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Entegris (ENTG)
NASDAQ:ENTG
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Entegris
(NASDAQ:ENTG)
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Rating:67Neutral
Price Target:
$91.00
▼(-2.25% Downside)
Entegris' overall stock score reflects a strong financial performance with efficient cash flow management and operational efficiencies. However, high leverage and inconsistent revenue growth present challenges. The technical analysis indicates a neutral trend, while the valuation suggests the stock may be overvalued. The earnings call highlighted both growth opportunities and operational challenges.
Positive Factors
Cash Flow Management
Strong cash flow generation indicates robust financial health, enabling Entegris to reinvest in growth opportunities and manage debt effectively.
Global Manufacturing Expansion
Expanding global manufacturing capabilities enhances Entegris' production efficiency and supply chain resilience, supporting long-term growth.
Materials Solutions Growth
Growth in Materials Solutions reflects strong demand for Entegris' products, reinforcing its market position and potential for sustained revenue growth.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting Entegris' ability to invest in growth or weather economic downturns.
Revenue Growth Challenges
Inconsistent revenue growth could hinder Entegris' ability to scale operations and maintain competitive advantage, affecting long-term profitability.
Gross Margin Pressures
Ongoing gross margin pressures from tariffs and inefficiencies may reduce profitability, necessitating strategic adjustments to sustain margins.
Entegris (ENTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.11B
Dividend Yield0.43%
Average Volume (3M)2.62M
Price to Earnings (P/E)47.9
Beta (1Y)2.01
Revenue Growth-1.86%
EPS Growth59.60%
CountryUS
Employees8,200
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.66
Shares Outstanding151,600,000
10 Day Avg. Volume2,733,483
30 Day Avg. Volume2,620,266
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue5.02
Enterprise Value/Gross Profit11.04
Enterprise Value/Ebitda17.69
Forecast
1Y Price Target
$95.90Price Target Upside3.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Entegris Business Overview & Revenue Model
Company DescriptionEntegris, Inc. develops, manufactures, and supplies microcontamination control products, specialty chemicals, and advanced materials handling solutions in North America, Taiwan, China, South Korea, Japan, Europe, and Southeast Asia. It operates in three segments: Specialty Chemicals and Engineered Materials (SCEM); Microcontamination Control (MC); and Advanced Materials Handling (AMH). The SCEM segment offers high-performance and high-purity process chemistries, gases, and materials, as well as delivery systems to support semiconductor and other advanced manufacturing processes. The MC segment provides solutions to filter and purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries, wafers, and other substrates for application in the semiconductor, life sciences, and other high-technology industries. The company's customers include logic and memory semiconductor device manufacturers, semiconductor equipment makers, gas and chemical manufacturing companies, and wafer grower companies; and flat panel display equipment makers, panel manufacturers, and manufacturers of hard disk drive components and devices, as well as their related ecosystems. It also serves manufacturers and suppliers in the solar industries, electrical discharge machining customers, glass and glass container manufacturers, aerospace manufacturers, and manufacturers of biomedical implantation devices. Entegris, Inc. was founded in 1966 and is headquartered in Billerica, Massachusetts.
How the Company Makes MoneyEntegris generates revenue primarily through the sale of its advanced materials and related products to semiconductor manufacturers and other high-tech industries. Key revenue streams include sales of filtration systems, chemical and gas delivery systems, and various contamination control solutions. The company benefits from long-term relationships with major semiconductor manufacturers, offering tailored solutions that meet specific customer needs. Significant partnerships and collaborations with leading technology companies enhance its market position and contribute to its earnings. Additionally, Entegris invests in research and development to innovate and expand its product offerings, ensuring a steady demand for its solutions across evolving technology sectors.
Entegris Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While revenue and Materials Solutions showed growth, challenges in Advanced Purity Solutions and gross margin pressures were noted. Progress in global manufacturing and debt reduction is positive, but trade policy volatility and operational inefficiencies remain concerns.Q2-2025 Updates
Positive Updates
Revenue Performance
Revenue was above guidance range and up 2% sequentially. Non-GAAP EPS was at the high end of guidance.
Materials Solutions Growth
Sales for Materials Solutions were up 4% year-on-year, driven by CMP slurries and pads, selective etch, and deposition materials.
Global Manufacturing Expansion
Progress on global manufacturing and supply chain strategy with new facilities in Taiwan and Colorado on track and the opening of the Korea Technology Center.
Debt Reduction Efforts
Paid down $50 million of debt post-Q2. Gross debt is approximately $4 billion with a blended interest rate of about 5%.
Positive China Market Performance
Sequential revenue increase of 8% in China. Year-to-date, China business is flat but a stronger second half is expected.
Negative Updates
Advanced Purity Solutions Decline
Sales were down 7% year-on-year, driven by a decline in facilities-based CapEx investments.
Gross Margin Pressures
Sequential decline in gross margin due to tariffs, inventory management, and operational inefficiencies.
Ongoing Trade Policy Volatility
Uncertainty and volatility around trade policies impacting semiconductor demand and capital spending.
Inventory and Production Challenges
Adjustments to manage inventory levels impacting gross margins; inefficiencies in moving production to Asia.
Company Guidance
During the Entegris Second Quarter 2025 earnings call, the company provided guidance for the upcoming fiscal period, outlining several key metrics. For the third quarter of 2025, Entegris expects sales to range between $780 million and $820 million, with a gross margin percentage approximately in line with the second quarter's performance of 44.6% on a non-GAAP basis. GAAP operating expenses are projected to be between $228 million and $232 million, while non-GAAP operating expenses are anticipated to be in the range of $182 million to $186 million. The company also expects an EBITDA margin of approximately 27.5%, net interest expense of about $48 million, and a non-GAAP tax rate of around 9% due to the expiration of a tax reserve. Additionally, GAAP EPS is forecasted to be between $0.43 and $0.50 per share, with non-GAAP EPS estimated to range from $0.68 to $0.75 per share. The company expects depreciation to be approximately $51 million.Entegris Financial Statement Overview
Summary
Entegris maintains a strong financial position with consistent profitability and efficient cash flow management. While leverage is on the higher side, the company effectively generates cash flows to support its operations. Revenue growth appears to be a challenge, but operational efficiencies are evident in solid EBIT and EBITDA margins.Income Statement
Entegris shows stable gross profit and net profit margins, with gross profit margin at 45.5% and net profit margin at 9.2% for TTM. However, revenue growth has been inconsistent, with a decline in revenue in the most recent period compared to the prior year. EBIT and EBITDA margins are solid at 16.0% and 22.3% respectively, indicating efficient operations.75
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively high at 1.03, suggesting significant leverage. Return on equity for TTM is 7.5%, which is moderate. The equity ratio stands at 46.5%, providing some stability but indicating room for improvement in asset management.60
Neutral
Cash Flow
Entegris demonstrates strong cash flow generation with a free cash flow growth rate of 38.3% TTM. The operating cash flow to net income ratio is robust at 2.12, indicating strong cash conversion. Free cash flow to net income ratio is commendable at 1.48, reflecting good cash flow management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.22B | 3.24B | 3.52B | 3.28B | 2.30B | 1.86B |
| Gross Profit | 1.47B | 1.49B | 1.50B | 1.40B | 1.06B | 849.72M |
| EBITDA | 915.62M | 915.51M | 872.21M | 739.07M | 658.48M | 539.41M |
| Net Income | 295.52M | 292.79M | 180.67M | 208.92M | 409.13M | 294.97M |
Balance Sheet | ||||||
| Total Assets | 8.45B | 8.39B | 8.81B | 10.14B | 3.19B | 2.92B |
| Cash, Cash Equivalents and Short-Term Investments | 376.80M | 329.21M | 456.93M | 563.44M | 402.56M | 580.89M |
| Total Debt | 4.06B | 4.05B | 4.65B | 5.87B | 1.01B | 1.14B |
| Total Liabilities | 4.52B | 4.70B | 5.40B | 6.92B | 1.48B | 1.54B |
| Stockholders Equity | 3.93B | 3.69B | 3.41B | 3.22B | 1.71B | 1.38B |
Cash Flow | ||||||
| Free Cash Flow | 437.51M | 316.12M | 172.72M | -113.91M | 189.83M | 314.92M |
| Operating Cash Flow | 627.22M | 631.72M | 629.56M | 352.28M | 400.45M | 446.67M |
| Investing Cash Flow | -363.77M | -67.08M | 553.07M | -4.95B | -298.12M | -243.33M |
| Financing Cash Flow | -219.32M | -688.99M | -1.28B | 4.77B | -276.50M | 22.15M |
Entegris Technical Analysis
Positive
93.09
Price Trends
84.38
Positive
81.74
Positive
88.28
Positive
Market Momentum
3.29
Negative
60.29
Neutral
45.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENTG, the sentiment is Positive. The current price of 93.09 is above the 20-day moving average (MA) of 87.73, above the 50-day MA of 84.38, and above the 200-day MA of 88.28, indicating a bullish trend. The MACD of 3.29 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 45.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENTG.
Entegris Risk Analysis
Entegris disclosed 30 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $9.12B | 42.33 | 19.81% | ― | 43.69% | 51.22% | |
78 Outperform | $5.00B | 38.63 | 21.58% | 1.27% | 27.88% | 37.85% | |
76 Outperform | $11.04B | 48.56 | 18.66% | ― | 35.17% | 0.10% | |
75 Outperform | $9.77B | 311.57 | 4.61% | ― | -22.15% | -83.34% | |
67 Neutral | $14.11B | 47.86 | 8.08% | 0.43% | -1.86% | 59.60% | |
54 Neutral | $9.64B | -128.43 | -5.53% | ― | 33.50% | -197.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ENTG
Entegris
93.09
-18.96
-16.92%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.