← Bottleneck Solvers
BN · rank #20 · 2026-07-27
ENTG
NASDAQ · $19.67B (USD)
SignalSell
verdict · CAUTION
The exact numbers the algorithm saw.
Bottleneck themes
The structural shortage this name supplies into.
Advanced AI chip packaging and memory
| Composite score Z-score blend of the factors below; drives the rank. | -0.15 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +11.8% |
| Forward net margin Consensus forward net margin. | +9.3% |
| Net margin TTM Trailing twelve month net margin. | +8.2% |
| Margin expansion Forward minus trailing net margin (percentage points). | +1.1% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.56 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 5.53× |
| Analyst upside Spread between the consensus 12m target and the current price. | +28.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | +15% |
| Market cap (USD) | $19.67B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
ENTG makes high-purity semiconductor materials and contamination-control solutions that sit in critical process bottlenecks for advanced logic, memory, and packaging.
Rationale
The latest quarter and guidance show stable demand, EPS beats, margin expansion, and strong cash conversion, which reinforce a bottleneck-solver thesis tied to proprietary process know-how and IP.
Material risks
- 1The biggest thesis-breaker is large customers building more materials/contamination-control capability in-house or shifting supply chains, which would weaken ENTG’s specialty bottleneck position.
- 2Roughly $3.65B of long-term debt leaves the story exposed if semiconductor capex softens or margins stall, especially given only moderate forward growth and valuation.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.
OpenAI
Proceed
Claude
Caution
Gemini
Error