AVTR

AvantorNYSE:AVTR Stock Report

Market Cap

US$25.9b

7D

1.1%

1Y

92.2%

Updated

18 Sep, 2021

Data

Company Financials +
AVTR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance4/6
Financial Health2/6
Dividends0/6

AVTR Overview

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

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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: AVTR's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

AVTR

0.009%

US Life Sciences

-0.6%

US Market


1 Year Return

92.2%

AVTR

53.8%

US Life Sciences

33.8%

US Market

Return vs Industry: AVTR exceeded the US Life Sciences industry which returned 49.4% over the past year.

Return vs Market: AVTR exceeded the US Market which returned 33.6% over the past year.


Shareholder returns

AVTRIndustryMarket
7 Day1.1%0.009%-0.6%
30 Day10.3%4.7%1.6%
90 Day23.4%14.2%4.6%
1 Year92.2%92.2%54.0%53.8%35.8%33.8%
3 Yearn/a118.7%117.7%60.0%50.1%
5 Yearn/a252.1%248.3%123.0%98.7%

Long-Term 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

Avantor Fundamentals Summary

How do Avantor's earnings and revenue compare to its market cap?
AVTR fundamental statistics
Market CapUS$25.90b
Earnings (TTM)US$266.60m
Revenue (TTM)US$7.04b

97.1x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVTR income statement (TTM)
RevenueUS$7.04b
Cost of RevenueUS$4.71b
Gross ProfitUS$2.33b
ExpensesUS$2.06b
EarningsUS$266.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.46
Gross Margin33.06%
Net Profit Margin3.79%
Debt/Equity Ratio186.8%

How did AVTR perform over the long term?

See historical performance and comparison

Valuation

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

97.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVTR ($42.81) is trading above our estimate of fair value ($23.68)

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 (97.1x) compared to the US Life Sciences industry average (51.7x).

PE vs Market: AVTR is poor value based on its PE Ratio (97.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AVTR is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: AVTR is overvalued based on its PB Ratio (13.1x) compared to the US Life Sciences industry average (5.9x).


Future Growth

How is Avantor forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVTR's forecast earnings growth (26.8% per year) is above the savings rate (2%).

Earnings vs Market: AVTR's earnings (26.8% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: AVTR's revenue (5.8% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: AVTR's revenue (5.8% 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 (28.8%)


Past Performance

How has Avantor performed over the past 5 years?

45.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVTR has a large one-off loss of $367.0M impacting its June 30 2021 financial results.

Growing Profit Margin: AVTR's current net profit margins (3.8%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: AVTR has become profitable over the past 5 years, growing earnings by 45.2% per year.

Accelerating Growth: AVTR's earnings growth over the past year (97.3%) exceeds its 5-year average (45.2% per year).

Earnings vs Industry: AVTR earnings growth over the past year (97.3%) exceeded the Life Sciences industry 55.2%.


Return on Equity

High ROE: AVTR's Return on Equity (11.1%) is considered low.


Financial Health

How is Avantor's financial position?


Financial Position Analysis

Short Term Liabilities: AVTR's short term assets ($2.4B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: AVTR's short term assets ($2.4B) do not cover its long term liabilities ($6.9B).


Debt to Equity History and Analysis

Debt Level: AVTR's debt to equity ratio (186.8%) 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 (17.5%).

Interest Coverage: AVTR's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Dividend

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

0.061%

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?

2.9yrs

Average management tenure


CEO

Michael Stubblefield (48 yo)

7.67yrs

Tenure

US$11,257,062

Compensation

Mr. Michael Stubblefield has been President, Chief Executive Officer and Director of Avantor, Inc. since 2014. Mr. Stubblefield has been the Chief Executive Officer of Avantor Performance Materials LLC. si...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD11.26M) is about average for companies of similar size in the US market ($USD11.33M).

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


Leadership Team

Experienced Management: AVTR's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: AVTR's board of directors are not considered experienced ( 1.7 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 been diluted in the past year, with total shares outstanding growing by 4.9%.


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$25.900b
  • Shares outstanding: 605.00m
  • Website: https://www.avantorsciences.com

Number of Employees


Location

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

Listings


Biography

Avantor, Inc. provides products and services to customers in biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Midd...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:12
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.