QS Research · Michael Burry's Scion Capital analyst template · 2006
ENTEGRIS INC (ENTG)
As of 2026-11-08 · 12/15 boxes filled from SEC filings and market data
Conclusion: WATCH
Conviction low · base case none · downside -54% · upside +1%
At today's 28.2x EV/EBITDA (N27) on $797.8M TTM EBITDA (N15), ENTG's EV is $22.46B (N25) and equity $19.56B (N9), essentially today's $127.98 price (N1) - a 0% base case. A 15.0x peer-floor multiple gives $11.97B EV, less $2.90B net debt (N24) = $9.07B equity, -54%; the top peer 28.4x gives $22.66B EV, $19.76B equity, +1%. The market is not missing the record Q3 2026 beat or Q4 2026 guidance; it is already paying top-of-peer multiples for them, so there is no deep-value margin of safety. I would not short because the base case at the company's own multiple is not -30%, and the Capital Markets Day plus deleveraging could support the multiple; watch for a better entry or a failed re-rating.
Key numbers
- Share price: $127.98
- Market cap: $19.56B
- Latest financial period: TTM to Sep 26, 2026
- Revenue (TTM): $3.52B
- EV / EBITDA (TTM): 28.2x
- P/E (TTM): 49.8x
The 15 boxes
- ✓ 1. Long-form business notes
Entegris sells consumable materials and purity/contamination-control hardware into semiconductor fabs, and the FY2020-to-FY2025 record shows a company that nearly doubled revenue to a $3.52B FY2023 peak, then gave back ground to $3.20B in FY2025 while operating income slipped to $455.9M from $533.9M. The portfolio was reshaped between the oldest and newest 10-K: three segments (SCEM, MC, AMH) in FY2020 became two (Materials Solutions, Advanced Purity Solutions) in FY2025, and the EC, PIM and QED businesses inherited with CMC Materials were sold in FY2023-FY2024. Cash generation is the strongest line in the file: operating cash flow of $695.4M against $299.2M of capex in FY2025, with capex already stepped down from the $466.2M FY2022 build. The FY2025 business case rests on unit-driven, high-spec consumables tied to process steps and materials purity, with AI/HBM and the molybdenum transition named as the incremental content-per-wafer drivers.
- ✓ 2. Competitive advantage
The sources support a real but not fortress-like competitive advantage: Entegris has a broad, specified product portfolio with customer switching costs, backed by ER&D, patents and a global manufacturing footprint. But the market is highly competitive, customer concentration is high, and FY2025 operating income ($455.9M) was below FY2021 ($551.8M) despite higher revenue, so the margin record does not show widening pricing power.
- ✓ 3. 10-Q takeaways
Q3 2026 (quarter ended 2026-09-26) was a record quarter: net sales $1,005.7 million, up 24.6% YoY on volume (+$205.8 million) with FX a $7.2 million drag, gross margin 49.7% (+6.2 pts) and GAAP diluted EPS $1.03 versus $0.46, with both segments up double digits and APS up 80% in segment profit. Margin gains came from volume, a useful-life change (about $73.0 million less 2026 depreciation) and tariff refunds, not just price/mix. Q4 2026 guidance is numeric: sales $1,025-1,055 million, GAAP EPS $1.09-1.17, non-GAAP EPS $1.32-1.40, Adjusted EBITDA about 30.7%-31.2% of sales. Cash generation was strong (nine-month operating cash flow $606.0 million) and funded $450.0 million of Term Loan B repayment, but inventories and receivables both built sharply and the 10-Q claims no material change to risk factors.
- ✓ 4. Corporate governance
Filled; members read this box.
- ✓ 5. Overview of the prior 3 years of 8-K filings
Filled; members read this box.
- ✓ 6. Other significant filings
Filled; members read this box.
- ✓ 7. Chronology of significant news and events
Filled; members read this box.
- ✓ 8. Comparables valuation interpretation
Filled; members read this box.
- ✓ 9. Insider trading interpretation
Filled; members read this box.
- ○ 10. Earnings-call notes
- ○ 11. Impression of the shareholder letter
- ○ 12. Scuttlebutt overview
- ✓ 13. Valuation and risk/reward summary
Filled; members read this box.
- ✓ 14. Current price suppression and potential catalysts
Filled; members read this box.
- ✓ 15. Conclusions
The call above.
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