NYSE:AVTR

Stock Analysis Report

Executive Summary

Avantor, Inc. develops, customizes, manufactures, and supplies products and services to customers in the biopharma, healthcare, education and government, and advanced technologies and applied materials industries.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

7.7%

NYSE:AVTR

1.8%

US Life Sciences

2.1%

US Market


1 Year Return

n/a

NYSE:AVTR

8.8%

US Life Sciences

-0.04%

US Market

No trading data on AVTR.

No trading data on AVTR.


Share holder returns

AVTRIndustryMarket
7 Day7.7%1.8%2.1%
30 Day-3.5%-4.7%-3.2%
90 Day2.8%1.9%2.8%
1 Yearn/a9.0%8.8%2.2%-0.04%
3 Yearn/a73.3%71.9%41.5%32.3%
5 Yearn/a110.6%100.6%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

7.19x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Avantor's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Avantor's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Avantor is loss making, we can't compare its value to the US Life Sciences industry average.

Avantor is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Avantor, we can't assess if its growth is good value.


Price Based on Value of Assets

Avantor is overvalued based on assets compared to the US Life Sciences industry average.


Next Steps

Future Growth

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

79.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Avantor's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).

Avantor's earnings are expected to grow significantly at over 20% yearly.

Avantor's revenue growth is positive but not above the United States of America market average.

Avantor's earnings growth is expected to exceed the United States of America market average.

Avantor's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Avantor is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Avantor performed over the past 5 years?

-46.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Avantor does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Avantor's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Avantor's 1-year growth to the US Life Sciences industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Avantor has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Avantor has efficiently used its assets last year compared to the US Life Sciences industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Avantor improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Avantor's financial position?


Financial Position Analysis

Avantor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Avantor's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Avantor's level of debt (218.2%) compared to net worth is high (greater than 40%).

Unable to establish if Avantor's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.


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.

Whilst loss making Avantor has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Avantor has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -68% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Avantor's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Avantor's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Avantor has not reported any payouts.

Unable to verify if Avantor's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Avantor has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Avantor's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Avantor's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Michael Stubblefield (47yo)

5.6yrs

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

Michael's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Michael to compare compensation growth.


Management Age and Tenure

1.3yrs

Average Tenure

50yo

Average Age

The average tenure for the Avantor management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

52yo

Average Age

The average tenure for the Avantor board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$1,40023 May 19
New Mountain Capital, LLC
EntityCompany
Shares100
Max PriceUS$14.00

Ownership Breakdown


Management Team

  • Tom Szlosek (55yo)

    Executive VP & CFO

    • Tenure: 0.7yrs
    • Compensation: US$7.40m
  • Ger Brophy (53yo)

    Executive Vice President of Biopharma Production

    • Tenure: 1.1yrs
    • Compensation: US$3.52m
  • Eric McAllister (54yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.4yrs
  • Frederic Vanderhaegen (52yo)

    Executive Vice President of Europe

    • Tenure: 0.8yrs
    • Compensation: US$3.10m
  • Michael Stubblefield (47yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$2.72m
  • Bjorn Hofman (49yo)

    Executive VP & COO

    • Tenure: 1.8yrs
    • Compensation: US$2.91m
  • Ashish Kulkarni (49yo)

    Executive VP & CTO

    • Tenure: 3.6yrs
  • Steven Eck (43yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.3yrs
  • Michael Wondrasch (50yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.3yrs
  • Joseph Braun

    Chief Legal Officer

    • Tenure: 0.0yrs

Board Members

  • Raj Gupta (74yo)

    Chairman

    • Tenure: 9.6yrs
    • Compensation: US$547.10k
  • Matt Holt (42yo)

    Director

    • Tenure: 9.6yrs
  • Rakesh Sachdev (63yo)

    Director

    • Tenure: 0.3yrs
  • Tom Connolly (61yo)

    Director

    • Tenure: 1.8yrs
  • Michael Stubblefield (47yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$2.72m
  • Jon Peacock (61yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$839.76k
  • Christi Shaw (52yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$796.98k
  • Andre Moura (37yo)

    Director

    • Tenure: 4.6yrs
  • Jo Natauri (41yo)

    Director

    • Tenure: 0.8yrs

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$10.127b
  • Shares outstanding: 568.95m
  • 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. develops, customizes, manufactures, and supplies products and services to customers in the biopharma, healthcare, education and government, and advanced technologies and applied materials ind ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 00:48
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.