Avantor (AVTR) AI Stock Analysis

• Market Cap: $9.07B
• Dividend Yield: N/A
• Average Volume (3M): 13.49M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.79
• Revenue Growth: -2.34%
• EPS Growth: 89.86%
• Country: US
• Employees: 13,500
• Sector: Healthcare
• Sector Strength: 49
• Industry: Chemicals - Specialty
• EPS (TTM): 0.24
• Shares Outstanding: 681,738,650
• 10 Day Avg. Volume: 8,749,468
• 30 Day Avg. Volume: 13,486,036
• PEG Ratio: 0.17
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 20.71
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 5.85
• Enterprise Value/Ebitda: 9.11
• 1Y Price Target: $14.94
• Price Target Upside: 12.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 64 Neutral
• Price Target: $14.00 ▲(5.26% Upside)

Avantor's overall stock score is primarily influenced by its financial performance and earnings call insights. The company's stable margins and improved leverage are positive, but challenges in revenue growth and cash flow generation are concerning. The earnings call revealed operational challenges and reduced guidance, impacting sentiment. Technical analysis and valuation provide a mixed outlook, with reasonable valuation but bearish technical signals.

Positive Factors

Leadership Change

A new CEO presents an opportunity for positive change and improvement.

Valuation

The valuation of the company is considered inexpensive, attracting investor interest.

Negative Factors

Competitive Pressure

Price pressure on the Lab business has been a significant factor affecting results and guidance.

Financial Performance

Shares ended the day down about 15% due to adjusted EBITDA and full-year outlook cuts.

Growth Expectations

Organic growth guidance has been lowered due to bioprocessing headwinds, impacting growth expectations.

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 multiple key streams, primarily by selling a wide range of laboratory products and supplies, including reagents, consumables, and equipment to customers in the life sciences and advanced technologies sectors. The company also provides specialized services, such as custom manufacturing, supply chain management, and laboratory services, which contribute to its revenue. Avantor has established significant partnerships with leading pharmaceutical and biotechnology companies, enabling it to secure long-term contracts and enhance customer loyalty. Additionally, the company's focus on innovation and expansion into emerging markets further drives its growth and revenue generation.

Avantor Financial Statement Overview

Summary

Avantor demonstrates solid financial health with commendable profitability and efficient cash management. The company's low leverage and effective cost controls position it well, despite revenue contraction and asset management concerns.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.67B	6.78B	6.97B	7.51B	7.39B	6.39B
Gross Profit	2.22B	2.28B	2.36B	2.60B	2.50B	2.08B
EBITDA	1.42B	1.08B	1.13B	1.53B	1.35B	765.30M
Net Income	687.40M	711.50M	321.10M	686.50M	572.60M	116.60M
Balance Sheet
Total Assets	12.78B	12.11B	12.97B	13.46B	13.90B	9.91B
Cash, Cash Equivalents and Short-Term Investments	449.40M	261.90M	262.90M	372.90M	301.70M	286.60M
Total Debt	4.24B	4.06B	5.54B	6.29B	7.02B	4.89B
Total Liabilities	6.49B	6.16B	7.72B	8.61B	9.70B	7.23B
Stockholders Equity	6.29B	5.96B	5.25B	4.86B	4.20B	2.67B
Cash Flow
Free Cash Flow	555.90M	692.00M	723.60M	710.20M	842.50M	868.20M
Operating Cash Flow	681.80M	840.80M	870.00M	843.60M	953.60M	929.80M
Investing Cash Flow	460.50M	438.90M	-143.70M	-109.60M	-4.12B	-59.10M
Financing Cash Flow	-994.40M	-1.28B	-843.70M	-648.70M	3.22B	-782.90M

Avantor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVTR, the sentiment is Positive. The current price of 13.3 is above the 20-day moving average (MA) of 12.48, above the 50-day MA of 13.10, and below the 200-day MA of 16.55, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 49.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVTR.

Avantor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	78 Outperform	$16.10B	23.49	25.42%	1.63%	0.51%	17.21%
AVNT	70 Neutral	$3.45B	29.04	5.09%	2.87%	3.28%	1.69%
EMN	65 Neutral	$7.84B	9.62	14.52%	4.83%	1.60%	-3.97%
SQM	65 Neutral	$12.70B	27.30	9.29%	0.47%	-23.20%	1226.72%
AVTR	64 Neutral	$9.07B	13.21	11.73%	―	-2.34%	89.86%
WLK	54 Neutral	$11.05B	25.36	-0.64%	2.44%	-3.00%	-124.79%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%

Avantor Corporate Events

Avantor Appoints Emmanuel Ligner as CEO and Director

On August 7, 2025, Avantor, Inc. announced the election of Emmanuel Ligner to its Board of Directors, with his term starting on August 18, 2025, and lasting until the 2026 Annual Meeting of Stockholders. Mr. Ligner will also serve as the company’s President and CEO, filling a vacant board seat without additional compensation. His appointment follows a previous report and does not involve any arrangements or material interests requiring disclosure.

Avantor Appoints Emmanuel Ligner as New CEO

On July 21, 2025, Avantor announced the appointment of Emmanuel Ligner as its new President and CEO, effective August 18, 2025. Ligner, with over 30 years of experience in the life sciences industry, succeeds Michael Stubblefield and is expected to drive competitive growth and value in Avantor’s Lab Solutions and Bioscience Production sectors.