Avantor (AVTR) AI Stock Analysis

• Market Cap: $7.64B
• Dividend Yield: N/A
• Average Volume (3M): 8.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• 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: 681,814,900
• 10 Day Avg. Volume: 11,042,128
• 30 Day Avg. Volume: 8,683,049
• 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: 1.59
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 18.79
• 1Y Price Target: $12.70
• Price Target Upside: 14.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.9
• Revenue Forecast (FY): $6.53B

• Rating: 45 Neutral
• Price Target: $10.50 ▼(-5.41% Downside)

Avantor's overall stock score is primarily impacted by its weak financial performance and valuation. The company's declining revenue and profitability, coupled with a negative P/E ratio, reflect significant challenges. Technical analysis indicates bearish momentum, further weighing on the score. While strategic initiatives and leadership changes offer some hope for improvement, the immediate outlook remains challenging.

Positive Factors

Leadership Enhancement

The appointment of Mary Blenn as COO, with her extensive experience in global operations, is expected to enhance Avantor's operational excellence and customer service, aligning with the company's growth strategy and potentially improving long-term performance.

Debt Management

Successful debt refinancing and the extension of credit facilities improve Avantor's liquidity and financial flexibility, supporting ongoing business operations and reducing financial risk over the long term.

Strategic Initiatives

The Avantor Revival plan aims to enhance operational efficiency and market strategies, potentially leading to improved revenue growth and profitability, which are crucial for long-term business sustainability.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining market share and demand, which could impact Avantor's ability to sustain growth and profitability in the long term.

Profitability Challenges

Negative profit margins reflect operational inefficiencies and cost management issues, which could hinder Avantor's ability to generate sustainable profits and shareholder value over time.

Goodwill Impairment

Significant goodwill impairment suggests overvaluation of past acquisitions and potential issues with asset quality, impacting financial stability and investor confidence in the long term.

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 primarily through the sale of its products and services to customers in the pharmaceutical, biotechnology, and advanced materials industries. Key revenue streams include the sale of essential laboratory supplies, specialty chemicals, and equipment, as well as customized services tailored to meet the specific needs of clients. The company benefits from long-term contracts and relationships with major pharmaceutical and biotechnology firms, which provide a stable revenue base. Additionally, Avantor's focus on innovation and product development, along with strategic partnerships and collaborations with research institutions and industry leaders, further enhances its revenue potential. The company's global footprint and operational efficiency also contribute to its profitability by allowing it to scale operations and reduce costs effectively.

Avantor Financial Statement Overview

Summary

Avantor's financial performance is mixed. The company maintains stable gross profit margins and improved leverage, but faces challenges with declining revenue and free cash flow. The net profit margin has decreased, indicating pressure on profitability.

Income Statement

Avantor's income statement shows a mixed performance. The gross profit margin is stable at around 33%, indicating consistent cost management. However, the net profit margin has slightly decreased to 10.3% in the TTM, reflecting some pressure on profitability. Revenue has declined by 2.9% in the TTM, suggesting challenges in maintaining growth. The EBIT and EBITDA margins are healthy, but the decline in revenue growth is a concern.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.67 in the TTM, indicating better leverage management. Return on equity is reasonable at 11.5%, showing effective use of equity. The equity ratio is stable, suggesting a balanced asset structure. Overall, the balance sheet shows improvement in leverage, but there is room for enhancing equity returns.

Cash Flow

Cash flow analysis reveals some concerns. Free cash flow has decreased by 16.6% in the TTM, indicating potential cash generation issues. The operating cash flow to net income ratio is low at 0.26, suggesting limited cash conversion efficiency. However, the free cash flow to net income ratio remains strong at 81.5%, highlighting decent cash profitability despite growth challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.58B	6.78B	6.97B	7.51B	7.39B	6.39B
Gross Profit	2.18B	2.28B	2.36B	2.60B	2.50B	2.08B
EBITDA	644.60M	1.48B	1.10B	1.52B	1.35B	765.30M
Net Income	-82.20M	711.50M	321.10M	686.50M	572.60M	116.60M
Balance Sheet
Total Assets	11.68B	12.11B	12.97B	13.46B	13.90B	9.91B
Cash, Cash Equivalents and Short-Term Investments	251.90M	261.90M	262.90M	372.90M	301.70M	286.60M
Total Debt	3.86B	4.23B	5.54B	6.29B	7.02B	4.89B
Total Liabilities	6.11B	6.16B	7.72B	8.61B	9.70B	7.23B
Stockholders Equity	5.57B	5.96B	5.25B	4.86B	4.20B	2.67B
Cash Flow
Free Cash Flow	523.60M	692.00M	723.60M	710.20M	842.50M	868.20M
Operating Cash Flow	644.40M	840.80M	870.00M	843.60M	953.60M	929.80M
Investing Cash Flow	467.70M	438.90M	-143.70M	-109.60M	-4.12B	-59.10M
Financing Cash Flow	-1.17B	-1.28B	-843.70M	-648.70M	3.22B	-782.90M

Avantor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.10
• 50DMA: Negative
• 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 Negative. The current price of 11.1 is below the 20-day moving average (MA) of 11.31, below the 50-day MA of 12.33, and below the 200-day MA of 13.36, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 56.27 is Neutral, 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
SQM	71 Outperform	$17.46B	35.18	9.87%	―	-10.07%	―
EMN	67 Neutral	$7.26B	10.61	12.24%	5.21%	-3.33%	-19.59%
ALB	58 Neutral	$15.43B	-84.36	-0.21%	1.20%	-23.92%	90.47%
KWR	58 Neutral	$2.38B	―	-0.64%	1.43%	0.08%	-107.33%
WLK	52 Neutral	$9.41B	―	-9.48%	2.88%	-5.32%	-1108.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVTR	45 Neutral	$7.64B	―	-1.48%	―	-3.59%	-126.16%

Avantor Corporate Events

Avantor Appoints Sanjeev Mehra to Board of Directors

On December 4, 2025, Avantor, Inc. announced the election of Sanjeev Mehra to its Board of Directors, with his term set to expire at the company’s 2026 Annual Meeting of Stockholders. Mr. Mehra brings extensive experience from his roles at Periphas Capital and Goldman Sachs, enhancing Avantor’s strategic direction and governance. His appointment is expected to strengthen Avantor’s board with his expertise in private equity and investment management, potentially impacting the company’s market positioning and stakeholder interests.

Avantor Appoints Mary Blenn as COO

On November 10, 2025, Avantor announced the appointment of Mary Blenn as Executive Vice President and Chief Operating Officer. With over three decades of experience in global operations, manufacturing, and supply chain leadership, Ms. Blenn will lead Avantor’s manufacturing and supply chain operations, aligning them with the company’s growth strategy. Her expertise in transforming complex operations and leading large-scale organizations through periods of rapid growth is expected to enhance Avantor’s operational excellence and customer service.

Avantor Announces Major Credit Agreement Amendment

Avantor Funding, Inc., a subsidiary of Avantor, Inc., announced an amendment to its credit agreement on October 9, 2025, which includes new revolving credit commitments totaling $1.4 billion and additional Euro term loans. The amendment extends maturity dates and aims to refinance existing debt, enhance liquidity, and support ongoing business operations. The agreement includes customary covenants and guarantees by subsidiaries, with security interests in assets.

Avantor Announces Upcoming Leadership Change

Avantor, Inc. announced that Jonathan Peacock will step down as chairman, member of the Board of Directors, and member of the Nominating and Governance Committee on December 31, 2025. This decision was not due to any disagreements with the company. Gregory L. Summe, a current board member, will assume the role of chairman starting January 1, 2026.

Avantor Appoints Gregory Lucier to Board of Directors

Avantor, Inc. announced the election of Gregory Lucier to its Board of Directors, effective October 3, 2025. Lucier, with extensive leadership experience in the medical and life sciences sectors, is expected to bring valuable insights to Avantor. His appointment aligns with Avantor’s strategic focus on enhancing its governance and leadership capabilities. The company confirmed that Lucier meets all necessary independence standards, and he will receive standard compensation for non-employee directors.