Avantor (AVTR) AI Stock Analysis

• Market Cap: $8.74B
• Dividend Yield: N/A
• Average Volume (3M): 10.77M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.63
• Revenue Growth: -2.64%
• EPS Growth: 173.69%
• Country: US
• Employees: 13,500
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 0.23
• Shares Outstanding: 681,429,700
• 10 Day Avg. Volume: 8,973,667
• 30 Day Avg. Volume: 10,773,846
• PEG Ratio: 12.89
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.19
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 5.58
• Enterprise Value/Ebitda: 2.36
• 1Y Price Target: $17.17
• Price Target Upside: 29.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 69 Neutral
• Price Target: $15.00 ▲(12.87%Upside)

Avantor's overall score reflects solid financial management and operational efficiency, tempered by revenue challenges and mixed market signals. The company's strategic initiatives to reduce costs and expand margins show promise, but market pressures and leadership transitions pose risks. Technical indicators suggest cautious investor sentiment, while fair valuation supports stability.

Positive Factors

Financial Performance

Order intake outpaced revenues, providing solid momentum for future financial performance.

Market Position

AVTR is a meaningful supplier in the gene therapy market, with potential to expand further.

Negative Factors

Growth Prospects

Core growth guidance was lowered by 200 basis points, indicating challenges ahead for the company's growth prospects.

Market Sentiment

AVTR shares are trading meaningfully lower due to the general view that the company’s outlook still has some risk.

Product Performance

Bioprocess growth was disappointing, driven by a decline in Controlled Enviro Consumables.

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 generates revenue through the sale of laboratory supplies, chemicals, and equipment, as well as through the provision of services that support scientific research and development. The company's key revenue streams include the production and distribution of high-purity chemicals, biopharma solutions, and laboratory products. Avantor also benefits from strategic partnerships and collaborations with leading research institutions and healthcare organizations, which enhance its market presence and expand its customer base. Additionally, the company leverages its global supply chain and distribution network to efficiently deliver products and services to customers worldwide, contributing to its overall earnings.

Avantor Financial Statement Overview

Summary

Avantor demonstrates solid financial health with commendable profitability and efficient cash management, despite facing revenue contraction. The company's low leverage and effective cost controls position it well for future growth, though attention to asset utilization and revenue recovery is necessary.

Income Statement

Avantor's income statement shows a stable performance in profitability. The TTM Gross Profit Margin is at 33.48%, and the Net Profit Margin is 14.02%, reflecting strong cost management. However, revenue has decreased from $7.51 billion in 2022 to $6.78 billion in 2024, indicating a negative growth rate. The EBIT and EBITDA margins are healthy at 21.47% and 27.58%, respectively, suggesting operational efficiency.

Balance Sheet

The balance sheet highlights a moderate financial position with a Debt-to-Equity Ratio of 0.14, indicating low leverage. Return on Equity stands at 11.73%, which is satisfactory. The Equity Ratio is 49.47%, showing a balanced capital structure. However, a decrease in total assets from $13.86 billion in 2021 to $12.12 billion in 2024 raises some concerns about asset management.

Cash Flow

Avantor exhibits a robust cash flow profile. The Operating Cash Flow to Net Income Ratio is 1.18, and Free Cash Flow to Net Income Ratio is 0.97, both indicating strong cash generation capabilities compared to net earnings. The Free Cash Flow Growth Rate has been steady, supporting the company's liquidity and financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.78B	6.97B	7.51B	7.39B	6.39B
Gross Profit	2.28B	2.36B	2.60B	2.50B	2.08B
EBITDA	1.08B	1.13B	1.53B	1.35B	765.30M
Net Income	711.50M	321.10M	686.50M	572.60M	116.60M
Balance Sheet
Total Assets	12.11B	12.97B	13.46B	13.90B	9.91B
Cash, Cash Equivalents and Short-Term Investments	261.90M	262.90M	372.90M	301.70M	286.60M
Total Debt	4.06B	5.54B	6.29B	7.02B	4.89B
Total Liabilities	6.16B	7.72B	8.61B	9.70B	7.23B
Stockholders Equity	5.96B	5.25B	4.86B	4.20B	2.67B
Cash Flow
Free Cash Flow	692.00M	723.60M	710.20M	842.50M	868.20M
Operating Cash Flow	840.80M	870.00M	843.60M	953.60M	929.80M
Investing Cash Flow	438.90M	-143.70M	-109.60M	-4.12B	-59.10M
Financing Cash Flow	-1.28B	-843.70M	-648.70M	3.22B	-782.90M

Avantor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.29
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVTR, the sentiment is Neutral. The current price of 13.29 is below the 20-day moving average (MA) of 13.50, above the 50-day MA of 13.20, and below the 200-day MA of 18.19, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 15.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVTR.

Avantor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	71 Outperform	$14.20B	22.35	25.53%	1.84%	-0.61%	15.06%
AVNT	69 Neutral	$3.03B	30.65	4.32%	3.26%	3.58%	-5.17%
EMN	69 Neutral	$8.91B	9.82	16.16%	4.28%	2.78%	1.50%
AVTR	69 Neutral	$8.74B	12.27	12.52%	―	-2.64%	173.69%
SQM	68 Neutral	$10.22B	17.24	12.13%	0.47%	-29.03%	52.74%
WLK	63 Neutral	$10.42B	28.05	3.71%	2.58%	-1.27%	48.34%
Sector *	44 Neutral	C$967.00M	-6.65	-13.73%	2.47%	17.55%	-32.57%

Avantor Corporate Events

Avantor Adopts New Executive Severance Policy

On May 12, 2025, Avantor‘s Board of Directors adopted a new severance and change in control policy for its senior leaders, replacing previous agreements. This policy outlines compensation and benefits for executives in the event of termination or company control changes, potentially impacting executive stability and stakeholder confidence. Additionally, on May 9, 2025, Avantor granted special retention awards to certain executives, consisting of restricted stock units, to ensure leadership continuity. At the 2025 Annual Meeting on May 8, stockholders elected ten directors and ratified Deloitte & Touche LLP as the independent auditor, reflecting shareholder support for the company’s governance and financial oversight.

The most recent analyst rating on (AVTR) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Avantor stock, see the AVTR Stock Forecast page.

Avantor Announces Leadership Transition with CEO Departure

On April 24, 2025, Avantor, Inc. announced a leadership transition with Michael Stubblefield stepping down as Director, President, and CEO upon the appointment of his successor. Stubblefield will continue in his role until a successor is appointed or until February 28, 2026, and will serve as a non-executive advisor thereafter to ensure a smooth transition.