Avantor, Inc. Fundamental Analysis
Avantor, Inc. (AVTR-PA) shows weak financial fundamentals with a PE ratio of -11.21, profit margin of -8.42%, and ROE of -9.59%. The company generates N/A in annual revenue with weak year-over-year growth of -2.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AVTR-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakAVTR-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAVTR-PA trades at attractive valuation levels.
Growth Score
WeakAVTR-PA faces weak or negative growth trends.
Financial Health Score
ExcellentAVTR-PA maintains a strong and stable balance sheet.
Profitability Score
WeakAVTR-PA struggles to sustain strong margins.
Key Financial Metrics
Is AVTR-PA Expensive or Cheap?
P/E Ratio
AVTR-PA trades at -11.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AVTR-PA's PEG of 0.22 indicates potential undervaluation.
Price to Book
The market values Avantor, Inc. at 1.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 49.32 times EBITDA. This signals the market has high growth expectations.
How Well Does AVTR-PA Make Money?
Net Profit Margin
For every $100 in sales, Avantor, Inc. keeps $-8.42 as profit after all expenses.
Operating Margin
Core operations generate -4.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-9.59 in profit for every $100 of shareholder equity.
ROA
Avantor, Inc. generates $-4.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $0.65 in free cash annually.
FCF Yield
AVTR-PA converts 7.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-11.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.10
vs 25 benchmark
ROA
Return on assets percentage
-0.05
vs 25 benchmark
ROCE
Return on capital employed
-0.03
vs 25 benchmark
How AVTR-PA Stacks Against Its Sector Peers
| Metric | AVTR-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -11.21 | 25.01 | Better (Cheaper) |
| ROE | -9.59% | 1002.00% | Weak |
| Net Margin | -8.42% | -107149.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 6.20 | Neutral |
| ROA | -4.73% | -5669.00% (disorted) | Weak |
AVTR-PA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Avantor, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-33.77%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
1010.05%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
40.07%
Industry Style: Cyclical, Commodity, Value
High Growth