Entegris (ENTG) AI Stock Analysis

• Market Cap: $9.89B
• Dividend Yield: 0.61%
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): 33.9
• Beta (1Y): 1.91
• Revenue Growth: -8.02%
• EPS Growth: 61.14%
• Country: US
• Employees: 8,200
• Sector: Technology
• Sector Strength: 40
• Industry: Semiconductors
• EPS (TTM): 1.93
• Shares Outstanding: 151,321,350
• 10 Day Avg. Volume: 4,099,245
• 30 Day Avg. Volume: 4,071,142
• PEG Ratio: 0.55
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.49
• Price to Cash Flow (P/CF): 20.70
• P/FCF Ratio: 16.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $127.00
• Price Target Upside: 90.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Entegris shows strengths in operational efficiency and cash flow generation, bolstered by positive earnings call insights. Yet, revenue challenges, leverage concerns, and technical indicators suggest caution. Valuation appears high, indicating potential overvaluation.

Positive Factors

Financial Performance

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.

Operational Efficiency

No impact cited from new facility ramp in Taiwan, indicating stable operations.

Negative Factors

Earnings Guidance

Entegris reported 3Q24 results below expectations and guided 4Q24 below consensus estimates.

Market Conditions

Mainstream end markets are generally weak, which affects overall performance.

Revenue Outlook

Management reduced the full-year revenue outlook by roughly $85MM.

Entegris Business Overview & Revenue Model

Company Description

Entegris, 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 Money

Entegris 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 operational efficiency and cash flow strength, with robust profitability metrics. However, revenue contraction and leverage concerns present challenges.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 66.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 66.84 is below the 20-day moving average (MA) of 91.97, below the 50-day MA of 98.61, and below the 200-day MA of 108.65, indicating a bearish trend. The MACD of -3.37 indicates Positive momentum. The RSI at 31.73 is Neutral, neither overbought nor oversold. The STOCH value of 11.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENTG.

Entegris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STM	71 Outperform	$16.73B	11.16	9.12%	1.65%	-23.24%	-62.93%
ASX	68 Neutral	$19.48B	16.38	10.32%	3.00%	-0.62%	-1.08%
MCHP	68 Neutral	$19.48B	63.87	4.71%	5.01%	-44.31%	-86.74%
ON	67 Neutral	$14.20B	9.28	18.97%	―	-14.19%	-27.42%
ENTG	66 Neutral	$9.89B	33.91	8.25%	0.61%	-8.02%	61.14%
MRVL	62 Neutral	$42.81B	―	-6.26%	0.48%	4.71%	5.57%
Sector *	57 Neutral	$18.52B	9.81	-13.96%	2.71%	5.07%	-23.65%