Entegris, Inc. (ENTG): A Bull Case Theory

We came crossed a bullish thesis connected Entegris, Inc. connected R. Dennis’s Substack’s Substack by OppCost. In this article, we volition summarize the bulls’ thesis connected ENTG. Entegris, Inc.'s stock was trading astatine $77.14 arsenic of November 28th. ENTG’s trailing and guardant P/E were 40.60 and 23.58 respectively according to Yahoo Finance.

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Entegris, Inc. provides precocious materials and process solutions for the semiconductor and different high-technology industries successful North America and internationally. ENTG has undergone 1 of the astir important transformations successful the semiconductor materials ecosystem implicit the past 5 years. Once a diversified contamination-control supplier, the institution has emerged arsenic a vertically integrated materials subject leader, reshaped by its $5.7B acquisition of CMC Materials successful 2022.

This woody expanded Entegris into the high-growth CMP conception but besides saddled it with >5x leverage, forcing a multi-year displacement toward integration discipline, divestitures, and balance-sheet repair. The consequent 2023–2024 downturn—driven by a terrible wafer-start correction—stress-tested the business, yet Entegris maintained beardown non-GAAP profitability acknowledgment to its highly recurring, unit-driven consumables revenue, which present represents astir 80% of sales.

By Q3 2025, the institution reported $807M successful quarterly gross and grounds operating currency flow, underscoring the benefits of working-capital optimization, beardown consumables request astatine precocious nodes, and aboriginal returns from its 2024 reorganization into Materials Solutions and Advanced Purity Solutions. While GAAP margins stay suppressed by dense amortization from the CMC acquisition, adjusted EBITDA margins person stabilized successful the high-20s, comparable with larger peers similar DuPont and Merck.

Looking forward, Entegris is positioned to payment from an manufacture betterment tied to AI, HPC, and GAA architectures—all of which are progressively materials-intensive. With leverage down to ~3.5x and CapEx set to normalize aft large installation builds, escaped currency travel is poised for meaningful enlargement successful 2026 and beyond. Valuation work—including DCF and owner-earnings analysis—suggests humble undervaluation today, with a multi-year way to compound returns done deleveraging, borderline recovery, and secular contented growth.

Previously we covered a bullish thesis connected ACM Research, Inc. (ACMR) by thexcapitalist successful April 2025, noting China-driven demand, captious wafer-cleaning tools, and a valuation discount tied to geopolitical risk. The banal has appreciated by 81.57% arsenic the thesis partially played out. The thesis inactive stands, and OppCost echoes akin optimism portion contrasting Entegris’s broader standard and secular materials tailwinds.