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AVTR

Avantor NYSE:AVTR Stock Report

Last Price

US$31.61

Market Cap

US$19.3b

7D

-1.2%

1Y

-10.6%

Updated

04 Jul, 2022

Data

Company Financials +
AVTR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance5/6
Financial Health3/6
Dividends0/6

AVTR Stock 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.

Avantor Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Avantor
Historical stock prices
Current Share PriceUS$31.61
52 Week HighUS$44.37
52 Week LowUS$28.64
Beta1.53
1 Month Change-3.27%
3 Month Change-0.032%
1 Year Change-10.61%
3 Year Change66.63%
5 Year Changen/a
Change since IPO118.00%

Recent News & Updates

Jun 20
Here's Why Avantor (NYSE:AVTR) Can Manage Its Debt Responsibly

Here's Why Avantor (NYSE:AVTR) Can Manage Its Debt Responsibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

May 20

Avantor: Narrowing The Relative Valuation Gap

Avantor’s pricing power has allowed it to outpace the inflationary headwinds. Cash flow remains strong, and thus, the balance sheet deleveraging is on track, allowing for future M&A optionality. The stock trades below peers, but should converge over time as the company unlocks its earnings growth potential.

May 15
I Ran A Stock Scan For Earnings Growth And Avantor (NYSE:AVTR) Passed With Ease

I Ran A Stock Scan For Earnings Growth And Avantor (NYSE:AVTR) Passed With Ease

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

AVTRUS Life SciencesUS Market
7D-1.2%0.08%-2.2%
1Y-10.6%-17.5%-19.1%

Return vs Industry: AVTR exceeded the US Life Sciences industry which returned -17.5% over the past year.

Return vs Market: AVTR exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is AVTR's price volatile compared to industry and market?
AVTR volatility
AVTR Average Weekly Movement5.8%
Life Sciences Industry Average Movement11.4%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: AVTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AVTR's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190413,500Michael Stubblefieldhttps://www.avantorsciences.com

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. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies.

Avantor Fundamentals Summary

How do Avantor's earnings and revenue compare to its market cap?
AVTR fundamental statistics
Market CapUS$19.29b
Earnings (TTM)US$534.40m
Revenue (TTM)US$7.55b

36.1x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVTR income statement (TTM)
RevenueUS$7.55b
Cost of RevenueUS$4.97b
Gross ProfitUS$2.58b
Other ExpensesUS$2.05b
EarningsUS$534.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)0.88
Gross Margin34.17%
Net Profit Margin7.08%
Debt/Equity Ratio155.8%

How did AVTR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AVTR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AVTR?

Other financial metrics that can be useful for relative valuation.

AVTR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.6x
Enterprise Value/EBITDA17.7x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does AVTR's PE Ratio compare to its peers?

AVTR PE Ratio vs Peers
The above table shows the PE ratio for AVTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average30x
WAT Waters
28.8x6.1%US$20.3b
MTD Mettler-Toledo International
33.2x7.9%US$26.4b
WST West Pharmaceutical Services
33.3x9.2%US$22.8b
PKI PerkinElmer
24.5x0.6%US$18.2b
AVTR Avantor
36.1x23.0%US$19.3b

Price-To-Earnings vs Peers: AVTR is expensive based on its Price-To-Earnings Ratio (36.1x) compared to the peer average (30x).


Price to Earnings Ratio vs Industry

How does AVTR's PE Ratio compare vs other companies in the US Life Sciences Industry?

Price-To-Earnings vs Industry: AVTR is expensive based on its Price-To-Earnings Ratio (36.1x) compared to the US Life Sciences industry average (30.3x)


Price to Earnings Ratio vs Fair Ratio

What is AVTR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AVTR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.1x
Fair PE Ratio28.7x

Price-To-Earnings vs Fair Ratio: AVTR is expensive based on its Price-To-Earnings Ratio (36.1x) compared to the estimated Fair Price-To-Earnings Ratio (28.7x).


Share Price vs Fair Value

What is the Fair Price of AVTR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AVTR ($31.61) is trading above our estimate of fair value ($27.06)

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


Price to Earnings Growth Ratio

PEG Ratio: AVTR is poor value based on its PEG Ratio (1.6x)


Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVTR's forecast earnings growth (23% per year) is above the savings rate (1.9%).

Earnings vs Market: AVTR's earnings (23% per year) are forecast to grow faster than the US market (13.6% per year).

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

Revenue vs Market: AVTR's revenue (6.3% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: AVTR's revenue (6.3% 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 (21.9%)


Discover growth companies

Past Performance

How has Avantor performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


83.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AVTR has high quality earnings.

Growing Profit Margin: AVTR's current net profit margins (7.1%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: AVTR has become profitable over the past 5 years, growing earnings by 83.6% per year.

Accelerating Growth: AVTR's earnings growth over the past year (216.2%) exceeds its 5-year average (83.6% per year).

Earnings vs Industry: AVTR earnings growth over the past year (216.2%) exceeded the Life Sciences industry 21%.


Return on Equity

High ROE: AVTR's Return on Equity (13.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Avantor's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AVTR's short term assets ($2.6B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: AVTR's short term assets ($2.6B) do not cover its long term liabilities ($8.0B).


Debt to Equity History and Analysis

Debt Level: AVTR's net debt to equity ratio (149.3%) is considered high.

Reducing Debt: AVTR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: AVTR's debt is not well covered by operating cash flow (14.4%).

Interest Coverage: AVTR's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.042%

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AVTR has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure


CEO

Michael Stubblefield (49 yo)

8.5yrs

Tenure

US$13,260,913

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 ($USD13.26M) is about average for companies of similar size in the US market ($USD13.34M).

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 (3.8 years average tenure).


Board Members

Experienced Board: AVTR's board of directors are not considered experienced ( 2.3 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 4.8%.


Top Shareholders

Company Information

Avantor, Inc.'s 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
  • Implied Market Cap: US$19.293b
  • Shares outstanding: 610.34m
  • Website: https://www.avantorsciences.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.