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AVANTOR INC (AVTR) Stock Fundamental Analysis

NYSE:AVTR - New York Stock Exchange, Inc. - US05352A1007 - Common Stock - Currency: USD

12.87  -0.09 (-0.69%)

After market: 12.87 0 (0%)

Fundamental Rating

5

Overall AVTR gets a fundamental rating of 5 out of 10. We evaluated AVTR against 56 industry peers in the Life Sciences Tools & Services industry. AVTR scores excellent on profitability, but there are concerns on its financial health. AVTR may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

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7

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.
In the past 5 years AVTR has always been profitable.
AVTR had a positive operating cash flow in each of the past 5 years.
AVTR Yearly Net Income VS EBIT VS OCF VS FCFAVTR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

The Return On Assets of AVTR (5.81%) is better than 83.93% of its industry peers.
With an excellent Return On Equity value of 11.73%, AVTR belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
AVTR has a better Return On Invested Capital (5.02%) than 66.07% of its industry peers.
AVTR had an Average Return On Invested Capital over the past 3 years of 6.58%. This is significantly below the industry average of 12.86%.
Industry RankSector 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%
AVTR Yearly ROA, ROE, ROICAVTR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30 -40

1.3 Margins

With an excellent Profit Margin value of 10.70%, AVTR belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
In the last couple of years the Profit Margin of AVTR has grown nicely.
AVTR has a better Operating Margin (9.56%) than 64.29% of its industry peers.
AVTR's Operating Margin has improved in the last couple of years.
AVTR has a worse Gross Margin (33.56%) than 67.86% of its industry peers.
AVTR's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
AVTR Yearly Profit, Operating, Gross MarginsAVTR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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3

2. Health

2.1 Basic Checks

AVTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
AVTR Yearly Shares OutstandingAVTR Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
AVTR Yearly Total Debt VS Total AssetsAVTR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 1.84 indicates that AVTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
AVTR has a Altman-Z score (1.84) which is in line with its industry peers.
The Debt to FCF ratio of AVTR is 6.16, which is on the high side as it means it would take AVTR, 6.16 years of fcf income to pay off all of its debts.
AVTR has a Debt to FCF ratio of 6.16. This is in the better half of the industry: AVTR outperforms 60.71% of its industry peers.
AVTR has a Debt/Equity ratio of 0.54. This is a neutral value indicating AVTR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, AVTR is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 6.16
Altman-Z 1.84
ROIC/WACC0.52
WACC9.66%
AVTR Yearly LT Debt VS Equity VS FCFAVTR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

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.
Looking at the Current ratio, with a value of 1.12, AVTR is doing worse than 80.36% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that AVTR may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, AVTR is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 0.75
AVTR Yearly Current Assets VS Current LiabilitesAVTR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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4

3. Growth

3.1 Past

AVTR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.00%.
Measured over the past years, AVTR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.82% on average per year.
AVTR shows a decrease in Revenue. In the last year, the revenue decreased by -2.64%.
The Revenue has been growing slightly by 2.35% on average over the past years.
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

AVTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.29% yearly.
The Revenue is expected to grow by 3.28% on average over the next years.
EPS Next Y7.49%
EPS Next 2Y10.53%
EPS Next 3Y10.8%
EPS Next 5Y10.29%
Revenue Next Year-2.22%
Revenue Next 2Y1.07%
Revenue Next 3Y2.32%
Revenue Next 5Y3.28%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
AVTR Yearly Revenue VS EstimatesAVTR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B
AVTR Yearly EPS VS EstimatesAVTR Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5

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7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.74 indicates a correct valuation of AVTR.
92.86% of the companies in the same industry are more expensive than AVTR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.22. AVTR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.54, the valuation of AVTR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AVTR is valued cheaper than 96.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AVTR to the average of the S&P500 Index (20.86), we can say AVTR is valued slightly cheaper.
Industry RankSector Rank
PE 12.74
Fwd PE 10.54
AVTR Price Earnings VS Forward Price EarningsAVTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AVTR is valued cheaper than 91.07% of the companies in the same industry.
92.86% of the companies in the same industry are more expensive than AVTR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.16
EV/EBITDA 12.02
AVTR Per share dataAVTR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6 8

4.3 Compensation for Growth

AVTR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AVTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.7
PEG (5Y)N/A
EPS Next 2Y10.53%
EPS Next 3Y10.8%

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0

5. Dividend

5.1 Amount

AVTR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AVANTOR INC

NYSE:AVTR (5/2/2025, 8:04:00 PM)

After market: 12.87 0 (0%)

12.87

-0.09 (-0.69%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)04-25 2025-04-25/bmo
Earnings (Next)07-24 2025-07-24/bmo
Inst Owners99.68%
Inst Owner Change0.06%
Ins Owners1.11%
Ins Owner Change6%
Market Cap8.77B
Analysts72
Price Target22.42 (74.2%)
Short Float %5.6%
Short Ratio3.63
Dividend
Industry RankSector 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)0.38%
Min EPS beat(2)-2.17%
Max EPS beat(2)2.94%
EPS beat(4)3
Avg EPS beat(4)1.65%
Min EPS beat(4)-2.17%
Max EPS beat(4)5.29%
EPS beat(8)5
Avg EPS beat(8)1.64%
EPS beat(12)7
Avg EPS beat(12)1.21%
EPS beat(16)11
Avg EPS beat(16)2.93%
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)-8.41%
PT rev (3m)-14.99%
EPS NQ rev (1m)-3.62%
EPS NQ rev (3m)-8.35%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-4.36%
Revenue NQ rev (1m)1.01%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-3.08%
Valuation
Industry RankSector Rank
PE 12.74
Fwd PE 10.54
P/S 1.31
P/FCF 13.16
P/OCF 10.85
P/B 1.44
P/tB N/A
EV/EBITDA 12.02
EPS(TTM)1.01
EY7.85%
EPS(NY)1.22
Fwd EY9.49%
FCF(TTM)0.98
FCFY7.6%
OCF(TTM)1.19
OCFY9.22%
SpS9.81
BVpS8.95
TBVpS-4.17
PEG (NY)1.7
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.84
F-Score7
WACC9.66%
ROIC/WACC0.52
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 Y7.49%
EPS Next 2Y10.53%
EPS Next 3Y10.8%
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-2.22%
Revenue Next 2Y1.07%
Revenue Next 3Y2.32%
Revenue Next 5Y3.28%
EBIT growth 1Y-17.22%
EBIT growth 3Y-9.65%
EBIT growth 5Y4.59%
EBIT Next Year11.99%
EBIT Next 3Y9.42%
EBIT Next 5Y8.23%
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%