Stock Analysis · Entegris Inc (ENTG)
Overview
Entegris, Inc. is a supplier to the semiconductor (computer chip) industry. In simple terms, it sells specialized materials and equipment that help chipmakers and chip-equipment manufacturers keep manufacturing environments extremely clean and controlled. That matters because tiny contamination can ruin chip production, especially as chips become smaller and more complex.
The company’s offerings are generally used across multiple steps of chip manufacturing, such as handling and transporting wafers, filtering and purifying chemicals and gases, and controlling contamination in high-precision production tools. This positions Entegris as an “enabler” of advanced semiconductor manufacturing rather than a producer of chips itself.
In its SEC filings, Entegris describes its business through three reportable segments:
- Materials Solutions (specialty materials used in semiconductor manufacturing)
- Microcontamination Control (filtration, purification, and contamination-control products)
- Advanced Materials Handling (handling/transport solutions that protect sensitive materials and wafers)
Public filings explain the segments clearly, but the revenue split by segment can vary by period; percentages are typically found in the company’s annual report and investor materials when disclosed.
Across recent years, revenue increased notably from 2021 to 2023, then eased in 2024–2025. Over the same period, interest expense rose sharply after 2021, which is consistent with the company carrying more debt and/or refinancing at higher rates. Net income also declined from 2021 levels, highlighting how financing costs and other expenses can meaningfully influence bottom-line results even when revenue remains sizable.
Key Figures
| Metric | Value | Industry ⓘ |
|---|---|---|
| Date | Feb 16, 2026 | |
| Context | ||
| Sector | Technology | |
| Industry | Semiconductor Equipment & Materials | |
| Market Cap ⓘ | $19.96B | |
| Beta ⓘ | 1.32 | |
| Fundamental | ||
| P/E Ratio ⓘ | 84.79 | 48.26 |
| Profit Margin ⓘ | 7.37% | 8.62% |
| Revenue Growth ⓘ | -3.00% | 12.90% |
| Debt to Equity ⓘ | 98.49% | 20.73% |
| PEG ⓘ | 2.11 | |
| Free Cash Flow ⓘ | $570.70M | |
Entegris has a market capitalization of about $20.0B and a beta of ~1.32, which indicates the stock has historically moved more than the broader market (higher volatility than average). The current P/E ratio is ~84.8 versus an industry median of ~48.3, meaning the stock is priced at a higher earnings multiple than many peers. The profit margin is ~7.4%, roughly in line with the industry median (~7.3%) but below where the company was earlier in the period shown later in this article. Year-over-year revenue growth is currently -3.0% compared with an industry median of +12.9%. The debt-to-equity ratio is ~98% versus an industry median of ~21%, indicating meaningfully higher leverage than many comparable companies. Trailing twelve-month free cash flow is about $571M.
Growth (Medium)
Entegris operates in the semiconductor supply chain, which is driven over the long run by demand for computing, memory, connectivity, and increasingly complex chip designs. As chipmakers push toward more advanced process technologies, the need for contamination control and high-purity materials generally rises, because manufacturing tolerances become tighter and defects become more costly. From a business logic standpoint, that trend supports continued relevance for products that protect yield (the percentage of good chips produced).
The company’s strategy, as described in its filings, centers on being deeply embedded in customers’ manufacturing processes through specialized materials, filtration/purification, and handling solutions. This type of positioning can benefit from long customer qualification cycles (it takes time to validate materials and processes in chip manufacturing) and from the expanding complexity of manufacturing steps.
Revenue growth shows a strong expansion phase through 2022 and into early 2023, followed by a multi-quarter slowdown and several periods of negative year-over-year growth across 2023–2025. This pattern can occur in semiconductor-related businesses because customer spending is cyclical (periods of heavy investment are often followed by digestion phases). The most recent reading remains slightly negative (-3%), which is below the typical growth shown for the industry median in the same table.
Free cash flow has been uneven over the period shown: it fell from about $336M (2021) to $159M (2022), turned negative in 2023 (about -$75M), and then returned to positive territory in 2024–2025 (roughly $235M to $268M in the charted points). The latest metrics table lists trailing twelve-month free cash flow at about $571M, suggesting cash generation improved compared with earlier points on the timeline. For long-term business resilience, consistency of cash generation matters because it supports reinvestment, debt reduction, and flexibility during industry slowdowns.
Risks (High)
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer