NYSE:AVTR

Stock Analysis Report

Executive Summary

Avantor, Inc. manufactures, distributes, and sells products and services to customers in the biopharma, healthcare, education and government, and advanced technologies and applied materials industries in the Americas, Europe, Asia, the Middle-East, and Africa.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Avantor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AVTR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.9%

AVTR

10.0%

US Life Sciences

9.4%

US Market


1 Year Return

n/a

AVTR

1.2%

US Life Sciences

-6.8%

US Market

Return vs Industry: Insufficient data to determine how AVTR performed against the US Life Sciences industry.

Return vs Market: Insufficient data to determine how AVTR performed against the US Market.


Shareholder returns

AVTRIndustryMarket
7 Day5.9%10.0%9.4%
30 Day-5.4%3.4%-3.9%
90 Day-28.1%-10.1%-16.5%
1 Yearn/a1.4%1.2%-4.8%-6.8%
3 Yearn/a77.6%76.5%23.4%15.2%
5 Yearn/a100.0%97.3%41.3%25.7%

Price Volatility Vs. Market

How volatile is Avantor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Avantor undervalued compared to its fair value and its price relative to the market?

9.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVTR ($12.96) is trading below our estimate of fair value ($14.11)

Significantly Below Fair Value: AVTR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AVTR is unprofitable, so we can't compare its PE Ratio to the Life Sciences industry average.

PE vs Market: AVTR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AVTR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AVTR is overvalued based on its PB Ratio (5.1x) compared to the US Life Sciences industry average (4.6x).


Next Steps

Future Growth

How is Avantor forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

79.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVTR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AVTR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AVTR's is expected to become profitable in the next 3 years.

Revenue vs Market: AVTR's revenue (3.2% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: AVTR's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVTR's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Avantor performed over the past 5 years?

-35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVTR is currently unprofitable.

Growing Profit Margin: AVTR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AVTR is unprofitable, and losses have increased over the past 5 years at a rate of -35.2% per year.

Accelerating Growth: Unable to compare AVTR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVTR is unprofitable, making it difficult to compare its past year earnings growth to the Life Sciences industry (21.5%).


Return on Equity

High ROE: AVTR has a negative Return on Equity (1.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is Avantor's financial position?


Financial Position Analysis

Short Term Liabilities: AVTR's short term assets ($2.0B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: AVTR's short term assets ($2.0B) do not cover its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: AVTR's debt to equity ratio (205.4%) is considered high.

Reducing Debt: Insufficient data to determine if AVTR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AVTR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AVTR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 37.1% per year.


Next Steps

Dividend

What is Avantor's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AVTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AVTR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AVTR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVTR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Michael Stubblefield (47yo)

6.25s

Tenure

US$2,722,311

Compensation

Mr. Michael Stubblefield has been the Chief Executive Officer of Avantor Performance Materials, Inc. since May 2014. Mr. Stubblefield he been President and Chief Executive Officer of Avantor, Inc. since 20 ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD2.72M) is below average for companies of similar size in the US market ($USD7.52M).

Compensation vs Earnings: Insufficient data to compare Michael's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Stubblefield
President6.25yrsUS$2.72m0.041% $3.1m
Thomas Szlosek
Executive VP & CFO1.33yrsUS$7.40m0.47% $35.4m
Gerald Brophy
Executive Vice President of Biopharma Production1.75yrsUS$3.52m0.19% $14.2m
Frederic Vanderhaegen
Executive Vice President of Europe1.5yrsUS$3.10m0.19% $14.2m
Steven Eck
Senior VP & Chief Accounting Officer0.92yrno datano data
Michael Wondrasch
Executive VP & Chief Information Officer2yrsno datano data
Tommy Thomas
Vice President of Investor Relations0.083yrno datano data
Joseph Braun
Chief Legal Officerno datano datano data
Robert Donohoe
Senior Director of Corporate Communicationsno datano datano data
Eric McAllister
Executive VP & Chief Human Resources Officer3.08yrsno datano data

1.6yrs

Average Tenure

52yo

Average Age

Experienced Management: AVTR's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Stubblefield
President6.25yrsUS$2.72m0.041% $3.1m
Rajiv Gupta
Chairman10.25yrsUS$547.10k0.27% $20.0m
Matthew Holt
Director10.25yrsno datano data
Rakesh Sachdev
Director1yrno datano data
Thomas Connolly
Director2.42yrsno datano data
Juan Andres
Independent Director0.58yrno datano data
Jonathan Peacock
Director3.25yrsUS$839.76k0.028% $2.1m
Christi Shaw
Director1.42yrsUS$796.98k0.047% $3.5m
Andre Moura
Director5.25yrsno datano data
Jo Natauri
Director1.42yrsno datano data

2.4yrs

Average Tenure

53yo

Average Age

Experienced Board: AVTR's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: AVTR only recently listed within the past 12 months, with total shares outstanding growing by 202.3% in the past year..


Top Shareholders

Company Information

Avantor, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avantor, Inc.
  • Ticker: AVTR
  • Exchange: NYSE
  • Founded: 1904
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$7.499b
  • Shares outstanding: 572.91m
  • Website: https://www.avantorsciences.com

Number of Employees


Location

  • Avantor, Inc.
  • Radnor Corporate Center
  • Building One
  • Radnor
  • Pennsylvania
  • 19087
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVTRNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2019
AVTRXNYS (New York Stock Exchange, Inc. Floor)YesCommon StockUSUSDMay 2019
AVGBST (Boerse-Stuttgart)YesCommon StockDEEURMay 2019
AVTR.PRANYSE (New York Stock Exchange)6.25 PFD CNV SRUSUSDMay 2019
AVGDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2019
AVTRWBAG (Wiener Boerse AG)YesCommon StockATEURMay 2019

Biography

Avantor, Inc. manufactures, distributes, and sells products and services to customers in the biopharma, healthcare, education and government, and advanced technologies and applied materials industries in the Americas, Europe, Asia, the Middle-East, and Africa. The company’s materials and consumables include ultra-high purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, and process chromatography resins and columns, as well as analytical sample prep, education, and microbiology and clinical trial kits. Its equipment and instrumentation products comprise filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and environment supplies. The company also provides onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Avantor, Inc. was founded in 1904 and is headquartered in Radnor, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 03:36
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.