ENTG
ENTG
Semiconductors
★ Quality 7/100Price today
$120.00
what the market pays
Worth
$1.74
calculated cycle value
Price is 6797% above its value
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Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
How many times the cash flow
Semiconductors · vs 20 peers
You pay 44.1x times this business's cash flow; its sector median is 59x.
83% above what Charlie thinks it's worth (7.3x) — you're overpaying, sector or no sector.
Why does Charlie give it 7.3x?
The multiple is how many times its cash flow the business is worth.
An average business of its kind is worth 59x. This one drops from there:
High debt. debt payments drain cash before it reaches you.
External cyclicality. it depends on a cycle (rates, recession) it doesn't control.
That's why it's worth 7.3x, less than the 59x average.
Why Overvalued?
The model estimates an intrinsic value of $1.74 per share. Today's price of $120.00 is 99% above the calculated value — the market is paying a premium over what the model sees as fair.
The price is 6797% above the calculated value. You're paying more than it's worth.
Buying here lowers your expected return and wipes out the safety margin.
The next reasonable entry zone starts at $1.65.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$1.39
-20% off Value
🟡 Discounted
≤$1.65
-5% off Value
🔴 Today
$120.00
-99% Valor
Overvalued
The market prices it too high versus what the business makes. Patience pays off here.
“Time is the friend of the wonderful company, the enemy of the mediocre.”
— Warren Buffett
Model updated · July 2026
The business
Cada chip avanzado nace limpio gracias a los filtros y materiales de Entegris.
Entegris fabrica los materiales ultrapuros, filtros y sistemas de purificación que las fábricas de chips consumen en cada oblea que producen. Vende insumos que se gastan y se reponen, no una máquina que se compra una vez. Facturó $3.2B en 2025 con margen bruto de 44%.
Sus materiales están certificados (calificados) dentro del proceso de cada fábrica; cambiar de proveedor obliga a re-validar líneas enteras, y nadie arriesga eso por ahorrar centavos. La ventaja es real pero no un foso profundo: compite con gigantes químicos con más músculo.
Revenue history
From $2.3B to $3.2B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $3.2B · FY2025
Of every $100 in sales, $93 goes to costs and operations; $7 is left as net profit (7% margin).
Catalysts and risks
Chips más complejos (nodos de 2nm) usan más material por oblea: crece el contenido Entegris por chip.
Nuevas fábricas en EE.UU. y Asia impulsadas por subsidios amplían la base de clientes hacia 2026.
Reducción de la deuda heredada de la compra de CMC libera flujo de caja.
Deuda de $3.7B contra apenas $0.4B en caja: el balance pesa en cada bajón del ciclo.
Restricciones de exportación a China golpean una porción real de sus ventas.
Margen bruto de 44% deja poco colchón si el ciclo de semiconductores se enfría.
Charlie's note
“Pagar unas 8x flujo de caja libre por un negocio que crece cerca del 9% con márgenes decentes no es una locura. Pero esa deuda es el ancla: en un negocio cíclico, apalancarse es como cruzar un río creyendo que mide un metro de profundidad en promedio.”
Analysis · July 2026
So when would be a good price for ENTG?
By our calculation, not yet. We will email you the day it drops to $1.65 — so you do not have to keep checking.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.