AVTR

Avantor Inc.

Healthcare


Presented:03/25/2022
Price:$33.57
Cap:$20.48B
Current Price:$24.88
Cap:$16.91B

Presented

Date03/25/2022
Price$33.57
Market Cap$20.48B
Ent Value$33.92B
P/E Ratio39.42x
Book Value$5.24
Div Yield0%
Shares O/S609.97M
Ave Daily Vol4,090,250
Short Int3.23%

Current

Price$24.88
Market Cap$16.91B
Avantor, Inc. is a provider of mission critical products and services to customers in the biopharma, healthcare, education and government, and advanced technologies and applied materials industries. It sells materials, equipment, instrumentation, and offers specialty procurement. The firm operates through the following segments: the Americas, Europe, and AMEA. The company was founded by John Townsend Baker in 1904 and is headquartered in Radnor, PA.

Publicly traded companies mentioned herein: Avantor Inc (AVTR), Thermo Fisher Scientific Inc (TMO)

Highlights

The presenter is long shares of Avantor Inc (AVTR), a $20.5B market cap, $28.2B EV global supplier of biopharmaceutical products, solutions and advanced technologies. Avantor acquired VWR in 2017, forming the vertically integrated life sciences and advanced technology business it is today. 52% of Avantor’s revenues come from Biopharma, about 40% of which fall under bioproduction, while the remaining 48% of revenues are split between Healthcare (10%), Education & Government (13%), and Applied Materials & Advanced Technology (25%). The presenter sees AVTR as a high quality business and thinks it can beat its projected organic ‘22 growth of 4% - 6% by about 2% (6% - 8%) thanks to the firm’s pricing power in today's cost inflationary environment. By buying tuck-in bioproduction assets and increasing its mix of proprietary consumable products into its distribution chain, the company has a strong case for at least 150bps of margin expansion. 

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Idea Discussion

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