TICKER ENTG
ISIN US29362U1043
Market cap. USD
18,113,168,000
Shs outstanding 151,600,000
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.

Strategy:

Return at exit: 10.4%
Valuation concerns amid margin pressure
• Rotated out as other semiconductor opportunities present more favorable risk-reward profiles. • Stock has underperformed with a -14.6% return over the past year, trading at 76% of its 52-week high, while recent revenue remained flat year-over-year. • Valuation appears stretched with a P/E of 44.4 and trading above InvestingPro’s fair value estimate of $80.1 (current price ~$86.7). • Recent Goldman Sachs downgrade to “Sell” highlights concerns about fundamentals lagging industry peers despite expected wafer start recovery in 2026. • Company still managing elevated debt levels from its 2022 CMC Materials acquisition, though it generated record free cash flow of $191 million last quarter. • This change reflects portfolio rotation, not a sell signal.