Avantor, Inc. (NYSE: AVTR)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0001722482
Market Cap 6.15 Bn
P/B 1.11
P/E -11.60
P/S 0.94
ROIC (Qtr) -1.65
Div Yield % 0.00
Rev 1y % (Qtr) -1.36
Total Debt (Qtr) 3.95 Bn
Debt/Equity (Qtr) 0.71
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About

Avantor, Inc., a leading global provider of mission-critical products and services, operates under the stock symbol AVTR. The company is active in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. Avantor's main business activities encompass the provision of materials & consumables, equipment & instrumentation, and services & specialty procurement that empower scientists in their research and development endeavors (Avantor, Inc.). The company generates revenue through the sale of its products...

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Investment thesis

Bull case

  • Healthy cash reserves of 365.40M provide 11.86x coverage of short-term debt 30.80M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 623.80M provides strong 13.44x coverage of stock compensation 46.40M, indicating sustainable incentive practices.
  • Robust free cash flow of 495M exceeds capital expenditure of 128.80M by 3.84x, indicating strong organic growth funding capability.
  • Tangible assets of 3.61B provide robust 5.96x coverage of other current liabilities 606.40M, indicating strong asset backing.
  • Robust tangible asset base of 3.61B provides 3.37x coverage of working capital 1.07B, indicating strong operational backing.

Bear case

  • Operating cash flow of 623.80M barely covers its investment activities of (130.50M), with a coverage ratio of -4.78, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of (271.50M) show weak coverage of depreciation charges of 410.20M, with a -0.66 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 410.20M relative to operating cash flow of 623.80M, which is 0.66x suggests significant maintenance capital requirements affecting free cash flow.
  • Free cash flow of 495M represents just -1.55x of debt issuance (318.70M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 623.80M barely covers operating expenses of 785M with a 0.79 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 176.13 Bn 61.67 17.50 0.00 Bn
2 BDX Becton Dickinson & Co 50.84 Bn 28.94 2.32 19.54 Bn
3 ALC Alcon Inc 39.87 Bn 38.08 3.91 5.24 Bn
4 RMD Resmed Inc 37.63 Bn 36.86 8.03 0.85 Bn
5 HOLX Hologic Inc 16.89 Bn 31.05 4.09 2.52 Bn
6 COO Cooper Companies, Inc. 16.34 Bn 43.59 3.99 2.51 Bn
7 WST West Pharmaceutical Services Inc 15.98 Bn 228.35 15.87 0.32 Bn
8 ALGN Align Technology Inc 13.70 Bn 36.21 3.44 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.83 2.69
EV to Cash from Ops. EV/CFO 15.64 33.85
EV to Debt EV to Debt 2.47 26.88
EV to EBIT EV/EBIT -35.94 21.42
EV to EBITDA EV/EBITDA 57.70 13.45
EV to Free Cash Flow [EV/FCF] EV/FCF 19.71 108.54
EV to Market Cap EV to Market Cap 1.59 -4.25
EV to Revenue EV/Rev 1.49 291.65
Price to Book Value [P/B] P/B 1.11 6.13
Price to Earnings [P/E] P/E -11.60 168.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -1.12
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.62
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.48
Interest Coverage Int. cover (Qtr) -1.60 11.77
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 13.44 -62.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 39.52 419.59
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.67
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -136.49 -57.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -83.80 -107.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -125.31 -37.41
EBT Growth (1y) % EBT 1y % (Qtr) -151.68 -40.02
EPS Growth (1y) % EPS 1y % (Qtr) -174.29 -9.45
FCF Growth (1y) % FCF 1y % (Qtr) -28.47 57.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -6.14 66.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.56 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.26 2.52
Current Ratio Curr Ratio (Qtr) 1.78 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.71 0.55
Interest Cover Ratio Int Coverage (Qtr) -1.60 11.77
Times Interest Earned Times Interest Earned (Qtr) -1.60 11.77
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.10 -2,368.82
EBIT Margin % EBIT Margin % (Qtr) -4.14 -2,472.83
EBT Margin % EBT Margin % (Qtr) -6.74 -2,442.75
Gross Margin % Gross Margin % (Qtr) 32.70 29.78
Net Profit Margin % Net Margin % (Qtr) -8.10 -2,438.72