NEW YORK ( TheStreet) -- Entegris (Nasdaq: ENTG) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • 48.70% is the gross profit margin for ENTEGRIS INC which we consider to be strong. Regardless of ENTG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.50% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. 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.
  • 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.
  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 24.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

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 10.4 and below the S&P 500 P/E ratio of 17.7. Entegris has a market cap of $1.2 billion and is part of the technology sector and electronics industry. Shares are up 15.3% year to date as of the close of trading on Friday.

You can view the full Entegris Ratings Report or get investment ideas from our investment research center.
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