Entegris
ENTG
$143.66
-0.67%
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, serving semiconductor fabricators and the broader manufacturing supply chain, including equipment, chemicals, and distributors. As a critical enabler of advanced chip manufacturing, Entegris holds a distinct competitive position as a niche, high-purity materials platform. The current investor narrative centers on the semiconductor industry's cyclical recovery and the company's strategic focus on high-growth areas like advanced packaging and leading-edge logic, with recent stock momentum reflecting optimism about AI-driven demand and the company's ability to expand margins through operational leverage.…
ENTG
Entegris
$143.66
Investment Opinion: Should I buy ENTG Today?
Based on the analysis, ENTG is rated a Buy. The consensus analyst rating is 'Buy' with an average target price of $173.36, implying 20.7% upside. The thesis is that the semiconductor upcycle and AI-driven demand will drive earnings growth, justifying the forward PE of 28.6x. Key supporting data includes the 5% revenue growth, projected EPS of $7.00 for 2026, strong gross margin of 44.4%, and positive free cash flow of $679.8 million TTM. The stock is trading at a premium to its historical valuation, but the forward PE is reasonable given the expected growth. The main risks are a semiconductor downturn, high debt, and execution on growth targets. This Buy would be downgraded to Hold if revenue growth falls below 3% or if the forward PE exceeds 35x, and upgraded to Strong Buy if the stock pulls back to $120 while fundamentals remain intact. Overall, ENTG is fairly valued relative to its growth prospects, but not a bargain.
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ENTG 12-Month Price Forecast
The AI assessment is bullish, as the semiconductor industry is in a cyclical upswing and Entegris is well-positioned to benefit. The forward PE suggests the market expects strong earnings growth, and analyst targets support upside. However, the moderate revenue growth and high debt levels warrant caution. If the company can deliver on EPS estimates and maintain margins, the stock should appreciate. A downgrade to neutral would occur if revenue growth falls below 3% or if the forward PE exceeds 35x without corresponding growth.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Entegris's 12-month outlook, with a consensus price target around $173.36 and implied upside of +20.7% versus the current price.
Average Target
$173.36
0 analysts
Implied Upside
+20.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$120 - $215
Analyst target range
Entegris has coverage from 11 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.75 (where 1 is Strong Buy and 5 is Sell). The average price target is $173.36, implying 20.7% upside from the current price of $143.66. The distribution is bullish, with no Sell ratings and a majority of Buy or Outperform ratings, though one analyst (Goldman Sachs) maintains a Sell, indicating some caution.
Bulls vs Bears: ENTG Investment Factors
Entegris presents a compelling growth story driven by semiconductor recovery and AI demand, with strong analyst support and a forward PE that suggests significant earnings growth ahead. However, the stock is not cheap on trailing metrics, and its high beta and debt levels introduce risk. The bull case currently has stronger evidence, given the favorable analyst targets and the expected earnings acceleration, but the key tension is whether the company can deliver the projected EPS growth of 7.00 in 2026 to justify the valuation. If semiconductor demand falters, the stock could face significant downside.
Bullish
- Strong 1-Year Momentum: ENTG has surged 75.0% over the trailing 12 months, vastly outperforming the S&P 500's 20.5% gain. This reflects strong market confidence in the company's semiconductor exposure and growth prospects.
- Analyst Consensus Buy: With 11 analysts, the consensus is 'Buy' (mean rating 1.75) and the average price target of $173.36 implies 20.7% upside from the current price of $143.66. No Sell ratings, with only one cautious analyst.
- Forward PE Discount: The forward PE of 28.6x is a 47% discount to the trailing PE of 54.4x, signaling the market expects substantial earnings growth. Analysts project EPS of $7.00 for 2026, up from $1.71 in 2025.
- Healthy Balance Sheet: The current ratio is 3.35, indicating strong liquidity, and debt-to-equity is 0.98, manageable for a capital-intensive business. This financial stability supports continued investment in growth.
Bearish
- High Valuation on Trailing Earnings: The trailing PE of 54.4x is elevated, and the PEG ratio of -2.7 is not meaningful due to past negative earnings growth. This leaves little room for error if growth disappoints.
- Moderate Revenue Growth: Q1 2026 revenue growth of 5.0% YoY is modest, and full-year estimates imply only 5.5% growth. This is not explosive, and any slowdown in semiconductor demand could hurt.
- High Debt Levels: Debt-to-equity of 0.98 indicates significant leverage, and interest expenses were $48.9M in Q1 2026, eating into profits. Rising rates could pressure margins further.
- Recent Price Volatility: The stock has a beta of 1.35, and the max drawdown of -41.84% over the past year shows high volatility. The recent pullback from the June high of $184.00 to $143.66 highlights profit-taking risk.
ENTG Technical Analysis
Entegris is in a strong uptrend over the past year, with the stock up 75.0% over the trailing 12 months, significantly outperforming the S&P 500's 20.5% gain. The current price of $143.66 sits at 62.5% of the 52-week range (low $67.97, high $186.94), indicating the stock is in the upper half of its range but has pulled back from its highs. This positioning suggests the market is rewarding the company's growth prospects, though the recent correction from the June peak of $184.00 highlights some profit-taking after a sharp rally.
Beta
1.35
1.35x market volatility
Max Drawdown
-41.8%
Largest decline past year
52-Week Range
$68-$187
Price range past year
Annual Return
+75.0%
Cumulative gain past year
| Period | ENTG Return | S&P 500 |
|---|---|---|
| 1m | +4.5% | +3.6% |
| 3m | +6.2% | +2.7% |
| 6m | +6.8% | +11.4% |
| 1y | +75.0% | +18.7% |
| ytd | +60.4% | +12.3% |
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ENTG Fundamental Analysis
Entegris reported Q1 2026 revenue of $811.9 million, up 5.0% year-over-year, with sequential growth from $807.1 million in Q3 2025, indicating a steady recovery. The company's revenue has grown from $773.2 million in Q1 2025 to $811.9 million in Q1 2026, a 5.0% increase, with the Advanced Purity Solutions segment contributing $463.6 million and Materials Solutions $351.1 million. While growth is moderate, the semiconductor industry's cyclical upswing and Entegris's exposure to advanced nodes should drive acceleration, with analysts estimating full-year revenue of $4.92 billion, implying a 5.5% increase from 2025.
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?
Given that Entegris is profitable, the PE ratio is the primary valuation metric. The trailing PE is 54.4x, while the forward PE is 28.6x, indicating the market expects significant earnings growth, with the forward multiple implying a 47% discount to trailing. This gap reflects expectations of a strong earnings recovery, as the company's net margin is currently 7.4%, but analysts project EPS of $7.00 for 2026, up from $1.71 in 2025. The PEG ratio of -2.7 is not meaningful due to negative earnings growth in the past, but the forward PE suggests the market is pricing in a substantial rebound.
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
Financially, Entegris carries a debt-to-equity ratio of 0.98, indicating substantial leverage, with interest expenses of $48.9 million in Q1 2026. While the current ratio of 3.35 provides liquidity, the high debt load could strain cash flows if interest rates rise or earnings disappoint. The company's net margin is only 7.4%, and operating margin is 28.9%, but the heavy interest burden reduces net income. Revenue growth is moderate at 5% YoY, and any slowdown in semiconductor demand could pressure margins and cash flow generation, especially given the high fixed costs in manufacturing.
FAQ
The key risks are: 1) Financial risk: high debt-to-equity of 0.98 and interest expenses of $48.9M in Q1 2026 could strain cash flows if rates rise. 2) Market risk: the stock is highly correlated with the semiconductor cycle, and a downturn could hurt revenue. 3) Competitive risk: larger competitors could erode market share. 4) Macro risk: with a beta of 1.35, the stock is sensitive to market volatility. The most severe risk is a prolonged semiconductor downturn, which could lead to a -35% decline to the 52-week low of $67.97.
The 12-month forecast is bullish, with a base case target of $150-180 (50% probability), bull case of $180-215 (30% probability), and bear case of $100-120 (20% probability). The average analyst target is $173.36, implying 20.7% upside. The most likely scenario is moderate growth, with revenue increasing 5-8% and EPS reaching $7.00. If the semiconductor recovery accelerates, the stock could reach the high target of $215. However, a downturn could see it fall to $120 or lower.
ENTG is trading at a trailing PE of 54.4x, which is high, but the forward PE of 28.6x suggests the market expects significant earnings growth. Compared to the semiconductor industry average, the forward PE is in line with growth expectations. The stock is not cheap on trailing metrics, but the valuation is justified if the company can deliver the projected EPS growth. The market is pricing in a strong recovery, and any disappointment could lead to multiple compression. Overall, ENTG is fairly valued relative to its growth prospects, but not a bargain.
ENTG is a good buy for investors with a growth-oriented portfolio and a higher risk tolerance. The stock has a consensus 'Buy' rating with an average target price of $173.36, implying 20.7% upside from the current price of $143.66. The forward PE of 28.6x is reasonable given the expected EPS growth to $7.00 in 2026. However, the stock is volatile (beta 1.35) and carries high debt, so it's not suitable for conservative investors. If you believe in the semiconductor recovery and AI demand, ENTG offers attractive upside, but be prepared for potential drawdowns.
ENTG is more suitable for long-term investment, given its growth stage and cyclical nature. The stock has a beta of 1.35, indicating high volatility, which makes it risky for short-term trading. However, the company's position in the semiconductor supply chain and expected earnings growth make it a good long-term hold. A minimum holding period of 3-5 years is recommended to ride out the semiconductor cycle. The dividend yield is low at 0.48%, so income investors may look elsewhere, but for growth investors, ENTG offers significant upside potential.