Avantor (AVTR) AI Stock Analysis

• Market Cap: $9.32B
• Dividend Yield: N/A
• Average Volume (3M): 10.72M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.77
• Revenue Growth: -2.34%
• EPS Growth: 89.86%
• Country: US
• Employees: 13,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Chemicals - Specialty
• EPS (TTM): 0.24
• Shares Outstanding: 681,738,650
• 10 Day Avg. Volume: 9,782,135
• 30 Day Avg. Volume: 10,719,113
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 5.85
• Enterprise Value/Ebitda: 9.19
• 1Y Price Target: $13.91
• Price Target Upside: 1.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 63 Neutral
• Price Target: $14.50 ▲(5.30% Upside)

Avantor's overall stock score reflects a challenging environment with mixed financial performance and technical indicators. While the company has made strategic moves with new leadership and contract wins, these are countered by operational challenges and reduced guidance. The valuation remains reasonable, but the lack of a dividend yield and cash flow concerns weigh on the score.

Positive Factors

Leadership Transition

The appointment of Emmanuel Ligner as CEO, with his extensive experience in life sciences, is expected to enhance strategic direction and drive growth in key sectors, potentially improving competitive positioning and operational efficiency.

Contract Extensions

Securing significant contract extensions with major pharma companies strengthens Avantor's market position and ensures stable revenue streams, enhancing customer loyalty and long-term business sustainability.

Cost Transformation Program

The cost transformation program aims to achieve substantial savings, improving operational efficiency and profitability, which can enhance financial resilience and competitive advantage over the long term.

Negative Factors

Declining Revenue

The decline in revenue indicates challenges in maintaining growth, potentially impacting market share and financial performance if not addressed through strategic initiatives or market expansion.

Adjusted EBITDA Margin Decline

A decline in EBITDA margin due to pricing pressures and supply chain costs can strain profitability, affecting cash flow and investment capacity, which may hinder long-term growth and competitiveness.

Reduced Guidance

Lowered revenue and margin guidance reflect operational challenges and market headwinds, suggesting potential difficulties in achieving growth targets and maintaining investor confidence in the near to medium 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 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's financial statements present a mixed picture. The company maintains healthy margins and has improved its leverage position, but faces challenges in revenue growth and cash flow generation. While profitability remains stable, the decline in revenue and free cash flow growth could pose risks if not addressed. Overall, Avantor shows resilience but needs to focus on enhancing growth and cash efficiency.

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	6.67B	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	1.41B	1.48B	1.10B	1.52B	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: 13.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 13.77 is above the 20-day moving average (MA) of 12.66, above the 50-day MA of 12.76, and below the 200-day MA of 15.43, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 67.13 is Neutral, neither overbought nor oversold. The STOCH value of 94.18 is Negative, 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
EMN	70 Neutral	$7.39B	9.04	14.26%	5.19%	1.60%	-3.97%
SQM	65 Neutral	$12.23B	25.77	8.92%	―	-23.20%	1226.72%
AVTR	63 Neutral	$9.32B	13.67	11.73%	―	-2.34%	89.86%
KWR	62 Neutral	$2.31B	-297.40	-0.53%	1.45%	-3.09%	-106.46%
ALB	55 Neutral	$10.31B	-9.46	-9.08%	1.84%	-33.05%	-97.63%
WLK	52 Neutral	$10.24B	-155.36	-0.64%	2.56%	-3.00%	-124.79%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.