Entegris (ENTG): Assessing Valuation After Flat Revenue and Colorado Springs Facility Launch

Entegris (ENTG) recently opened its Colorado Springs Manufacturing Center, marking an important U.S. expansion. This development comes as the company reported flat year-on-year revenue and persistent margin pressures related to the semiconductor industry's slow recovery.

See our latest analysis for Entegris.

Entegris has had a dynamic ride this year, with its share price rebounding 18.5% in the last 90 days despite earlier headwinds from muted semiconductor demand, cautious quarterly guidance, and ongoing margin pressure. Still, long-term momentum has faded. Total shareholder return over the past year was a disappointing -17.1%, and even over five years, gains remain modest.

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Given lingering margin pressures, muted guidance, and recent insider selling, do these challenges mean Entegris is trading at a discount? Or is the market already factoring in future growth expectations and risks?

Most Popular Narrative: 13.8% Undervalued

With analysts setting a consensus fair value of $100.50, roughly 13.8% above Entegris' last close, expectations point to meaningful upside as the sector cycle turns. The narrative brings both optimism and debate about how current growth drivers translate into valuation.

Investments and leadership in advanced materials for next-generation nodes, including CMP slurries, selective etch, and deposition materials, position Entegris to capitalize on upcoming node transitions (e.g., advanced logic, 3D NAND, HBM) and increasing semiconductor complexity. This supports higher ASPs and improved gross margins.

Read the complete narrative.

Curious how just a few key assumptions propel Entegris' valuation higher? The narrative leans on aggressive profit growth, margin gains, and a bold forward-looking multiple that rivals leaders in the field. Ready to see what makes it tick?

Result: Fair Value of $100.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent global trade uncertainties and prolonged softness in semiconductor demand could quickly challenge the upbeat outlook that analysts have mapped for Entegris.

Find out about the key risks to this Entegris narrative.

Another View: A Premium That Demands Conviction

Looking beyond the analyst price target, Entegris trades at a price-to-earnings ratio of 45.5x, notably higher than both the US semiconductor industry average of 35.6x and its peer average of 41.7x. Importantly, this is well above the fair ratio of 32.4x, which signals investors are placing a hefty premium on future potential. Does the possibility of outsized growth truly justify paying up, or does this highlight a real valuation risk?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Entegris Narrative

If the prevailing view isn't your cup of tea or you want to follow your own research threads, you can assemble your own take in just a few minutes with our tools. Do it your way.

A great starting point for your Entegris research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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