ENTG

Entegris is a decent semiconductor-materials business, but the trailing numbers describe a company that is treading water, not compounding. FY2025 revenue fell 1.4% to $3.20B and net income dropped 19.5% to $236M, with operating income down 14.6% and diluted EPS down 19.7% to $1.55. The five-year history confirms the stall: revenue peaked at $3.52B in FY2023 and net income ($236M) remains far below the $409M earned in FY2021. Return on equity is just 6.0% and net margin only 7.4% — modest returns for a business the market is pricing as a premium grower.

The balance sheet adds risk to that mediocrity. Long-term debt is $3.70B against $3.95B of equity and only $360M of cash, leaving roughly $3.3B of net debt — a meaningful burden the 10-K itself flags under 'the amount and consequences of the Company's indebtedness... its ability to repay its debt and to obtain future financing.' On the positive side, operating cash flow of $695M (+10.1%) comfortably covers $299M of capex and $61M of dividends, debt fell 7.1% YoY, and equity and retained earnings are both growing — so this is a deleveraging story, not a distress story.