ENTG – Market expectations are for Uniform ROA to expand, but management may have concerns about their business model, growth, and margins

• Entegris, Inc. (ENTG:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 32.9x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about the resilience of their business model, sequential growth, and margins in the Advanced Materials Handling (AMH) segment.
  
• Specifically, management may have concerns about the resilience of their business model, the margin mix impact in their SCEM business, and the significance of non-core intellectual property (IP) sales. Also, they may be overstating recent outperformance relative to peers and the potential of their extreme ultraviolet light (EUV) technology. Finally, they may lack confidence in their ability to maintain sequential growth across all regions, meet broad-based guidance, and sustain above-target margin levels in the Advanced Materials Handling (AMH) segment.