MKS Instruments Stock Forms Bull Flag Setup

MKS Instruments has rapidly growing EPS and revenue while the stock has formed a Bull Flag setup on the chart.

MKS Instruments stock has formed a Bull Flag setup on a strong Twiggs Money Flow.

MKS Instruments reported on October 24, 2017. The company reported EPS of $1.56 beating the estimate of $1.46. Revenue also beat coming in at $486.27 million versus the estimate of $476.24 million. MKS Instruments’ revenue was up an incredible 27.7% year-over-year. MKS Instruments raised its Q4 guidance EPS in the $1.52 to $1.76 range versus the consensus estimate of $1.36. The company raised its forward revenue guidance of between $480 to $520 million versus the consensus estimate of $465.45 million.

On October 26, 2017, two days after MKS Instruments reported, Deutsche Bank AG boosted its price target on the stock to $116. Deutsche Bank has a Buy rating on the stock. Deutsche Bank analysts have been on a hot streak over the last year which is why they are one of the more popular analyst firms right now.

Overall there are no Sell ratings and 4 Buy ratings. The average price target is $109.75 which represents 5.38% upside from the current price.

MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measures, controls, powers, delivers, monitors and analyzes critical parameters of advanced manufacturing processes. The Company operates through two segments, including the Vacuum & Analysis segment and the Light & Motion segment. You can read more about the company on their website.

MKS Instruments Stock Chart

MKSI presents a decent setup pattern. MKSI is currently in a bull flag pattern. A bull flag pattern occurs when prices pull back slightly after a strong rise up. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a good opportunity for an entry. There is a resistance zone just above the current price starting at $106.34. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $104.14, a stop order could be placed below this zone.

MKS Instruments Inc. Review
4.5

Summary

Profitability

MKSI's Return On Assets of 11.05% is among the best returns of the industry. MKSI outperforms 82% of its industry peers. The industry average Return On Assets is 4.64%. MKSI's Return On Equity of 18.43% is among the best of the industry. MKSI does better than the industry average Return On Equity of 12.20%. MKSI's Profit Margin of 15.47% is among the best returns of the industry. MKSI outperforms 82% of its industry peers. The industry average Profit Margin is 7.47%. The Piotroski-F score of MKSI is 8. This is a very strong score and indicates great health and profitability for MKSI.

Valuation

Compared to an average industry Price/Earning Ratio of 31.19, MKSI is valued a bit cheaper than its industry peers. MKSI's low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company. The Price/Earnings Ratio is 21.48, which indicates a rather expensive current valuation of MKSI. With a Forward Price/Earnings Ratio of 15.98, MKSI is valued correctly. With a price book ratio of 3.93, MKSI is valued correctly. Compared to an average industry Enterprise Value to EBITDA ratio of 17.88, MKSI is valued in line with its industry peers. Compared to an average industry price book ratio of 3.11, MKSI is valued more expensive than its industry peers.

Growth

The Earnings Per Share has grown by an impressive 214.33% over the past year. MKSI shows a strong growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 39.78% yearly. The Earnings Per Share is expected to grow by 82.66% on average over the next 2 years. This is very strong growth! Looking at the last year, MKSI shows a very strong growth in revenue. Revenue has grown by 91.16%. Revenue has been growing by 21.50% on average over the past 5 years. Again, this is very strong growth! When comparing the growth rate of the last years to the growth rate of the upcoming 2 years, we see that the growth is decreasing.

Health

MKSI has a Current Ratio of 4.65. This indicates that MKSI is financially healthy and has no problem in meeting its short term obligations.
The Current Ratio of MKSI is much better than the industry average of 3.11. MKSI has a better rating than 81% of its industry peers. A Quick Ratio of 3.47 indicates that MKSI has no problem at all paying its short term obligations. MKSI is better placed than average in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 2.26. MKSI has an Altman-Z score of 5.53. This indicates that MKSI is financially healthy and little risk of bankruptcy at the moment. When comparing the Altman-Z score to an average industry Current Ratio of 4.02, MKSI is in better financial health than the average industry peer. The Piotroski-F score of MKSI is 8. This is a very strong score and indicates great health and profitability for MKSI. When comparing the Debt to Equity Ratio of MKSI to the average industry Debt to Equity Ratio of 0.07, MKSI required more debt to finance its operations than its industry peers.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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