Entegris
ENTG
$107.01
-9.44%
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 specializes in materials science and materials purity, both critical in semiconductor manufacturing, positioning it as a key enabler for chipmakers. Currently, the stock is under scrutiny as semiconductor demand cycles and geopolitical factors drive volatility, with recent news of a U.S.-Iran deal reopening the Strait of Hormuz fueling a rally in growth stocks and a rotation away from energy. The company's focus on advanced node technologies and its role in the semiconductor supply chain remain central to the investor narrative.…
ENTG
Entegris
$107.01
ENTG 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Entegris's 12-month outlook, with a consensus price target around $166.00 and implied upside of +55.1% versus the current price.
Average Target
$166.00
0 analysts
Implied Upside
+55.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$115 - $205
Analyst target range
Entegris is covered by 10 analysts, with a consensus recommendation of 'Buy' (mean rating 2.18 on a 1-5 scale where 1 is Strong Buy). The average target price is $166.00, implying approximately +28.5% upside from the current price of $129.15. The distribution shows a bullish lean, with no Hold or Sell ratings in the recent actions (though Goldman Sachs has a Sell rating from February 2026). The target range spans from a low of $115.00 to a high of $205.00. The high target of $205 assumes significant multiple expansion or accelerated growth, likely driven by AI-related semiconductor demand and new product cycles. The low target of $115 suggests downside risk from margin compression or a cyclical downturn. The wide spread ($90) indicates high uncertainty among analysts. Recent ratings actions show mostly reaffirmations of Buy/Outperform from firms like BMO, Mizuho, UBS, and Needham, while Goldman Sachs maintains a Sell. This mixed sentiment underscores the debate around the stock's near-term prospects.
Bulls vs Bears: ENTG Investment Factors
Entegris presents a mixed picture: strong fundamental momentum with expanding margins and healthy cash flows, but a premium valuation that leaves it vulnerable to any growth disappointment. The bull case rests on continued semiconductor recovery and margin expansion, while the bear case highlights cyclical risk and high expectations. Currently, the evidence slightly favors the bulls due to solid execution and analyst upside, but the recent price decline and elevated valuation create a balanced risk/reward. The single most important tension is whether the company can deliver the earnings growth implied by its forward P/E of 27.7x, especially given the cyclical nature of the semiconductor industry.
Bullish
- Strong Revenue Growth Trajectory: Revenue grew 5.0% YoY in Q1 2026 to $811.9M, with a consistent upward trend from $792.4M in Q2 2025 to $823.9M in Q4 2025. This steady growth is driven by semiconductor demand stabilization and Entegris's critical role in advanced node manufacturing.
- Expanding Profitability and Margins: Net income surged 46% YoY to $91.8M in Q1 2026, while gross margin improved to 41.2% from 40.1% a year ago. Operating margin also expanded to 17.5% from 16.1%, indicating operational efficiency and pricing power.
- Healthy Balance Sheet and Cash Flow: The current ratio of 3.35 and debt-to-equity of 0.98 indicate manageable leverage. Free cash flow (TTM) of $679.8M provides ample liquidity for growth investments and dividends, reducing financial risk.
- Analyst Consensus Bullish with Upside: The average analyst target of $166 implies 28.5% upside from the current price of $129.15. The consensus rating is 'Buy' (mean 2.18 on a 1-5 scale), with 8 out of 10 analysts recommending Buy or Outperform.
Bearish
- High Valuation Premium: The trailing P/E of 54.4x is well above the semiconductor supplier industry average of 15-25x. Even the forward P/E of 27.7x is at a premium, leaving little room for error if growth disappoints.
- Significant Recent Price Decline: The stock has fallen 24.7% in the past month and 17.2% in the past three months, trading near the lower end of its 52-week range. This sharp correction may indicate waning investor confidence or sector rotation.
- Cyclical Semiconductor Exposure: With 90%+ of sales to the semiconductor industry, Entegris is highly sensitive to chip demand cycles. A downturn in semiconductor capital spending could severely impact revenue and earnings.
- Mixed Analyst Sentiment: While the consensus is Buy, Goldman Sachs maintains a Sell rating. The wide target range ($115-$205) reflects high uncertainty, and the low target of $115 implies 11% downside from current levels.
ENTG Technical Analysis
Entegris is in a significant pullback from its 52-week high, with the current price of $129.15 representing 69.1% of the 52-week range ($67.97-$186.94). The 1-year price change of +41.7% indicates a strong uptrend over the longer term, but the stock has corrected sharply from its June highs. Trading near the lower end of the range suggests the stock is experiencing a correction, potentially offering a value opportunity if the fundamental thesis remains intact, but also carrying momentum risk. Short-term momentum is decisively bearish, with the 1-month price change of -24.7% and the 3-month change of -17.2% both deeply negative. This contrasts sharply with the 1-year gain, signaling a significant divergence that could indicate a trend reversal or a temporary pullback within a longer-term uptrend. The relative strength versus the S&P 500 is also negative over 1-month (-25.5%) and 3-month (-20.7%), confirming underperformance. The 52-week low of $67.97 provides a key support level, while the 52-week high of $186.94 is the resistance. A breakdown below the recent lows near $115 could signal further downside, while a recovery above $150 would suggest the pullback is over. The beta of 1.309 indicates the stock is about 31% more volatile than the market, meaning larger swings in both directions, which is important for risk management.
Beta
1.31
1.31x market volatility
Max Drawdown
-41.8%
Largest decline past year
52-Week Range
$68-$187
Price range past year
Annual Return
+15.3%
Cumulative gain past year
| Period | ENTG Return | S&P 500 |
|---|---|---|
| 1m | -37.4% | -1.6% |
| 3m | -24.3% | +1.5% |
| 6m | -9.4% | +5.4% |
| 1y | +15.3% | +14.8% |
| ytd | +19.5% | +7.0% |
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ENTG Fundamental Analysis
Revenue has shown steady growth, with the most recent quarter (Q1 2026) reporting $811.9 million, up 5.0% year-over-year from $773.2 million in Q1 2025. The trailing four quarters show a consistent upward trend from $792.4M (Q2 2025) to $823.9M (Q4 2025) and $811.9M (Q1 2026). Revenue is driven by two segments: Advanced Purity Solutions ($463.6M) and Materials Solutions ($351.1M), both contributing to growth. The growth trajectory is moderate but positive, supporting the investment case as semiconductor demand stabilizes. Profitability is solid, with net income of $91.8 million in Q1 2026, up from $62.9 million in Q1 2025, representing a 46% increase. Gross margin improved to 41.2% from 40.1% a year ago, indicating expanding profitability. Operating margin was 17.5% in Q1 2026, up from 16.1% in Q1 2025, showing margin expansion. The company is profitable and margins are trending higher, which is positive for the investment case. The balance sheet is healthy, with a current ratio of 3.35 and debt-to-equity of 0.98, indicating manageable leverage. Free cash flow (TTM) is $679.8 million, providing ample liquidity for internal growth and dividends. ROE is 5.96%, which is reasonable for a capital-intensive industry. The company generates sufficient cash to fund operations without relying heavily on external financing, reducing financial risk.
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?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 54.4x, while the forward P/E is 27.7x, implying the market expects significant earnings growth. The gap between trailing and forward P/E suggests that earnings are expected to nearly double, reflecting optimism about future profitability. Compared to the industry average (not provided, but typically semiconductor suppliers trade at 15-25x forward P/E), Entegris's forward P/E of 27.7x appears at a premium. The PS ratio of 4.0x is also above the sector median, indicating the market is pricing in above-average growth. The premium may be justified by Entegris's strong competitive position and margin expansion, but it leaves little room for error. Historically, the trailing P/E has ranged from about 21x (mid-2023) to over 100x (early 2024). The current 54.4x is near the middle of this range, suggesting it is not at extreme levels. However, the forward P/E of 27.7x is below the historical average, indicating that the market expects earnings to catch up. This could represent a value opportunity if the growth materializes, but also risk if expectations are not met.
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 & Operational Risks: Entegris carries a debt-to-equity ratio of 0.98, which is manageable but not negligible. Interest expense of $48.9M in Q1 2026 consumes a portion of operating income. The company's net margin of 7.4% is modest, and any revenue slowdown could pressure profitability. Free cash flow of $679.8M TTM provides a cushion, but the high trailing P/E of 54.4x means that any earnings miss could trigger a sharp valuation re-rating. Revenue concentration in the semiconductor industry (over 90% of sales) is a key operational risk, as a downturn in chip demand would directly impact top-line growth.
Market & Competitive Risks: The stock's beta of 1.309 indicates 31% higher volatility than the market, making it sensitive to macro shocks. The forward P/E of 27.7x is a premium to the semiconductor supplier peer group, leaving it exposed to multiple compression if growth slows. The recent U.S.-Iran deal reopening the Strait of Hormuz has triggered a rotation into growth stocks, which could benefit Entegris, but any reversal of this trend could weigh on the stock. Competitive risks include potential market share loss to larger players or technological disruption in materials science.
Worst-Case Scenario: In a severe semiconductor downturn, revenue could decline 20%+ and margins could compress, leading to earnings well below expectations. The analyst low target of $115 implies 11% downside from the current price of $129.15. However, the 52-week low of $67.97 represents a more extreme scenario, implying a 47% decline from current levels. This could occur if the company faces a combination of cyclical headwinds, margin pressure, and multiple compression. An investor could lose up to 47% in such an adverse scenario.