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Entegris (ENTG)
NASDAQ:ENTG
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Entegris
(NASDAQ:ENTG)68Neutral
Positive Factors
Market Confidence
The price target remains at $120 with an unchanged outperform rating, showing confidence in the stock's potential.
Market Expansion
China has become Entegris' largest sales country and fastest-growing market.
Negative Factors
Financial Performance
Entegris reported 3Q24 results below expectations and guided 4Q24 below consensus estimates.
Revenue Outlook
Management reduced the full-year revenue outlook by roughly $85MM.
Entegris (ENTG) vs. S&P 500 (SPY)
Market Cap
$15.15B
Dividend Yield0.4%
Average Volume (3M)3.45M
Price to Earnings (P/E)52.0
Beta (1Y)1.62
Revenue Growth-8.02%
EPS Growth61.14%
CountryUS
Employees8,200
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)1.93
Shares Outstanding151,126,740
10 Day Avg. Volume5,668,105
30 Day Avg. Volume3,446,652
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)N/A
Price to Sales (P/S)4.68
Price to Cash Flow (P/CF)21.50
P/FCF Ratio17.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$127.00Price Target Upside23.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Entegris Business Overview & Revenue Model
Company DescriptionEntegris, Inc. (ENTG) is a leading supplier of advanced materials and process solutions for the semiconductor and other high-technology industries. The company operates within sectors such as microelectronics, life sciences, and other advanced technology markets. Entegris provides a comprehensive range of products and services, including specialty chemicals, advanced materials, filtration products, and fluid management solutions that are essential for the production of semiconductors and other electronics.
How the Company Makes MoneyEntegris generates revenue through the sale of its specialized products and solutions to semiconductor manufacturers and other technology-driven industries. The primary revenue streams include the sale of advanced chemicals and materials, filtration systems, and other process-critical products that ensure the purity, safety, and efficiency of semiconductor manufacturing processes. Entegris leverages its strong R&D capabilities to innovate and develop cutting-edge solutions that meet the evolving demands of the semiconductor industry. The company also benefits from strategic partnerships and collaborations with leading semiconductor companies, which help drive sales and expand its market reach. Additionally, Entegris' global presence allows it to serve a diverse customer base across North America, Asia, and Europe, contributing to its financial performance.
Entegris Financial Statement Overview
Summary
Entegris demonstrates strong profitability and cash flow metrics, with a high net profit margin and significant free cash flow growth. However, the company faces challenges in revenue growth, reflected by a negative revenue growth rate. The balance sheet is stable but has moderate leverage.Income Statement
Entegris shows a solid gross profit margin of 42.8% in TTM, indicating efficient cost management. The net profit margin improved to 9.0% from the previous year, reflecting enhanced profitability. However, the revenue growth rate is negative at -8.0%, suggesting revenue contraction, which could be a concern. EBIT and EBITDA margins are healthy at 16.5% and 25.2% respectively, showing strong operational performance despite revenue decline.75
Positive
Balance Sheet
The debt-to-equity ratio is 1.06, indicating moderate leverage which is typical for the industry. Return on equity is strong at 7.7%, showcasing efficient use of equity. The equity ratio stands at 45.5%, reflecting a stable financial structure. Although leverage is within industry norms, a high level of debt could pose risks in volatile markets.68
Positive
Cash Flow
Free cash flow grew significantly, with a growth rate of 265.8% TTM, highlighting excellent cash generation capabilities. The operating cash flow to net income ratio is robust at 2.16, indicating strong cash conversion. Free cash flow to net income ratio is also strong at 2.16, suggesting efficient cash utilization and liquidity position.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.24B | 3.52B | 3.28B | 2.30B | 1.86B | Gross Profit |
| 1.49B | 1.50B | 1.40B | 1.06B | 849.72M | EBIT |
| 533.92M | 499.16M | 479.98M | 551.77M | 395.44M | EBITDA |
| 533.92M | 909.43M | 739.07M | 658.48M | 539.41M | Net Income Common Stockholders |
| 292.79M | 180.67M | 208.92M | 409.13M | 294.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 329.21M | 456.93M | 563.44M | 402.56M | 580.89M | Total Assets |
| 8.39B | 8.81B | 10.14B | 3.19B | 2.92B | Total Debt |
| 4.05B | 4.65B | 5.87B | 997.13M | 1.13B | Net Debt |
| 3.72B | 4.19B | 5.30B | 594.56M | 544.62M | Total Liabilities |
| 4.70B | 5.40B | 6.92B | 1.48B | 1.54B | Stockholders Equity |
| 3.69B | 3.41B | 3.22B | 1.71B | 1.38B |
| Cash Flow | Free Cash Flow | |||
| 631.72M | 172.72M | -113.91M | 189.83M | 314.92M | Operating Cash Flow |
| 631.72M | 629.56M | 352.28M | 400.45M | 446.67M | Investing Cash Flow |
| -67.08M | 553.07M | -4.95B | -298.12M | -243.33M | Financing Cash Flow |
| -688.99M | -1.28B | 4.77B | -276.50M | 22.15M |
Entegris Technical Analysis
Neutral
102.93
Price Trends
102.55
Positive
103.78
Negative
112.55
Negative
Market Momentum
-0.90
Positive
50.48
Neutral
65.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENTG, the sentiment is Neutral. The current price of 102.93 is below the 20-day moving average (MA) of 103.79, above the 50-day MA of 102.55, and below the 200-day MA of 112.55, indicating a neutral trend. The MACD of -0.90 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 65.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ENTG.
Entegris Risk Analysis
Entegris disclosed 29 risk factors in its most recent earnings report. Entegris reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Entegris Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $281.47B | 34.33 | 48.13% | 0.80% | 2.53% | -3.33% | |
80 Outperform | $98.16B | 23.24 | 50.42% | 1.12% | 13.21% | 27.25% | |
77 Outperform | $95.12B | 30.10 | 96.81% | 0.88% | 12.19% | 20.80% | |
76 Outperform | $123.12B | 19.82 | 35.19% | 1.05% | 4.45% | -10.01% | |
68 Neutral | $15.15B | 52.00 | 8.25% | 0.40% | -8.02% | 61.14% | |
65 Neutral | $5.56B | 29.36 | 7.93% | 1.07% | -0.99% | ― | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
ENTG
Entegris
102.93
-35.95
-25.89%
AMAT
Applied Materials
155.68
-44.01
-22.04%
ASML
ASML Holding
732.22
-223.62
-23.40%
KLAC
KLA
711.29
31.97
4.71%
LRCX
Lam Research
79.01
-12.89
-14.03%
MKSI
MKS Instruments
84.89
-41.64
-32.91%
Entegris Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -0.93% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
Entegris reported solid financial performance for Q4 2024 and the full year, with strong growth in its Material Solutions division and significant debt reduction. However, challenges remain with flat sales in the Advanced Purity Solutions division and potential revenue losses due to China restrictions. The company is cautiously optimistic about 2025, expecting market outperformance despite limited visibility into market recovery.Highlights
Strong Fourth Quarter Performance
In the fourth quarter of 2024, Entegris' revenue excluding divestitures grew 11% year over year and was above the guidance range. Advanced Purity Solutions recorded all-time high quarterly sales.
Full Year Revenue Growth
For the full year 2024, Entegris' revenue grew more than 5% excluding divestitures and currency impact, outperforming the market by 4%.
Material Solutions Division Growth
Sales of the Material Solutions division were up 11% for the year, with CMP slurry revenue growing 14% and CMP pads growing 24%.
Debt Reduction
Entegris paid down almost $625 million of debt in 2024, with continued focus on debt reduction in 2025.
Advanced Packaging Growth
Advanced packaging-related revenues approached $100 million in 2024, with significant growth expected in 2025.
Lowlights
Flat Advanced Purity Solutions Sales
Sales in the Advanced Purity Solutions division were flat in 2024 due to tough comparisons from a significant backlog in 2023.
China Restrictions Impact
The latest restrictions on sales to China are expected to result in an annual revenue loss of $30 million to $40 million in 2025.
Limited Market Rebound Visibility
As of early 2025, there is limited visibility into a significant semiconductor market rebound outside of advanced logic and AI-driven applications.
Company Guidance
During the Entegris earnings call for the fourth quarter and full year 2024, the company reported a strong performance with revenue growth of 11% year-over-year, excluding divestitures. The Advanced Purity Solutions division achieved all-time high quarterly sales, while Material Solutions saw its highest sales in over two years. The full-year revenue rose by more than 5%, excluding divestitures and currency impacts, outperforming the market by approximately 4%. Notably, CMP slurry revenue increased by 14%, and CMP pads by 24%. Entegris' EBITDA margin expanded by over 100 basis points year-over-year to 28.7%. The company also paid down nearly $625 million of debt in 2024 and plans to maintain a focus on debt reduction in 2025. Looking ahead, Entegris anticipates 2025 sales to reach approximately $3.4 billion, with an expected EBITDA margin slightly above 29% and non-GAAP EPS at or above $3.25, despite a projected $30-$40 million revenue impact due to new China sales restrictions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.