Avantor (AVTR) AI Stock Analysis

• Market Cap: $5.41B
• Dividend Yield: N/A
• Average Volume (3M): 12.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -3.59%
• EPS Growth: -126.16%
• Country: US
• Employees: 13,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.22
• Shares Outstanding: 682,055,900
• 10 Day Avg. Volume: 10,953,599
• 30 Day Avg. Volume: 12,179,918
• PEG Ratio: 0.08
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 15.70
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 64.81
• 1Y Price Target: $10.36
• Price Target Upside: 30.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.79
• Revenue Forecast (FY): $6.50B

• Rating: 50 Neutral
• Price Target: $8.00 ▲(0.88% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is held back primarily by weakening fundamentals and uncertainty in the most recent financial snapshot, plus conservative 2026 guidance (continued organic revenue declines, margin contraction, and wide free-cash-flow range). Consistently positive cash flow and prior leverage improvement provide the main support, while bearish technicals and a negative P/E further pressure the overall rating.

Positive Factors

Consistent cash generation

Avantor's track record of positive operating and free cash flow, with FCF roughly 80–90% of net income in profitable years, provides durable internal funding for transformation, working capital and debt reduction. Reliable cash generation cushions the business through organic revenue weakness and supports execution of the Revival program without immediate reliance on external financing.

Improved leverage profile

Meaningful deleveraging from 2020–2024 has strengthened Avantor's balance sheet and increased financial flexibility. A lower leverage starting point makes it easier to fund targeted investments, absorb cyclical shocks and pursue further debt reduction toward management's stated sub-3.0x net leverage goal, supporting long-term strategic optionality.

High-margin product segment

The bioscience and medtech products segment delivers structurally higher margins (~26.7%) and represents a meaningful revenue base (~28%). This profitable core can anchor enterprise profitability, help offset lower-margin channel pressures, and provide cash flow to fund e-commerce, operations improvements and selective investments that enhance long-term competitiveness.

Negative Factors

Persistent organic revenue declines

Sustained negative organic growth across 2024–2025 with management guiding further modest declines in 2026 indicates structural demand weakness in parts of Avantor's addressable markets. Continued organic contraction reduces operating leverage, slows recoveries from cost saves and complicates the path to durable revenue stabilization and margin expansion.

Margin contraction and mix headwinds

Management expects continued margin compression driven by adverse mix, pricing actions and necessary Revival investments. Persistent margin pressure erodes free cash flow and reduces the payoff from cost savings, making it harder to rebuild a sustainable profit profile even if top-line stabilizes, and increases reliance on execution to restore past margin levels.

Wide free-cash-flow range and leverage uncertainty

An unusually wide FCF guide combined with a 3.2x leverage position creates lasting uncertainty over cash available for deleveraging, reinvestment or strategic actions. Limited FCF visibility constrains capital allocation choices, slows progress on leverage targets and reduces optionality for M&A or shareholder returns until cash conversion becomes more predictable.

Avantor Business Overview & Revenue Model

Company Description

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. In addition, the company offers services and specialty procurements comprising 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.

How the Company Makes Money

Avantor primarily makes money by selling products and services used throughout the life-sciences and advanced-technology workflows, generating revenue when customers purchase consumables, materials, and related services on a recurring basis. Key revenue streams include: (1) Proprietary and third-party product sales: Avantor sells its own brands as well as distributed products from other manufacturers; revenue is recognized through the sale of consumables and materials used in labs and production settings, many of which are repeat-purchase items (e.g., reagents, chemicals, lab supplies, filtration and fluid-handling components, and single-use products). (2) Materials and production inputs for biopharma manufacturing: The company supplies ingredients and components used in bioprocessing and pharmaceutical manufacturing, supporting customers from early-stage research through commercial-scale production; recurring demand is driven by ongoing manufacturing runs and validation requirements. (3) Services and solutions: Avantor earns revenue from value-added services tied to product fulfillment and customer operations, such as procurement support, inventory management, customized supply-chain programs, and logistics/distribution services, which can be embedded in long-term customer arrangements. (4) Channel and customer mix: Earnings are supported by relationships with biopharma and other regulated-industry customers, where qualification of suppliers and switching costs can contribute to repeat purchasing over time. Specific named partnerships or contract terms are not available: null.

Avantor Financial Statement Overview

Summary

Cash flow has been consistently positive (strong operating and free cash flow across years), and leverage improved through 2024. Offsetting this, revenue trends weakened into 2023–2024 and the latest annual period shows severe deterioration/anomalies (revenue reported at 0 and a large net loss), creating elevated uncertainty around the current run-rate despite cash-flow resilience.

Income Statement

Profitability was solid in 2021–2024, with relatively steady gross margin (~33–35%) and improved earnings versus 2020, but revenue trends weakened (growth turned negative in 2023 and 2024). The latest annual period shows a sharp deterioration with revenue reported at 0 and a large net loss, which makes the most recent profitability picture materially worse and raises data-quality and/or operating-risk concerns.

Balance Sheet

Leverage improved meaningfully from 2020–2024 as debt-to-equity moved down from ~1.83 to ~0.71, while equity remained substantial versus total assets. However, the most recent annual snapshot shows an unusually low debt figure alongside negative return on equity, which clouds comparability and suggests either one-time balance sheet changes or reporting noise; historically, the company has carried moderate leverage that can pressure flexibility if earnings weaken.

Cash Flow

Cash generation has been consistently strong, with positive operating cash flow and free cash flow every year shown. Free cash flow tracked at roughly ~80–90% of net income across profitable years, supporting earnings quality, though free cash flow growth has been uneven (declines in multiple years, including the last two). In the latest annual period, cash flow remained positive despite a net loss, which helps liquidity but also signals a gap between earnings and cash results that warrants monitoring.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.55B	6.78B	6.97B	7.51B	7.39B
Gross Profit	2.14B	2.28B	2.36B	2.60B	2.50B
EBITDA	138.70M	1.48B	1.10B	1.52B	1.35B
Net Income	-530.20M	711.50M	321.10M	686.50M	572.60M
Balance Sheet
Total Assets	11.79B	12.11B	12.97B	13.46B	13.90B
Cash, Cash Equivalents and Short-Term Investments	365.40M	261.90M	262.90M	372.90M	301.70M
Total Debt	3.95B	4.06B	5.54B	6.29B	7.02B
Total Liabilities	6.23B	6.16B	7.72B	8.61B	9.70B
Stockholders Equity	5.57B	5.96B	5.25B	4.86B	4.20B
Cash Flow
Free Cash Flow	495.00M	692.00M	723.60M	710.20M	842.50M
Operating Cash Flow	623.80M	840.80M	870.00M	843.60M	953.60M
Investing Cash Flow	-130.50M	438.90M	-143.70M	-109.60M	-4.12B
Financing Cash Flow	-409.40M	-1.28B	-843.70M	-648.70M	3.22B

Avantor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVTR, the sentiment is Negative. The current price of 7.93 is below the 20-day moving average (MA) of 8.71, below the 50-day MA of 10.40, and below the 200-day MA of 12.14, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 24.15 is Positive, neither overbought nor oversold. The STOCH value of 18.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVTR.

Avantor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	68 Neutral	$7.90B	15.45	8.09%	5.33%	-3.33%	-19.59%
SQM	62 Neutral	$20.18B	33.47	10.92%	―	-10.07%	―
WLK	55 Neutral	$14.33B	-6.32	-15.50%	2.88%	-5.32%	-1108.29%
ALB	54 Neutral	$18.65B	-32.60	-5.13%	1.10%	-23.92%	90.47%
KWR	54 Neutral	$2.05B	-964.31	-0.64%	1.37%	0.08%	-107.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVTR	50 Neutral	$5.41B	-14.65	-9.02%	―	-3.59%	-126.16%

Avantor Corporate Events

Avantor appoints Simon Dingemans to board of directors

On December 17, 2025, Avantor, Inc.’s board of directors elected veteran finance and investment executive Simon Dingemans as a director, effective January 2, 2026, to fill the vacancy created by Jonathan Peacock’s previously announced resignation effective December 31, 2025. Dingemans, a former Chief Financial Officer of GSK and senior leader at The Carlyle Group and Goldman Sachs, has been deemed independent under New York Stock Exchange and U.S. securities law standards and will receive Avantor’s standard non-employee director compensation package, including a prorated cash retainer and restricted stock units scheduled to vest in May 2026, reflecting the company’s continued effort to strengthen its board with experienced global corporate and financial leadership.

The most recent analyst rating on (AVTR) stock is a Sell with a $9.00 price target. To see the full list of analyst forecasts on Avantor stock, see the AVTR Stock Forecast page.