NYSE:AVTR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Avantor, Inc. provides products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries worldwide. More Details


Snowflake Analysis

Reasonable growth potential with acceptable track record.


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

4.6%

AVTR

5.2%

US Life Sciences

3.9%

US Market


1 Year Return

60.5%

AVTR

41.7%

US Life Sciences

18.5%

US Market

Return vs Industry: AVTR exceeded the US Life Sciences industry which returned 41.7% over the past year.

Return vs Market: AVTR exceeded the US Market which returned 17.2% over the past year.


Shareholder returns

AVTRIndustryMarket
7 Day4.6%5.2%3.9%
30 Day-0.4%-0.5%-4.3%
90 Day28.3%12.7%8.1%
1 Year60.5%60.5%42.0%41.7%21.2%18.5%
3 Yearn/a89.0%87.8%38.2%29.0%
5 Yearn/a193.1%189.2%84.3%63.4%

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?

95.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVTR ($22.49) is trading above our estimate of fair value ($14.82)

Significantly Below Fair Value: AVTR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AVTR is poor value based on its PE Ratio (95.6x) compared to the US Life Sciences industry average (42x).

PE vs Market: AVTR is poor value based on its PE Ratio (95.6x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: AVTR is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: AVTR is overvalued based on its PB Ratio (8.4x) compared to the US Life Sciences industry average (6.3x).


Next Steps

Future Growth

How is Avantor forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

40.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVTR's forecast earnings growth (40.1% per year) is above the savings rate (2.2%).

Earnings vs Market: AVTR's earnings (40.1% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AVTR's revenue (5.2% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AVTR's revenue (5.2% 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 high in 3 years time (22%)


Next Steps

Past Performance

How has Avantor performed over the past 5 years?

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVTR has high quality earnings.

Growing Profit Margin: AVTR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AVTR has become profitable over the past 5 years, growing earnings by -13.5% per year.

Accelerating Growth: AVTR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AVTR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Life Sciences industry (14.9%).


Return on Equity

High ROE: AVTR's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Avantor's financial position?


Financial Position Analysis

Short Term Liabilities: AVTR's short term assets ($2.3B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: AVTR's short term assets ($2.3B) do not cover its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: AVTR's debt to equity ratio (195.6%) is considered high.

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

Debt Coverage: AVTR's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: AVTR's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.085%

Forecast Dividend Yield


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 recent payouts.

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

2.4yrs

Average management tenure


CEO

Michael Stubblefield (47 yo)

6.67yrs

Tenure

US$16,995,265

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD17.00M) is above average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Stubblefield
President6.67yrsUS$17.00mno data
Thomas Szlosek
Executive VP & CFO1.75yrsUS$3.98m0%
$ 0
Devashish Ohri
Executive Vice President of India6.67yrsUS$3.29m0.026%
$ 3.4m
Steven Eck
Senior VP1.33yrsno data0.0041%
$ 527.8k
Michael Wondrasch
Executive VP & Chief Information Officer2.42yrsno data0.027%
$ 3.5m
Tommy Thomas
Vice President of Investor Relations0.50yrno datano data
Justin Miller
Executive VP2.75yrsno data0.020%
$ 2.6m
Robert Donohoe
Senior Director of Corporate Communicationsno datano datano data
Eric McAllister
Executive VP & Chief Human Resources Officer3.5yrsno data0.034%
$ 4.5m
James Bramwell
Executive Vice President of Strategic Partners2.83yrsno data0.022%
$ 2.9m
Gerald Brophy
Executive Vice President of Biopharma Production2.17yrsUS$3.52m0.034%
$ 4.4m
Christophe Couturier
Executive Vice President of Services2.42yrsno data0.028%
$ 3.7m

2.4yrs

Average Tenure

53yo

Average Age

Experienced Management: AVTR's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Stubblefield
President6.67yrsUS$17.00mno data
Gregory Summe
Independent Director0.33yrno datano data
Rajiv Gupta
Non Executive Chairman10.67yrsUS$443.55k0.45%
$ 58.2m
Matthew Holt
Director10.67yrsno datano data
Rakesh Sachdev
Independent Director1.42yrsUS$269.38kno data
Juan Andres
Independent Director1yrUS$77.15kno data
Jonathan Peacock
Independent Director3.67yrsUS$292.50k0%
$ 0
Michael Severino
Independent Director0.42yrno datano data
Christi Shaw
Independent Director1.83yrsUS$278.13k0%
$ 0
Andre Moura
Director5.67yrsno datano data
Jo Natauri
Director1.83yrsno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: AVTR's board of directors are not considered experienced ( 1.8 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: AVTR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted 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$12.968b
  • Shares outstanding: 576.63m
  • 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. provides products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries worldwide. The company offers mater ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/01 00:48
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
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.