Entegris
ENTG
$135.28
+2.96%
Entegris Inc. is a leading supplier of purification solutions and advanced materials, primarily serving the semiconductor industry. The company operates as a critical enabler in the semiconductor manufacturing supply chain, specializing in materials science and purity, which are essential for producing advanced chips. The current investor narrative centers on the company's positioning to benefit from the secular growth in semiconductor demand, driven by trends like AI, high-performance computing, and advanced packaging, though recent quarterly results showing a slight year-over-year revenue decline have introduced a note of caution regarding near-term cyclical pressures.…
ENTG
Entegris
$135.28
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 $175.86 and implied upside of +30.0% versus the current price.
Average Target
$175.86
6 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
6
covering this stock
Price Range
$108 - $176
Analyst target range
The stock is covered by 6 analysts, indicating moderate institutional interest. The consensus sentiment appears mixed but leans bullish, with recent institutional ratings including actions like UBS upgrading to Buy and Seaport Global downgrading to Neutral. An average target price is not provided in the data, so implied upside cannot be calculated. The target range for estimated EPS is from $5.79 to $6.26, reflecting a relatively tight spread and suggesting stronger conviction in the near-term earnings trajectory. The high end of the EPS target range assumes successful execution on growth initiatives and margin improvement, while the low end likely factors in persistent cyclical headwinds. The limited number of covering analysts is typical for a mid-cap company and can contribute to higher volatility due to less efficient price discovery.
Bulls vs Bears: ENTG Investment Factors
The bull and bear cases for Entegris are currently in a tense equilibrium, with the bear side holding a slight edge on near-term evidence due to concrete cyclical pressures. Bulls correctly point to the company's critical, structural role in the semiconductor supply chain, strong cash flow, and healthy balance sheet as foundations for long-term success. However, bears have the stronger immediate argument, as the data shows clear cyclical deterioration: negative YoY revenue growth, significant margin compression, and a sharp drop in net income, all while the stock trades at a premium valuation. The single most important tension in the investment debate is the timing and magnitude of the semiconductor cycle recovery. The stock's valuation (forward P/E of 29.3x) already prices in a robust earnings rebound. If the recovery is delayed or weaker than expected, the stock faces significant downside from multiple compression. Conversely, confirmation of a cyclical upturn would validate the bull case and could drive the stock toward its 52-week high.
Bullish
- Secular Semiconductor Demand Tailwinds: Entegris is a critical supplier of purification solutions and advanced materials essential for advanced chip manufacturing. The company is structurally positioned to benefit from long-term secular growth in semiconductors, driven by AI, high-performance computing, and advanced packaging, which should support demand beyond near-term cyclicality.
- Strong Free Cash Flow Generation: The company generates robust cash flow, with TTM free cash flow of $570.7 million. This provides ample internal funding for growth initiatives, supports the dividend (0.48% yield), and offers financial flexibility to navigate a downturn without jeopardizing its strategic position.
- Solid Balance Sheet with Low Leverage: The company's balance sheet is healthy, with a current ratio of 3.35 indicating strong liquidity and a manageable debt-to-equity ratio of 0.98. This low leverage provides a cushion against operational headwinds and reduces financial risk during the current cyclical slowdown.
- Significant Earnings Recovery Priced In: The forward P/E of 29.32x is nearly half the trailing P/E of 54.25x, reflecting analyst consensus for a substantial earnings rebound to an estimated $6.06 EPS. The tight EPS target range ($5.79-$6.26) suggests strong conviction in this recovery trajectory among the six covering analysts.
Bearish
- Cyclical Revenue Decline & Margin Pressure: Q4 2025 revenue declined -3.05% YoY to $823.9M, continuing a sequential softness trend. Concurrently, gross margin compressed to 38.35% from 44.52% a year ago, and net income fell to $49.4M from $102.2M, indicating the company is facing a pronounced cyclical downturn in semiconductor equipment spending.
- Premium Valuation Leaves No Room for Error: The trailing P/E of 54.25x is elevated and trades near the upper end of its recent historical range. With a forward P/E of 29.32x, the market is already pricing in a significant earnings recovery. Any further delay in the cyclical upturn or margin disappointment could trigger a severe valuation de-rating.
- Recent Technical Weakness & High Volatility: The stock has underperformed the market significantly in the short term, down -8.55% over the past month with a relative strength of -13.39 vs. SPY. With a beta of 1.395, the stock is ~40% more volatile than the market, amplifying downside risk during sector-wide sell-offs, as evidenced by the -31.38% max drawdown.
- High Dependence on Single, Cyclical Industry: The vast majority of Entegris's sales are to the semiconductor industry, making its fortunes inextricably linked to the capital expenditure cycles of chipmakers and equipment suppliers. The current revenue decline confirms this high cyclical sensitivity, posing a persistent risk to growth and earnings stability.
ENTG Technical Analysis
The stock is in a sustained long-term uptrend, evidenced by a 1-year price change of +84.88% and a 6-month change of +83.65%. With a current price of $135.28, it is trading at approximately 85% of its 52-week range ($66.32 to $159.15), indicating it is closer to recent highs, which reflects strong momentum but also suggests potential for overextension. However, recent short-term momentum has diverged sharply, with the stock down -8.55% over the past month and up a modest +0.59% over the past three months, signaling a significant deceleration and potential consolidation after the powerful prior advance. This divergence is further highlighted by a negative 1-month relative strength of -13.39 against the SPY, indicating significant underperformance. Key technical levels are the 52-week high of $159.15 as major resistance and the 52-week low of $66.32 as distant support; a decisive breakout above resistance would signal a resumption of the primary bull trend, while a breakdown below recent lows near $108 could indicate a deeper correction. The stock's beta of 1.395 confirms it is approximately 40% more volatile than the broader market, which is a critical consideration for risk management given its recent price swings.
Beta
1.40
1.40x market volatility
Max Drawdown
-31.4%
Largest decline past year
52-Week Range
$66-$159
Price range past year
Annual Return
+84.9%
Cumulative gain past year
| Period | ENTG Return | S&P 500 |
|---|---|---|
| 1m | -8.6% | +4.4% |
| 3m | +0.6% | +9.3% |
| 6m | +83.7% | +10.5% |
| 1y | +84.9% | +28.8% |
| ytd | +51.0% | +9.3% |
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ENTG Fundamental Analysis
Revenue growth has decelerated and turned negative in the most recent quarter, with Q4 2025 revenue of $823.9 million representing a -3.05% year-over-year decline, continuing a trend from the prior quarter's $807.1 million. Segment data shows the Advanced Purity Solutions segment contributed $464.5 million and Materials Solutions contributed $361.8 million, though specific growth rates are unavailable. This sequential softness suggests the company is navigating a cyclical downturn in semiconductor equipment spending. The company remains profitable, posting Q4 net income of $49.4 million, but profitability has compressed significantly from the year-ago quarter's $102.2 million. The gross margin of 38.35% in Q4 is down from 44.52% a year earlier, indicating margin pressure, though the trailing twelve-month operating margin remains healthy at 28.89%. The balance sheet is solid with a current ratio of 3.35 and a debt-to-equity ratio of 0.98, indicating manageable leverage. The company generates robust cash flow, with TTM free cash flow of $570.7 million, providing ample internal funding for growth and supporting a dividend yield of 0.48%.
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?
Given a positive net income, the primary valuation metric is the P/E ratio. The trailing P/E is elevated at 54.25x, while the forward P/E is significantly lower at 29.32x, implying the market expects a substantial recovery in earnings, with consensus EPS estimates rising to $6.06. Compared to sector averages (data not available for direct comparison), the high trailing multiple suggests a premium valuation, likely justified by the company's critical role in the semiconductor ecosystem and expected cyclical recovery. Historically, the stock's own trailing P/E of 54.25x is well above its recent historical range observed over the past two years, where it has frequently traded between 30x and 120x during volatile earnings periods; trading near the upper end of its recent band suggests the market is pricing in optimistic future earnings growth, leaving little room for disappointment.
PE
54.2x
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 stem primarily from the company's exposure to the volatile semiconductor capital equipment cycle, as evidenced by the -3.05% YoY revenue decline in Q4 2025 and the 610 basis point contraction in gross margin year-over-year. While the balance sheet is solid (D/E of 0.98), the deterioration in profitability (net income down >50% YoY) increases operational leverage risk if the downturn persists. The company's high dependence on a single, cyclical industry (semiconductors) creates concentrated earnings volatility, and its premium valuation (54.25x trailing P/E) leaves it vulnerable to earnings misses.
Market & Competitive Risks are elevated due to valuation and sector sensitivity. The stock's beta of 1.395 confirms it is approximately 40% more volatile than the broader market, magnifying downside during sector rotations or growth stock sell-offs. The primary risk is valuation compression; the forward P/E of 29.32x, while lower than trailing, still implies high growth expectations. If sector multiples contract or if Entegris's growth trajectory fails to meet these expectations, the stock could re-rate lower. Competitive risks, while mitigated by its specialized materials science expertise, include potential pricing pressure during industry downturns and technological shifts in semiconductor manufacturing that could reduce demand for its specific purification solutions.
Worst-Case Scenario involves a prolonged semiconductor capital expenditure downturn, exacerbated by a broader economic slowdown. This would lead to further sequential revenue declines, continued gross margin pressure below 38%, and earnings falling short of the $6.06 consensus estimate. In this environment, growth expectations would be reset, triggering a severe de-rating of the forward P/E multiple toward 20x or lower. Combined with lower earnings, this could drive the stock price back toward its 52-week low of $66.32, representing a downside of approximately -51% from the current price of $135.28. The recent -31.38% max drawdown demonstrates the stock's capacity for such sharp corrections.