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1. Company Snapshot

1.a. Company Description

Entegris, Inc.develops, manufactures, and supplies microcontamination control products, specialty chemicals, and advanced materials handling solutions in North America, Taiwan, China, South Korea, Japan, Europe, and Southeast Asia.It operates in three segments: Specialty Chemicals and Engineered Materials (SCEM); Microcontamination Control (MC); and Advanced Materials Handling (AMH).


The SCEM segment offers high-performance and high-purity process chemistries, gases, and materials, as well as delivery systems to support semiconductor and other advanced manufacturing processes.The MC segment provides solutions to filter and purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries, wafers, and other substrates for application in the semiconductor, life sciences, and other high-technology industries.


The company's customers include logic and memory semiconductor device manufacturers, semiconductor equipment makers, gas and chemical manufacturing companies, and wafer grower companies; and flat panel display equipment makers, panel manufacturers, and manufacturers of hard disk drive components and devices, as well as their related ecosystems.It also serves manufacturers and suppliers in the solar industries, electrical discharge machining customers, glass and glass container manufacturers, aerospace manufacturers, and manufacturers of biomedical implantation devices.Entegris, Inc.


was founded in 1966 and is headquartered in Billerica, Massachusetts.

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1.b. Last Insights on ENTG

Entegris, Inc.'s recent performance was positively driven by its Q3 2025 earnings release, where revenue, EBITDA, and non-GAAP EPS met guidance. The company delivered record operating cash, a significant achievement. Additionally, Entegris celebrated the grand opening of its Colorado Springs Manufacturing Center of Excellence, increasing production capabilities. Institutional investors, such as Asset Management One Co. Ltd. and Sequoia Financial Advisors LLC, have also shown confidence in the company, with some increasing their stakes. A new manufacturing center and steady earnings have supported the company's growth.

1.c. Company Highlights

2. Entegris' Q3 Earnings: A Mixed Bag

Entegris reported a revenue of $807 million for the third quarter, flat year-over-year and up 2% sequentially, in line with guidance. The company's gross margin was 43.5% on a GAAP basis and 43.6% on a non-GAAP basis, below guidance due to underutilization of manufacturing assets. Non-GAAP EPS was $0.72 per share, in line with guidance. The company's operating cash flow and free cash flow were a highlight, with a record $191 million driven by focus on working capital.

Publication Date: Nov -03

📋 Highlights
  • Flat Q3 Revenue: Revenue of $807 million, flat year-over-year but up 2% sequentially, in line with guidance.
  • Gross Margin Decline: GAAP margin at 43.5% and non-GAAP at 43.6%, below guidance due to underutilized manufacturing assets.
  • Strong Cash Flow: Record operating cash flow of $191 million, driven by working capital optimization.
  • Q4 Guidance: Revenue projected at $790–$830 million with gross margin of 43–44%, reflecting modest sequential growth.
  • Debt Reduction Focus: $150 million in debt paid down in Q3, targeting leverage below 4x, with Q4 free cash flow to accelerate reductions.

Operational Highlights

The company has three initial priorities: customer intimacy, accelerating new facility ramps in Taiwan and Colorado, and improving free cash flow. CEO Dave Reeder aims to expand customer engagement to drive long-term growth and leverage the company's expertise in material science and purity to enhance performance and yields. The company expects to expand profitability levels and increase utilization levels in 2026, with limited incremental capacity investments.

Segment Performance

In the Material Solutions segment, the demand shift between quarters was due to changes in the trade environment. The company does not expect a material sales drag in 2026 from product rationalization. In APS, the company saw good trends in liquid filtration, with a record quarter in Q3, driven by demand for higher purity from advanced manufacturers. Fluid management and FOUPs were challenged due to CapEx-driven spending declines.

Outlook and Valuation

The company expects Q4 sales to range from $790 million to $830 million, with a gross margin of 43% to 44%. Analysts estimate next year's revenue growth at 6.4%. With a P/E Ratio of 48.19 and an EV/EBITDA of 15.09, the market is pricing in a certain level of growth. The company's focus on reducing leverage and improving free cash flow is expected to drive long-term value creation.

Growth Drivers

The company is optimistic about node transitions, particularly the ramp of 2-nanometer nodes, which will drive content growth opportunities. Entegris has 2x more plan of record wins at N2 versus N5 for CMP slurries. The company's exposure to AI is about 5% of total wafer starts, which represents about 30% of revenue, with revenue up 100% year-over-year in the HBM space.

3. NewsRoom

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Entegris Stock's Recent Slide Signals A Tougher Road Ahead

Nov -21

Source: benzinga.com

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Barrow, Hanley, Mewhinney & Strauss Reduces Stake in Everus Construction Group Inc

Nov -15

Source: gurufocus.com

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Barrow, Hanley, Mewhinney & Strauss Increases Stake in Avantor Inc

Nov -15

Source: gurufocus.com

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Barrow, Hanley, Mewhinney & Strauss Reduces Stake in Kaiser Aluminum Corp

Nov -15

Source: gurufocus.com

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Stanley Druckenmiller's Strategic Moves: Exiting Philip Morris International Inc with a -3.65% Impact

Nov -14

Source: gurufocus.com

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Barrow, Hanley, Mewhinney & Strauss Makes Significant Moves with Berkshire Hathaway Inc.

Nov -13

Source: gurufocus.com

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Entegris Celebrates Grand Opening of Colorado Springs Manufacturing Center of Excellence

Nov -05

Source: businesswire.com

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Teacher Retirement System of Texas Buys 904 Shares of Entegris, Inc. $ENTG

Nov -04

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.31%)

6. Segments

Materials Solutions

Expected Growth: 7%

Entegris' Materials Solutions segment growth is driven by increasing demand for advanced materials in semiconductor manufacturing, particularly in areas like 5G, IoT, and AI. The segment benefits from the company's strong relationships with leading chipmakers, its broad portfolio of specialty chemicals and materials, and its ability to innovate and adapt to emerging trends in the industry.

Microcontamination Control

Expected Growth: 9%

Entegris' Microcontamination Control segment growth is driven by increasing demand for high-purity materials in semiconductor manufacturing, rising adoption of 5G and IoT devices, and growing need for contamination control in life sciences and healthcare applications, resulting in a 9% growth rate.

Advanced Materials Handling

Expected Growth: 6%

Entegris' Advanced Materials Handling segment growth is driven by increasing demand for semiconductor materials, rising adoption of 5G and IoT devices, and growing need for contamination control in chip manufacturing. Additionally, the segment benefits from the company's strong relationships with leading chipmakers and its ability to provide customized solutions, resulting in a growth rate of 6.

Inter-segment Elimination

Expected Growth: 0%

Entegris, Inc.'s Inter-segment Elimination with 0% growth is driven by the absence of significant transactions between segments, indicating a lack of interdependent business activities. This suggests a decentralized operating model, where each segment operates independently, eliminating the need for inter-segment transactions.

7. Detailed Products

Fluid Handling

Entegris' fluid handling products are designed to handle and manage fluids, gases, and chemicals in semiconductor manufacturing, providing precise control and purity.

Microcontamination Control

Entegris' microcontamination control products are designed to minimize particle contamination in semiconductor manufacturing, ensuring high yields and quality.

Specialty Chemicals

Entegris' specialty chemicals are designed for use in semiconductor manufacturing, providing high-purity chemicals for etching, cleaning, and other processes.

Container and Packaging Solutions

Entegris' container and packaging solutions are designed to protect and transport sensitive materials in semiconductor manufacturing, ensuring purity and quality.

Advanced Materials Handling

Entegris' advanced materials handling products are designed to handle and manage sensitive materials in semiconductor manufacturing, providing precise control and purity.

8. Entegris, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Entegris, Inc. is medium due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Entegris, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Entegris, Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Entegris, Inc. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Entegris, Inc. is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.32%
Debt Cost 6.41%
Equity Weight 42.68%
Equity Cost 10.48%
WACC 8.15%
Leverage 134.28%

11. Quality Control: Entegris, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rambus

A-Score: 5.1/10

Value: 0.8

Growth: 8.0

Quality: 9.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Axcelis Technologies

A-Score: 4.7/10

Value: 4.4

Growth: 8.6

Quality: 7.9

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Teradyne

A-Score: 4.0/10

Value: 4.2

Growth: 4.4

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Lattice Semi

A-Score: 3.7/10

Value: 0.0

Growth: 4.0

Quality: 6.6

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Entegris

A-Score: 3.7/10

Value: 2.6

Growth: 6.6

Quality: 6.9

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
FormFactor

A-Score: 2.6/10

Value: 0.6

Growth: 5.2

Quality: 5.4

Yield: 0.0

Momentum: 2.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

89.15$

Current Price

89.15$

Potential

-0.00%

Expected Cash-Flows