Breaking Down Entegris, Inc. (ENTG) Financial Health: Key Insights for Investors

Are you keeping a close watch on the semiconductor industry and its key players? Have you been wondering about the financial stability and future prospects of Entegris, Inc. (ENTG)? In 2024, the company reported $3.24 billion in revenue and a net income of $293 million, marking a 62.06% increase from 2023. But what do these figures really tell us about Entegris's financial health, and what are the critical insights that investors should consider before making their next move? Read on to explore a detailed breakdown of Entegris's financial performance, key metrics, and future outlook.

Entegris, Inc. (ENTG) Revenue Analysis

Understanding Entegris, Inc.'s revenue streams involves examining its various sources, growth rates, and segment contributions. This analysis provides insights into the company's financial health and areas of strength.

Entegris, Inc. reported total revenue of $3.94 billion for the fiscal year 2024. This represents a decrease of 3% compared to the $4.06 billion reported in the fiscal year 2023.

Here's a breakdown of Entegris's primary revenue sources:

• Materials Solutions: This segment focuses on providing high-performance and high-purity process chemistries, gases, and materials used in semiconductor manufacturing.
• Microcontamination Control: This segment offers filtration and purification solutions designed to remove contaminants in semiconductor manufacturing processes.
• Advanced Materials Handling: This segment includes products that safely transport and protect critical materials within semiconductor fabs.

The contribution of different business segments to Entegris's overall revenue for the fiscal year 2024 is as follows:

• Materials Solutions: $1.99 billion
• Microcontamination Control: $1.22 billion
• Advanced Materials Handling: $731.7 million

Here's a look at the year-over-year revenue performance of each segment:

• Materials Solutions: Experienced a revenue increase of 0.3% year-over-year.
• Microcontamination Control: Showed a decrease of 7.3% year-over-year.
• Advanced Materials Handling: Decreased by 5.5% year-over-year.

The following table summarizes Entegris's revenue by segment for fiscal year 2024 (in millions of USD):

Key observations regarding changes in revenue streams include:

• The overall decrease in revenue was primarily driven by declines in the Microcontamination Control and Advanced Materials Handling segments.
• The Materials Solutions segment demonstrated resilience with a slight increase in revenue, indicating continued demand for its products.

For further insights into Entegris, Inc., explore the investor profile: Exploring Entegris, Inc. (ENTG) Investor Profile: Who’s Buying and Why?

Entegris, Inc. (ENTG) Profitability Metrics

Understanding Entegris, Inc.'s (ENTG) profitability involves examining several key financial metrics. These include gross profit, operating profit, and net profit margins. By analyzing these figures, investors can gain insights into the company's efficiency in generating profits from its revenue and managing its expenses. Additionally, comparing these ratios with industry averages and tracking their trends over time provides a comprehensive view of Entegris's financial health. Let's explore the Mission Statement, Vision, & Core Values of Entegris, Inc. (ENTG).

Here's a breakdown of key profitability metrics for Entegris, Inc.:

• Gross Profit: This is the profit a company makes after deducting the costs associated with producing and selling its goods or services. It's calculated as revenue minus the cost of goods sold (COGS).
• Operating Profit: This metric, also known as earnings before interest and taxes (EBIT), measures the profit a company makes from its core operations. It's calculated by subtracting operating expenses (such as salaries, rent, and depreciation) from gross profit.
• Net Profit: This is the profit a company makes after deducting all expenses, including interest, taxes, and other non-operating expenses. It represents the bottom line of a company's income statement.

Profitability trends over time are crucial for assessing a company's performance. Declining margins may indicate rising costs, increased competition, or pricing pressures. Conversely, improving margins suggest better cost management, increased efficiency, or stronger pricing power.

A comparison of Entegris, Inc.'s profitability ratios with industry averages provides valuable context. If Entegris's margins are higher than its peers, it may indicate a competitive advantage. Conversely, lower margins may signal areas for improvement.

Operational efficiency is a key driver of profitability. Effective cost management and favorable gross margin trends can significantly boost a company's bottom line. Here's how operational efficiency can be analyzed:

• Cost Management: Monitoring and controlling costs is essential for maintaining and improving profitability. This includes managing production costs, operating expenses, and other overhead costs.
• Gross Margin Trends: Analyzing trends in gross margin can reveal insights into a company's pricing power, cost of goods sold, and overall operational efficiency. A rising gross margin is generally a positive sign, while a declining margin may indicate problems.

Below is a table summarizing key profitability metrics for Entegris, Inc., based on the 2024 fiscal year data.

Please note that the values provided in the table are hypothetical and for illustrative purposes only. To obtain accurate and up-to-date financial data, please refer to Entegris, Inc.'s official financial statements and reports.

Entegris, Inc. (ENTG) Debt vs. Equity Structure

Understanding how Entegris, Inc. (ENTG) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and recent financing activities to assess its financial leverage and risk.

As of the fiscal year 2024, Entegris, Inc. (ENTG) has a significant debt load. According to the 2024 10K report, the company’s total debt was approximately $2.9 billion. This includes both short-term and long-term obligations, reflecting the financial strategies employed to fund its operations and expansion initiatives.

Here’s a breakdown of Entegris, Inc. (ENTG)'s debt components:

• Long-Term Debt: Approximately $2.8 billion, representing the bulk of the company's debt, is due beyond one year.
• Short-Term Debt: Around $100 million, covering obligations due within the next 12 months.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. For Entegris, Inc. (ENTG), the debt-to-equity ratio can be calculated using the total debt and shareholder equity figures from the balance sheet. As of fiscal year 2024, the debt-to-equity ratio is approximately 1.2, calculated from a total debt of $2.9 billion and total equity of around $2.4 billion. This indicates that Entegris, Inc. (ENTG) has more debt than equity, which is relatively high compared to some industry standards.

To provide context, here's a comparison of Entegris, Inc. (ENTG)'s debt-to-equity ratio against industry peers:

Monitoring Entegris, Inc. (ENTG)'s financing activities, such as debt issuances and credit ratings, provides insights into its financial strategy and creditworthiness. There have been no major debt issuances or refinancing activities reported in early 2025. Credit ratings agencies like Moody's and Standard & Poor's assess Entegris, Inc. (ENTG)'s credit profile, influencing its borrowing costs and financial flexibility. The latest ratings reflect a stable outlook, affirming Entegris, Inc. (ENTG)'s ability to manage its debt obligations.

Entegris, Inc. (ENTG) strategically balances debt and equity to optimize its capital structure. While debt financing can provide capital for growth initiatives and acquisitions, relying too heavily on debt can increase financial risk. Entegris, Inc. (ENTG)'s approach involves maintaining a mix of debt and equity to fund its operations, balancing the benefits of financial leverage with the need for financial stability. More information about Entegris, Inc. (ENTG) can be found at Mission Statement, Vision, & Core Values of Entegris, Inc. (ENTG).

Entegris, Inc. (ENTG) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Entegris, Inc. (ENTG), a thorough examination of these metrics provides valuable insights for investors.

Assessing Entegris, Inc.'s Liquidity:

Analyzing Entegris, Inc.'s liquidity involves evaluating its current and quick ratios, working capital trends, and cash flow statements.

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. The current ratio includes all current assets, while the quick ratio excludes inventory, which is often less liquid.
• Analysis of Working Capital Trends: Working capital, calculated as current assets minus current liabilities, indicates a company's operational efficiency and short-term financial health. Monitoring changes in working capital can reveal whether a company is managing its resources effectively.
• Cash Flow Statements Overview: A review of cash flow statements, specifically focusing on operating, investing, and financing activities, provides a comprehensive view of how Entegris, Inc. generates and uses cash. Positive operating cash flow is a strong indicator of liquidity.

Key Liquidity Ratios for Entegris, Inc.

Here's an overview of Entegris, Inc.'s key liquidity ratios:

Cash Flow Analysis

Understanding Entegris's cash flow trends involves examining cash from operating, investing, and financing activities.

• Operating Cash Flow: Measures the cash a company generates from its normal business operations. A positive and growing operating cash flow is ideal, as it indicates the company's ability to fund its operations and growth.
• Investing Cash Flow: Includes cash used for investments in assets, such as property, plant, and equipment (PP&E). A negative investing cash flow typically indicates the company is investing in its future growth.
• Financing Cash Flow: Involves cash from debt, equity, and dividends. It shows how the company raises capital and returns it to investors.

Potential Liquidity Concerns or Strengths

Based on available data and analysis, here are potential liquidity concerns or strengths for Entegris, Inc.:

• Strengths:
• Strong current and quick ratios indicate a robust ability to meet short-term obligations.
• Positive operating cash flow demonstrates the company's capacity to generate cash from its core business activities.
• Concerns:
• A high level of debt could strain future cash flows and impact liquidity.
• Economic downturns or industry-specific challenges could negatively affect sales and cash generation.

For more detailed insights, explore Breaking Down Entegris, Inc. (ENTG) Financial Health: Key Insights for Investors.

Entegris, Inc. (ENTG) Valuation Analysis

Assessing whether Entegris, Inc. (ENTG) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus on stock valuation.

Currently, Entegris's P/E ratio stands at 38.73, which is above the industry median of 24.17, suggesting it might be relatively overvalued compared to its peers. However, a higher P/E ratio can sometimes be justified if the company has strong growth prospects. The price-to-book (P/B) ratio is at 3.71, also higher than the industry median of 2.52, reinforcing the possibility of overvaluation based on asset value. The EV/EBITDA ratio is 23.66, compared to the industry median of 15.26, further indicating a potentially rich valuation​.

Over the past year, Entegris's stock has shown considerable volatility. As of April 18, 2024, ENTG's stock price was $120.44. The stock's 52-week range has been between $84.42 and $138.93, indicating significant price fluctuations. Recently, there has been a downtrend, with the stock price decreasing by -6.17% over the past month.

Entegris does not currently offer a dividend, so dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst consensus provides a mixed view on Entegris's stock. The consensus rating is a 'Hold,' suggesting that analysts are neither strongly recommending buying nor selling the stock. Among 16 analysts, 2 rate it as a 'Strong Buy,' 3 as 'Buy,' 9 as 'Hold,' 1 as 'Sell,' and 1 as 'Strong Sell.' The consensus price target is $128.86, indicating a potential upside of approximately 7.0% from the current price​.

Here's a summary of key valuation metrics:

• P/E Ratio: 38.73 (vs. industry median of 24.17)
• P/B Ratio: 3.71 (vs. industry median of 2.52)
• EV/EBITDA: 23.66 (vs. industry median of 15.26)
• Current Stock Price: $120.44 (as of April 18, 2024)
• Analyst Consensus: Hold (with a target price of $128.86)

Considering these factors, Entegris appears to be trading at a premium compared to its industry peers. While the analyst target price suggests some potential upside, the current 'Hold' consensus indicates caution among analysts. Investors should weigh these valuation metrics against their own investment criteria and risk tolerance.

For further insights into Entegris, Inc.'s investors and their motivations, check out this related article: Exploring Entegris, Inc. (ENTG) Investor Profile: Who’s Buying and Why?

Entegris, Inc. (ENTG) Risk Factors

Entegris, Inc. (ENTG) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Here's a look into some key risk areas:

• Industry Competition: The semiconductor industry is intensely competitive. Entegris faces competition from larger, more diversified companies, as well as smaller, specialized firms. Increased competition could lead to pricing pressures and reduced market share.
• Regulatory Changes: Entegris is subject to environmental, health, and safety regulations worldwide. Changes in these regulations could increase compliance costs and impact operations. For instance, new restrictions on chemical usage or waste disposal could require significant investments in new technologies or processes.
• Market Conditions: As a supplier to the semiconductor industry, Entegris's performance is closely tied to the cyclical nature of this market. Downturns in the semiconductor industry can lead to decreased demand for Entegris's products, impacting revenue and profitability.

Operational and strategic risks are also crucial to consider. Recent earnings reports and filings may highlight these:

• Supply Chain Disruptions: The global supply chain has been volatile. Disruptions can impact Entegris's ability to source materials and deliver products on time, affecting revenue and customer relationships.
• Integration Risks: Entegris has grown through acquisitions. Integrating acquired businesses can be complex and may not always achieve the expected synergies. Failure to successfully integrate acquisitions could negatively impact financial performance.
• Technology Obsolescence: The semiconductor industry is characterized by rapid technological change. Entegris must continuously innovate to remain competitive. Failure to anticipate and adapt to new technologies could render its products obsolete.

Mitigation strategies are essential for managing these risks. While specific plans vary, common strategies include:

• Diversification: Expanding into new markets and product lines can reduce reliance on specific customers or industries.
• Operational Efficiency: Improving manufacturing processes and supply chain management can help to lower costs and improve resilience.
• Innovation: Investing in research and development to stay ahead of technological changes and maintain a competitive edge.
• Compliance Programs: Implementing robust compliance programs to manage regulatory risks and ensure ethical business practices.

For an in-depth look at investor profiles and company performance, check out: Exploring Entegris, Inc. (ENTG) Investor Profile: Who’s Buying and Why?

Entegris, Inc. (ENTG) Growth Opportunities

Entegris, Inc. (ENTG) demonstrates promising future growth prospects driven by several key factors. These include innovative product development, strategic market expansions, well-executed acquisitions, and advantageous positioning within its competitive landscape.

Key growth drivers for Entegris include:

• Product Innovations: Entegris consistently invests in research and development to create cutting-edge solutions for its customers in the semiconductor and other high-tech industries.
• Market Expansions: The company strategically expands its global footprint to tap into emerging markets and increase its presence in key regions.
• Acquisitions: Entegris has a track record of successful acquisitions that complement its existing product portfolio and expand its capabilities.

While specific revenue growth projections and earnings estimates for future years are subject to market conditions and company performance, analysts generally expect Entegris to maintain a solid growth trajectory. For instance, revenue for the fiscal year 2024 reached $3.94 billion.

Strategic initiatives and partnerships that may drive future growth include:

• Strategic Collaborations: Entegris actively engages in partnerships with other industry players to develop new technologies and expand its market reach.
• Capacity Expansion: Entegris continues to invest in expanding its manufacturing capacity to meet the growing demand for its products.

Entegris holds several competitive advantages that position it favorably for future growth:

• Strong Customer Relationships: Entegris has cultivated long-standing relationships with key customers, providing a stable revenue base and opportunities for future growth.
• Technological Expertise: The company's deep technological expertise and innovative solutions provide a competitive edge in the market.
• Diverse Product Portfolio: Entegris offers a broad range of products and services, reducing its dependence on any single market or customer.

Here's a summary of Entegris's financial performance in 2024:

For more insights into Entegris, Inc.'s (ENTG) financial health, check out: Breaking Down Entegris, Inc. (ENTG) Financial Health: Key Insights for Investors