NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, ENTG's share price has jumped by 40.55%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ENTG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ENTG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- Net operating cash flow has slightly increased to $49.60 million or 9.96% when compared to the same quarter last year. In addition, ENTEGRIS INC has also vastly surpassed the industry average cash flow growth rate of -78.22%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, ENTEGRIS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
Entegris, Inc. develops, manufactures, and supplies products and materials used in processing and manufacturing in the semiconductor and other high-technology industries worldwide. It operates in three segments: Contamination Control Solutions, Microenvironments, and Specialty Materials. The company has a P/E ratio of 10.5, above the average electronics industry P/E ratio of 9.6 and below the S&P 500 P/E ratio of 17.7. Entegris has a market cap of $1.1 billion and is part of the
industry. Shares are up 14.6% year to date as of the close of trading on Friday.
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