As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of MKS Instruments, Inc. (NASDAQ:MKSI), it is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on MKS Instruments here.
Excellent balance sheet with proven track record
MKSI has a strong track record of performance. In the previous year, MKSI delivered an impressive double-digit return of 21% Not surprisingly, MKSI outperformed its industry which returned 16%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. MKSI's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MKSI appears to have made good use of debt, producing operating cash levels of 1.19x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For MKS Instruments, I've compiled three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for MKSI’s future growth? Take a look at our free research report of analyst consensus for MKSI’s outlook.
- Valuation: What is MKSI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MKSI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MKSI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.