AVANTOR INC (AVTR) Stock Fundamental Analysis
NYSE:AVTR - New York Stock Exchange, Inc. - US05352A1007 - Common Stock - Currency: USD
Overall AVTR gets a fundamental rating of 5 out of 10. We evaluated AVTR against 55 industry peers in the Life Sciences Tools & Services industry. AVTR scores excellent on profitability, but there are concerns on its financial health. AVTR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AVTR was profitable.
In the past year AVTR had a positive cash flow from operations.
AVTR had positive earnings in each of the past 5 years.
In the past 5 years AVTR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.81%, AVTR belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.73%, AVTR belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.02%, AVTR is doing good in the industry, outperforming 67.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVTR is significantly below the industry average of 13.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 11.73% | ||
| ROIC | 5.02% |
ROA(3y)4.42%
ROA(5y)3.49%
ROE(3y)10.57%
ROE(5y)9.15%
ROIC(3y)6.58%
ROIC(5y)6.55%
1.3 Margins
AVTR's Profit Margin of 10.70% is amongst the best of the industry. AVTR outperforms 81.82% of its industry peers.
AVTR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.56%, AVTR is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
AVTR's Operating Margin has improved in the last couple of years.
AVTR has a Gross Margin of 33.56%. This is in the lower half of the industry: AVTR underperforms 67.27% of its industry peers.
AVTR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.56% | ||
| PM (TTM) | 10.7% | ||
| GM | 33.56% |
OM growth 3Y-7.05%
OM growth 5Y2.19%
PM growth 3Y15.1%
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y1.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVTR is destroying value.
Compared to 1 year ago, AVTR has more shares outstanding
AVTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AVTR has been reduced compared to a year ago.
2.2 Solvency
AVTR has an Altman-Z score of 1.88. 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.
AVTR's Altman-Z score of 1.88 is in line compared to the rest of the industry. AVTR outperforms 49.09% of its industry peers.
AVTR has a debt to FCF ratio of 6.16. This is a slightly negative value and a sign of low solvency as AVTR would need 6.16 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.16, AVTR is doing good in the industry, outperforming 61.82% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that AVTR is somewhat dependend on debt financing.
AVTR has a worse Debt to Equity ratio (0.54) than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.51
WACC9.81%
2.3 Liquidity
AVTR has a Current Ratio of 1.12. This is a normal value and indicates that AVTR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.12, AVTR is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
A Quick Ratio of 0.75 indicates that AVTR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, AVTR is doing worse than 85.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.00% over the past year.
The earnings per share for AVTR have been decreasing by -10.82% on average. This is quite bad
AVTR shows a decrease in Revenue. In the last year, the revenue decreased by -2.64%.
Measured over the past years, AVTR shows a small growth in Revenue. The Revenue has been growing by 2.35% on average per year.
EPS 1Y (TTM)1%
EPS 3Y-10.82%
EPS 5YN/A
EPS Q2Q%4.55%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y-2.8%
Revenue growth 5Y2.35%
Sales Q2Q%-5.86%
3.2 Future
Based on estimates for the next years, AVTR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.29% on average per year.
AVTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y4.79%
EPS Next 2Y7.74%
EPS Next 3Y9.07%
EPS Next 5Y10.29%
Revenue Next Year-1.9%
Revenue Next 2Y0.73%
Revenue Next 3Y1.99%
Revenue Next 5Y3.4%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.41 indicates a correct valuation of AVTR.
96.36% of the companies in the same industry are more expensive than AVTR, based on the Price/Earnings ratio.
AVTR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.66, the valuation of AVTR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AVTR is valued cheaper than 94.55% of the companies in the same industry.
AVTR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVTR is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVTR indicates a rather cheap valuation: AVTR is cheaper than 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.85 | ||
| EV/EBITDA | 12.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AVTR may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)N/A
EPS Next 2Y7.74%
EPS Next 3Y9.07%
5. Dividend
5.1 Amount
AVTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.54
+0.02 (+0.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.68%
Inst Owner Change0.55%
Ins Owners1.11%
Ins Owner Change21.38%
Market Cap9.23B
Analysts72.67
Price Target17.43 (28.73%)
Short Float %4.22%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.29%
Min EPS beat(2)-2.36%
Max EPS beat(2)2.94%
EPS beat(4)3
Avg EPS beat(4)1.61%
Min EPS beat(4)-2.36%
Max EPS beat(4)5.29%
EPS beat(8)5
Avg EPS beat(8)1.61%
EPS beat(12)7
Avg EPS beat(12)1.19%
EPS beat(16)11
Avg EPS beat(16)2.92%
Revenue beat(2)0
Avg Revenue beat(2)-3.43%
Min Revenue beat(2)-3.57%
Max Revenue beat(2)-3.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.86%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)-1.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.52%
Revenue beat(12)0
Avg Revenue beat(12)-2.57%
Revenue beat(16)1
Avg Revenue beat(16)-1.88%
PT rev (1m)-22.29%
PT rev (3m)-29.85%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)-2.52%
EPS NY rev (3m)-2.97%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.66 | ||
| P/S | 1.38 | ||
| P/FCF | 13.85 | ||
| P/OCF | 11.41 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.45 |
EPS(TTM)1.01
EY7.46%
EPS(NY)1.16
Fwd EY8.57%
FCF(TTM)0.98
FCFY7.22%
OCF(TTM)1.19
OCFY8.76%
SpS9.81
BVpS8.95
TBVpS-4.17
PEG (NY)2.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 11.73% | ||
| ROCE | 6.21% | ||
| ROIC | 5.02% | ||
| ROICexc | 5.18% | ||
| ROICexgc | 49.84% | ||
| OM | 9.56% | ||
| PM (TTM) | 10.7% | ||
| GM | 33.56% | ||
| FCFM | 9.97% |
ROA(3y)4.42%
ROA(5y)3.49%
ROE(3y)10.57%
ROE(5y)9.15%
ROIC(3y)6.58%
ROIC(5y)6.55%
ROICexc(3y)6.76%
ROICexc(5y)6.74%
ROICexgc(3y)52.77%
ROICexgc(5y)49.06%
ROCE(3y)8.14%
ROCE(5y)8.11%
ROICexcg growth 3Y9.06%
ROICexcg growth 5Y15.03%
ROICexc growth 3Y-3.1%
ROICexc growth 5Y1.59%
OM growth 3Y-7.05%
OM growth 5Y2.19%
PM growth 3Y15.1%
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y1.11%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 6.16 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 35.03% | ||
| Cap/Sales | 2.13% | ||
| Interest Coverage | 3.38 | ||
| Cash Conversion | 77.38% | ||
| Profit Quality | 93.12% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.88 |
F-Score7
WACC9.81%
ROIC/WACC0.51
Cap/Depr(3y)35.33%
Cap/Depr(5y)30.17%
Cap/Sales(3y)2.02%
Cap/Sales(5y)1.71%
Profit Quality(3y)143.28%
Profit Quality(5y)453.06%
High Growth Momentum
Growth
EPS 1Y (TTM)1%
EPS 3Y-10.82%
EPS 5YN/A
EPS Q2Q%4.55%
EPS Next Y4.79%
EPS Next 2Y7.74%
EPS Next 3Y9.07%
EPS Next 5Y10.29%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y-2.8%
Revenue growth 5Y2.35%
Sales Q2Q%-5.86%
Revenue Next Year-1.9%
Revenue Next 2Y0.73%
Revenue Next 3Y1.99%
Revenue Next 5Y3.4%
EBIT growth 1Y-17.22%
EBIT growth 3Y-9.65%
EBIT growth 5Y4.59%
EBIT Next Year9.02%
EBIT Next 3Y7.69%
EBIT Next 5Y8.1%
FCF growth 1Y-13.9%
FCF growth 3Y-6.35%
FCF growth 5Y18.01%
OCF growth 1Y-11.24%
OCF growth 3Y-4.11%
OCF growth 5Y18.89%