# Avantor (AVTR.US)

Canonical: https://gigainvestors.com/s/AVTR

Analysis as of: 2026-10-16T07:26:41.682Z. Financial observations: FY2015–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $16.09 per share; close as of 2026-10-15.

Estimated value: low $15.27 per share, central $21.70 per share, high $25.45 per share. Buy at or below the central value $21.70 per share. Valuation as of 2026-10-16T07:26:41.682Z; scenarios are not confidence intervals.

Expected annual return: 12.3% at the stated quote. About 12.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 4

- Operating margin variation: 1.71×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.17×

- FY2018: 0.07×

- FY2019: 0.09×

- FY2020: 0.11×

- FY2021: 0.13×

- FY2022: 0.23×

- FY2023: 0.10×

- FY2024: 0.16×

- FY2025: -0.04×

- LTM to Jun 2026: -0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.3%

- ROIC, second-lowest year: -5.5%

- Typical minus recent gross margin: 1.3 pp

- Typical gross margin (annual median): 33.1%

- Recent gross margin (lower of latest and 3-year median): 31.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.0%

- ROIC including acquisitions, ten-year median: 5.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -11.3%

- FY2018: 36.2%

- FY2019: 11.1%

- FY2020: 16.0%

- FY2021: 13.3%

- FY2022: 22.1%

- FY2023: 11.3%

- FY2024: 21.5%

- FY2025: -4.7%

- LTM to Jun 2026: -5.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 3.20×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.0B

- Net income, five-year total: $611M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -3.5 pp

- Working capital / revenue, change between three-year averages: -22.2 pp

- Working capital / revenue, final three-year average: 17.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.40×

- FY2023: 1.80×

- FY2024: 1.36×

- FY2025: 0.47×

- LTM to Jun 2026: 0.52×

### management: fail

- ROIC first 3 years vs last 3 years: 1.5% vs 11.3%

- Per-share earnings: -0.09 to 0.47 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- material buybacks concentrated at lower earnings yields (Spearman rho below threshold)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.4%

- Ordinary dilution, 5-year annual growth: 3.1%

- Diluted shares, 10-year annual growth: 2.4%

- Diluted shares, 5-year annual growth: 3.1%

- Per-share value change: $0.56

- Per-share value, starting three-year median: -$0.09

- Per-share value, ending three-year median: $0.47

- Buybacks concentrated in cheaper years (correlation): -0.79

- Average buyback yield: 3.8%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: $1.7B

- ROIC, first three-year median: 1.5%

- ROIC, last three-year median: 11.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.09

- FY2017: -$0.28

- FY2018: -$0.18

- FY2019: $0.09

- FY2020: $0.20

- FY2021: $0.95

- FY2022: $1.01

- FY2023: $0.47

- FY2024: $1.04

- FY2025: -$0.78

### accounting: pass

- Sloan accruals: -9.8%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 7.4%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.47×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.2%

- FY2017: 0.5%

- FY2018: -2.9%

- FY2019: -3.2%

- FY2020: -8.2%

- FY2021: -2.7%

- FY2022: -1.2%

- FY2023: -4.2%

- FY2024: -1.1%

- FY2025: -9.8%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Edgar Wachenheim](https://gigainvestors.com/GA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mason Hawkins](https://gigainvestors.com/SE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 62% since Dec 2021 · "Avantor (AVTR) Fell as Destocking Has Lasted Longer Than Expected" (finance.yahoo.com, May 2026) · sales +0.1%

Story as of 2026-10-16T09:58:21.004Z; price observation 2026-10-15.

Price needs cash profits to grow 2.7% a year for ten years

- 2025-04-28: Avantor Stock Declines Despite Q1 Earnings In-Line, Revenues Down Y/Y ([finance.yahoo.com](https://finance.yahoo.com/news/avantor-stock-declines-despite-q1-152400673.html))

- 2025-10-30: Avantor Stock Plunges as Q3 Earnings Miss Estimates, Revenues Down Y/Y ([finance.yahoo.com](https://finance.yahoo.com/news/avantor-stock-plunges-q3-earnings-180200855.html))

- 2026-02-12: AVTR Stock Plunges Despite Q4 Earnings Beat Estimates, Margins Decline ([finance.yahoo.com](https://finance.yahoo.com/news/avtr-stock-plunges-despite-q4-154100677.html))

- 2026-05-18: Avantor (AVTR) Slid on Lower Than Expected Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/avantor-avtr-slid-lower-expected-130905496.html))

- 2026-07-30: Avantor Q2 Earnings Beat Estimates on VWR Growth, Guidance Raised ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/avantor-q2-earnings-beat-estimates-164600054.html))

### Sales · FY2025–2026

sales +0.1%; source https://www.sec.gov/Archives/edgar/data/1722482/000162828026007118/avtr-20251231.htm; observed 2026-02-11.

- FY2017: $1.2B 

- FY2018: $5.9B 

- FY2019: $6.0B 

- FY2020: $6.4B 

- FY2021: $7.4B 

- FY2022: $4.9B 

- FY2023: $7.0B 

- FY2024: $6.8B 

- FY2025: $6.6B 

- FY2026: $6.6B 

### Gross margin · FY2026

gross margin 31.8%; source https://www.sec.gov/Archives/edgar/data/1722482/000162828026007118/avtr-20251231.htm; observed 2026-02-11.

- FY2017: 34.7% 

- FY2018: 31.0% 

- FY2019: 31.8% 

- FY2020: 32.5% 

- FY2021: 33.9% 

- FY2022: 53.0% 

- FY2023: 33.9% 

- FY2024: 33.6% 

- FY2025: 32.7% 

- FY2026: 31.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are USD 6.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1722482/000162828026007118/avtr-20251231.htm (filed 2026-02-11); FY2025: revenue 6552200000; grossProfit 2139400000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AVTR.US: Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, peristaltic pumps, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, compound management, cleanroom control, monitoring, maintenance, and sanitization services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.

### Why customers stay

Margins ranged from 32.7% to 33.9% during 2023–25; it earns 12.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: grossProfit / revenue = 33.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: grossProfit / revenue = 33.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1722482/000162828026007118/avtr-20251231.htm (filed 2026-02-11); FY2025: grossProfit / revenue = 32.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); 10-year return on capital observations [[2017,-0.11346576558126835],[2018,0.3615150509074812],[2019,0.11113763414230235],[2020,0.15985886823178178],[2021,0.13255014033822993],[2022,0.22085434009457927],[2023,0.11326010180207997],[2024,0.2146303207490231],[2025,-0.04676556864630921],[2026,-0.055221498849674484]]; median 0.12290512107015494. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 10 years; bought back USD 80.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2018: growth capex 0; upkeep 37700000; owner earnings 280000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2019: growth capex 0; upkeep 51600000; owner earnings 385100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2020: growth capex 0; upkeep 61600000; owner earnings 450400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2021: growth capex 0; upkeep 111100000; owner earnings 840700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2022: growth capex 0; upkeep 133400000; owner earnings 957800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: growth capex 0; upkeep 146400000; owner earnings 577000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: growth capex 0; upkeep 148800000; owner earnings 968200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Dividend observations: [[2016,158700000],[2017,1701900000],[2018,31300000],[2019,31300000],[2020,64600000],[2021,64600000],[2022,32400000],[2023,18300000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1722482/000162828026007118/avtr-20251231.htm (filed 2026-02-11); FY2025: cash repurchases 80700000 USD.

### Are managers owners

Insiders own 1.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AVTR.US SharesStats.PercentInsiders = 1.528 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 2.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Ten-year compound average after fade. Initial solved rate 0.025356018175548445. Price 16.09; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.11491804524150502 → FY2025 -0.365559800176315. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2019-05: $17.50 per share

- 2019-06: $19.09 per share

- 2019-07: $17.59 per share

- 2019-08: $17.50 per share

- 2019-09: $14.70 per share

- 2019-10: $14.21 per share

- 2019-11: $17.13 per share

- 2019-12: $18.15 per share

- 2020-01: $18.47 per share

- 2020-02: $15.75 per share

- 2020-03: $12.49 per share

- 2020-04: $16.81 per share

- 2020-05: $18.97 per share

- 2020-06: $17.00 per share

- 2020-07: $22.08 per share

- 2020-08: $22.57 per share

- 2020-09: $22.49 per share

- 2020-10: $23.27 per share

- 2020-11: $27.28 per share

- 2020-12: $28.15 per share

- 2021-01: $29.49 per share

- 2021-02: $27.87 per share

- 2021-03: $28.93 per share

- 2021-04: $32.04 per share

- 2021-05: $32.15 per share

- 2021-06: $35.51 per share

- 2021-07: $37.58 per share

- 2021-08: $39.44 per share

- 2021-09: $40.90 per share

- 2021-10: $40.38 per share

- 2021-11: $39.48 per share

- 2021-12: $42.14 per share

- 2022-01: $37.33 per share

- 2022-02: $34.69 per share

- 2022-03: $33.82 per share

- 2022-04: $31.88 per share

- 2022-05: $32.04 per share

- 2022-06: $31.10 per share

- 2022-07: $29.02 per share

- 2022-08: $24.91 per share

- 2022-09: $19.60 per share

- 2022-10: $20.17 per share

- 2022-11: $22.28 per share

- 2022-12: $21.09 per share

- 2023-01: $23.90 per share

- 2023-02: $24.37 per share

- 2023-03: $21.14 per share

- 2023-04: $19.48 per share

- 2023-05: $19.94 per share

- 2023-06: $20.54 per share

- 2023-07: $20.57 per share

- 2023-08: $21.65 per share

- 2023-09: $21.08 per share

- 2023-10: $17.43 per share

- 2023-11: $21.18 per share

- 2023-12: $22.83 per share

- 2024-01: $22.99 per share

- 2024-02: $24.64 per share

- 2024-03: $25.57 per share

- 2024-04: $24.23 per share

- 2024-05: $24.08 per share

- 2024-06: $21.20 per share

- 2024-07: $26.75 per share

- 2024-08: $25.84 per share

- 2024-09: $25.87 per share

- 2024-10: $22.37 per share

- 2024-11: $21.06 per share

- 2024-12: $21.07 per share

- 2025-01: $22.28 per share

- 2025-02: $16.70 per share

- 2025-03: $16.21 per share

- 2025-04: $12.99 per share

- 2025-05: $12.91 per share

- 2025-06: $13.46 per share

- 2025-07: $13.44 per share

- 2025-08: $13.47 per share

- 2025-09: $12.48 per share

- 2025-10: $11.82 per share

- 2025-11: $11.73 per share

- 2025-12: $11.46 per share

- 2026-01: $10.92 per share

- 2026-02: $9.05 per share

- 2026-03: $7.84 per share

- 2026-04: $8.10 per share

- 2026-05: $9.12 per share

- 2026-06: $9.90 per share

- 2026-07: $13.78 per share

- 2026-08: $14.54 per share

- 2026-09: $15.05 per share

- 2026-10: $16.09 per share

## Annual estimated value (USD per share)

- FY2019: low $8.02 per share, central $9.10 per share, high $10.55 per share

- FY2020: low $5.99 per share, central $6.78 per share, high $7.83 per share

- FY2021: low $8.84 per share, central $10.02 per share, high $11.60 per share

- FY2022: low $5.97 per share, central $6.74 per share, high $7.76 per share

- FY2023: low $9.48 per share, central $10.76 per share, high $12.47 per share

- FY2024: low $12.56 per share, central $14.27 per share, high $16.54 per share

- FY2025: low $15.24 per share, central $21.63 per share, high $25.34 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1722482/000162828026007118/avtr-20251231.htm); period 2025-12-31, filed 2026-02-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.