📊 AVTR Key Takeaways
Is Avantor, Inc. (AVTR) a Good Investment?
Avantor exhibits concerning fundamental deterioration with declining revenue (-3.4% YoY), abysmal returns (ROE 0.8%, ROA 0.4%), and razor-thin profitability (2.7% net margin) that leaves minimal margin for error. The 175% EPS collapse combined with low interest coverage (2.3x) and substantial debt ($3.8B) suggests the company is struggling to justify its asset base and may face pressure managing obligations.
Avantor’s fundamentals show a weak earnings profile, with declining revenue, negative operating margin, negative net margin, and negative returns on equity and assets. While the business still generates solid operating cash flow and positive free cash flow, that cash generation is being overshadowed by poor profitability and weak interest coverage, which raises concern about the durability and quality of earnings.
Avantor, Inc. Key Strengths (AVTR)
- Positive free cash flow generation ($25.2M) despite weak profitability
- Reasonable gross margin (31.7%) indicates some production efficiency
- Adequate short-term liquidity with current ratio of 1.76x
- Positive operating cash flow of $623.8M and free cash flow of $495.0M provide internal funding capacity
- Gross margin of 32.7% suggests the core business still retains reasonable product-level profitability
- Liquidity is adequate with a 1.78x current ratio and 1.18x quick ratio
AVTR Stock Risks: Avantor, Inc. Investment Risks
- Accelerating revenue decline (-3.4% YoY) in cyclical sector with no offsetting operational leverage
- Interest coverage ratio of only 2.3x provides insufficient cushion for debt servicing; refinancing risk if conditions worsen
- Severely depressed capital returns (ROE 0.8%, ROA 0.4%) indicate capital is not efficiently deployed across $11.7B asset base
- Massive EPS deterioration (-175% YoY) signals underlying operational distress despite flat net income
- Thin operating margin (6.3%) and net margin (2.7%) offer no buffer for competitive or economic headwinds
- Revenue declined 3.4% year over year, indicating weak top-line momentum
- Operating loss and net loss point to serious profitability pressure despite positive gross profit
- Long-term debt of $3.95B combined with negative interest coverage increases balance-sheet and refinancing risk
Key Metrics to Watch
- Revenue growth trajectory and market share trends in laboratory instruments sector
- Operating margin expansion or contraction in next reporting periods
- Interest coverage ratio trend and debt covenant compliance
- Free cash flow sustainability and capital allocation decisions
- Operating margin recovery and interest coverage improvement
- Revenue growth stabilization alongside free cash flow conversion
Avantor, Inc. (AVTR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility.
AVTR Profit Margin, ROE & Profitability Analysis
AVTR vs Industrial Sector: How Avantor, Inc. Compares
How Avantor, Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Avantor, Inc. Stock Overvalued? AVTR Valuation Analysis 2026
Based on fundamental analysis, Avantor, Inc. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Avantor, Inc. Balance Sheet: AVTR Debt, Cash & Liquidity
AVTR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Avantor, Inc.'s revenue has remained relatively flat over the 5-year period, with a 6% decline. The most recent EPS of $0.47 reflects profitable operations.
AVTR Revenue Growth, EPS Growth & YoY Performance
AVTR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.6B | $43.3M | $0.06 |
| Q3 2025 | $1.6B | $57.8M | $0.08 |
| Q2 2025 | $1.7B | $64.7M | $0.09 |
| Q1 2025 | $1.6B | $60.4M | $0.09 |
| Q3 2024 | $1.7B | $57.8M | $0.08 |
| Q2 2024 | $1.7B | -$7.3M | $-0.01 |
| Q1 2024 | $1.7B | $60.4M | $0.09 |
| Q3 2023 | $1.7B | $108.4M | $0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Avantor, Inc. Dividends, Buybacks & Capital Allocation
AVTR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Avantor, Inc. (CIK: 0001722482)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AVTR
What is the AI rating for AVTR?
Avantor, Inc. (AVTR) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVTR's key strengths?
Claude: Positive free cash flow generation ($25.2M) despite weak profitability. Reasonable gross margin (31.7%) indicates some production efficiency. ChatGPT: Positive operating cash flow of $623.8M and free cash flow of $495.0M provide internal funding capacity. Gross margin of 32.7% suggests the core business still retains reasonable product-level profitability.
What are the risks of investing in AVTR?
Claude: Accelerating revenue decline (-3.4% YoY) in cyclical sector with no offsetting operational leverage. Interest coverage ratio of only 2.3x provides insufficient cushion for debt servicing; refinancing risk if conditions worsen. ChatGPT: Revenue declined 3.4% year over year, indicating weak top-line momentum. Operating loss and net loss point to serious profitability pressure despite positive gross profit.
What is AVTR's revenue and growth?
Avantor, Inc. reported revenue of $1.6B.
Does AVTR pay dividends?
Avantor, Inc. pays dividends, with $15.1M distributed to shareholders in the trailing twelve months.
Where can I find AVTR SEC filings?
Official SEC filings for Avantor, Inc. (CIK: 0001722482) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AVTR's EPS?
Avantor, Inc. has a diluted EPS of $0.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AVTR's fundamental grade?
Based on our AI fundamental analysis in June 2026, Avantor, Inc. has a C grade with 81% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AVTR stock overvalued or undervalued?
Valuation metrics for AVTR: ROE of 0.8% (sector avg: 15%), net margin of 2.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is AVTR's AI grade for 2026?
Our dual AI analysis gives Avantor, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AVTR's free cash flow?
Avantor, Inc.'s operating cash flow is $58.7M, with capital expenditures of $33.5M. FCF margin is 1.6%.
How does AVTR compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 2.7% (avg: 10%), ROE 0.8% (avg: 15%), current ratio 1.76 (avg: 1.8).