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AVANTOR INC (AVTR) Stock Fundamental Analysis

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

13.345  -0.19 (-1.44%)

Fundamental Rating

5

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. While AVTR belongs to the best of the industry regarding profitability, there are concerns on its financial health. AVTR scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


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.
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.
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

AVTR has a Return On Assets of 5.81%. This is amongst the best in the industry. AVTR outperforms 85.45% of its industry peers.
The Return On Equity of AVTR (11.73%) is better than 85.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.02%, AVTR is in the better half of 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 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

AVTR has a better Profit Margin (10.70%) than 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.
In the last couple of years the Operating Margin of AVTR has grown nicely.
The Gross Margin of AVTR (33.56%) is worse than 67.27% 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

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.
The number of shares outstanding for AVTR has been increased compared to 5 years ago.
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 1.88 indicates that AVTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AVTR (1.88) is comparable to the rest of the industry.
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.
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 Debt to Equity ratio of 0.54. This is in the lower half of the industry: AVTR underperforms 61.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 6.16
Altman-Z 1.88
ROIC/WACC0.51
WACC9.8%
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

A Current Ratio of 1.12 indicates that AVTR should not have too much problems paying its short term obligations.
The Current ratio of AVTR (1.12) is worse than 81.82% of its industry peers.
AVTR has a Quick Ratio of 1.12. This is a bad value and indicates that AVTR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AVTR (0.75) is worse than 85.45% of its industry peers.
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

The Earnings Per Share has been growing slightly by 1.00% over the past year.
AVTR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.82% yearly.
The Revenue has decreased by -2.64% in the past year.
AVTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.35% yearly.
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.
Based on estimates for the next years, AVTR will show a small growth in Revenue. The Revenue will grow by 3.40% on average per year.
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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

AVTR is valuated correctly with a Price/Earnings ratio of 13.21.
Based on the Price/Earnings ratio, AVTR is valued cheaply inside the industry as 98.18% of the companies are valued more expensively.
AVTR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
With a Price/Forward Earnings ratio of 11.50, the valuation of AVTR can be described as very reasonable.
94.55% of the companies in the same industry are more expensive than AVTR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, AVTR is valued a bit cheaper.
Industry RankSector Rank
PE 13.21
Fwd PE 11.5
AVTR Price Earnings VS Forward Price EarningsAVTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVTR indicates a rather cheap valuation: AVTR is cheaper than 89.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AVTR is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.65
EV/EBITDA 12.46
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

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)2.76
PEG (5Y)N/A
EPS Next 2Y7.74%
EPS Next 3Y9.07%

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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 (6/13/2025, 10:34:42 AM)

13.345

-0.19 (-1.44%)

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 Change0.55%
Ins Owners1.11%
Ins Owner Change21.38%
Market Cap9.09B
Analysts72.67
Price Target17.43 (30.61%)
Short Float %4.22%
Short Ratio2.23
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)0.29%
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 RankSector Rank
PE 13.21
Fwd PE 11.5
P/S 1.36
P/FCF 13.65
P/OCF 11.25
P/B 1.49
P/tB N/A
EV/EBITDA 12.46
EPS(TTM)1.01
EY7.57%
EPS(NY)1.16
Fwd EY8.7%
FCF(TTM)0.98
FCFY7.33%
OCF(TTM)1.19
OCFY8.89%
SpS9.81
BVpS8.95
TBVpS-4.17
PEG (NY)2.76
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 1.88
F-Score7
WACC9.8%
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%