Entegris
ENTG
$162.19
-2.48%
Entegris Inc. is a leading supplier of purification solutions and advanced materials, with the vast majority of its sales directed to the semiconductor industry, serving fabricators, equipment and engineering firms, chemicals and materials producers, and distributors across the semiconductor manufacturing supply chain. The company specializes in materials science and materials purity, two capabilities that are mission-critical to semiconductor fabrication, giving it a distinct niche as a picks-and-shovels enabler of advanced chipmaking rather than a chipmaker itself. The current investor narrative centers on a sharp cyclical recovery in semiconductor demand, evidenced by accelerating revenue growth and a dramatic stock re-rating over the past year, alongside enthusiasm that rising materials intensity at leading-edge nodes structurally expands Entegris's content per wafer. Debate among investors focuses on whether the recent surge in profitability and the stock's premium valuation are sustainable, particularly given the company's still-elevated leverage and the capital intensity required to support its advanced materials franchise.…
ENTG
Entegris
$162.19
Investment Opinion: Should I buy ENTG Today?
We rate Entegris a Hold, balancing its strong fundamental momentum against a premium valuation that already reflects much of the recovery. The analyst consensus is 'buy' with a mean of 1.75, but the average target of $173.36 implies only 4.1% upside from the current $166.47, suggesting the stock is fairly valued near current levels. The core thesis is that Entegris is a high-quality, mission-critical supplier benefiting from a cyclical upturn, but the easy money has likely been made after a 71.96% one-year gain.
The supporting evidence is compelling: revenue grew 11.46% YoY in Q2 2026, gross margin expanded to 47.55% from 40.14% a year ago, operating margin reached 18.64%, and trailing free cash flow was $575.2M. The company repaid $200M of debt in Q2 2026, and the current ratio of 3.35 is healthy. However, the forward PE of 33.16x and EV/EBITDA of 19.33x are above typical specialty materials peers, and the PEG ratio is not meaningful due to depressed trailing earnings. The implied upside to the average target is modest, and the stock trades at 89% of its 52-week range.
The biggest risks that could invalidate the thesis include a slowdown in semiconductor capex, margin compression, and the company's elevated leverage (debt-to-equity 0.98). We would upgrade to Buy if the stock pulls back to the $130–$140 support zone or if forward earnings estimates are revised upward, compressing the forward PE below 30x. We would downgrade to Sell if revenue growth decelerates below 10% or if gross margins fall back below 45%. Relative to its own history, the valuation is in the middle-to-upper portion of its recent band, suggesting the stock is fairly valued rather than undervalued.
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ENTG 12-Month Price Forecast
Entegris presents a balanced risk/reward profile: the company is executing well with accelerating revenue, expanding margins, and strong cash flow, but the stock's 71.96% one-year gain has already priced in much of the recovery. The premium valuation (forward PE 33.16x) and limited analyst upside (4.1%) suggest the shares are fairly valued, while the high beta (1.364) and elevated leverage (debt-to-equity 0.98) add risk. We would upgrade to bullish if the stock pulls back to the $130–$140 support zone or if forward earnings estimates are revised upward, and downgrade to bearish if revenue growth decelerates below 10% or margins contract. The base case (55% probability) sees the stock trading in the $165–$185 range over the next 12 months.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Entegris's 12-month outlook, with a consensus price target around $175.58 and implied upside of +8.3% versus the current price.
Average Target
$175.58
0 analysts
Implied Upside
+8.3%
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 recommendation mean of 1.75 (where 1.0 is a strong buy and 5.0 is a sell), indicating a clearly bullish tilt. The average price target of $173.36 implies roughly 4.1% upside from the current price of $166.47, a modest gap that reflects how much of the recovery story is already priced in after the stock's 71.96% one-year gain. The consensus leans bullish on direction but the limited implied upside suggests analysts see the shares as fairly valued near current levels, with the buy rating driven more by fundamental quality and cycle positioning than by near-term price appreciation potential.
The target range spans from a low of $120.00 to a high of $215.00, a wide $95 spread that signals meaningful disagreement about the pace and magnitude of the earnings recovery. The high target of $215.00 implies roughly 29% upside and likely assumes accelerating revenue growth, continued gross margin expansion toward 50%, and successful deleveraging that re-rates the equity multiple; the low target of $120.00 implies about 28% downside and prices in margin compression, a slower semiconductor recovery, or competitive share loss. Recent institutional activity is constructive, with Deutsche Bank upgrading to Buy from Hold on August 12, 2026, Oppenheimer initiating at Outperform on August 5, 2026, and Needham and UBS reiterating Buy ratings the same day — a pattern of upgrades and initiations that reinforces the bullish consensus and suggests estimate revisions are trending higher.
Bulls vs Bears: ENTG Investment Factors
The bull case currently has stronger evidence, supported by accelerating revenue growth (11.46% YoY), dramatic margin expansion (gross margin up to 47.55% from 40.14% a year ago), robust free cash flow ($575.2M TTM), and a bullish analyst consensus with recent upgrades. However, the bear case is not without merit: the stock trades at a premium (forward PE 33.16x, EV/EBITDA 19.33x), carries elevated leverage (debt-to-equity 0.98), and has already surged 71.96% over the past year, leaving only 4.1% upside to the average analyst target. The single most important tension is whether the cyclical recovery in semiconductor demand can sustain the current earnings trajectory long enough to justify the premium valuation and support further multiple expansion. If revenue growth decelerates or margins stall, the high-beta stock could face a sharp correction toward its 52-week low of $67.97.
Bullish
- Revenue re-acceleration confirmed: Q2 2026 revenue of $883.2M grew 11.46% YoY and rose sequentially from $811.9M in Q1 2026 and $823.9M in Q4 2025, marking the third consecutive quarter of sequential growth. This confirms the semiconductor cycle is in recovery and that Entegris's content-per-wafer story is translating into tangible top-line results.
- Margin expansion and operating leverage: Gross margin expanded to 47.55% in Q2 2026 from 43.53% in Q3 2025 and 40.14% in Q1 2025, while operating margin reached 18.64% versus 13.39% a year earlier. Net income more than doubled YoY to $93.6M, demonstrating powerful operating leverage as volumes recover.
- Strong free cash flow and deleveraging: Trailing free cash flow of $575.2M comfortably covers $39.3M in capex and $15.4M in dividends, and the company repaid $200M of debt in Q2 2026 alone. The 4.5% FCF yield and 3.35 current ratio provide financial flexibility to fund growth while reducing leverage.
- Analyst consensus bullish with recent upgrades: 11 analysts rate the stock a 'buy' with a mean of 1.75, and the average target of $173.36 implies 4.1% upside. Recent institutional activity is constructive: Deutsche Bank upgraded to Buy on August 12, 2026, and Oppenheimer initiated at Outperform on August 5, 2026, suggesting estimate revisions are trending higher.
Bearish
- Premium valuation leaves little room for error: The forward PE of 33.16x and EV/EBITDA of 19.33x sit above typical specialty materials peers, while the PS ratio of 4.00x is elevated versus the sector median. The trailing PE of 54.35x and price-to-cash-flow of 18.38x imply the market is pricing in a flawless recovery.
- Elevated leverage and interest burden: Debt-to-equity stands at 0.98, and interest expense of $48.6M in Q2 2026 consumes a significant portion of operating income. Interest coverage of 3.39x warrants monitoring if the cycle were to stall, as the leveraged capital structure from past acquisitions remains a drag on ROE (5.96%).
- High beta and extreme volatility: With a beta of 1.364, the stock is roughly 36% more volatile than the market, and the maximum drawdown of -41.84% over the period underscores the downside risk. The 52-week range of $67.97 to $186.94 is remarkably wide at roughly $119, reflecting how sharply sentiment can swing.
- Limited analyst upside after massive run: The average target of $173.36 implies only 4.1% upside from the current $166.47, despite the stock's 71.96% one-year gain. This modest gap suggests analysts see the shares as fairly valued near current levels, with the buy rating driven more by fundamental quality than near-term price appreciation.
ENTG Technical Analysis
Entegris is in a powerful, sustained uptrend, with the stock up 71.96% over the past year and 85.88% year-to-date, decisively outperforming the S&P 500's 15.01% and 12.86% respective gains. At a current price of $166.47, the shares are trading at approximately 89% of the 52-week range (low of $67.97, high of $186.94), positioning them near the upper end of their annual band — a sign of strong momentum but also of potential overextension after such a steep advance. The 52-week range itself is remarkably wide at roughly $119, underscoring how volatile this name has been, and the current positioning suggests buyers remain firmly in control but with limited near-term cushion to the prior high.
Recent momentum is accelerating rather than fading: the stock has gained 26.78% over the past month and 13.51% over three months, with the one-month move dramatically outpacing the three-month figure, indicating a fresh leg higher. This short-term surge is corroborated by relative strength, with ENTG beating the S&P 500 by 26.19 percentage points over one month and 56.95 points over one year, while the 6-month gain of 43.02% confirms the trend is broad-based rather than a single-month spike. The most recent session saw a 5.04% jump on volume of roughly 2.25 million shares, a strong confirmation of institutional accumulation, though the 3.88 short ratio suggests bears have not fully capitulated and could fuel further upside via short covering.
Key technical support sits near the 52-week low of $67.97, with a more immediate psychological floor around the $130–$140 zone that has repeatedly acted as a pivot over the past six months, while resistance is defined by the 52-week high of $186.94. A clean breakout above $186.94 would signal a continuation of the primary uptrend and likely draw momentum buyers, whereas a breakdown below $130 would threaten the intermediate trend and open the door toward the $107 low touched in late July. With a beta of 1.364, the stock is roughly 36% more volatile than the broader market, meaning position sizing should be scaled down accordingly and stop-losses set wider than for a market-average name; the maximum drawdown of -41.84% over the period is a stark reminder of the downside risk embedded in this high-beta semiconductor materials play.
Beta
1.40
1.40x market volatility
Max Drawdown
-41.8%
Largest decline past year
52-Week Range
$68-$187
Price range past year
Annual Return
+71.5%
Cumulative gain past year
| Period | ENTG Return | S&P 500 |
|---|---|---|
| 1m | +15.0% | +1.0% |
| 3m | +11.6% | +2.5% |
| 6m | +19.9% | +13.9% |
| 1y | +71.5% | +15.0% |
| ytd | +81.1% | +13.5% |
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ENTG Fundamental Analysis
Entegris's revenue trajectory is clearly re-accelerating, with the most recent quarter (ended June 27, 2026) delivering $883.2 million in revenue, up 11.46% year-over-year, and marking a sequential increase from $811.9 million in Q1 2026 and $823.9 million in Q4 2025. The multi-quarter trend shows steady upward progression from the $773.2 million reported in Q1 2025, with the two reported segments — Advanced Purity Solutions at $514.6 million and Materials Solutions at $371.3 million — together accounting for the bulk of the top line. This growth implies the semiconductor cycle is firmly in recovery mode and that Entegris's content-per-wafer story is translating into tangible financial results, supporting the bull case for continued mid-teens growth as leading-edge fab utilization rises.
Profitability is solid and improving, with Q2 2026 net income of $93.6 million on a gross margin of 47.55% and a net margin of 10.60%, up from net income of $52.8 million and a 6.66% net margin in the year-ago quarter. Gross margin has expanded meaningfully from 43.53% in Q3 2025 and 40.14% in Q1 2025 to the current 47.55%, while operating margin reached 18.64% in Q2 2026 versus 13.39% a year earlier — evidence of operating leverage as volumes recover. The company's 28.89% operating margin on a trailing basis and 44.42% gross margin are consistent with a high-value specialty materials supplier, and the sequential improvement in EPS from $0.35 a year ago to $0.61 this quarter underscores the earnings power emerging as the cycle turns.
Balance sheet health is adequate but not pristine: debt-to-equity stands at 0.98, the current ratio is a healthy 3.35, and ROE is a modest 5.96% with ROA of 4.13%, reflecting the drag from the company's leveraged capital structure following past acquisitions. Free cash flow is robust, with $575.2 million generated on a trailing basis and $116.9 million in the most recent quarter, comfortably covering the $39.3 million in capital expenditure and the $15.4 million dividend, while the company repaid $200 million of debt in Q2 2026 alone. The FCF yield of roughly 4.5% against a $12.78 billion market cap and the 0.48% dividend yield indicate the company can fund growth internally while deleveraging, though the elevated debt load and 3.39x interest coverage warrant monitoring if the cycle were to stall.
Quarterly Revenue
$883200000.0B
2026-06
Revenue YoY Growth
+11.5%
YoY Comparison
Gross Margin
47.5%
Latest Quarter
Free Cash Flow
$575200000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ENTG Overvalued?
Because Entegris is profitable — Q2 2026 net income of $93.6 million and trailing EPS of $0.0184 on a GAAP basis — the PE ratio is the appropriate primary metric, though the trailing PE of 54.35x is distorted by the low trailing GAAP EPS figure and is better interpreted alongside the forward PE of 33.16x. The wide gap between trailing and forward multiples implies the market expects a substantial earnings recovery over the next twelve months, consistent with analyst EPS estimates of $7.00 for the forward period, which would represent an enormous step-up from current run-rate profitability. The PS ratio of 4.00x and EV/EBITDA of 19.33x provide complementary context, with the EV/Sales of 8.25x reflecting the premium the market assigns to Entegris's mission-critical materials franchise.
Relative to the broader semiconductor industry, Entegris trades at a premium on most metrics: its forward PE of 33.16x and EV/EBITDA of 19.33x sit above the typical specialty materials peer group, while the PS ratio of 4.00x is elevated versus the sector median. This premium is partly justified by Entegris's high recurring revenue mix, switching costs, and exposure to leading-edge node transitions, but the 54.35x trailing PE and 18.38x price-to-cash-flow ratio leave little room for execution missteps. The PEG ratio of -2.70 is not meaningful given the depressed trailing earnings base, so investors should focus on the forward multiple and the trajectory of margin expansion rather than the distorted trailing figures.
Historically, Entegris's valuation has compressed dramatically from its 2021 peak, when the PS ratio reached 29.56x and the PB ratio hit 10.96x, versus today's PS of 4.00x and PB of 3.23x — a fraction of those levels. However, the stock has re-rated sharply off the 2025 trough, when the PS ratio fell to 15.53x and the PE to 63.83x on a quarterly basis, and the current PB of 3.23x is now above the 2025 Q4 reading of 3.24x but well below the 2024 Q2 peak of 5.83x. This places the valuation in the middle-to-upper portion of its recent historical band, suggesting the market is pricing in a successful cyclical recovery but not yet the euphoria of the 2021 cycle, leaving room for further multiple expansion if earnings delivery accelerates.
PE
54.4x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 21x~107x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
19.3x
Enterprise Value Multiple
Investment Risk Disclosure
Entegris faces financial and operational risks stemming from its leveraged balance sheet and cyclical revenue base. Debt-to-equity stands at 0.98, and interest expense of $48.6M in Q2 2026 consumes a meaningful share of operating income, resulting in interest coverage of just 3.39x. While free cash flow of $575.2M TTM comfortably covers capex and dividends, a downturn in semiconductor demand could pressure cash generation and make deleveraging more challenging. Additionally, revenue is heavily concentrated in the semiconductor industry, with the majority of sales to fabricators, exposing the company to the capital spending cycles of a handful of large customers.
Market and competitive risks include valuation compression and high volatility. The stock trades at a forward PE of 33.16x and EV/EBITDA of 19.33x, premiums to the broader specialty materials sector that leave little room for execution missteps. With a beta of 1.364, the shares are roughly 36% more volatile than the market, and the maximum drawdown of -41.84% over the period highlights the potential for sharp declines. Competitive pressures from other materials suppliers and the risk of in-sourcing by large chipmakers could erode Entegris's pricing power and market share, while regulatory or geopolitical headwinds affecting the semiconductor supply chain remain a persistent threat.
The worst-case scenario would involve a simultaneous slowdown in semiconductor demand and margin compression, leading to earnings misses and analyst downgrades. In such a scenario, the stock could retest its 52-week low of $67.97, representing a decline of approximately 59% from the current price of $166.47. Even a more moderate bear case, aligned with the analyst low target of $120.00, implies a 28% downside. Given the high beta and the stock's 71.96% one-year gain, a correction could be swift and severe, especially if the company fails to deliver on the aggressive earnings growth implied by its forward valuation.
FAQ
The key risks include: 1) Cyclical demand risk—revenue is heavily concentrated in the semiconductor industry, and a slowdown in fab capex could reverse growth (Q2 2026 revenue growth was 11.46% YoY). 2) Valuation risk—the premium forward PE of 33.16x leaves little room for error, and the average analyst target implies only 4.1% upside. 3) Financial risk—debt-to-equity of 0.98 and interest coverage of 3.39x could pressure earnings if rates rise or cash flow declines. 4) Volatility risk—beta of 1.364 and a maximum drawdown of -41.84% mean the stock can fall sharply in adverse conditions. These risks are ranked from highest to lowest severity, with cyclical demand being the most immediate threat.
Our 12-month forecast for ENTG includes three scenarios: a bull case (25% probability) targeting $200–$215, driven by accelerating revenue growth and margin expansion; a base case (55% probability) targeting $165–$185, assuming steady low-double-digit growth and stable margins; and a bear case (20% probability) targeting $120–$135, reflecting a semiconductor demand slowdown and margin compression. The base case is most likely, with the stock trading around the analyst average target of $173.36. The key assumption is that revenue growth remains above 10% and gross margins hold near 47%. A breakout above the 52-week high of $186.94 would signal the bull case, while a breakdown below $130 would indicate the bear case.
ENTG appears fairly valued to slightly overvalued relative to its peers and its own history. The forward PE of 33.16x and EV/EBITDA of 19.33x are above the typical specialty materials peer group, while the PS ratio of 4.00x is elevated versus the sector median. However, the valuation is well below the 2021 peak (PS of 29.56x) and in the middle-to-upper portion of its recent historical band. The market is pricing in a successful cyclical recovery and continued margin expansion, as evidenced by the forward PE implying a substantial earnings step-up from trailing levels. If earnings delivery accelerates, the multiple could expand further, but any disappointment could lead to compression.
Entegris is a good buy for long-term investors seeking exposure to the semiconductor materials sector, but the current entry point is less attractive after a 71.96% one-year gain. The stock trades at a forward PE of 33.16x, a premium to peers, and the average analyst target of $173.36 implies only 4.1% upside. The company's strong fundamentals—11.46% revenue growth, 47.55% gross margin, and $575.2M free cash flow—support the bull case, but the high beta (1.364) and elevated leverage (debt-to-equity 0.98) increase risk. A pullback to the $130–$140 support zone would offer a more favorable risk/reward. For those with a high risk tolerance and a multi-year horizon, ENTG is a solid holding, but near-term upside may be limited.
ENTG is more suitable for long-term investment (minimum 2–3 years) given its cyclical exposure and high volatility (beta 1.364). The company's structural growth drivers—rising materials intensity in semiconductor manufacturing—support a multi-year thesis, but short-term trading is risky due to the stock's sharp swings (max drawdown -41.84%). The dividend yield is minimal at 0.48%, so income is not a reason to hold. Earnings visibility is moderate, with analyst estimates for forward EPS of $7.00, but quarterly results can be volatile. Investors should be prepared for drawdowns and consider scaling in on weakness. A suggested minimum holding period is 2 years to ride out the semiconductor cycle.