Entegris Inc (ENTG): A Deep Dive into Financial Metrics and Competitive Strengths
Entegris Inc (NASDAQ:ENTG) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $93.66, Entegris Inc has witnessed a daily gain of 3.18%, marked against a three-month change of -15.01%. A thorough analysis, underlined by the GF Score, suggests that Entegris Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Entegris Inc's GF Score components are as follows:
Financial strength rank: 4/10
Profitability rank: 10/10
Growth rank: 10/10
GF Value rank: 8/10
Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. Despite a slightly lower financial strength rank, GuruFocus assigned Entegris Inc the GF Score of 96 out of 100, which signals the highest outperformance potential.
Understanding Entegris Inc Business
Entegris Inc is a supplier of Advanced materials and process solutions for the semiconductor and other high-technology industries. The company's reportable segments include Specialty Chemicals & Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH). The SCEM segment provides high-performance & high-purity process chemistries, gases, & materials, and safe & efficient delivery systems. The Microcontamination Control (MC) segment includes solutions to purify critical liquid chemistries and process gases used in semiconductor manufacturing processes and other high-technology industries. Its geographical segments are Taiwan, North America, South Korea, Japan, China, Europe, and Southeast.
With a market cap of $14.06 billion and sales of $3.76 billion, Entegris Inc has an operating margin of 9.93%. This is the income breakdown of Entegris Inc:
Profitability Rank Breakdown
The Profitability Rank shows Entegris Inc's impressive standing among its peers in generating profit. Entegris Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Entegris Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 25.3%, which outperforms better than 77.57% of 874 companies in the Semiconductors industry. Moreover, Entegris Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 11.7, and the rate over the past five years is 18. This trend accentuates the company's continued capability to drive growth.
Conclusion
Given the company's financial strength, profitability, and growth metrics, the GF Score highlights Entegris Inc's unparalleled position for potential outperformance. This analysis suggests that Entegris Inc is a promising investment opportunity for those seeking robust growth and profitability.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
