Value
7.1/10data confidence 83%| Component | Sub-score |
|---|---|
| P/S | 9.5 |
| EV/EBITDA | 4.7 |
| Fwd P/E | 8.5 |
| PEG | 10.0 |
| Analyst target | 3.0 |
- ▸Forward P/E: 13.4x
- ▸PEG: 0.07
- ▸Attractively valued
AVTR · Why this verdict
Why Avantor (AVTR) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score5.2/10
ConfidenceMEDIUM
MacroNEUTRAL
TrendMatrix Research · core thesis
Engine thesis — one sentence
Quality well below the minimum threshold and a confirmed technical downtrend—reinforced by a death cross hard block—combine to create a risk/reward of roughly 0.21 to 1, leaving this setup with more downside exposure than upside potential at current prices.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
The business lacks a competitive moat and scores significantly below the minimum quality threshold, with weak returns on assets; the financial foundation does not yet support a durable recovery thesis. Quality breakdown | Return on assets and operating margins improve materially over the next 12 months, lifting the quality score above 5.0. | →Stable |
| CounterA Piotroski F-Score of 8 out of 9 indicates near-term financial health; if balance sheet strength translates to margin recovery, the quality gap could narrow faster than the current reading implies. | ||
The stock trades below its 200-day moving average with the slope declining at roughly 5.7% per month alongside falling volume distribution, placing it in a confirmed downtrend; a death cross constitutes a hard technical block on entry. Momentum breakdown | Price reclaims and holds above the 200-day moving average for four consecutive weeks with improving volume accumulation. | →Stable |
| CounterMACD is recovering and RSI at 71 signals near-term buying pressure consistent with a bear rally in progress; the short-term momentum could extend before the structural downtrend reasserts. | ||
A put/call ratio of 3.12 alongside implied volatility at 76% reflects elevated market concern, consistent with active hedging or outright bearish positioning by options participants. Key risks | Put/call ratio falls below 1.5 and implied volatility compresses below 50% over the next six months as sentiment normalizes. | ↓Deteriorating |
| CounterExtreme put/call readings can function as a contrarian signal; if the stock rallies on improving fundamentals, forced covering could amplify any upside move. | ||
After two consecutive misses of roughly -2.3% and -2.9%, the most recent quarter showed a meaningful beat of 8.2%, but the pattern is too short to confirm that execution has stabilized. Earnings | EPS beats consensus in each of the next two reported quarters, each exceeding the estimate by at least 3%, to demonstrate a durable earnings recovery. | →Stable |
| CounterAnalyst estimates rising roughly 18.9% over the past 30 days suggest the street is already pricing in improving results; if the business has reset expectations to an achievable level, the single recent beat may mark the start of a durable upswing. | ||
With roughly 1.5% of headroom to the take-profit level and a risk/reward ratio of approximately 0.21 to 1, the current price offers materially more downside exposure than potential gain. Price targets | Price advances to or beyond $9.86 while downside risk narrows, improving the ratio above 1.5 to 1. | →Stable |
| CounterIf broader sector sentiment lifts, the small gap to the take-profit could close quickly, and a rerating on improved quality metrics could push the target higher. | ||
The business lacks a competitive moat and scores significantly below the minimum quality threshold, with weak returns on assets; the financial foundation does not yet support a durable recovery thesis.
→StableQuality breakdown
- Expectation
- Return on assets and operating margins improve materially over the next 12 months, lifting the quality score above 5.0.
CounterA Piotroski F-Score of 8 out of 9 indicates near-term financial health; if balance sheet strength translates to margin recovery, the quality gap could narrow faster than the current reading implies.
The stock trades below its 200-day moving average with the slope declining at roughly 5.7% per month alongside falling volume distribution, placing it in a confirmed downtrend; a death cross constitutes a hard technical block on entry.
→StableMomentum breakdown
- Expectation
- Price reclaims and holds above the 200-day moving average for four consecutive weeks with improving volume accumulation.
CounterMACD is recovering and RSI at 71 signals near-term buying pressure consistent with a bear rally in progress; the short-term momentum could extend before the structural downtrend reasserts.
A put/call ratio of 3.12 alongside implied volatility at 76% reflects elevated market concern, consistent with active hedging or outright bearish positioning by options participants.
↓DeterioratingKey risks
- Expectation
- Put/call ratio falls below 1.5 and implied volatility compresses below 50% over the next six months as sentiment normalizes.
CounterExtreme put/call readings can function as a contrarian signal; if the stock rallies on improving fundamentals, forced covering could amplify any upside move.
After two consecutive misses of roughly -2.3% and -2.9%, the most recent quarter showed a meaningful beat of 8.2%, but the pattern is too short to confirm that execution has stabilized.
→StableEarnings
- Expectation
- EPS beats consensus in each of the next two reported quarters, each exceeding the estimate by at least 3%, to demonstrate a durable earnings recovery.
CounterAnalyst estimates rising roughly 18.9% over the past 30 days suggest the street is already pricing in improving results; if the business has reset expectations to an achievable level, the single recent beat may mark the start of a durable upswing.
With roughly 1.5% of headroom to the take-profit level and a risk/reward ratio of approximately 0.21 to 1, the current price offers materially more downside exposure than potential gain.
→StablePrice targets
- Expectation
- Price advances to or beyond $9.86 while downside risk narrows, improving the ratio above 1.5 to 1.
CounterIf broader sector sentiment lifts, the small gap to the take-profit could close quickly, and a rerating on improved quality metrics could push the target higher.
Per-dimension breakdown
Quality
3.1/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 0.0 |
| ROA | 1.9 |
| Gross margin | 2.4 |
| Op margin | 2.5 |
| Net margin | 0.0 |
| Current ratio | 6.3 |
| Moat | 3.2 |
| Piotroski F | 8.9 |
- ▸No competitive moat
- ▸Strong Piotroski F-Score: 8/9
Growth
6.2/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 2.5 |
| EPS growth | 10.0 |
Momentum
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 6.9 |
| OBV | 10.0 |
| MA position | 8.0 |
| Volume | 5.2 |
- ▸Volume accumulation (rising OBV)
- ▸Above 200-MA but MA slope flat
Sentiment
3.2/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 5.0 |
| Price target | 3.7 |
| erm sentiment | 0.0 |
- ▸Estimates falling as sentiment proxy (-16.9%)
Insider
7.3/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 10.0 |
| notable moves | 7.0 |
- ▸Negligible insider buying — $286,700 (0.004% of mkt cap)
- ▸Institutions accumulating
Peer rank
4.4/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 8.7 |
| quality rank | 2.0 |
| growth rank | 5.0 |
Technical
2.4/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 1.2 |
| support resistance | 1.5 |
| 52w position | 4.4 |
Risk (lower is worse)
5.0/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 5.0 |
| days to cover | 3.8 |
| volatility | 1.1 |
| put call | 10.0 |
| implied vol | 0.7 |
| beta | 7.4 |
| debt equity | 6.9 |
- ▸High IV: 76%
- ▸Concentration risks: 1 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
2.9/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 2.5 |
| earnings history | 1.1 |
| earnings timing | 5.0 |
| surprise avg | 3.1 |
- ▸Estimates down -16.9% (30d)
- ▸Earnings concerns: 1B/2M
- ▸Earnings in 3 days
How the verdict was assembled
Engine trigger
Quality below minimum threshold.
Engine technical detail
verdict_path:
L1:HARD_BLOCK:QUALITY_FLOORPassed (5)
- MOMENTUM:7.0>=5.5
- INSIDER:OK
- NEWS_EVENTS:NONE_RECENT
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- ASYMMETRY:-1.2=NEGATIVE
- EARNINGS_PROXIMITY:3d<=7d
Warning (2)
- DEATH_CROSS:momentum=7.0>=5.0 recovering
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
-1.19
Upside
-17.9%
Downside
15.0%
Sizing output
AVOID
SetupMomentum Cont — Trend continuation, RSI 63, MACD bullish
EdgeNo clear edge — No clear edge identified
SuitabilityModerate — Balanced profile
Investment implication
The SELL_IF_HOLDING verdict reflects the ASYMMETRY gate's -1.2=NEGATIVE outcome against Insider at 7.3 and asymmetric R:R of -1.19.
The strongest dimensions are Insider at 7.3, Value at 7.1, and Momentum at 7.0; the weakest are Technical at 2.4, Catalyst at 2.9, and Quality at 3.1. The V9 engine flagged 2 failed gates with 2 warnings, producing an asymmetric reward-to-risk of -1.19 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Quality Below Minimum Floor
Trip ifQuality score rises above 5.0 for 2 consecutive reported quarters.
- P2Confirmed Downtrend Death Cross Block
Trip ifPrice closes above the 200-day moving average for 4 consecutive weeks.
- P3Elevated Put Call Bearish Positioning
Trip ifPut/call ratio falls below 1.0 for 3 consecutive weeks.
- P4Earnings Execution Still Uncertain
Trip ifEPS surprise exceeds 5% for 2 consecutive quarters.
- P5Unfavorable Risk Reward Geometry
Trip ifUpside to take-profit level exceeds 10%.