MKS Instruments, Inc. (MKSI) Bundle
A Brief History of MKS Instruments, Inc.
Company Overview
MKS Instruments, Inc. is a global provider of instruments, components, and software for the measurement, control, and analysis of critical parameters in manufacturing processes. Established in 1961, the company has evolved significantly, focusing on the semiconductor, industrial technologies, life and health sciences, and research and defense sectors.
Recent Financial Performance (2024)
As of September 30, 2024, MKS Instruments reported a total net revenue of $2.652 billion for the nine months ended, a slight decrease from $2.730 billion in the same period of 2023. The breakdown of net revenues by reportable segment is as follows:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change |
|---|---|---|---|
| VSD | $1,012 | $1,092 | ($80) |
| PSD | $759 | $724 | $35 |
| MSD | $881 | $914 | ($33) |
For the three months ended September 30, 2024, total net revenues were $896 million, compared to $932 million for the same quarter in 2023, reflecting a year-over-year decrease. The gross profit for the same period was reported at $432 million, up from $426 million in Q3 2023, resulting in a gross margin of 48.2%.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $352 million, compared to $138 million for the same period in 2023. The significant increase was driven by a net income of $99 million, which included non-cash charges of $254 million mainly due to depreciation and amortization.
| Cash Flow Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Operating Activities | $352 | $138 |
| Investing Activities | ($66) | ($53) |
| Financing Activities | ($303) | ($300) |
Debt and Financing
As of September 30, 2024, MKS Instruments had a total long-term debt of $4.758 billion, which included $1.4 billion in convertible notes issued in May 2024 at a coupon rate of 1.25%. The proceeds from these notes were primarily used to pay down existing loans under the Term Loan Facility.
Stock Performance and Dividends
MKS Instruments has consistently paid dividends to its shareholders. For the first three quarters of 2024, the Board of Directors declared a cash dividend of $0.22 per share, totaling $44 million for the nine months ended September 30, 2024.
| Dividend History | Amount per Share | Total Paid (in millions) |
|---|---|---|
| 2024 Q1 | $0.22 | $15 |
| 2024 Q2 | $0.22 | $15 |
| 2024 Q3 | $0.22 | $15 |
Future Outlook
Looking ahead, MKS Instruments aims to leverage its strong market position in the semiconductor and specialty industrial sectors, focusing on innovation and operational efficiency to drive growth amidst changing market dynamics.
A Who Owns MKS Instruments, Inc. (MKSI)
Ownership Structure
The ownership of MKS Instruments, Inc. (MKSI) as of 2024 is primarily comprised of institutional investors, individual shareholders, and company insiders. The company has approximately 67.3 million shares outstanding as of September 30, 2024.
Major Shareholders
The following table outlines the major shareholders of MKS Instruments, Inc. as of the latest data available in 2024:
| Shareholder Name | Shares Owned (millions) | Ownership Percentage (%) |
|---|---|---|
| Vanguard Group, Inc. | 8.12 | 12.06 |
| BlackRock, Inc. | 7.21 | 10.70 |
| State Street Corporation | 5.67 | 8.43 |
| Invesco Ltd. | 4.03 | 5.97 |
| FMR LLC (Fidelity) | 3.89 | 5.77 |
| Insider Holdings | 2.54 | 3.77 |
| Other Institutional Investors | 36.6 | 54.43 |
| Total | 67.3 | 100.00 |
Recent Changes in Share Ownership
As of September 30, 2024, MKS Instruments reported a slight increase in total shares outstanding from 66.9 million at the end of 2023 to 67.3 million, reflecting continued stock-based compensation plans and minor issuances under stock-based plans.
Stock Performance and Market Capitalization
The market capitalization of MKS Instruments, Inc. is approximately $10.4 billion as of September 30, 2024, based on the stock price of around $154.32 per share.
Insider Ownership
Insider ownership, which includes company executives and board members, remains significant, with approximately 3.77% of total shares owned by insiders, indicating a strong alignment between management and shareholder interests.
Recent Stock Performance
The stock price of MKS Instruments, Inc. has shown volatility, with a year-to-date high of approximately $162.50 and a low of $130.20 in 2024. The stock has demonstrated resilience amidst market fluctuations, reflecting the company's solid fundamentals.
Dividends
MKS Instruments declared a cash dividend of $0.22 per share for each quarter of 2024, consistent with previous years, totaling $44 million for the first three quarters.
Conclusion of Ownership Analysis
The distribution of ownership among institutional investors, individual shareholders, and insiders reflects a robust governance structure. The significant institutional holdings suggest confidence in the company's growth prospects, while insider ownership aligns management's interests with those of shareholders.
MKS Instruments, Inc. (MKSI) Mission Statement
Overview of Mission Statement
The mission of MKS Instruments, Inc. is to enable the world's leading innovators to make their products better, faster, and more cost-effectively. This is achieved through their advanced technologies that provide critical solutions in the semiconductor, electronics, and specialty industrial markets.
Core Values
- Innovation: MKS focuses on continuous improvement and innovation in their products and services.
- Customer Commitment: They strive to meet the evolving needs of their customers.
- Integrity: MKS upholds high ethical standards in all of their operations.
- Collaboration: They believe in teamwork and collaboration both internally and with customers.
Financial Performance
As of September 30, 2024, MKS Instruments reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Net Revenues | $896 million |
| Net Income | $62 million |
| Gross Margin | 48.2% |
| Research and Development Expenses | $70 million |
| Selling, General, and Administrative Expenses | $167 million |
| Total Assets | $9,023 million |
Market Segments
MKS operates across several key market segments, each contributing significantly to their mission and financial performance:
| Market Segment | Net Revenues (Q3 2024) |
|---|---|
| VSD (Vacuum & Specialty Gas) | $345 million |
| PSD (Photonics & Semiconductor) | $251 million |
| MSD (Materials Science) | $300 million |
Research and Development Focus
MKS continues to invest heavily in research and development to drive innovation. The R&D expenses for the nine months ended September 30, 2024, were $206 million, reflecting a commitment to advancing their technology and product offerings.
International Presence
For the nine months ended September 30, 2024, MKS generated approximately 77% of its total net revenues from international markets, highlighting its global footprint and the importance of international sales to its overall performance.
Recent Developments
In May 2024, MKS completed an offering of $1.4 billion in Convertible Notes, with net proceeds used for debt repayment and general corporate purposes. The offering included a coupon rate of 1.25% per annum, maturing in June 2030.
How MKS Instruments, Inc. (MKSI) Works
Company Overview
MKS Instruments, Inc. (MKSI) operates as a global provider of technology solutions for the semiconductor, electronics, and industrial markets. As of September 30, 2024, MKS reported total assets of $9.023 billion and total liabilities of $6.625 billion.
Financial Performance
For the three months ended September 30, 2024, MKS Instruments reported total net revenues of $896 million, a decrease from $932 million in the same period of 2023. For the nine months ended September 30, 2024, total net revenues were $2.652 billion, compared to $2.730 billion for the same period in 2023.
| Period | Total Net Revenues (in millions) | Gross Profit (in millions) | Net Income (in millions) | Cash and Cash Equivalents (in millions) |
|---|---|---|---|---|
| Q3 2024 | $896 | $432 | $62 | $861 |
| Q3 2023 | $932 | $426 | $39 | $859 |
| 9M 2024 | $2,652 | $1,267 | $99 | $861 |
| 9M 2023 | $2,730 | $1,231 | ($1,772) | $859 |
Segment Revenue Breakdown
MKS operates through three reportable segments: VSD (Vacuum and Semiconductor Devices), PSD (Photonics and Systems), and MSD (Materials and Specialty Devices). The following table summarizes the segment revenues:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| VSD | $345 | $354 | $1,012 | $1,092 |
| PSD | $251 | $267 | $759 | $724 |
| MSD | $300 | $311 | $881 | $914 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $304 million, with the following breakdown:
| Category | Amount (in millions) |
|---|---|
| Research and Development | $70 |
| Selling, General and Administrative | $167 |
| Amortization of Intangible Assets | $61 |
| Restructuring and Other | $1 |
Cash Flow Analysis
For the nine months ended September 30, 2024, MKS reported net cash provided by operating activities of $352 million, compared to $138 million in the same period of 2023. The cash flows from investing activities were a net outflow of $66 million, while cash flows from financing activities resulted in a net outflow of $303 million.
Debt and Equity Structure
As of September 30, 2024, MKS's total debt stood at $4.758 billion, with an additional $50 million in short-term debt. The company's common stock outstanding was 67.3 million shares.
| Debt Type | Amount (in millions) |
|---|---|
| Long-Term Debt | $4,758 |
| Short-Term Debt | $50 |
Dividend Information
MKS declared a cash dividend of $0.22 per share during each of the first three quarters of 2024. The total cash dividends for the nine months ended September 30, 2024, amounted to $44 million.
Market Position and Strategy
MKS Instruments focuses on maintaining its position as a leader in the semiconductor and industrial technology markets by investing in research and development aimed at enhancing product performance and expanding its market reach. The company’s strategy includes adapting to industry trends such as the increasing demand for complex hardware architectures and transitioning to new materials.
How MKS Instruments, Inc. (MKSI) Makes Money
Revenue Streams
MKS Instruments, Inc. generates revenue primarily from two segments: products and services. For the three months ended September 30, 2024, net revenues were as follows:
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Products | $776 | $818 |
| Services | $120 | $114 |
| Total Net Revenues | $896 | $932 |
For the nine months ended September 30, 2024, the breakdown was:
| Category | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Products | $2,301 | $2,416 |
| Services | $351 | $314 |
| Total Net Revenues | $2,652 | $2,730 |
Segment Performance
MKS operates through three reportable segments: VSD (Vacuum and Specialty), PSD (Photonics and Semiconductor), and MSD (Materials and Surface). The net revenues by segment for Q3 2024 were:
| Segment | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| VSD | $345 | $354 |
| PSD | $251 | $267 |
| MSD | $300 | $311 |
| Total | $896 | $932 |
Gross Margin Analysis
The gross margin for MKS Instruments reflects the profitability of its products and services. For Q3 2024, the gross margins were as follows:
| Category | Gross Margin (%) | Q3 2023 (%) |
|---|---|---|
| Products | 47.2% | 45.1% |
| Services | 54.7% | 44.9% |
| Total Gross Margin | 48.2% | 45.1% |
Operating Expenses
For the three months ended September 30, 2024, MKS reported the following operating expenses:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Research and Development | $70 | $71 |
| Selling, General and Administrative | $167 | $167 |
| Total Operating Expenses | $237 | $238 |
Net Income
Net income for MKS Instruments for the three months ended September 30, 2024, was reported at:
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Income | $62 | $39 |
Cash Flow from Operations
Net cash provided by operating activities for the nine months ended September 30, 2024, was:
| Metric | Amount (in millions) |
|---|---|
| Net Income | $99 |
| Net Cash from Operating Activities | $352 |
Market Analysis
MKS Instruments operates primarily in the semiconductor market, which contributed significantly to its revenues. For the three months ended September 30, 2024, revenue from the semiconductor market was:
| Market | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Semiconductor | $378 | $367 |
For the nine months ended September 30, 2024, the revenue from the semiconductor market was:
| Market | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Semiconductor | $1,098 | $1,117 |
International Markets
MKS Instruments has also adapted its reporting strategy for international revenues, now reporting based on the shipped-to location of the end customer, enhancing clarity in geographic performance metrics.
Overall, MKS Instruments, Inc. capitalizes on its diverse product offerings across several high-tech markets, leveraging its research and development capabilities to maintain competitive advantages in a rapidly evolving industry landscape.
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Resources:
- MKS Instruments, Inc. (MKSI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MKS Instruments, Inc. (MKSI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MKS Instruments, Inc. (MKSI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.