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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' recent performance was positively driven by its Q4 2025 earnings beat, with revenue, adjusted EBITDA margin, and non-GAAP EPS near or above the high-end of guidance. Strength in liquid filtration and selective etch contributed to unit-driven growth. The company's dividend announcement also boosted its stock. Additionally, operational improvements, including ramping new facilities and boosting free cash flow, have been notable. Weiss Ratings reissued a "hold" rating, citing stability. However, some investors, such as Barclays PLC, have lowered their stakes.

1.c. Company Highlights

2. Entegris' Q4 2025 Earnings: A Strong Close to a Flat Year

Entegris reported Q4 2025 revenue of $824 million, at the high end of guidance, down 3% year-over-year and up 2% sequentially. Non-GAAP EPS was $0.70, above guidance, indicating a strong close to a year where revenue was flat compared to 2024, excluding divestitures. For the full year, unit-driven revenue grew approximately 2%. The company's gross margin is expected to stabilize and improve with volume leverage, driven by increased production, including the ramp-up of its Taiwan facility and rationalization of certain facilities.

Publication Date: Feb -17

📋 Highlights
  • Q4 2025 Revenue:: $824M, -3% YoY, +2% sequentially, aligning with high end of guidance
  • Non-GAAP EPS:: $0.70, exceeding guidance despite revenue decline
  • 2026 MSI Growth:: Mid-single digits driven by advanced logic, NAND, and DRAM node transitions
  • CapEx Reduction:: $250M in 2026 (-40% YoY), with $150M depreciation, focusing on fab construction
  • China Revenue Contribution:: 21% in 2025, stable, with AI wafer content per unit significantly higher than market share

Guidance and Outlook

Entegris expects 2026 industry MSI growth to be mid-single digits, driven by advanced logic, NAND, and DRAM growth. The company expects to benefit from node transitions in logic and memory, with increased demand for 2-nanometer devices and NAND transitions. For Q1 2026, sales are expected to range from $785 million to $825 million, with a gross margin of 44.5-45.5%. The company targets net leverage below 3.5 times by 2026 and expects to grow content per wafer and outperform the market.

Business Segment Performance

The company's NAND business has not yet inflected, but it expects increased wafer starts and node transitions to drive growth. Advanced manufacturing nodes, defined as seven nanometers and below, represent about 60% of total revenue and are expected to grow due to AI-driven demand. Memory, about 30% of revenue, is split equally between NAND and DRAM. The company expects advanced packaging to grow nicely in 2026, with a $100 million plus revenue in 2025.

Valuation and Growth Prospects

With a P/E Ratio of 84.74 and an EV/EBITDA of 27.12, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 9.5%, which may be challenging to achieve given the current industry dynamics. However, Entegris' focus on delivering yield and performance improvements to its customers, along with its efforts to grow across product lines, positions it well for potential outperformance. The company's ROIC of 5.65% and ROE of 6.12% indicate a reasonable return on capital, but the high P/E ratio suggests that the stock may be priced for perfection.

3. NewsRoom

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Entegris, Inc. (NASDAQ:ENTG) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Mar -20

Source: defenseworld.net

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Brown Brothers Harriman & Co. Raises Stock Holdings in Entegris, Inc. $ENTG

Mar -14

Source: defenseworld.net

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Rep. April McClain Delaney Sells Entegris, Inc. (NASDAQ:ENTG) Stock

Mar -12

Source: defenseworld.net

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Barrow Hanley Mewhinney & Strauss LLC Acquires 412,121 Shares of Entegris, Inc. $ENTG

Mar -11

Source: defenseworld.net

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Barclays PLC Lowers Stake in Entegris, Inc. $ENTG

Mar -08

Source: defenseworld.net

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The Market Isn’t Flat. It’s Rotating – And AI Is the Trigger

Mar -03

Source: investorplace.com

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Bertrand Loy Sells 50,322 Shares of Entegris (NASDAQ:ENTG) Stock

Feb -28

Source: defenseworld.net

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Bertrand Loy Sells 59,516 Shares of Entegris (NASDAQ:ENTG) Stock

Feb -28

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

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Axcelis Technologies

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Value: 4.5

Growth: 8.6

Quality: 7.9

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

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Rambus

A-Score: 5.0/10

Value: 1.0

Growth: 7.9

Quality: 9.0

Yield: 0.0

Momentum: 9.5

Volatility: 2.3

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A-Score: 4.1/10

Value: 0.0

Growth: 4.4

Quality: 7.6

Yield: 0.0

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Entegris

A-Score: 3.7/10

Value: 2.9

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

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FormFactor

A-Score: 3.6/10

Value: 0.8

Growth: 5.2

Quality: 5.4

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

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A-Score: 3.5/10

Value: 0.0

Growth: 4.0

Quality: 6.2

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

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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

114.66$

Current Price

114.66$

Potential

-0.00%

Expected Cash-Flows