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Entegris, Inc. (ENTG)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$44.50 - $118.04$68.04
Multi-Stage$30.35 - $33.16$31.73
Blended Fair Value$49.89
Current Price$93.09
Upside-46.41%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.35%0.00%0.400.400.380.290.280.270.260.070.000.00
YoY Growth--0.60%5.08%31.61%0.69%6.60%2.46%300.07%0.00%0.00%0.00%
Dividend Yield--0.45%0.28%0.46%0.23%0.24%0.60%0.73%0.19%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)288.44
(-) Cash Dividends Paid (M)60.81
(=) Cash Retained (M)227.64
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)57.6936.0621.63
Cash Retained (M)227.64227.64227.64
(-) Cash Required (M)-57.69-36.06-21.63
(=) Excess Retained (M)169.95191.58206.00
(/) Shares Outstanding (M)152.05152.05152.05
(=) Excess Retained per Share1.121.261.35
LTM Dividend per Share0.400.400.40
(+) Excess Retained per Share1.121.261.35
(=) Adjusted Dividend1.521.661.75
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$44.50$68.04$118.04
Upside / Downside-52.20%-26.90%26.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)288.44307.19327.16348.42371.07395.19407.05
Payout Ratio21.08%34.86%48.65%62.43%76.22%90.00%92.50%
Projected Dividends (M)60.81107.10159.16217.53282.82355.67376.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)97.2598.1799.09
Year 2 PV (M)131.22133.72136.24
Year 3 PV (M)162.85167.52172.28
Year 4 PV (M)192.24199.64207.24
Year 5 PV (M)219.52230.13241.14
PV of Terminal Value (M)3,810.923,994.994,186.10
Equity Value (M)4,614.004,824.165,042.09
Shares Outstanding (M)152.05152.05152.05
Fair Value$30.35$31.73$33.16
Upside / Downside-67.40%-65.92%-64.38%

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