MKS Inc. ranks slightly below the peer group median, with strong growth offset by weak stability. Price action is modestly ahead of the structural profile — a mild divergence, not yet a decisive signal.
Peer-relative scores, weakest to strongest
MKS Inc. supplies critical subsystems for semiconductor wafer fabrication and advanced packaging equipment.
The market prices MKS by emphasizing recovery probability over stable capital returns, directly maintaining the valuation discount versus peers. With a ROIC of just 4.2% and an operating margin of 7.9%—both below peer medians—the market consistently factors in these underperformances, reflecting little expectation for a near-term rerating. In semiconductor supply, margin strength and capital discipline are key valuation anchors; MKS loses ground here to more diversified and higher-margin competitors, making the discount a direct reflection of business quality. Only a sustained improvement in both margins and capital returns to peer levels over at least two quarters could break the current valuation framing.
Break down MKSI's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.