ENTG

Entegris Inc

TMT


Presented:02/04/2020
Price:$55.72
Cap:$7.52B
Current Price:$102.63
Cap:$15.49B

Presented

Date02/04/2020
Price$55.72
Market Cap$7.52B
Ent Value$7.46B
P/E Ratio29.87x
Book Value$8.30
Div Yield0.57%
Shares O/S134.87M
Ave Daily Vol775,328
Short Int4.56%

Current

Price$102.63
Market Cap$15.49B
Entegris, Inc. engages in the development, manufacture, and supply of specialty materials for microelectronics industry. It operates through the following business segments: Specialty Chemicals and Engineered Materials (SCEM); Advanced Materials Handling (AMH); and Microcontamination Control (MC). The SCEM segment provides purity process chemistries, gases, and materials and delivery systems to support semiconductor and other advance manufacturing processes. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a broad set of applications in the semiconductor industry and other high-technology industries. The MC segment offers solutions to purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries. The company was founded in 1966 and is headquartered in Billerica, MA.

Publicly traded companies mentioned herein: Entegris Inc (ENTG), Merck KGaA (MRK GR), Taiwan Semiconductor Manufacturing Company Co Ltd (TSM)

Highlights

The presenter is long shares of Entegris Inc (ENTG), the $7.5B manufacturer of specialty chemicals and advanced materials for semiconductors. He believes ENTG has underappreciated pricing power and can maintain a defensible position in the semiconductor equipment market. Although semiconductor materials/equipment is typically cyclical, the presenter views ENTG as less cyclical than the average semiconductor company since it’s tied to wafer starts. The stock is currently trading ~$56 per share, or ~21x 2021 consensus EPS estimates, and he thinks ENTG can compound EPS at ~15% over the next 3 - 4 years. 

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Idea Discussion

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