AVTR

Avantor

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Medical Instruments & Supplies

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

Avantor operates as a global supplier of critical materials, consumables, and services used in biopharma production, laboratory research, and advanced technologies. The business generates cash by embedding itself into customers’ recurring workflows — supplying high-purity chemicals, reagents, and single-use systems that are difficult to substitute without operational disruption. Its moat stems from supply chain integration, regulatory validation, and long-term customer relationships that make switching costly once materials are qualified in production environments. When operating efficiently, scale purchasing and distribution density drive margin leverage, turning recurring consumables demand into steady cash flow.

VALUATION

P/E

-

Market Cap ($M USD)

$5,341

Forward P/E

9.3

PEG

0.6

PRICE TO SALES

0.8

PRICE TO BOOK

1

EV / EBITDA

64.3

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$0.78

Next Year EPS Growth Estimate

$0.85

Next Year Revenue Growth Estimate

2.10%

Return on Equity (ROE)

-9.50%

Operating Margin

8.30%

Debt-to-Equity

0.7

Piotroski F-Score

5

Altman Z-Score

1.5

Return on Invested Capital (ROIC)

-4.10%%

Current Ratio

1.8

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Avantor screens like a distressed cyclical masked as a value play. A Forward P/E of 9.3 and a PEG of 0.6 scream statistical cheapness, but the market is discounting something real: an Altman Z-Score of 1.5 puts the company in financial stress territory, and an operating margin of -9.50% confirms that profitability is currently impaired. With ROIC at -4.10% and Return on Equity at just 2.10%, capital is not being deployed efficiently. This is not a clean mispricing story — it is a leveraged balance sheet with weak operating performance trading at a low multiple because the market questions its durability.

AI Exposure / Tech Reliance

As a Medical Instruments & Supplies company within Healthcare, Avantor sits in a segment that directly supports research labs, bioprocessing, and advanced manufacturing — all areas increasingly influenced by AI-driven drug discovery and automation. AI expansion in life sciences could indirectly benefit demand for high-grade materials and laboratory inputs. However, nothing in the current financial metrics suggests the company is currently monetizing that tailwind effectively.

The Bull Case

A deep value or GARP investor could argue that the setup is asymmetric. The Forward P/E of 9.3 combined with a PEG of 0.6 implies the market is pricing in minimal recovery despite expected forward normalization. The Piotroski F-Score of 5 suggests financials are not collapsing outright — this is mid-range stability, not distress freefall. With a Current Ratio of 1.8, liquidity is adequate, and a Price/Book of 1 means investors are paying roughly replacement value for assets; if operating margin recovers from -9.50% toward positive territory, the rerating could be violent. In short, this is a balance sheet stabilization and margin recovery bet trading at depressed sales (Price/Sales 0.8) rather than a growth premium.

The Bear Case

Now the reality check: Debt/Equity at 8.30% is elevated leverage relative to weak profitability, and the Altman Z-Score of 1.5 reinforces that balance sheet fragility is not theoretical. Operating Margin at -9.50% and ROIC at -4.10% show value destruction, not temporary compression. EPS Next Year is estimated at -$0.78, signaling earnings contraction ahead, while Return on Equity at 2.10% is anemic relative to the capital employed. With a TTM Yield of just 0.7 and no meaningful dividend support, shareholders are not being paid to wait — this is a turnaround with real downside risk if margins fail to inflect.

Market Sentiment & Smart Money

Short Interest %

6.90%

Analyst Consensus

2.94

Average Analyst Price Target

$10.75

Institutional Ownership %

104.30%

1-Year Beta

1.36

Insider Buying % (6 Mo)

1.50%%

Distance to 52-Week High

48.90%%

Distance to 52-Week Low

108.70%%