QM · rank #11 · 2026-07-22
MKSI
NASDAQ · $23.06B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +365.76% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +12.7% |
| Profit margin Net profit margin, trailing 12 months. | +8.0% |
| Market cap (USD) Size filter: > $500M required. | $23.06B |
| Anchor (recent) Close on 2026-06-22 | $420.56 |
| Anchor (far) Close on 2025-06-20 | $90.29 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
MKS Instruments is a global supplier of enabling technologies, subsystems, and chemistry solutions critical to semiconductor and advanced electronics manufacturing, with roughly 40% of revenue from recurring services and consumables.
Rationale
The momentum signal (12-1: 3.66) is reinforced by a concrete fundamental catalyst — a 15% YoY revenue beat, $2.30 vs. $2.04 EPS surprise, and Q2 guidance stepping up to ~$1.20B — while ROE of 12.7% and 8% profit margins confirm the quality screen is capturing real earnings power, not just sentiment rotation.
Material risks
- 1Leverage risk is the most thesis-threatening structural concern — the $2.5B+ in secured term loans maturing 2029 constrains financial flexibility precisely when semiconductor capex cycles can turn sharply, and a demand air pocket would compress margins and stress the balance sheet simultaneously.
- 2Tariff and trade-policy disruption to the newly expanded Malaysia/Thailand manufacturing footprint could raise costs or restrict shipments, undermining the margin expansion thesis embedded in the 47% gross margin guidance.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.