Summary
Entegris Inc. (ENTG) is a leading global supplier of advanced materials and process solutions for the semiconductor and other high-technology industries. For the fiscal year ended December 31, 2019, the company reported net sales of $1.59 billion, a slight increase of 3% compared to the previous year, driven largely by recent acquisitions. Despite overall sales growth, the company experienced a decrease in gross profit and margins due to lower factory utilization and an unfavorable sales mix. Entegris operates across three key segments: Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH). The SCEM segment saw a slight decrease in sales, while MC experienced robust growth, and AMH saw a decline. The company continues to invest heavily in R&D to maintain its technological leadership, crucial for developing mission-critical solutions that maximize customer yields and enhance device performance in an increasingly complex semiconductor manufacturing landscape. Strategic acquisitions in 2019, including DSC, MPD Chemicals, and Anow, bolster its engineered materials and filtration capabilities.
Financial Highlights
54 data points| Revenue | $1.59B |
| Cost of Revenue | $879.41M |
| Gross Profit | $711.65M |
| R&D Expenses | $121.14M |
| SG&A Expenses | $284.81M |
| Operating Income | $239.28M |
| Interest Expense | $46.96M |
| Net Income | $254.86M |
| EPS (Basic) | $1.89 |
| EPS (Diluted) | $1.87 |
| Shares Outstanding (Basic) | 135.14M |
| Shares Outstanding (Diluted) | 136.57M |
Key Highlights
- 1Net sales reached $1.59 billion for the fiscal year ended December 31, 2019, representing a 3% increase year-over-year, primarily driven by acquisitions.
- 2The company operates through three distinct segments: Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH), each serving critical aspects of semiconductor manufacturing.
- 3Investment in Engineering, Research & Development (ER&D) remained strong at $121.1 million, representing 7.6% of net sales, underscoring a commitment to innovation and maintaining technological leadership.
- 4Entegris made strategic acquisitions in 2019, including Digital Specialty Chemicals Limited (DSC), MPD Chemicals, and Hangzhou Anow Microfiltration Co., Ltd. (Anow), to expand its product offerings and market reach.
- 5The Microcontamination Control (MC) segment demonstrated significant growth with a 14% increase in net sales, highlighting the importance of its purification and filtration solutions.
- 6The company's financial performance is heavily influenced by the cyclical nature of the semiconductor industry, with sales heavily dependent on customer demand and capital spending.
- 7Significant revenue is derived from key customers, with the top ten customers accounting for 43% of net sales in 2019, indicating a concentration risk.