Entegris Inc

ENTG

Plastics Products, NEC

Mkt Cap

$19.78B

PE

62.98

Debt

$4.25B

Cash

$340.7M

EV

$23.69B

FCF

$235.4M

Market Cap

$19.78B

P/E Ratio

62.98

Debt

$4.25B

Cash

$340.7M

EV

$23.69B

FCF

$235.4M

Charts data: {"Earnings":[{"time":"2014-12-30","value":7887000},{"time":"2015-12-30","value":80296000},{"time":"2016-12-30","value":97147000},{"time":"2017-12-30","value":85066000},{"time":"2018-12-30","value":240755000},{"time":"2019-12-30","value":254860000},{"time":"2020-12-30","value":294969000},{"time":"2021-12-30","value":409126000},{"time":"2022-12-30","value":208920000},{"time":"2023-12-30","value":180669000}],"Sales":[{"time":"2014-12-30","value":962069000},{"time":"2015-12-30","value":1081121000},{"time":"2016-12-30","value":1175270000},{"time":"2017-12-30","value":1342532000},{"time":"2018-12-30","value":1550497000},{"time":"2019-12-30","value":1591066000},{"time":"2020-12-30","value":1859313000},{"time":"2021-12-30","value":2298893000},{"time":"2022-12-30","value":3282033000},{"time":"2023-12-30","value":3523926000}],"Net Margins":[{"time":"2014-12-30","value":0.008197956695413738},{"time":"2015-12-30","value":0.0742710575412003},{"time":"2016-12-30","value":0.08265930381954785},{"time":"2017-12-30","value":0.0633623630572679},{"time":"2018-12-30","value":0.15527601794779353},{"time":"2019-12-30","value":0.16018191577219298},{"time":"2020-12-30","value":0.15864407982948542},{"time":"2021-12-30","value":0.17796652562776955},{"time":"2022-12-30","value":0.06365566708195804},{"time":"2023-12-30","value":0.051269237776275664}],"Assets":[{"time":"2014-12-30","value":1762091000},{"time":"2015-12-30","value":1657940000},{"time":"2016-12-30","value":1699532000},{"time":"2017-12-30","value":1976172000},{"time":"2018-12-30","value":2317641000},{"time":"2019-12-30","value":2516086000},{"time":"2020-12-30","value":2917696000},{"time":"2021-12-30","value":3191896000},{"time":"2022-12-30","value":10138857000},{"time":"2023-12-30","value":8812591000}],"Stockholders Equity":[{"time":"2014-12-30","value":748441000},{"time":"2015-12-30","value":802883000},{"time":"2016-12-30","value":899218000},{"time":"2017-12-30","value":993018000},{"time":"2018-12-30","value":1012025000},{"time":"2019-12-30","value":1165889000},{"time":"2020-12-30","value":1379494000},{"time":"2021-12-30","value":1713781000},{"time":"2022-12-30","value":3218000000},{"time":"2023-12-30","value":3408594000}],"ROE":[{"time":"2014-12-30","value":0.010537904791426446},{"time":"2015-12-30","value":0.1000095904384574},{"time":"2016-12-30","value":0.10803498150615312},{"time":"2017-12-30","value":0.08566410679363315},{"time":"2018-12-30","value":0.23789432079247055},{"time":"2019-12-30","value":0.2185971391787726},{"time":"2020-12-30","value":0.21382405432716634},{"time":"2021-12-30","value":0.23872711857582737},{"time":"2022-12-30","value":0.06492231199502797},{"time":"2023-12-30","value":0.053003965858063475}],"ROA":[{"time":"2014-12-30","value":0.01211855687362344},{"time":"2015-12-30","value":0.07892444841188463},{"time":"2016-12-30","value":0.0922871708211437},{"time":"2017-12-30","value":0.12236637296753522},{"time":"2018-12-30","value":0.12628746212204564},{"time":"2019-12-30","value":0.14507095544428927},{"time":"2020-12-30","value":0.13808395391432143},{"time":"2021-12-30","value":0.17286528132495546},{"time":"2022-12-30","value":0.047340740677178896},{"time":"2023-12-30","value":0.05664145765984147}]}

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 four segments: Specialty Chemicals and Engineered Materials (SCEM); Microcontamination Control (MC); The Advanced Planarization Solutions (APS); 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 APS segment offers chemical mechanical planarization solutions; and advanced materials and high-purity wet chemicals, including chemical mechanical planarization slurries, pads, formulated cleans, and other electronic chemicals. 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.

Sector

10-Q
9/30/23
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9/29/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Entegris Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$235.4M	$251.8M	$268.8M	$286.4M	$304.5M	$323M	$342M	$361.4M	$381M	$400.9M	$420.9M	$4.209B
DCF		$219M	$203.3M	$188.3M	$174.1M	$160.6M	$147.9M	$135.8M	$124.6M	$114M	$104M	$1.04B
Value	$2.612B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 19%

Earnings Stability 55%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	7.4%	8.3%	6.3%	16%	16%	16%	18%	6.4%	5.1%	9.3%
ROA	7.9%	9.2%	12%	13%	15%	14%	17%	4.7%	5.7%	7.2%
ROE	10%	11%	8.6%	24%	22%	21%	24%	6.5%	5.3%	9.2%

What is the average Net Margin?

The average Net Margin over the past 5 years is +12.78%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -2.26%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +11.44%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.73%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +17.12%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -3.89%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	14.69	4.88	3.92	4.71	3.52	3.48	4.98	-53.35	27.03	18.05
Debt Equity	0.90	0.77	0.79	0.94	0.81	0.79	0.55	1.89	1.37	1.24
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	65%	59%	59%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 18.05.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.64.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.59.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	17%	18%	24%	7.4%	1.7%
Net Income	9.3%	-5.6%	-15%	-14%	-67%
Stockholders Equity	21%	27%	35%	5.9%	4.4%
FCF	2.8%	-3.1%	-18%	-	-14%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +17.85%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.71%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -5.58%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -66.69%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +27.49%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +4.43%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -3.12%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -13.86%.