Entegris (ENTG) posted 26.5% earnings growth over the past year, rebounding sharply from a five-year average annual decline of 7.2%. Net profit margins have improved to 9% from 7.1% last year, while revenue growth is currently projected at an annual rate of 6.7%. This trails the broader US market’s 10.3% pace. With earnings forecast to accelerate at 21.7% per year over the next three years, investors now face the question of whether this earnings momentum is strong enough to justify Entegris’s premium valuation multiples in the semiconductor sector.
See our full analysis for Entegris.
Next, we will put these results in context by comparing them with the key narratives investors are tracking. This analysis aims to clarify which themes the latest numbers confirm and which they challenge.
See what the community is saying about Entegris
NasdaqGS:ENTG Earnings & Revenue History as at Oct 2025
Net profit margins reached 9%, up from 7.1% last year, reflecting increased profitability even though revenue growth at 6.7% lags the US market’s 10.3% pace.
Analysts’ consensus view stresses that leadership in advanced materials and new operational efficiencies are supporting margin expansion. However, ongoing cost reduction efforts and facility transitions in Taiwan and Colorado present a risk of prolonging temporary margin pressures.
Consensus narrative notes that higher anticipated facility utilization for the second half and beyond should enable further margin growth. It also warns that operational inefficiencies from ramping new factories could weigh on near-term results if resolved slowly.
Consensus narrative highlights that regional manufacturing expansion in Asia is helping offset some volatility from trade issues, strengthening the company’s margin profile in key growth markets.
What’s striking is how margin gains offer some protection against ongoing volatility, according to analysts’ balanced outlook. 📊 Read the full Entegris Consensus Narrative.
Gross leverage stands at 4.3x with about $4 billion in gross debt, which limits financial flexibility and increases interest costs. Current interest expenses are around $48 million per quarter.
Analysts’ consensus view points out that while leverage is a legacy of past acquisitions, it impacts Entegris’ ability to invest in R&D or to weather a prolonged downturn.
Consensus narrative calls attention to the risk that high debt levels could compress net margins over time, despite current improvements.
Consensus view also notes that elevated leverage heightens sensitivity to rising interest expenses and could constrain growth initiatives if industry softness persists.
Story Continues
Entegris trades at a price-to-earnings ratio of 48.2x, higher than both the peer average of 42.7x and the broader US semiconductor industry’s 37.7x.
Consensus narrative highlights the tension for investors: strong earnings forecasts and margin expansion argue for a premium, but ongoing risks from high debt, customer concentration, and operational inefficiencies raise questions about whether these valuation multiples are sustainable.
Consensus view emphasizes that the current share price of $91.65 places Entegris well above its DCF fair value of $62.41, and still above a normalized analyst target of 100.5, sharpening the debate over future upside versus downside risk.
Consensus narrative adds that for the premium valuation to hold, Entegris must deliver on future revenue and margin improvements. Otherwise, market enthusiasm may wane if execution falters.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Entegris on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
Looking at the figures from another angle? It only takes a few minutes to shape your own view and share your story. 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.
Entegris faces elevated leverage and premium valuations. This makes the company vulnerable to higher interest expenses and limits its flexibility for investment or navigating downturns.
Focus on financial stability by using our solid balance sheet and fundamentals stocks screener (1982 results) to quickly spot companies with stronger balance sheets and lower risk from debt burdens.
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.
Companies discussed in this article include ENTG.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com