Entegris Inc (NASDAQ: ENTG)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0001101302
Market Cap 15.99 Bn
P/B 19.92
P/E 199.19
P/S 14.79
ROIC (Qtr) 6.26
Div Yield % 0.09
Rev 1y % (Qtr) -0.07
Total Debt (Qtr) 3.91 Bn
Debt/Equity (Qtr) 1.00

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 679.50M provides strong 10.31x coverage of stock compensation 65.91M, indicating sustainable incentive practices.
  • Strong operating cash flow of 679.50M provides 1.58x coverage of SG&A expenses 429.80M, showing efficient operational cost management.
  • Operating cash flow of 679.50M fully covers other non-current liabilities 110.20M by 6.17x, showing strong long-term stability.
  • Operating cash flow of 679.50M provides solid 1.38x coverage of current liabilities 492.70M, showing strong operational health.
  • Tangible assets of 3.50B provide robust 10.12x coverage of other current liabilities 346.20M, indicating strong asset backing.

Bear case

  • Operating cash flow of 679.50M barely covers its investment activities of (342.41M), with a coverage ratio of -1.98, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (342.41M) provide weak support for R&D spending of 331.45M, which is -1.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 679.50M provides thin coverage of dividend payments of (60.80M) with a -11.18 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 514.73M show weak coverage of depreciation charges of 384.19M, with a 1.34 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 384.19M relative to operating cash flow of 679.50M, which is 0.57x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Semiconductor Equipment & Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ASML Asml Holding Nv 545.55 Bn 81.60 25.80 3.18 Bn
2 LRCX Lam Research Corp 270.12 Bn 366.11 84.92 4.48 Bn
3 AMAT Applied Materials Inc /De 260.74 Bn 38.58 9.28 6.56 Bn
4 KLAC Kla Corp 207.40 Bn 64.64 19.12 5.89 Bn
5 TER Teradyne, Inc 47.70 Bn 421.67 28.58 0.27 Bn
6 ENTG Entegris Inc 15.99 Bn 199.19 14.79 3.91 Bn
7 NVMI Nova Ltd. 12.80 Bn 52.23 15.01 0.88 Bn
8 AMKR Amkor Technology, Inc. 11.99 Bn 21.67 2.07 1.89 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.95 3.68
EV to Cash from Ops. EV/CFO 135.30 27.99
EV to Debt EV to Debt 4.19 2,137.46
EV to EBIT EV/EBIT 126.66 47.14
EV to EBITDA EV/EBITDA 74.46 30.10
EV to Free Cash Flow [EV/FCF] EV/FCF 334.29 68.49
EV to Market Cap EV to Market Cap 1.02 0.93
EV to Revenue EV/Rev 15.13 55.25
Price to Book Value [P/B] P/B 19.92 11.74
Price to Earnings [P/E] P/E 199.19 58.42
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.74 0.93
Dividend Payout Ratio % Div Payout % (Qtr) 20.90 667.25
Dividend per Basic Share Div per Share (Qtr) 0.40 0.62
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 18.36 8.52
Interest Coverage Int. cover (Qtr) 2.53 86.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -3.55 -57.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -7.47 21.17
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 6.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 5.69 -69.60
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.67 -68.67
EBIT Growth (1y) % EBIT 1y % (Qtr) 10.52 -68.41
EBT Growth (1y) % EBT 1y % (Qtr) 32.03 -76.59
EPS Growth (1y) % EPS 1y % (Qtr) 25.66 -164.09
FCF Growth (1y) % FCF 1y % (Qtr) 19.44 70.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.17 43.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.38 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.06 0.04
Cash Ratio Cash Ratio (Qtr) 0.81 1.52
Current Ratio Curr Ratio (Qtr) 3.44 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 1.00 0.30
Interest Cover Ratio Int Coverage (Qtr) 2.53 86.73
Times Interest Earned Times Interest Earned (Qtr) 2.53 86.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 27.90 -1,802.55
EBIT Margin % EBIT Margin % (Qtr) 15.97 -1,926.38
EBT Margin % EBT Margin % (Qtr) 9.65 -1,932.94
Gross Margin % Gross Margin % (Qtr) 44.90 22.58
Net Profit Margin % Net Margin % (Qtr) 9.00 -2,101.05