**Moin Juan! Mr. Prompt downs the double espresso and rubs his eyes coldly ☕ ☕
First of all, big respect for this deep performance! The "picks and shovels" phase in the semiconductor sector is exactly the right approach. The AI chips from Nvidia and co. are of absolutely no use if the silicon is destroyed by microscopic impurities during etching.
But before we praise Entegris to the skies, I have to ice-coldly apply the red correction pen to you here: **You've got the quarters completely wrong!** You write "Q3 figures for the quarter ending March 31, 2026". However, Entegris reports according to the normal calendar year. The period up to March 28, 2026 was ice-cold **Q1 2026**, not Q3! But you've got the hard figures right: USD 811.9 million in revenue and USD 92.0 million in net profit.
Let's now put this pearl on the dissecting table exactly according to our **AOK standard**:
### 1. what the joint does (The "cleaning ladies" of the chip industry)
Entegris is the absolute king of contamination control. Today, when TSMC or Intel manufacture on 2- or 3-nanometer structures, a single microscopic speck of dust is enough to destroy the wafer. Entegris supplies the ultra-pure chemicals, specialty gases and filter systems (slurries, pads) that ensure that the yield in the chip factories remains high. It's a real moat business, because no chip manufacturer is going to switch chemical suppliers and risk losing millions due to contaminated wafers just to save a few cents.
### 2. key figures, data & facts (as of spring 2026)
For our hard valuation, I have calculated the multiples based on your market value (~21.1 billion USD) and the current SEC filings (Q1/2026):
* **Price-Earnings Ratio (P/E):** ~80 (based on current TTM earnings). The market is already pricing in massive future growth here.
** **Price-Cashflow Ratio (KCV):** ~35.
** **Price-Sales Ratio (KUV):** ~6.4 (A hefty premium for a supplier).
** **Price-Book Value Ratio (KBV):** ~5.35 (Equity is just under USD 3.95 bn).
** **Dividend Yield:** Tiny ~0.28 % (with an annual dividend of USD 0.40).
### 3rd check against our established formulas
* **Core Quality Formula (sales growth + operating margin):**
* *Sales growth (Q1/2026 YoY):* +5.0 %.
* *Operating margin:* Operating profit of USD 141.6m on USD 811.9m sales corresponds to a strong 17.4%.
* *Score:* 5.0 % + 17.4 % = **22.4 points**.
* *Judgement:* We land ice-cold in the **"Solid" (15-25)** range. A quality compounder that is slowly shaking off the weak phase of 2025.
* **Cashflow Quality Formula:** Operating cash flow was a strong USD 183m in Q1. BUT: With a market capitalization of over USD 21 billion, the free cash flow yield is miles below the desired limit of > 5%.
**Dividend Filter (Income-Core):** With a yield of < 0.3%, this is an absolute flop for Side A. This is not a dividend bunker.
** **Exclusion Rule:** Does not apply here. The margin is well over 5% and sales are growing again. Hard numbers beat the pure story.
### 4. Insights into Future Prospects & Competition
The new CEO Dave Reeder has the helm well in hand. The major growth drivers are clear: the hunger for HBM memory (high bandwidth memory) for AI servers is forcing manufacturers to use increasingly complex stacking processes (advanced packaging), which requires extremely high levels of purity. China continues to be a driver despite US export restrictions, as Entegris is massively ramping up local production there.
*Competition:* Competitors such as *CMC Materials* simply swallowed them up themselves in 2022. The market position is brutally dominant.
### 5. analysis of the last chart months
The chart has had a mixed reaction to the Q1 figures. After an extremely strong run in the last 6 months, the market immediately responded to the small, rather conservative outlook for the next quarter with a setback to just over USD 141. After the parabolic AI rally, the share is now taking a healthy breath at a high level.
### 6 Special Entry Zones (Bargain Hunter's List)
**Zone 1 (The Pullback Buy):** USD 125.00 - USD 130.00 (or the EUR equivalent of the gettex prices). The share has strong historical support here.
* **Zone 2 (the panic dip):** < USD 115.00. If the broad semiconductor sector is collectively sold off again in the summer.
### 7. perspective on future viability & profit margins
Entegris is undoubtedly an absolutely high-quality company. As long as chip structures become smaller and more error-prone, the demand for Entegris solutions will increase exponentially. The margins (gross at almost 47%) prove the immense pricing power.
**My ice-cold conclusion:**
For the stoic Side A (dividends/cashflow) Entegris is absolutely useless. For the speculative Side B (growth), on the other hand, the setup is brilliant: a fundamentally strong shovel seller. But: The price is hot. A P/E ratio of 80 is already a decent house number. Quality has its price, but I'm putting it on my watchlist and waiting for the next macroeconomic dip to strike cold!
Regards,
Raketentoni
First of all, big respect for this deep performance! The "picks and shovels" phase in the semiconductor sector is exactly the right approach. The AI chips from Nvidia and co. are of absolutely no use if the silicon is destroyed by microscopic impurities during etching.
But before we praise Entegris to the skies, I have to ice-coldly apply the red correction pen to you here: **You've got the quarters completely wrong!** You write "Q3 figures for the quarter ending March 31, 2026". However, Entegris reports according to the normal calendar year. The period up to March 28, 2026 was ice-cold **Q1 2026**, not Q3! But you've got the hard figures right: USD 811.9 million in revenue and USD 92.0 million in net profit.
Let's now put this pearl on the dissecting table exactly according to our **AOK standard**:
### 1. what the joint does (The "cleaning ladies" of the chip industry)
Entegris is the absolute king of contamination control. Today, when TSMC or Intel manufacture on 2- or 3-nanometer structures, a single microscopic speck of dust is enough to destroy the wafer. Entegris supplies the ultra-pure chemicals, specialty gases and filter systems (slurries, pads) that ensure that the yield in the chip factories remains high. It's a real moat business, because no chip manufacturer is going to switch chemical suppliers and risk losing millions due to contaminated wafers just to save a few cents.
### 2. key figures, data & facts (as of spring 2026)
For our hard valuation, I have calculated the multiples based on your market value (~21.1 billion USD) and the current SEC filings (Q1/2026):
* **Price-Earnings Ratio (P/E):** ~80 (based on current TTM earnings). The market is already pricing in massive future growth here.
** **Price-Cashflow Ratio (KCV):** ~35.
** **Price-Sales Ratio (KUV):** ~6.4 (A hefty premium for a supplier).
** **Price-Book Value Ratio (KBV):** ~5.35 (Equity is just under USD 3.95 bn).
** **Dividend Yield:** Tiny ~0.28 % (with an annual dividend of USD 0.40).
### 3rd check against our established formulas
* **Core Quality Formula (sales growth + operating margin):**
* *Sales growth (Q1/2026 YoY):* +5.0 %.
* *Operating margin:* Operating profit of USD 141.6m on USD 811.9m sales corresponds to a strong 17.4%.
* *Score:* 5.0 % + 17.4 % = **22.4 points**.
* *Judgement:* We land ice-cold in the **"Solid" (15-25)** range. A quality compounder that is slowly shaking off the weak phase of 2025.
* **Cashflow Quality Formula:** Operating cash flow was a strong USD 183m in Q1. BUT: With a market capitalization of over USD 21 billion, the free cash flow yield is miles below the desired limit of > 5%.
**Dividend Filter (Income-Core):** With a yield of < 0.3%, this is an absolute flop for Side A. This is not a dividend bunker.
** **Exclusion Rule:** Does not apply here. The margin is well over 5% and sales are growing again. Hard numbers beat the pure story.
### 4. Insights into Future Prospects & Competition
The new CEO Dave Reeder has the helm well in hand. The major growth drivers are clear: the hunger for HBM memory (high bandwidth memory) for AI servers is forcing manufacturers to use increasingly complex stacking processes (advanced packaging), which requires extremely high levels of purity. China continues to be a driver despite US export restrictions, as Entegris is massively ramping up local production there.
*Competition:* Competitors such as *CMC Materials* simply swallowed them up themselves in 2022. The market position is brutally dominant.
### 5. analysis of the last chart months
The chart has had a mixed reaction to the Q1 figures. After an extremely strong run in the last 6 months, the market immediately responded to the small, rather conservative outlook for the next quarter with a setback to just over USD 141. After the parabolic AI rally, the share is now taking a healthy breath at a high level.
### 6 Special Entry Zones (Bargain Hunter's List)
**Zone 1 (The Pullback Buy):** USD 125.00 - USD 130.00 (or the EUR equivalent of the gettex prices). The share has strong historical support here.
* **Zone 2 (the panic dip):** < USD 115.00. If the broad semiconductor sector is collectively sold off again in the summer.
### 7. perspective on future viability & profit margins
Entegris is undoubtedly an absolutely high-quality company. As long as chip structures become smaller and more error-prone, the demand for Entegris solutions will increase exponentially. The margins (gross at almost 47%) prove the immense pricing power.
**My ice-cold conclusion:**
For the stoic Side A (dividends/cashflow) Entegris is absolutely useless. For the speculative Side B (growth), on the other hand, the setup is brilliant: a fundamentally strong shovel seller. But: The price is hot. A P/E ratio of 80 is already a decent house number. Quality has its price, but I'm putting it on my watchlist and waiting for the next macroeconomic dip to strike cold!
Regards,
Raketentoni
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@Raketentoni Thank you my dear. So not just something for the sandbox. According to the RSI, it might also be worth opening a position
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