Avantor (AVTR) AI Stock Analysis

• Market Cap: $7.94B
• Dividend Yield: N/A
• Average Volume (3M): 13.50M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.74
• Revenue Growth: -2.34%
• EPS Growth: 89.86%
• Country: US
• Employees: 13,500
• Sector: Healthcare
• Sector Strength: 37
• Industry: Chemicals - Specialty
• EPS (TTM): 0.24
• Shares Outstanding: 681,738,650
• 10 Day Avg. Volume: 20,005,628
• 30 Day Avg. Volume: 13,502,796
• 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: 1.63
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 5.85
• Enterprise Value/Ebitda: 9.11
• 1Y Price Target: $14.87
• Price Target Upside: 30.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 65 Neutral
• Price Target: $12.00 ▲(5.45% Upside)

Avantor's overall score is driven by solid financials and a strategic leadership change, despite technical weakness and lowered earnings guidance. The company's low P/E ratio and cash flow strength provide valuation support, while operational challenges and a competitive environment weigh on the outlook.

Positive Factors

Leadership Change

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

Market Position

Analyst maintains a Buy rating as AVTR is seen as well positioned for a rebound in Tools markets, and trading at an attractive valuation.

Valuation

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

Negative Factors

Competitive Pressure

Lab Solutions remained weak with the third consecutive quarter of sales declining.

Earnings and Guidance

Avantor delivered a disappointing second-quarter update in an earnings cycle that has largely been better than feared.

Margin Pressure

Focus remains on the potential for lasting margin pressure, especially in the LSS business.

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. 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: Negative
• Last Price: 11.38
• 50DMA: Negative
• 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 Negative. The current price of 11.38 is below the 20-day moving average (MA) of 12.92, below the 50-day MA of 13.22, and below the 200-day MA of 17.27, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 16.55 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
RPM	76 Outperform	$15.40B	22.42	25.42%	1.71%	0.51%	17.21%
AVNT	70 Neutral	$3.13B	26.46	5.09%	3.22%	3.28%	1.69%
SQM	67 Neutral	$10.30B	18.39	12.13%	0.47%	-29.03%	52.74%
AVTR	65 Neutral	$7.94B	11.10	11.73%	―	-2.34%	89.86%
EMN	63 Neutral	$7.05B	8.62	14.52%	5.39%	1.60%	-3.97%
WLK	52 Neutral	$10.65B	25.36	-0.64%	2.56%	-3.00%	-125.16%
Sector *	50 Neutral	AU$2.60B	3.64	-58.14%	2.69%	36.37%	13.78%

Avantor Corporate Events

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.

The most recent analyst rating on (AVTR) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Avantor stock, see the AVTR Stock Forecast page.

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.