$MKS Instruments (MKSI.US)$ MKS Instruments (MKSI) It is an ...

MKS Instruments (MKSI) It is an American company listed for $14 in 1999. The current price is 118.4, and the average annual return is 9.8%, which is not bad.

Over the past five years, with the exception of 2019, gross margin has basically been around 46%, while return on net assets has fluctuated greatly. It was above 20% in 3 years, but only 7.2% and 16% in 2019 and 2020.

Over the past 5 years, revenue has increased from 1.92 billion to 2.95 billion dollars, 4 years except 2019; operating profit has increased from 420 million to 740 million, 4 years in addition to the 46.4% decline in 2019, in particular, a 58% increase in 2021; net profit has increased from 340 million to 550 million, with an increase of 4 years in addition to a 64.3% decline in 2019. Net profit surged 57.5% in 2021, with an average growth rate of 12.9% in the past 4 years.

In the first two quarters of 2022, revenue increased by 4.4%, operating profit fell 5%, and net profit increased by 1.6%, indicating that the sharp rise in 2021 is unsustainable.

The income statement shows that restructuring and mergers and acquisitions expenses have been relatively high in recent years, reaching 40.9 million in 2021. Interest costs account for less than 5%, so the burden is very light.

The balance ratio has not changed much. It has risen from 34.2% to 41% and dropped to 34.1% at present. The ratio of accounts receivable and inventory is relatively normal, and the increase is lower than the increase in net profit. It has a goodwill of 1.22 billion, accounting for nearly 40% of net assets of 3.13 billion; long-term loans of 800 million yuan, accounting for about 25%, so leverage is not very high.

The cumulative net operating amount for five years slightly exceeds the net investment amount, indicating that it is a business with heavy assets.

Currently, the price-earnings ratio is 11.96, and the price-earnings ratio is TTM 11.88. Considering the decline in revenue and profit growth, we can wait and see.