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Entegris (ENTG)
NASDAQ:ENTG
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Entegris
(NASDAQ:ENTG)
66Neutral
Positive Factors
Growth Opportunities
Projected cash balance growth suggests that ENTG could pursue more inorganic growth opportunities going forward.
Market Confidence
The price target remains at $120 with an unchanged outperform rating, showing confidence in the stock's potential.
Sales Performance
Advanced Purity Solutions reported EBIT of $135M on a 6% increase in sales quarter-over-quarter.
Negative Factors
Financial Outlook
Management reduced the full-year revenue outlook by roughly $85MM.
Market Demand
The trend of ex-China demand is showing further signs of weakening, especially for CapEx/WFE.
Revenue Impact
China's retaliatory tariffs on U.S.-produced products impact approximately one-third of Entegris's China revenue.
Entegris (ENTG) vs. S&P 500 (SPY)
Market Cap
$12.38B
Dividend Yield0.49%
Average Volume (3M)4.19M
Price to Earnings (P/E)40.0
Beta (1Y)1.98
Revenue Growth-3.83%
EPS Growth-1.93%
CountryUS
Employees8,200
SectorTechnology
Sector Strength80
IndustrySemiconductors
Share Statistics
EPS (TTM)0.67
Shares Outstanding151,400,000
10 Day Avg. Volume4,480,327
30 Day Avg. Volume4,186,202
Financial Highlights & Ratios
PEG Ratio1.39
Price to Book (P/B)3.03
Price to Sales (P/S)0.00
P/FCF Ratio22.05
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue1.17
Enterprise Value/Gross Profit11.00
Enterprise Value/Ebitda4.23
Forecast
1Y Price Target
$101.50Price Target Upside29.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
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 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 solid gross profit margin and significant free cash flow growth. However, it faces challenges in revenue growth and has a moderate leverage level, which could pose risks in volatile markets.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 | |||
| 316.12M | 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
Negative
78.24
Price Trends
82.79
Negative
92.57
Negative
100.05
Negative
Market Momentum
-0.12
Negative
47.52
Neutral
61.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENTG, the sentiment is Negative. The current price of 78.24 is below the 20-day moving average (MA) of 78.62, below the 50-day MA of 82.79, and below the 200-day MA of 100.05, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 61.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $21.66B | 20.81 | 11.47% | 2.25% | 1.32% | 4.86% | |
70 Outperform | $23.09B | 22.11 | 6.33% | 1.18% | -25.35% | -70.00% | |
66 Neutral | $12.38B | 40.02 | 8.65% | 0.49% | -3.83% | -1.93% | |
66 Neutral | $32.92B | 84.25 | >-0.01% | 2.99% | -44.31% | -86.74% | |
65 Neutral | $18.89B | 30.88 | 7.85% | ― | -18.28% | -70.98% | |
62 Neutral | $55.08B | ― | -6.26% | 0.37% | 4.71% | 5.57% | |
60 Neutral | $11.62B | 10.48 | -7.27% | 2.93% | 7.46% | -10.64% |
* Technology Sector Average
Performance Comparison
ENTG
Entegris
78.24
-50.74
-39.34%
ASX
ASE Technology Holding Co
9.97
-0.33
-3.20%
MRVL
Marvell
63.76
-7.92
-11.05%
MCHP
Microchip
61.21
-30.83
-33.50%
ON
ON Semiconductor
44.92
-28.25
-38.61%
STM
STMicroelectronics
25.82
-15.37
-37.31%
Entegris Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -5.77%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Negative
The earnings call highlighted positive aspects such as year-on-year revenue growth, strategic manufacturing expansions, and engagement with major 3D-NAND players. However, these were overshadowed by significant challenges including the impact of new China tariffs, sequential revenue decrease, and broader industry uncertainty, leading to a cautious outlook.Q1-2025 Updates
Positive Updates
Year-on-Year Revenue Growth
First quarter revenue grew 5% year-on-year excluding divestitures, with Materials Solutions sales up 8% and CMP slurries and pads delivering almost 20% growth.
Strategic Manufacturing Expansion
Progress in Colorado and Taiwan manufacturing sites, with initial equipment qualifications on track and expected customer qualifications in the second half of 2025.
Advanced Packaging Growth
Advanced Packaging business more than doubled in Q1 2025 compared to Q1 2024, with expectations to grow more than 25% for the full year 2025.
Engagement with 3D-NAND Players
Progress in moly deposition materials with major 3D-NAND players, with expectations for adoption in the second half of 2025.
Negative Updates
Impact of China Tariffs
Introduction of new tariffs by China on U.S. imports, potentially impacting Q2 revenue by up to $50 million, with shipments from U.S. on hold.
Sequential Revenue Decrease
Sales down 9% sequentially, driven by a decline in CapEx products including fluid handling products and FOUPs.
Q1 Revenue Below Guidance
Q1 revenue came in slightly below guidance due to softer demand than expected for fluid handling and FOUPs products.
Uncertainty in Semiconductor Industry
Significant uncertainty in the semiconductor industry due to new tariff regimes and macroeconomic conditions, leading to broader Q2 revenue guidance and no update on 2025 outlook.
Company Guidance
During the Entegris First Quarter 2025 Earnings Conference Call, the company provided detailed guidance with several key metrics. First quarter revenue grew by 5% year-over-year, excluding divestitures, although it slightly missed the guidance range. Gross margin was reported at 46.1% on both GAAP and non-GAAP bases, aligning with the midpoint of the guidance range. The adjusted EBITDA margin was 28.5%, and non-GAAP EPS was $0.67 per share, also at the midpoint of guidance. For the second quarter, Entegris widened its revenue guidance range to $735 million to $775 million due to uncertainty related to tariffs on U.S. products entering China. They expect a gross margin of approximately 45% and an EBITDA margin of roughly 27.5%. Operating expenses are projected to be $225 million to $229 million on a GAAP basis and $179 million to $183 million on a non-GAAP basis. The non-GAAP tax rate is expected to be around 12%. Entegris emphasized their focus on managing costs, improving free cash flow, and paying down debt, with gross leverage at 4.4 times and net leverage at 4 times.Entegris Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Entegris Announces CEO Transition with David Reeder
Positive
May 12, 2025
On May 11, 2025, Entegris announced that Bertrand Loy will retire as President and CEO on August 18, 2025, after 13 years in the role. David Reeder, who has extensive experience in the semiconductor industry, will succeed Loy as President and CEO. Loy will continue to serve as Executive Chair to ensure a smooth transition. This leadership change is expected to maintain Entegris’ strong market position and drive the company towards its next phase of growth.
The most recent analyst rating on (ENTG) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Entegris stock, see the ENTG Stock Forecast page.
Spark’s Take on ENTG Stock
According to Spark, TipRanks’ AI Analyst, ENTG is a Neutral.
Entegris’s stock is rated moderately due to strong operational efficiency and cash flow, but concerns about revenue contraction and high valuation persist. The technical analysis shows a lack of strong upward momentum, while the earnings call presents a cautious outlook amidst industry uncertainties.
To see Spark’s full report on ENTG stock, click here.
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.