Avantor (AVTR) AI Stock Analysis

• Market Cap: $9.25B
• Dividend Yield: N/A
• Average Volume (3M): 11.63M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.64
• 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: 11,875,037
• 30 Day Avg. Volume: 11,629,244
• PEG Ratio: 1.07
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.33
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 8.75
• Enterprise Value/Ebitda: 3.70
• 1Y Price Target: $17.17
• Price Target Upside: 24.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 67 Neutral
• Price Target: $14.50 ▲(5.53%Upside)

Avantor's overall stock score reflects solid financial performance with strong cash management but is tempered by revenue contraction and asset management concerns. Technical indicators and earnings call sentiment suggest caution, while the valuation is moderate.

Positive Factors

CEO Transition

The announced CEO transition may reinvigorate some interest in the stock, with potential for a ‘reset’ to the story.

Foreign Exchange and Interest Expenses

The company maintained its EPS guidance, benefiting from stronger foreign exchange and lower interest expenses, which provides some stability despite other challenges.

Strategic Positioning

AVTR sees a healthy demand environment and aims to drive additional content while benefiting from pipeline progression, indicating a positive outlook for future growth.

Negative Factors

Bioprocess Growth

AVTR's bioprocess growth was disappointing and well below peers, driven by a year-over-year decline in Controlled Enviro Consumables.

Guidance and Tariff Impact

The guidance update does not include the impact of China tariffs, despite potential demand erosion.

Revenue and Organic Growth

Reported revenues were below consensus, reflecting weaker than expected performance in organic growth and sales.

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's financial performance is solid, with commendable profitability and efficient cash management. The company maintains strong margins and low leverage, although revenue contraction and asset utilization need attention.

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	6.69B	6.78B	6.97B	7.51B	7.39B	6.39B
Gross Profit	2.24B	2.28B	2.36B	2.60B	2.50B	2.08B
EBITDA	1.50B	1.08B	1.13B	1.53B	1.35B	765.30M
Net Income	715.60M	711.50M	321.10M	686.50M	572.60M	116.60M
Balance Sheet
Total Assets	12.33B	12.11B	12.97B	13.46B	13.90B	9.91B
Cash, Cash Equivalents and Short-Term Investments	315.70M	261.90M	262.90M	372.90M	301.70M	286.60M
Total Debt	4.11B	4.06B	5.54B	6.29B	7.02B	4.89B
Total Liabilities	6.23B	6.16B	7.72B	8.61B	9.70B	7.23B
Stockholders Equity	6.10B	5.96B	5.25B	4.86B	4.20B	2.67B
Cash Flow
Free Cash Flow	666.40M	692.00M	723.60M	710.20M	842.50M	868.20M
Operating Cash Flow	808.50M	840.80M	870.00M	843.60M	953.60M	929.80M
Investing Cash Flow	444.20M	438.90M	-143.70M	-109.60M	-4.12B	-59.10M
Financing Cash Flow	-1.18B	-1.28B	-843.70M	-648.70M	3.22B	-782.90M

Avantor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.74
• 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 13.74 is above the 20-day moving average (MA) of 13.28, above the 50-day MA of 13.39, and below the 200-day MA of 19.17, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 59.94 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
AVNT	71 Outperform	$3.00B	31.40	4.32%	3.29%	3.58%	-5.17%
EMN	68 Neutral	$8.76B	9.74	16.16%	4.34%	2.78%	1.50%
AVTR	67 Neutral	$9.25B	12.96	12.52%	―	-2.64%	173.69%
SQM	67 Neutral	$9.52B	16.24	12.17%	0.47%	-28.74%	53.25%
RPM	64 Neutral	$14.00B	22.07	25.53%	1.85%	-0.61%	15.06%
WLK	60 Neutral	$9.61B	25.48	3.71%	2.77%	-1.27%	48.34%
Sector *	43 Neutral	AU$1.35B	-6.08	-40.62%	4.25%	-4.78%	-43.21%

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.