Entegris
ENTG
$138.74
+6.15%
Entegris is a leading supplier of purification solutions and advanced materials, primarily serving the semiconductor industry. The company's products are critical to semiconductor manufacturing, where materials purity and precision are paramount. Entegris holds a distinct competitive position as a specialized materials science and purification expert, with a broad portfolio that spans filtration, liquid handling, and advanced deposition materials. The current investor narrative centers on the company's exposure to the semiconductor upcycle, with recent stock momentum driven by strong demand for advanced nodes and a recovery in the memory market, while investors debate the sustainability of growth amid cyclical risks and the company's elevated leverage following its acquisition of CMC Materials.…
ENTG
Entegris
$138.74
Investment Opinion: Should I buy ENTG Today?
Based on the analysis, Entegris is rated a Buy, with a thesis that the company is well-positioned to benefit from the semiconductor upcycle, as evidenced by 5% YoY revenue growth and expanding margins. The consensus analyst rating is 'Buy' with an average price target of $173.36, implying a 28.5% upside, which supports the Buy recommendation. The company's strong free cash flow of $679.8M TTM and improving profitability provide a solid foundation for growth.
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ENTG 12-Month Price Forecast
The AI assessment is bullish on Entegris, given the improving fundamentals and strong positioning in the semiconductor supply chain. The revenue growth recovery, margin expansion, and robust free cash flow provide a solid foundation. However, the elevated valuation and cyclical risks warrant a medium confidence level. The stance would be upgraded to high confidence if revenue growth exceeds 10% and margins continue to expand, or downgraded to neutral if growth decelerates or the stock fails to hold key support levels.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Entegris's 12-month outlook, with a consensus price target around $173.36 and implied upside of +25.0% versus the current price.
Average Target
$173.36
0 analysts
Implied Upside
+25.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$120 - $215
Analyst target range
Entegris is covered by 11 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.75 (where 1 is Strong Buy and 5 is Sell). The average price target is $173.36, implying a 28.5% upside from the current price of $134.92. The distribution includes 8 Buy/Outperform ratings, 2 Hold, and 1 Sell, indicating a bullish but not unanimous sentiment. The target range spans from $120 (low) to $215 (high), with the high target suggesting a 59% upside, likely assuming a strong semiconductor upcycle and successful integration of acquisitions. The low target implies a 11% downside, reflecting risks of cyclical downturn or margin compression. Recent ratings actions have been mostly positive, with UBS, Needham, and Citigroup reiterating Buy ratings, while Deutsche Bank holds a Hold and Goldman Sachs maintains a Sell, indicating some divergence in views on the stock's growth sustainability.
Bulls vs Bears: ENTG Investment Factors
Entegris presents a compelling growth story with strong revenue recovery, expanding margins, and robust cash flow, underpinned by its critical role in semiconductor manufacturing. The bull case is supported by the 5% YoY revenue growth, margin expansion, and a 28.5% upside to the average analyst target. However, the bear case highlights the elevated valuation (54.4x trailing P/E), high leverage (D/E 0.98), and cyclicality (beta 1.35) that could lead to significant downside if the semiconductor cycle falters. Currently, the bull case has stronger evidence given the improving fundamentals and analyst optimism, but the key tension is whether the market's growth expectations (implied EPS growth >100%) are realistic. If the semiconductor upcycle continues and Entegris delivers on earnings, the stock could re-rate higher; if not, the valuation premium could compress sharply.
Bullish
- Strong Revenue Growth Recovery: Q1 FY2026 revenue grew 5.0% YoY to $811.9M, a significant acceleration from -4.7% in Q1 2025, signaling a clear cyclical recovery. Sequential growth from Q4 2025 ($823.9M) indicates sustained momentum, driven by strength in both Advanced Purity Solutions and Materials Solutions.
- Expanding Profitability and Margins: Gross margin improved to 41.2% in Q1 2026 from 40.1% a year ago, while net income surged to $91.8M from $62.9M, lifting net margin to 11.3% from 8.1%. This demonstrates operational leverage and effective cost management as volumes recover.
- Robust Free Cash Flow Generation: Trailing twelve-month free cash flow stands at $679.8M, with Q1 2026 FCF of $141.5M, providing ample liquidity for debt reduction and internal growth investments. The strong cash generation supports the company's ability to manage its leverage and fund future expansion.
- Analyst Consensus and Upside Potential: With 11 analysts, the consensus is 'Buy' with a mean rating of 1.75, and the average price target of $173.36 implies a 28.5% upside from the current price of $134.92. The high target of $215 suggests a 59% upside, reflecting confidence in the semiconductor upcycle.
Bearish
- Elevated Valuation Premium: The trailing P/E of 54.4x is 147% above the industry average of 22x, and the forward P/E of 26.9x still commands a premium. The PEG ratio of -2.7 is negative, indicating expected earnings decline in the near term, which could signal overvaluation if growth disappoints.
- High Leverage from CMC Acquisition: Debt-to-equity ratio of 0.98 reflects moderate but elevated leverage following the CMC Materials acquisition. Interest expense of $48.9M in Q1 2026 weighs on net income, and any rise in interest rates or cash flow shortfall could strain the balance sheet.
- Cyclicality and Market Volatility: With a beta of 1.35, the stock is 35% more volatile than the market, making it sensitive to semiconductor cycle swings. The recent price drop of 7.15% on August 28, 2026, and the 41.84% max drawdown highlight the inherent risk of cyclical downturns.
- Mixed Analyst Sentiment: While the consensus is Buy, there is notable divergence: 2 Hold and 1 Sell ratings, with Deutsche Bank holding a Hold and Goldman Sachs maintaining a Sell. This suggests some analysts question the sustainability of growth and the valuation.
ENTG Technical Analysis
Entegris has exhibited a robust long-term uptrend, with the stock price surging 60.9% over the past year, significantly outperforming the S&P 500's 18.6% gain. The current price of $134.92 sits at 72% of its 52-week range (low of $67.97, high of $186.94), indicating the stock is in the upper half of its yearly range but has pulled back from its highs. This positioning suggests a healthy consolidation after a strong rally, rather than an overextended or broken trend. The stock's beta of 1.35 implies it is 35% more volatile than the market, which is typical for a semiconductor supplier and warrants attention to position sizing.
Beta
1.36
1.36x market volatility
Max Drawdown
-41.8%
Largest decline past year
52-Week Range
$68-$187
Price range past year
Annual Return
+74.2%
Cumulative gain past year
| Period | ENTG Return | S&P 500 |
|---|---|---|
| 1m | -4.7% | +0.1% |
| 3m | +10.6% | +4.4% |
| 6m | +23.4% | +14.6% |
| 1y | +74.2% | +18.6% |
| ytd | +54.9% | +12.9% |
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ENTG Fundamental Analysis
Entegris reported Q1 FY2026 (ending March 28, 2026) revenue of $811.9 million, up 5.0% year-over-year, with sequential growth from the prior quarter's $823.9 million. The revenue trajectory shows a steady recovery from the cyclical trough, with growth accelerating from -4.7% in Q1 2025 to +5.0% in Q1 2026, driven by strength in both Advanced Purity Solutions ($463.6M) and Materials Solutions ($351.1M). The company's gross margin improved to 41.2% in Q1 2026, up from 40.1% in the year-ago quarter, reflecting better product mix and operational efficiencies. Net income for Q1 2026 was $91.8 million, a significant improvement from $62.9 million in Q1 2025, with net margin expanding to 11.3% from 8.1%. The company's balance sheet shows a debt-to-equity ratio of 0.98, indicating moderate leverage, and a current ratio of 3.35, providing ample liquidity. Free cash flow for the trailing twelve months was $679.8 million, with Q1 2026 FCF of $141.5 million, demonstrating strong cash generation that supports debt reduction and internal growth funding.
Quarterly Revenue
$811900000.0B
2026-03
Revenue YoY Growth
+5.0%
YoY Comparison
Gross Margin
41.2%
Latest Quarter
Free Cash Flow
$679800000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ENTG Overvalued?
Given Entegris's positive net income, the trailing P/E ratio of 54.4x is the primary valuation metric, while the forward P/E of 26.9x reflects the market's expectation of significant earnings growth. The gap between trailing and forward multiples implies a projected EPS growth of over 100% in the coming year, which is aggressive but plausible given the semiconductor cycle recovery. Compared to the industry average P/E of 22x (from valuation data), Entegris trades at a 147% premium, reflecting its higher growth prospects and market leadership in specialty materials. However, the PEG ratio of -2.7 is negative due to expected earnings decline in the near term, which may signal overvaluation if growth fails to materialize. Historically, the stock's P/E has ranged from 20x to 120x over the past three years, with the current 54x sitting near the middle of that band, suggesting the market is pricing in moderate optimism, not extreme euphoria.
PE
54.4x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 21x~75x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
19.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are notable. The company's debt-to-equity ratio of 0.98 indicates moderate leverage, and interest expenses of $48.9M in Q1 2026 consume a significant portion of operating income ($141.9M). While free cash flow of $679.8M TTM provides coverage, any downturn in revenue could strain debt servicing. Additionally, the net margin of 11.3% is relatively thin, leaving limited buffer for cost increases or pricing pressure. The reliance on the semiconductor industry for the vast majority of sales creates concentration risk, as a downturn in semiconductor capital spending could sharply reduce revenue, as evidenced by the -4.7% growth in Q1 2025.