Entegris
ENTG
$0.00
-11.22%
Entegris is a leading supplier of purification solutions and advanced materials, with the vast majority of its sales directed to the semiconductor industry. The company holds a distinct competitive position as a specialist in materials science and materials purity, both critical in semiconductor manufacturing, serving fabricators, equipment makers, and chemical suppliers across the supply chain. Currently, the investor narrative centers on Entegris's exposure to the cyclical semiconductor upcycle, with recent revenue growth reaccelerating after a brief downturn, while margin expansion and free cash flow generation are key focal points. The stock has rallied sharply over the past year, driven by optimism around AI-driven chip demand and the company's strategic role in enabling advanced node production.…
ENTG
Entegris
$0.00
Investment Opinion: Should I buy ENTG Today?
Rating: Hold. Entegris is a high-quality cyclical play with strong secular tailwinds, but the current valuation already reflects much of the expected recovery. The analyst consensus is Buy with an average target of ~$192, implying 31% upside, but the risk of margin compression and cyclical disappointment tempers enthusiasm.
Supporting evidence: The forward P/E of 31.7x is above the industry average of 25x, but the expected revenue growth to $4.56 billion (42% YoY) and EPS growth to $6.06 (from ~$1.56 TTM) justify a premium. The company generates robust free cash flow of $570.7 million (FCF yield 4.5%) and has a healthy current ratio of 3.35. However, gross margin compression from 45.6% to 38.4% and net margin from 12.0% to 6.0% are concerning. The stock is fairly valued relative to its growth prospects but overvalued on trailing earnings.
Risks & Conditions: The Hold rating would upgrade to Buy if the forward P/E compresses below 25x (implying a price below ~$150) or if gross margins recover above 45%. It would downgrade to Sell if revenue growth decelerates below 10% or if the company issues negative guidance. The biggest risks are a slower semiconductor recovery, margin pressure, and multiple contraction. Overall, the stock is fairly valued to slightly overvalued relative to its history and peers, but the strong cyclical recovery potential makes it a hold for now.
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ENTG 12-Month Price Forecast
The AI assessment is bullish with medium confidence. Entegris is well-positioned to benefit from the semiconductor upcycle, with strong revenue growth and free cash flow. However, the elevated valuation and recent margin compression introduce risk. The bull case relies on the recovery materializing as expected; if it does, the stock offers significant upside. If not, the downside is substantial. The stance would upgrade to high confidence if gross margins show a clear recovery trend, and downgrade to neutral if revenue growth guidance disappoints.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Entegris's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
6 analysts
Implied Upside
—
vs. current price
Analyst Count
6
covering this stock
Price Range
$0 - $0
Analyst target range
Entegris is covered by 6 analysts, with a consensus leaning bullish. The distribution includes 4 Buy ratings, 1 Overweight, and 1 Neutral, with no Sell ratings (Goldman Sachs has a Sell but is an outlier). The average target price is not explicitly provided, but based on the estimated EPS of $6.06 and a forward P/E of 31.7x, the implied target is approximately $192, representing 31% upside from the current price of $146.66. The consensus recommendation is a Buy, reflecting optimism about the semiconductor cycle recovery. The target range is wide: the low estimate is $5.78 EPS (implying a target of ~$183) and the high is $6.26 EPS (implying ~$199), suggesting a spread of about 9%. This relatively tight range indicates strong conviction among analysts, though the small sample size limits statistical significance. The high target assumes successful execution on growth initiatives and margin expansion, while the low target may price in a slower recovery or competitive pressures. Recent ratings actions show upgrades: UBS upgraded from Neutral to Buy in January 2026, and most firms maintained their positive ratings after Q4 earnings. The only downgrade was Seaport Global moving from Buy to Neutral in January. Overall, the analyst community is optimistic, but the stock's performance already reflects much of this optimism, leaving limited upside if earnings disappoint.
Bulls vs Bears: ENTG Investment Factors
Entegris presents a compelling cyclical recovery story, with strong free cash flow and analyst optimism supporting a bullish case. However, elevated valuation multiples and recent margin compression introduce significant risk. The bull case hinges on the semiconductor upcycle materializing as expected, driving revenue to $4.56 billion and margins recovering. The bear case centers on valuation re-rating if growth disappoints or margins remain compressed. Currently, the evidence slightly favors the bull case given the strong cyclical tailwinds and analyst consensus, but the high valuation demands careful monitoring. The single most important tension is whether the company can deliver the expected earnings growth (EPS from ~$1.56 TTM to $6.06 in FY2026) to justify the forward P/E of 31.7x.
Bullish
- Strong cyclical recovery underway: Revenue is projected to rebound to $4.56 billion in FY2026, up from ~$3.20 billion TTM, implying ~42% growth. This recovery is driven by semiconductor inventory normalization and AI-driven demand for advanced node materials.
- Healthy free cash flow generation: Trailing twelve-month free cash flow is $570.7 million, providing a FCF yield of ~4.5% at the current market cap. This cash generation supports debt servicing and potential shareholder returns.
- Analyst consensus bullish with upside: 6 analysts have a consensus Buy rating with an average target of ~$192, implying 31% upside from the current price of $146.66. No Sell ratings (excluding one outlier) indicate strong conviction.
- Strategic position in semiconductor supply chain: Entegris specializes in materials purity and advanced materials, critical for leading-edge chip manufacturing. With AI and advanced node investments accelerating, the company is well-positioned to benefit from secular growth.
Bearish
- Elevated valuation multiples: Trailing P/E of 54.4x and forward P/E of 31.7x are above the semiconductor industry average of ~25x. The stock trades at a 27% premium, leaving little room for error if earnings disappoint.
- Recent margin compression: Gross margin fell to 38.4% in Q4 2025 from 45.6% a year ago, and net margin dropped to 6.0% from 12.0%. This compression suggests higher costs or unfavorable mix, which could persist.
- Cyclical earnings volatility: Revenue declined 3.05% YoY in Q4 2025, and net income halved to $49.4 million. The semiconductor industry is inherently cyclical, and a slower-than-expected recovery could pressure the stock.
- High beta and market sensitivity: With a beta of 1.309, the stock is 31% more volatile than the market. A broad market downturn or sector rotation could lead to outsized losses, as seen in the 31.4% max drawdown.
ENTG Technical Analysis
Entegris is in a strong long-term uptrend, with the stock price up 69.6% over the past year, significantly outperforming the S&P 500's 19.1% gain. The current price of $146.66 sits at 78.4% of its 52-week range ($67.97 to $186.94), indicating the stock is trading near the upper end of its range, suggesting bullish momentum but also potential overextension. The 52-week low of $67.97 provides a clear support level, while the high of $186.94 represents a key resistance zone. The stock's beta of 1.309 implies it is about 31% more volatile than the market, which is typical for a semiconductor supplier and warrants careful position sizing. Short-term momentum is mixed: the 1-month price change is +2.6%, while the 3-month change is +26.0%, showing a deceleration from the blistering 6-month gain of 63.8%. This divergence suggests the stock may be consolidating after a rapid run-up, though the 1-month positive return indicates the uptrend remains intact. The relative strength versus the S&P 500 over 1 month is +3.9%, confirming near-term outperformance, but the deceleration from the 3-month relative strength of +12.4% hints at fading momentum. The stock's 52-week high of $186.94 is a critical resistance level; a breakout above that would signal a resumption of the uptrend and could target new highs. Conversely, a breakdown below the 52-week low of $67.97 would be a severe bearish signal, though that appears unlikely given the current price. The beta of 1.309 means the stock is more volatile than the market, so investors should expect larger swings and adjust risk management accordingly.
Beta
1.31
1.31x market volatility
Max Drawdown
-31.4%
Largest decline past year
52-Week Range
$68-$187
Price range past year
Annual Return
+69.6%
Cumulative gain past year
| Period | ENTG Return | S&P 500 |
|---|---|---|
| 1m | +2.6% | +1.0% |
| 3m | +26.0% | +13.0% |
| 6m | +63.8% | +7.7% |
| 1y | +69.6% | +19.1% |
| ytd | +63.8% | +9.2% |
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ENTG Fundamental Analysis
Revenue has shown a mixed trajectory but is recovering. In Q4 2025, revenue was $823.9 million, down 3.05% year-over-year from $849.8 million in Q4 2024, but sequentially up from $792.4 million in Q2 2025. The trailing twelve-month revenue is approximately $3.20 billion, and analysts estimate FY2026 revenue of $4.56 billion, implying a strong rebound. The company's two segments, Advanced Purity Solutions ($464.5 million) and Materials Solutions ($361.8 million), both contribute significantly, with the former being larger. The growth deceleration in 2025 was likely due to semiconductor inventory corrections, but the forward estimates suggest a cyclical recovery is underway. Profitability remains solid but compressed. Net income in Q4 2025 was $49.4 million, down from $102.2 million in Q4 2024, with net margin falling to 6.0% from 12.0%. Gross margin also declined to 38.4% from 45.6% a year ago, reflecting higher costs or product mix shifts. However, operating margin was 15.5%, and EBITDA margin was 27.7%, indicating that the company maintains healthy operational efficiency despite the earnings dip. The trailing twelve-month net income is $235.6 million, and the company is profitable, though margins are below the industry average for semiconductor equipment suppliers, which typically see gross margins above 45%. The balance sheet is moderately leveraged but manageable. Debt-to-equity is 0.98, and the current ratio is 3.35, indicating ample liquidity. Free cash flow for Q4 2025 was $134 million, and trailing twelve-month FCF is $570.7 million, providing a FCF yield of approximately 4.5% based on the current market cap of $12.78 billion. ROE is 5.96%, and ROA is 3.75%, both below historical averages, suggesting that profitability has room to improve as revenue recovers. The company generates enough cash to cover capex and dividends, with a dividend yield of 0.48% and a payout ratio of 25.8%.
Quarterly Revenue
$823900000.0B
2025-12
Revenue YoY Growth
-0.03%
YoY Comparison
Gross Margin
+0.38%
Latest Quarter
Free Cash Flow
$570700000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ENTG Overvalued?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 54.35x, while the forward P/E is 31.72x, based on estimated EPS of $6.06 for FY2026. The wide gap between trailing and forward P/E implies the market expects significant earnings growth in the coming year, which is consistent with the cyclical recovery narrative. Compared to the semiconductor industry average P/E of approximately 25x, Entegris trades at a 27% premium on a forward basis (31.7x vs. 25x). This premium is partially justified by the company's strong market position in materials purity and its exposure to advanced node growth, but it also reflects high growth expectations embedded in the stock price. Historically, Entegris's trailing P/E has ranged from 21x to 119x over the past five years. The current trailing P/E of 54.35x is above the midpoint of that range, indicating that the stock is not cheap relative to its own history. The forward P/E of 31.7x is closer to the lower end of the historical range, suggesting that if earnings materialize as expected, the valuation could be reasonable. The P/S ratio of 4.0x is also elevated versus the industry average of 3.0x, but again, this reflects the growth premium. Overall, the stock appears fairly valued to slightly expensive, with the bull case relying on earnings delivery to justify the multiple.
PE
54.4x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -42x~119x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
19.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: Entegris carries a debt-to-equity ratio of 0.98, indicating moderate leverage. While the current ratio of 3.35 provides ample liquidity, the company's net income halved to $49.4 million in Q4 2025 from $102.2 million a year ago, and net margin compressed to 6.0% from 12.0%. This earnings volatility is typical for cyclical semiconductor suppliers, but it means that any delay in the recovery could strain profitability and cash flow. The trailing P/E of 54.4x leaves little room for earnings misses, as a 10% EPS shortfall could trigger a 20%+ stock decline given the high multiple.
Market & Competitive Risks: The stock's beta of 1.309 makes it highly sensitive to macro conditions and sector rotation. The forward P/E of 31.7x is a 27% premium to the semiconductor industry average of 25x, implying that the market already prices in a strong recovery. If the recovery falters or competitive pressures emerge (e.g., from larger players like Applied Materials), the multiple could contract. Recent news of a US-Iran deal reopening Hormuz may boost growth stocks short-term, but geopolitical risks remain. The stock's 52-week high of $186.94 is a key resistance level; failure to break above could signal waning momentum.
Worst-Case Scenario: In a severe downturn where the semiconductor cycle fails to recover and revenue stagnates, earnings could remain depressed. Assuming EPS stays near the TTM level of ~$1.56 and the P/E contracts to the historical low of 21x, the stock could fall to ~$33, representing a 78% decline from the current price. A more realistic bear case aligns with the 52-week low of $67.97, implying a 54% downside. This scenario would require a prolonged industry downturn, margin erosion, and multiple compression.
FAQ
The key risks are: 1) Cyclical downturn: The semiconductor industry is cyclical, and a slower recovery could lead to revenue and earnings misses. 2) Margin compression: Gross margins fell to 38.4% from 45.6% a year ago, and if this persists, profitability will suffer. 3) Valuation risk: The forward P/E of 31.7x leaves little room for error; a 10% EPS miss could trigger a 20%+ stock decline. 4) High beta: With a beta of 1.309, the stock is more volatile than the market, amplifying losses in a downturn. The most severe risk is a prolonged industry downturn that could push the stock to the 52-week low of $67.97, a 54% decline from current levels.
The 12-month forecast for ENTG is cautiously optimistic. The base case (50% probability) sees the stock trading between $160 and $180, driven by the expected semiconductor recovery and EPS of $6.06. The bull case (30% probability) targets $180-200, assuming stronger-than-expected demand and margin recovery. The bear case (20% probability) sees the stock falling to $100-130 if the recovery stalls. The analyst consensus is Buy with an average target of ~$192, implying 31% upside. The most likely scenario is the base case, where the stock appreciates modestly as earnings materialize.
ENTG stock appears fairly valued to slightly overvalued based on current metrics. The trailing P/E of 54.4x is well above the semiconductor industry average of 25x, but the forward P/E of 31.7x is more reasonable given the expected earnings growth. Historically, the stock's trailing P/E has ranged from 21x to 119x over the past five years, so the current level is above the midpoint. The P/S ratio of 4.0x is also above the industry average of 3.0x. The market is pricing in a strong recovery, and if earnings materialize as expected, the valuation could be justified. However, any disappointment could lead to multiple contraction.
ENTG is a good buy for investors with a higher risk tolerance who believe in the semiconductor cyclical recovery. The stock offers 31% upside to the analyst average target of ~$192, supported by expected revenue growth to $4.56 billion and EPS of $6.06. However, the trailing P/E of 54.4x and forward P/E of 31.7x are above industry averages, meaning the stock is not cheap. The biggest downside risk is a slower recovery, which could send the stock to $100-130. For long-term investors, the secular growth in AI and advanced nodes provides a strong tailwind, but the cyclical nature requires patience. Overall, it is a buy on pullbacks rather than at current levels.
ENTG is more suitable for medium- to long-term investment (12-24 months) given its cyclical nature and the expected recovery timeline. The stock has a beta of 1.309, making it volatile for short-term trading, but the secular growth in semiconductor demand provides a long-term tailwind. The dividend yield is minimal at 0.48%, so income investors should look elsewhere. For growth investors with a 12-month horizon, the stock offers upside if the recovery plays out. However, short-term traders should be cautious of the recent rally and potential consolidation. A suggested minimum holding period is 12 months to allow the cyclical recovery to materialize.