MKS Instruments: The Medium-Term Opportunity

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About: MKS Instruments, Inc. (MKSI)
by: Vasily Zyryanov
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Vasily Zyryanov
Long/short equity
Summary

MKSI has slipped from an-all time high reached in 2018 as market capitalization mirrored the revenue drop.

All relevant LTM profitability metrics have declined.

The firm has diversified its revenue streams with the ESI acquisition.

Stock performance YTD has been exemplary.

Yet, I do not expect the stock to reclaim an all-time high in 2019 and 2020, but it is reasonably possible from 2021, as analysts anticipate its revenue to edge substantially higher.

This year, the stock of MKS Instruments (MKSI), a company that provides a plethora of instruments, subsystems, and process control solutions, which measure and analyze vital parameters of manufacturing processes, has dipped from