Avantor, Inc.
Find Ratings ReportsAVANTOR INC's gross profit margin for the third quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. AVANTOR INC has average liquidity. Currently, the Quick Ratio is 1.24 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 8.35% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 1605.0 | 1503.8 |
| EBITDA ($mil) | 278.6 | 256.9 |
| EBIT ($mil) | 179.5 | 156.6 |
| Net Income ($mil) | -42.2 | 22.1 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 370.5 | 173.9 |
| Total Assets ($mil) | 9938.4 | 9763.1 |
| Total Debt ($mil) | 5070.9 | 5256.5 |
| Equity ($mil) | 2552.3 | 2355.6 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 37.73 | 38.19 |
| EBITDA Margin | 17.35 | 17.08 |
| Operating Margin | 11.18 | 10.41 |
| Sales Turnover | 0.62 | 0.0 |
| Return on Assets | 1.36 | 0.0 |
| Return on Equity | 2.81 | 0.0 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 2.02 | 1.87 |
| Debt/Capital | 0.67 | 0.69 |
| Interest Expense | 65.2 | 98.3 |
| Interest Coverage | 2.75 | 1.59 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 578.0 | 571.4 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.1 | 0.01 |
| Book value / share | 4.42 | 4.12 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 5430547.0 | 5027098.0 |
HOLD. AVANTOR INC's P/E ratio indicates a significant premium compared to an average of 51.59 for the Computer and Electronic Product Manufacturing subsector and a significant premium compared to the S&P 500 average of 38.64. To use another comparison, its price-to-book ratio of 6.50 indicates a significant premium versus the S&P 500 average of 4.02 and a significant discount versus the subsector average of 11.18. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the subsector average, indicating a discount.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AVTR 239.25 | Peers 73.04 | AVTR 23.34 | Peers 42.29 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. AVTR is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AVTR is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| AVTR 25.73 | Peers 51.05 | AVTR 0.03 | Peers 1.03 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. AVTR is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AVTR trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| AVTR 6.50 | Peers 11.18 | AVTR 250.00 | Peers 52.14 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AVTR is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AVTR is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| AVTR 2.71 | Peers 13.08 | AVTR 101.78 | Peers 19.23 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AVTR is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. AVTR has a sales growth rate that significantly exceeds its peers. |
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