MKS Inc. Common Stock (MKSI)

FairStock Score: 33/100 — RISKY

Key Financials

Strengths

• Generates $535 million in annual free cash flow (2.8% yield on market cap)
• Solid return on equity of 11.7% above cost of capital
• Established organization with 10,200 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($63) with negative 350% margin of safety—limited downside protection

AI Analysis

MKS Inc. Common Stock is a mid-cap technology company valued at $19.1 billion. The business generates $3.9 billion in annual revenue with a 2.7% net margin and $535 million in free cash flow. From a quality standpoint, MKS shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.4 in the grey zone. On valuation, the stock is commanding a steep 64.2x multiple, with trades far above its Graham Number ($63) with no margin of safety. Growth dynamics show revenue growing at 10.6% and profit growth of 17.6%. Our composite FairStock Score of 33/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $535 million in annual free cash flow (2.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 64x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer