AVANTOR INC (AVTR)
US05352A1007 - Common Stock
AVTR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 58 industry peers in the Life Sciences Tools & Services industry. AVTR has a medium profitability rating, but doesn't score so well on its financial health evaluation. AVTR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AVTR was profitable.
AVTR had a positive operating cash flow in the past year.
AVTR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AVTR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.48%, AVTR is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
AVTR has a Return On Equity of 6.11%. This is in the better half of the industry: AVTR outperforms 74.14% of its industry peers.
AVTR has a Return On Invested Capital of 5.93%. This is in the better half of the industry: AVTR outperforms 75.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVTR is below the industry average of 9.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 6.11% | ||
| ROIC | 5.93% |
ROA(3y)3.68%
ROA(5y)1.63%
ROE(3y)10.62%
ROE(5y)4.04%
ROIC(3y)6.66%
ROIC(5y)6.37%
1.3 Margins
Looking at the Profit Margin, with a value of 4.61%, AVTR is in the better half of the industry, outperforming 70.69% of the companies in the same industry.
In the last couple of years the Profit Margin of AVTR has grown nicely.
Looking at the Operating Margin, with a value of 12.30%, AVTR is in the better half of the industry, outperforming 70.69% of the companies in the same industry.
In the last couple of years the Operating Margin of AVTR has grown nicely.
With a Gross Margin value of 33.93%, AVTR is not doing good in the industry: 67.24% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AVTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.3% | ||
| PM (TTM) | 4.61% | ||
| GM | 33.93% |
OM growth 3Y4.11%
OM growth 5Y8.45%
PM growth 3Y78.28%
PM growth 5YN/A
GM growth 3Y1.4%
GM growth 5Y1.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVTR is destroying value.
AVTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVTR has more shares outstanding
AVTR has a better debt/assets ratio than last year.
2.2 Solvency
AVTR has an Altman-Z score of 2.26. This is not the best score and indicates that AVTR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of AVTR (2.26) is comparable to the rest of the industry.
AVTR has a debt to FCF ratio of 7.65. This is a slightly negative value and a sign of low solvency as AVTR would need 7.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.65, AVTR is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
A Debt/Equity ratio of 1.00 is on the high side and indicates that AVTR has dependencies on debt financing.
AVTR's Debt to Equity ratio of 1.00 is on the low side compared to the rest of the industry. AVTR is outperformed by 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.65 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.51
WACC11.55%
2.3 Liquidity
A Current Ratio of 1.61 indicates that AVTR should not have too much problems paying its short term obligations.
AVTR has a Current ratio of 1.61. This is amonst the worse of the industry: AVTR underperforms 82.76% of its industry peers.
AVTR has a Quick Ratio of 1.05. This is a normal value and indicates that AVTR is financially healthy and should not expect problems in meeting its short term obligations.
AVTR has a worse Quick ratio (1.05) than 87.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for AVTR have decreased strongly by -24.11% in the last year.
The Earnings Per Share has been growing slightly by 6.33% on average over the past years.
Looking at the last year, AVTR shows a decrease in Revenue. The Revenue has decreased by -7.26% in the last year.
The Revenue has been growing slightly by 3.51% on average over the past years.
EPS 1Y (TTM)-24.11%
EPS 3Y6.33%
EPS 5YN/A
EPS growth Q2Q-21.88%
Revenue 1Y (TTM)-7.26%
Revenue growth 3Y2.91%
Revenue growth 5Y3.51%
Revenue growth Q2Q-4.02%
3.2 Future
The Earnings Per Share is expected to grow by 12.50% on average over the next years. This is quite good.
Based on estimates for the next years, AVTR will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y-3.88%
EPS Next 2Y8.69%
EPS Next 3Y10.75%
EPS Next 5Y12.5%
Revenue Next Year0.23%
Revenue Next 2Y2.91%
Revenue Next 3Y3.73%
Revenue Next 5Y4.18%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.50 indicates a rather expensive valuation of AVTR.
Based on the Price/Earnings ratio, AVTR is valued cheaper than 93.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.02, AVTR is valued at the same level.
AVTR is valuated rather expensively with a Price/Forward Earnings ratio of 23.41.
AVTR's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVTR is cheaper than 86.21% of the companies in the same industry.
AVTR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 23.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVTR is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AVTR is valued cheaply inside the industry as 94.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.6 | ||
| EV/EBITDA | 17.1 |
4.3 Compensation for Growth
The decent profitability rating of AVTR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.69%
EPS Next 3Y10.75%
5. Dividend
5.1 Amount
AVTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVANTOR INC
NYSE:AVTR (4/29/2024, 7:04:00 PM)
After market: 24.08 0 (0%)24.08
+0.14 (+0.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 23.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 6.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.3% | ||
| PM (TTM) | 4.61% | ||
| GM | 33.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-24.11%
EPS 3Y6.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y-3.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.26%
Revenue growth 3Y2.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y