Lonza Group
Market Cap
CHF29.3b
Last Updated
2020/01/25 20:59 UTC
Data Sources
Company Financials +
Executive Summary
Lonza Group Ltd supplies products and services to the pharmaceutical, biotech, and specialty ingredients markets worldwide.
Snowflake Analysis
Adequate balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Lonza Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LONN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
8.2%
LONN
4.1%
CH Life Sciences
0.3%
CH Market
1 Year Return
39.8%
LONN
41.8%
CH Life Sciences
19.6%
CH Market
Return vs Industry: LONN underperformed the Swiss Life Sciences industry which returned 44% over the past year.
Return vs Market: LONN exceeded the Swiss Market which returned 18.9% over the past year.
Shareholder returns
| LONN | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.2% | 4.1% | 0.3% |
| 30 Day | 11.1% | 6.8% | 1.6% |
| 90 Day | 13.3% | 16.4% | 6.9% |
| 1 Year | 41.0%39.8% | 43.2%41.8% | 25.3%19.6% |
| 3 Year | 140.4%115.5% | 96.9%86.8% | 41.0%24.0% |
| 5 Year | 317.9%261.8% | 257.9%231.3% | 54.0%29.5% |
Price Volatility Vs. Market
How volatile is Lonza Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Are Lonza Group's (VTX:LONN) Statutory Earnings A Good Guide To Its Underlying Profitability?1 month ago | Simply Wall St
We Think Lonza Group (VTX:LONN) Can Stay On Top Of Its Debt1 month ago | Simply Wall St
Calculating The Intrinsic Value Of Lonza Group Ltd (VTX:LONN)Valuation
Is Lonza Group undervalued compared to its fair value and its price relative to the market?
44.58x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LONN (CHF397.8) is trading above our estimate of fair value (CHF338.42)
Significantly Below Fair Value: LONN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LONN is good value based on its PE Ratio (40.4x) compared to the Life Sciences industry average (57.4x).
PE vs Market: LONN is poor value based on its PE Ratio (40.4x) compared to the Swiss market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: LONN is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: LONN is overvalued based on its PB Ratio (4.3x) compared to the XE Life Sciences industry average (4.1x).
Next Steps
Future Growth
How is Lonza Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
16.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LONN's forecast earnings growth (15.7% per year) is above the savings rate (-0.6%).
Earnings vs Market: LONN's earnings (15.7% per year) are forecast to grow faster than the Swiss market (10.4% per year).
High Growth Earnings: LONN's earnings are forecast to grow, but not significantly.
Revenue vs Market: LONN's revenue (7% per year) is forecast to grow faster than the Swiss market (3.6% per year).
High Growth Revenue: LONN's revenue (7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LONN's Return on Equity is forecast to be low in 3 years time (14.2%).
Next Steps
Past Performance
How has Lonza Group performed over the past 5 years?
29.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LONN has high quality earnings.
Growing Profit Margin: LONN's current net profit margins (11.5%) are lower than last year (16.4%).
Past Earnings Growth Analysis
Earnings Trend: LONN's earnings have grown significantly by 29.2% per year over the past 5 years.
Accelerating Growth: LONN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LONN had negative earnings growth (-20.3%) over the past year, making it difficult to compare to the Life Sciences industry average (8.8%).
Return on Equity
High ROE: LONN's Return on Equity (10.6%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Lonza Group's financial position?
Financial Position Analysis
Short Term Liabilities: LONN's short term assets (CHF2.9B) exceed its short term liabilities (CHF2.3B).
Long Term Liabilities: LONN's short term assets (CHF2.9B) do not cover its long term liabilities (CHF5.0B).
Debt to Equity History and Analysis
Debt Level: LONN's debt to equity ratio (60.4%) is considered high.
Reducing Debt: LONN's debt to equity ratio has reduced from 118.1% to 60.4% over the past 5 years.
Debt Coverage: LONN's debt is well covered by operating cash flow (21.8%).
Interest Coverage: LONN's interest payments on its debt are well covered by EBIT (7.1x coverage).
Balance Sheet
Inventory Level: LONN has a high level of physical assets or inventory.
Debt Coverage by Assets: LONN's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Lonza Group's current dividend yield, its reliability and sustainability?
0.70%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Lonza Group before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LONN's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.73%).
High Dividend: LONN's dividend (0.77%) is low compared to the top 25% of dividend payers in the Swiss market (3.42%).
Stability and Growth of Payments
Stable Dividend: LONN is not paying a notable dividend for the Swiss market, therefore no need to check if payments are stable.
Growing Dividend: LONN is not paying a notable dividend for the Swiss market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: LONN is not paying a notable dividend for the Swiss market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LONN's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.
Next Steps
Management
What is the CEO of Lonza Group's salary, the management and board of directors tenure and is there insider trading?
3.3yrs
Average management tenure
CEO
Albert Baehny (67yo)
0.2yrs
Tenure
CHF548,318
Compensation
Mr. Albert M. Baehny has been a Vice Chairman of Investis Holding SA. Mr. Baehny has been an Interim Chief Executive Officer of Lonza Group Ltd. since November 12, 2019. He serves as the Chief Executive Of ...
Management Age and Tenure
3.3yrs
Average Tenure
57yo
Average Age
Experienced Management: LONN's management team is considered experienced (2.5 years average tenure).
Board Age and Tenure
5.8yrs
Average Tenure
61yo
Average Age
Experienced Board: LONN's board of directors are considered experienced (5.8 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Albert Baehny (67yo)
Chairman & Interim CEO
- Tenure: 0.2yrs
- Compensation: CHF548.32k
Dominik Werner
Head of Corporate Communications & VP
- Tenure: 9.3yrs
Joseph Colleluori
Senior Vice President of Corporate Development
- Tenure: 14yrs
Dirk Oehlers
Head of Investor Relations
Constance Ward
Head of External Communications
Sven Abend (51yo)
Chief Operating Officer of Specialty Ingredients Segment
- Tenure: 5.5yrs
Rodolfo Savitzky (57yo)
Chief Financial Officer
- Tenure: 3.3yrs
Jennifer Clancy
Senior Director of Global Marketing
- Tenure: 1.8yrs
Stefan Stoffel
Chief Operating Officer of Lonza Pharma Biotech & Nutrition
- Tenure: 0.8yrs
Sanna Fowler
Head of External Communications
Board Members
Patrick Aebischer (65yo)
Independent Vice Chairman of the Board
- Tenure: 5.8yrs
- Compensation: CHF292.60k
Barbara Richmond (59yo)
Independent Non-Executive Director
- Tenure: 5.8yrs
- Compensation: CHF271.07k
Christoph Mäder (60yo)
Lead Independent Director
- Tenure: 0.2yrs
- Compensation: CHF282.17k
Werner Bauer (69yo)
Independent Director
- Tenure: 6.8yrs
- Compensation: CHF249.99k
Albert Baehny (67yo)
Chairman & Interim CEO
- Tenure: 0.2yrs
- Compensation: CHF548.32k
Jürgen Steinemann (61yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: CHF239.56k
Margot Scheltema (65yo)
Independent Director
- Tenure: 7.8yrs
- Compensation: CHF279.43k
Angelic Kohlmann (59yo)
Independent Director
- Tenure: 1.7yrs
- Compensation: CHF188.22k
Olivier Verscheure (47yo)
Independent Director
- Tenure: 1.7yrs
- Compensation: CHF188.22k
Company Information
Lonza Group Ltd's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Lonza Group Ltd
- Ticker: LONN
- Exchange: SWX
- Founded: 1897
- Industry: Life Sciences Tools and Services
- Sector: Pharmaceuticals & Biotech
- Market Cap: CHF29.335b
- Shares outstanding: 74.25m
- Website: https://www.lonza.com
Number of Employees
Location
- Lonza Group Ltd
- Muenchensteinerstrasse 38
- Basel
- Basel-Stadt
- 4002
- Switzerland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LZAG.F | OTCPK (Pink Sheets LLC) | Yes | Registered Shares | US | USD | Nov 1999 |
| LONN | SWX (SIX Swiss Exchange) | Yes | Registered Shares | CH | CHF | Nov 1999 |
| LO3 | DB (Deutsche Boerse AG) | Yes | Registered Shares | DE | EUR | Nov 1999 |
| 0QNO | LSE (London Stock Exchange) | Yes | Registered Shares | GB | CHF | Nov 1999 |
| LZAG.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 2008 |
Biography
Lonza Group Ltd supplies products and services to the pharmaceutical, biotech, and specialty ingredients markets worldwide. The company operates through two segments, Pharma&Biotech and Specialty Ingredients. Its products and services cover bio research solutions, such as stem cells primary cells and media, cell culture, transfection, exosomes, and assay solutions; electrophoresis of nucleic acids and proteins; primary and stem cell protocols; Hepatocytes/ADMETox solutions for microsomes and primary cell culture applications; and CytoSMART system, a live cell imaging and monitoring system. The company’s products and services also cover pharma and biotech solutions, such as bioprocess systems, drug discovery, endotoxin detection, informatics, bioassay services, and encapsulation technologies; consumer health solutions comprising hygiene, nutrition, personal care, preservation, and capsules and food supplements; and agro ingredients, such as intermediates, molluscicides, specialties, formulation ingredients, crop protection, and animal care solutions. In addition, its products and services include coatings and composites, performance intermediates, composite materials, and functional chemicals; and materials protection, oil and gas, marine antifouling, hydrazine, and wood protection solutions. The company serves pharmaceutical, biotech, consumer health, nutrition, and specialty chemicals and industrial markets. Lonza Group Ltd has a strategic collaboration agreement with Prevail Therapeutics Inc. to develop and manufacture Prevail’s AAV9 gene therapy programs for patients with neurodegenerative diseases. Lonza Group Ltd was founded in 1897 and is headquartered in Basel, Switzerland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/25 20:59 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.