ENTEGRIS INC (ENTG) Stock Fundamental Analysis
NASDAQ:ENTG - Nasdaq - US29362U1043 - Common Stock - Currency: USD
Overall ENTG gets a fundamental rating of 5 out of 10. We evaluated ENTG against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While ENTG is still in line with the averages on profitability rating, there are concerns on its financial health. ENTG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ENTG was profitable.
In the past year ENTG had a positive cash flow from operations.
In the past 5 years ENTG has always been profitable.
In the past 5 years ENTG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.68%, ENTG perfoms like the industry average, outperforming 57.27% of the companies in the same industry.
ENTG has a better Return On Equity (8.28%) than 66.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.20%, ENTG is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
ENTG had an Average Return On Invested Capital over the past 3 years of 5.19%. This is significantly below the industry average of 10.57%.
The last Return On Invested Capital (6.20%) for ENTG is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 8.28% | ||
| ROIC | 6.2% |
ROA(3y)2.53%
ROA(5y)6.1%
ROE(3y)6.57%
ROE(5y)13%
ROIC(3y)5.19%
ROIC(5y)9.46%
1.3 Margins
With a decent Profit Margin value of 9.57%, ENTG is doing good in the industry, outperforming 65.45% of the companies in the same industry.
ENTG's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 16.61%, ENTG is doing good in the industry, outperforming 74.55% of the companies in the same industry.
In the last couple of years the Operating Margin of ENTG has grown nicely.
With a Gross Margin value of 45.98%, ENTG perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
In the last couple of years the Gross Margin of ENTG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.61% | ||
| PM (TTM) | 9.57% | ||
| GM | 45.98% |
OM growth 3Y-11.8%
OM growth 5Y1.63%
PM growth 3Y-20.23%
PM growth 5Y-10.83%
GM growth 3Y-0.16%
GM growth 5Y0.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENTG is destroying value.
ENTG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ENTG has more shares outstanding
The debt/assets ratio for ENTG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.54 indicates that ENTG is not a great score, but indicates only limited risk for bankruptcy at the moment.
ENTG has a Altman-Z score of 2.54. This is comparable to the rest of the industry: ENTG outperforms 43.64% of its industry peers.
ENTG has a debt to FCF ratio of 14.94. This is a negative value and a sign of low solvency as ENTG would need 14.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.94, ENTG is in line with its industry, outperforming 45.45% of the companies in the same industry.
A Debt/Equity ratio of 1.07 is on the high side and indicates that ENTG has dependencies on debt financing.
The Debt to Equity ratio of ENTG (1.07) is worse than 87.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 14.94 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.57
WACC10.95%
2.3 Liquidity
ENTG has a Current Ratio of 3.26. This indicates that ENTG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ENTG (3.26) is comparable to the rest of the industry.
ENTG has a Quick Ratio of 1.95. This is a normal value and indicates that ENTG is financially healthy and should not expect problems in meeting its short term obligations.
ENTG has a Quick ratio (1.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.26 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.99% over the past year.
The Earnings Per Share has been growing by 9.11% on average over the past years. This is quite good.
Looking at the last year, ENTG shows a decrease in Revenue. The Revenue has decreased by -3.83% in the last year.
ENTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.29% yearly.
EPS 1Y (TTM)11.99%
EPS 3Y-4.37%
EPS 5Y9.11%
EPS Q2Q%-1.47%
Revenue 1Y (TTM)-3.83%
Revenue growth 3Y12.13%
Revenue growth 5Y15.29%
Sales Q2Q%0.28%
3.2 Future
ENTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.78% yearly.
Based on estimates for the next years, ENTG will show a small growth in Revenue. The Revenue will grow by 5.49% on average per year.
EPS Next Y1%
EPS Next 2Y13.12%
EPS Next 3Y14.78%
EPS Next 5YN/A
Revenue Next Year0.49%
Revenue Next 2Y4.57%
Revenue Next 3Y5.49%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ENTG is valuated quite expensively with a Price/Earnings ratio of 25.20.
67.27% of the companies in the same industry are more expensive than ENTG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. ENTG is around the same levels.
The Price/Forward Earnings ratio is 19.62, which indicates a rather expensive current valuation of ENTG.
Based on the Price/Forward Earnings ratio, ENTG is valued a bit cheaper than 64.55% of the companies in the same industry.
ENTG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.2 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENTG is valued a bit cheaper than 73.64% of the companies in the same industry.
ENTG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ENTG is cheaper than 62.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.57 | ||
| EV/EBITDA | 17.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ENTG has a very decent profitability rating, which may justify a higher PE ratio.
ENTG's earnings are expected to grow with 14.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)25.1
PEG (5Y)2.77
EPS Next 2Y13.12%
EPS Next 3Y14.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, ENTG is not a good candidate for dividend investing.
In the last 3 months the price of ENTG has falen by -23.41%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ENTG's Dividend Yield is a higher than the industry average which is at 2.61.
With a Dividend Yield of 0.56, ENTG pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
On average, the dividend of ENTG grows each year by 6.05%, which is quite nice.
ENTG has been paying a dividend for over 5 years, so it has already some track record.
As ENTG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.05%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
ENTG pays out 19.56% of its income as dividend. This is a sustainable payout ratio.
The dividend of ENTG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.56%
EPS Next 2Y13.12%
EPS Next 3Y14.78%
75.34
-4.28 (-5.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.2%
Inst Owner Change4.46%
Ins Owners0.25%
Ins Owner Change0.76%
Market Cap11.41B
Analysts80
Price Target105.56 (40.11%)
Short Float %7.95%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend0.4
Dividend Growth(5Y)6.05%
DP19.56%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.86%
Min EPS beat(2)-3.94%
Max EPS beat(2)5.65%
EPS beat(4)1
Avg EPS beat(4)-0.78%
Min EPS beat(4)-3.94%
Max EPS beat(4)5.65%
EPS beat(8)5
Avg EPS beat(8)4.9%
EPS beat(12)7
Avg EPS beat(12)3.6%
EPS beat(16)11
Avg EPS beat(16)3.94%
Revenue beat(2)1
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-4.03%
Max Revenue beat(2)1.22%
Revenue beat(4)1
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)1.22%
Revenue beat(8)2
Avg Revenue beat(8)-1.36%
Revenue beat(12)4
Avg Revenue beat(12)-1.15%
Revenue beat(16)6
Avg Revenue beat(16)-0.48%
PT rev (1m)-10.55%
PT rev (3m)-19.18%
EPS NQ rev (1m)-14.65%
EPS NQ rev (3m)-14.65%
EPS NY rev (1m)-9.86%
EPS NY rev (3m)-10.63%
Revenue NQ rev (1m)-9.31%
Revenue NQ rev (3m)-9.31%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-6.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.2 | ||
| Fwd PE | 19.62 | ||
| P/S | 3.52 | ||
| P/FCF | 42.57 | ||
| P/OCF | 18.25 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.13 |
EPS(TTM)2.99
EY3.97%
EPS(NY)3.84
Fwd EY5.1%
FCF(TTM)1.77
FCFY2.35%
OCF(TTM)4.13
OCFY5.48%
SpS21.42
BVpS24.76
TBVpS-8.19
PEG (NY)25.1
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 8.28% | ||
| ROCE | 6.8% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 18.98% | ||
| OM | 16.61% | ||
| PM (TTM) | 9.57% | ||
| GM | 45.98% | ||
| FCFM | 8.26% |
ROA(3y)2.53%
ROA(5y)6.1%
ROE(3y)6.57%
ROE(5y)13%
ROIC(3y)5.19%
ROIC(5y)9.46%
ROICexc(3y)5.47%
ROICexc(5y)11.02%
ROICexgc(3y)17.17%
ROICexgc(5y)25.8%
ROCE(3y)5.69%
ROCE(5y)10.38%
ROICexcg growth 3Y-20.91%
ROICexcg growth 5Y-5.15%
ROICexc growth 3Y-32.38%
ROICexc growth 5Y-11.06%
OM growth 3Y-11.8%
OM growth 5Y1.63%
PM growth 3Y-20.23%
PM growth 5Y-10.83%
GM growth 3Y-0.16%
GM growth 5Y0.5%
F-Score5
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 14.94 | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 94.26% | ||
| Cap/Sales | 11.01% | ||
| Interest Coverage | 2.88 | ||
| Cash Conversion | 68.12% | ||
| Profit Quality | 86.32% | ||
| Current Ratio | 3.26 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z | 2.54 |
F-Score5
WACC10.95%
ROIC/WACC0.57
Cap/Depr(3y)122.77%
Cap/Depr(5y)123.45%
Cap/Sales(3y)12.3%
Cap/Sales(5y)10.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.99%
EPS 3Y-4.37%
EPS 5Y9.11%
EPS Q2Q%-1.47%
EPS Next Y1%
EPS Next 2Y13.12%
EPS Next 3Y14.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.83%
Revenue growth 3Y12.13%
Revenue growth 5Y15.29%
Sales Q2Q%0.28%
Revenue Next Year0.49%
Revenue Next 2Y4.57%
Revenue Next 3Y5.49%
Revenue Next 5YN/A
EBIT growth 1Y21.11%
EBIT growth 3Y-1.1%
EBIT growth 5Y17.17%
EBIT Next Year29.93%
EBIT Next 3Y17.23%
EBIT Next 5YN/A
FCF growth 1Y455.37%
FCF growth 3Y18.52%
FCF growth 5Y3.21%
OCF growth 1Y41.9%
OCF growth 3Y16.41%
OCF growth 5Y10.57%