity limits.
The company generated free cash flow of $188 million in Q2 fiscal 2026, equal to approximately 15% of revenue. Liquidity exceeded $1.6 billion, including $611 million in cash and $1 billion through an undrawn revolving credit facility. Leverage declined to three times adjusted earnings before interest, taxes, depreciation, and amortization, and the company prepaid $100 million of its term loan in August 2026.
The main risks are the cyclicality of semiconductor fabrication equipment spending and pressure on gross margin from the chemistry equipment mix and expansion costs. Management estimated the plant ramp-up burden at approximately 50 to 80 basis points each quarter for several quarters, while approximately 100 basis points of the Q2 fiscal 2026 margin resulted from discrete items. Additional risks include higher investments in inventory and capital expenditures, seasonality in flexible drilling, and net insider sales of $21.9 million during the three months ending with the latest transaction on August 14, 2026.