Entegris Inc
ENTG
$129.60
+9.32%
Entegris Inc is a leading supplier of purification solutions and advanced materials, operating within the semiconductor industry. The company's distinct competitive identity is built on deep expertise in materials science and purity, positioning it as a critical enabler for semiconductor fabricators and the broader manufacturing supply chain. The current investor narrative is focused on the company's role in supporting the next generation of semiconductor manufacturing, particularly for advanced nodes and AI-related chips, though recent quarterly results showing a slight revenue decline have sparked debate about near-term cyclical pressures versus long-term structural growth drivers.…
ENTG
Entegris Inc
$129.60
ENTG 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Entegris Inc's 12-month outlook, with a consensus price target around $168.48 and implied upside of +30.0% versus the current price.
Average Target
$168.48
2 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
2
covering this stock
Price Range
$104 - $168
Analyst target range
Analyst coverage appears limited with only two analysts providing estimates for revenue and EPS, suggesting institutional interest may be concentrated or the stock is a specialized niche within the semiconductor ecosystem; this limited coverage can lead to higher volatility and less efficient price discovery. The provided data does not include a consensus price target or Buy/Hold/Sell distribution, so the implied upside or downside cannot be calculated; however, recent institutional rating actions show a generally positive bias, with upgrades from UBS (to Buy from Neutral) in January 2026, though Seaport Global downgraded to Neutral from Buy in the same period, indicating a mixed but cautiously optimistic near-term view.
Bulls vs Bears: ENTG Investment Factors
The bull and bear cases for Entegris are sharply divided between long-term structural growth drivers and near-term cyclical pressures. The bull side has stronger evidence in the company's robust financial health ($570.7M FCF, 3.35 current ratio) and its critical, hard-to-replicate role in enabling advanced semiconductor manufacturing, which supports the premium valuation. However, the bear case is grounded in concrete, deteriorating fundamentals: declining revenue and compressing margins. The single most important tension in the investment debate is the timing and magnitude of the semiconductor cycle recovery. If the anticipated earnings rebound materializes as embedded in the forward P/E of 26.54x, the stock could re-rate higher. If the cyclical downturn persists longer than expected, compressing margins further, the high trailing multiple poses significant downside risk.
Bullish
- Strong Free Cash Flow Generation: Entegris generated $570.7 million in TTM free cash flow, providing significant financial flexibility. This robust cash generation supports strategic initiatives and shareholder returns without reliance on excessive debt, evidenced by a manageable debt-to-equity ratio of 0.98.
- Critical Role in AI/Advanced Semiconductors: The company's expertise in materials purity is a critical enabler for next-generation semiconductor manufacturing, particularly for AI-related chips. This positions Entegris for long-term structural growth as the industry advances, justifying a premium valuation despite near-term cyclicality.
- Healthy Balance Sheet & Liquidity: A strong current ratio of 3.35 indicates ample short-term liquidity to navigate market downturns. The balance sheet strength provides a buffer against operational volatility and supports continued investment during the industry recovery phase.
- Significant Analyst EPS Growth Expectations: The forward P/E of 26.54x is half the trailing P/E of 54.25x, implying analysts expect a near-doubling of profitability. The average EPS estimate for the next period is $5.75, signaling strong anticipated earnings recovery from current depressed levels.
Bearish
- Revenue Decline & Margin Compression: Q4 2025 revenue declined -3.05% YoY to $823.9M, indicating near-term demand pressure. Gross margin compressed sharply to 38.35% in Q4 from 43.53% in Q3, reflecting unfavorable product mix and fixed cost absorption amid lower sales.
- Elevated Valuation on Trailing Earnings: The trailing P/E of 54.25x is high for a materials supplier, suggesting the stock is priced for a perfect recovery. This leaves little room for multiple expansion and increases downside risk if the anticipated earnings rebound is delayed or falls short.
- High Volatility & Recent Momentum Decay: With a beta of 1.32, ENTG is 32% more volatile than the market, amplifying downside moves. The stock is down -8.19% over the past month, showing sharp deceleration from its strong 3-month gain of +29.97%, signaling potential consolidation or profit-taking.
- Concentrated, Cyclical End-Market Risk: The vast majority of sales are to the cyclical semiconductor industry, making revenue highly sensitive to inventory corrections and capex cycles. The recent revenue decline and mixed analyst actions (UBS upgrade vs. Seaport downgrade) reflect uncertainty around the timing of a sustained recovery.
ENTG Technical Analysis
The stock is in a sustained recovery trend, evidenced by a strong 1-year price change of +35.63%. As of the latest close of $116.4, the stock is trading at approximately 78% of its 52-week range ($60.75 to $142.5), indicating it has recovered significantly from its lows but remains meaningfully below its recent peak, suggesting room for further upside if momentum resumes. Recent short-term momentum shows a sharp deceleration, with the stock down -8.19% over the past month, which contrasts with its robust +29.97% gain over the past three months; this divergence signals a potential consolidation or profit-taking phase following the strong Q1 rally, especially given the stock's beta of 1.32 implies it is 32% more volatile than the broader market. Key technical support is anchored at the 52-week low of $60.75, while immediate resistance is at the 52-week high of $142.5; a breakout above this high would signal a resumption of the primary bull trend, whereas a breakdown below the recent March low near $108 would suggest a deeper correction, with the stock's elevated volatility necessitating careful risk management for investors.
Beta
1.32
1.32x market volatility
Max Drawdown
-38.9%
Largest decline past year
52-Week Range
$61-$143
Price range past year
Annual Return
+106.0%
Cumulative gain past year
| Period | ENTG Return | S&P 500 |
|---|---|---|
| 1m | +10.4% | -0.3% |
| 3m | +29.8% | -2.0% |
| 6m | +54.9% | +3.5% |
| 1y | +106.0% | +36.2% |
| ytd | +44.7% | -0.9% |
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ENTG Fundamental Analysis
Revenue growth has stalled and turned negative recently, with Q4 2025 revenue of $823.9 million representing a -3.05% year-over-year decline; this follows a sequential decline from Q3's $807.1 million, indicating near-term top-line pressure likely tied to semiconductor industry inventory adjustments. The company remains profitable with a Q4 net income of $49.4 million, but profitability metrics have compressed, as gross margin fell to 38.35% in Q4 from 43.53% in Q3, and the trailing twelve-month net margin stands at 7.37%, reflecting margin pressures from product mix and fixed cost absorption. The balance sheet is healthy with a strong current ratio of 3.35 and a manageable debt-to-equity ratio of 0.98, while the company generated substantial free cash flow of $570.7 million over the trailing twelve months, providing ample liquidity to fund operations and strategic initiatives without reliance on excessive external financing.
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 the 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 26.54x; this wide gap implies the market is pricing in a substantial earnings recovery, with forward estimates embedding nearly a doubling of profitability. Compared to sector averages (data not available in the provided set), a precise industry premium cannot be quantified, but a trailing P/E of 54x is generally high for a materials supplier, suggesting the stock trades on growth expectations tied to the semiconductor cycle recovery rather than current earnings. Historically, the stock's own trailing P/E has ranged dramatically, from below 40x in late 2024 to over 116x in early 2024; the current 54.25x sits above the median of its recent history, indicating the market is already pricing in a meaningful improvement in fundamentals, leaving less room for multiple expansion.
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
19.5x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks center on profitability and valuation sensitivity. Entegris faces clear margin pressure, with Q4 gross margin contracting 518 basis points sequentially to 38.35%, and net income falling to $49.4M from $70.5M in Q3. The company's elevated trailing P/E of 54.25x creates valuation compression risk; if the expected earnings recovery (forward P/E 26.54x) is delayed, the stock multiple could contract sharply. Furthermore, while free cash flow is strong, the business model is heavily reliant on semiconductor fabricator capital expenditure cycles, introducing earnings volatility.
Market & Competitive Risks are heightened by the stock's premium valuation and sector concentration. Trading at a P/S ratio of 4.0 and P/CF of 18.4, the stock is priced for growth, leaving it vulnerable to sector-wide de-rating if interest rates remain elevated. Its beta of 1.32 means it typically falls more than the market during downturns, as seen in its -8.19% 1-month return versus SPY's -4.28%. Competitive risks include potential pricing pressure or market share loss if customers prioritize cost over purity during industry downturns, though Entegris's specialized niche provides some defense.
The Worst-Case Scenario involves a prolonged semiconductor downturn coupled with a broader market sell-off compressing growth stock multiples. In this adverse scenario, revenue could continue declining sequentially, margins could compress further toward the 30% range, and the forward P/E could de-rate toward 20x. This chain of events could realistically drive the stock back toward its 52-week low of $60.75, representing a -48% downside from the current price of $116.4. The historical max drawdown of -38.87% provides a reference for the volatility an investor must be prepared to endure.