Avantium N.V. (AVTX) AI Stock Analysis

• Market Cap: €153.70M
• Dividend Yield: N/A
• Average Volume (3M): 515.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -12.31%
• EPS Growth: 23.77%
• Country: NL
• Employees: 284
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.71
• Shares Outstanding: 25,196,718
• 10 Day Avg. Volume: 262,999
• 30 Day Avg. Volume: 515,059
• PEG Ratio: 1.01
• Price to Book (P/B): 14.33
• Price to Sales (P/S): 65.32
• P/FCF Ratio: -13.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €14.46
• Price Target Upside: 120.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €7.00 ▲(6.87% Upside)

Avantium N.V.'s overall stock score is primarily impacted by its weak financial performance, characterized by profitability and cash flow challenges. The technical analysis suggests a bearish trend, with the stock trading below key moving averages and nearing overbought conditions. The negative P/E ratio further highlights valuation concerns. These factors collectively result in a low overall stock score.

Positive Factors

Sustainable Product Offering

Avantium's focus on sustainable chemical solutions positions it well in the growing renewable sector, offering long-term market opportunities.

Strategic Partnerships

Partnerships with major industry players enhance market presence and drive sales, supporting long-term growth and innovation.

Revenue Growth

Steady revenue growth indicates expanding market reach and product adoption, crucial for long-term business sustainability.

Negative Factors

Profitability Challenges

Persistent profitability issues suggest operational inefficiencies, which could hinder long-term financial health and growth potential.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Management

Negative cash flow trends indicate potential liquidity issues, which could constrain operational capabilities and strategic initiatives.

Avantium N.V. Business Overview & Revenue Model

Company Description

Avantium N.V., a chemical technology company, develops and commercializes renewable chemistry solutions in the Netherlands. The company operates through three segments: Avantium Catalysis, Avantium Renewable Chemistries, and Avantium Renewable Polymers. It offers furandicarboxylic acid, a building block for polyethylene furanoate (PEF); and PEF, a plant-based recyclable plastic for use as packaging material. The company also provides catalyst testing systems, including Flowrence that provides catalyst testing and adsorbents. In addition, the company R&D system, services, and refinery catalyst testing services. Further, it develops ray technology to produce mono-ethylene glycol from industrial sugars; and dawn technology which converts non-food plant-based feedstock to industrial sugars and lignin. Additionally, the company produces polyesters using plantMEG. Avantium N.V. was founded in 2000 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

Avantium generates revenue through several key streams, primarily through licensing its proprietary technology and processes to industrial partners for the production of sustainable materials and chemicals. The company also earns income from the sale of its own biobased products, notably PEF, as it moves towards commercialization. Additionally, Avantium engages in collaborative research and development projects with large chemical companies, which often include funding agreements and shared revenue models. Strategic partnerships with major players in the chemical and packaging industries also play a significant role in enhancing its market presence and driving sales growth.

Avantium N.V. Financial Statement Overview

Summary

Avantium N.V. demonstrates revenue growth but struggles with profitability and cash flow management. The balance sheet reflects high leverage and decreasing equity ratios, posing financial stability concerns. The company faces challenges in achieving operational efficiency and managing cash flows effectively, which are critical for improving financial health.

Income Statement

Avantium N.V. shows consistent revenue growth with a 6.8% increase from 2023 to 2024. However, the company faces significant profitability challenges, with negative gross profit margins and net profit margins over the years. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and high costs relative to revenue.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.56 in 2024, indicating a leveraged position. The equity ratio has decreased to 33.2%, reflecting increased liabilities. Despite these challenges, the company maintains a stable asset base.

Cash Flow

Cash flow analysis reveals negative free cash flow trends, with a decrease of 4.8% from 2023 to 2024. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. Additionally, the company's reliance on financing for liquidity is evident with substantial financing cash inflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.76M	21.04M	19.70M	17.83M	10.92M	9.86M
Gross Profit	-32.32M	-30.57M	-25.30M	-24.55M	-25.37M	-25.99M
EBITDA	-33.07M	-24.52M	-25.78M	-19.59M	-16.09M	-14.91M
Net Income	-23.89M	-26.87M	-31.40M	-28.13M	-24.42M	-22.83M
Balance Sheet
Total Assets	299.54M	288.63M	228.49M	163.58M	77.67M	69.98M
Cash, Cash Equivalents and Short-Term Investments	12.04M	23.90M	35.22M	64.87M	34.91M	26.63M
Total Debt	153.33M	151.59M	108.82M	24.59M	10.70M	9.71M
Total Liabilities	215.84M	190.84M	174.62M	70.56M	27.65M	23.75M
Stockholders Equity	84.55M	95.85M	46.17M	82.58M	50.03M	46.24M
Cash Flow
Free Cash Flow	-70.54M	-103.39M	-108.14M	-45.12M	-16.54M	-16.87M
Operating Cash Flow	-32.04M	-45.06M	-18.82M	-11.17M	-12.61M	-13.42M
Investing Cash Flow	-38.62M	-58.63M	-89.77M	-33.95M	-3.93M	-3.45M
Financing Cash Flow	44.48M	83.36M	78.94M	75.08M	24.83M	-1.95M

Avantium N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.55
• 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 NL:AVTX, the sentiment is Negative. The current price of 6.55 is below the 20-day moving average (MA) of 6.56, below the 50-day MA of 6.64, and below the 200-day MA of 8.13, indicating a bearish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 26.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:AVTX.

Avantium N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRBN	71 Outperform	€1.02B	15.04	8.84%	3.51%	-3.45%	-5.55%
HOLCO	66 Neutral	€78.72M	17.38	7.57%	7.65%	4.14%	-29.16%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IMCD	61 Neutral	€5.14B	19.02	14.32%	2.91%	6.09%	-7.18%
AMG	52 Neutral	€806.51M	90.88	6.84%	1.47%	9.94%	―
AVTX	46 Neutral	€153.70M	-2.99	-26.08%	―	-12.31%	23.77%
OCI	40 Underperform	€717.13M	-3.52	―	263.51%	―	―