Lonza Group
Market Cap
CHF43.6b
Last Updated
2021/01/16 02:08 UTC
Data Sources
Company Financials +
Executive Summary
Lonza Group Ltd supplies products and services to the pharmaceutical, biotech, and specialty ingredients markets worldwide. More Details
Snowflake Analysis
Proven track record with adequate balance sheet.
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 is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: LONN's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-0.3%
LONN
1.2%
CH Life Sciences
0.4%
CH Market
1 Year Return
60.8%
LONN
62.0%
CH Life Sciences
-0.4%
CH Market
Return vs Industry: LONN underperformed the Swiss Life Sciences industry which returned 62.2% over the past year.
Return vs Market: LONN exceeded the Swiss Market which returned -0.2% over the past year.
Shareholder returns
| LONN | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.3% | 1.2% | 0.4% |
| 30 Day | 5.2% | 6.9% | 2.8% |
| 90 Day | -1.8% | 0.8% | 5.8% |
| 1 Year | 61.9%60.8% | 62.7%62.0% | 3.1%-0.4% |
| 3 Year | 123.1%117.4% | 129.6%124.3% | 19.8%4.7% |
| 5 Year | 332.0%279.0% | 289.8%264.3% | 51.9%26.8% |
Long-Term 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
1 day ago | Simply Wall St
Shareholders of Lonza Group (VTX:LONN) Must Be Delighted With Their 332% Total Return3 weeks ago | Simply Wall St
Is Weakness In Lonza Group Ltd (VTX:LONN) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?1 month ago | Simply Wall St
Are Institutions Heavily Invested In Lonza Group Ltd's (VTX:LONN) Shares?Valuation
Is Lonza Group undervalued compared to its fair value and its price relative to the market?
51.44x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LONN (CHF587.4) is trading above our estimate of fair value (CHF302.87)
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 (51.4x) compared to the XE Life Sciences industry average (60.1x).
PE vs Market: LONN is poor value based on its PE Ratio (51.4x) compared to the Swiss market (24.5x).
Price to Earnings Growth Ratio
PEG Ratio: LONN is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: LONN is overvalued based on its PB Ratio (6.7x) compared to the XE Life Sciences industry average (5.4x).
Next Steps
Future Growth
How is Lonza Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
15.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LONN's forecast earnings growth (15.6% per year) is above the savings rate (-0.3%).
Earnings vs Market: LONN's earnings (15.6% per year) are forecast to grow faster than the Swiss market (12.9% per year).
High Growth Earnings: LONN's earnings are forecast to grow, but not significantly.
Revenue vs Market: LONN's revenue (7.6% per year) is forecast to grow faster than the Swiss market (4.6% per year).
High Growth Revenue: LONN's revenue (7.6% 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 (14.6%).
Next Steps
Past Performance
How has Lonza Group performed over the past 5 years?
24.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LONN has high quality earnings.
Growing Profit Margin: LONN's current net profit margins (14.1%) are higher than last year (11.5%).
Past Earnings Growth Analysis
Earnings Trend: LONN's earnings have grown significantly by 24.7% per year over the past 5 years.
Accelerating Growth: LONN's earnings growth over the past year (28.6%) exceeds its 5-year average (24.7% per year).
Earnings vs Industry: LONN earnings growth over the past year (28.6%) underperformed the Life Sciences industry 31.5%.
Return on Equity
High ROE: LONN's Return on Equity (13%) is considered low.
Next Steps
Financial Health
How is Lonza Group's financial position?
Financial Position Analysis
Short Term Liabilities: LONN's short term assets (CHF3.1B) exceed its short term liabilities (CHF1.9B).
Long Term Liabilities: LONN's short term assets (CHF3.1B) do not cover its long term liabilities (CHF5.5B).
Debt to Equity History and Analysis
Debt Level: LONN's debt to equity ratio (54.6%) is considered high.
Reducing Debt: LONN's debt to equity ratio has reduced from 105% to 54.6% over the past 5 years.
Debt Coverage: LONN's debt is well covered by operating cash flow (35.1%).
Interest Coverage: LONN's interest payments on its debt are well covered by EBIT (22.1x coverage).
Balance Sheet
Next Steps
Dividend
What is Lonza Group current dividend yield, its reliability and sustainability?
0.47%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LONN's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.62%).
High Dividend: LONN's dividend (0.47%) is low compared to the top 25% of dividend payers in the Swiss market (3.75%).
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
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Pierre-Alain Ruffieux (50 yo)
0.17
Tenure
Dr. Pierre-Alain Ruffieux serves as Chief Executive Officer at Lonza Group Ltd since November 1, 2020. Dr. Ruffieux served as Head of Global Pharma Technical Operations at Roche where he and his team was r...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 0.17yr | no data | no data | |
| Chief Financial Officer | 4.25yrs | no data | 0.015% CHF 6.5m | |
| Vice President of Investor Relations | no data | no data | no data | |
| Head of Corporate Communications | no data | no data | no data | |
| Senior Vice President of Corporate Development | 15yrs | no data | no data | |
| Senior Director of Global Marketing | 2.75yrs | no data | no data | |
| Chief Human Resources Officer | 0.67yr | no data | no data | |
| Head of External Communications | no data | no data | no data | |
| Chief Operating Officer of Lonza Pharma Biotech & Nutrition | 1.83yrs | no data | 0.0042% CHF 1.8m | |
| Head of External Communications | no data | no data | no data | |
| Head of Corporate Environment | no data | no data | no data | |
| Head of Communications | no data | no data | no data |
2.3yrs
Average Tenure
54yo
Average Age
Experienced Management: LONN's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Non-Executive Director | 6.75yrs | CHF270.46k | 0.0058% CHF 2.5m | |
| Lead Independent Director | 1.17yrs | CHF292.42k | 0.0042% CHF 1.9m | |
| Independent Director | 7.75yrs | CHF249.35k | 0.035% CHF 15.4m | |
| Chairman of the Board | 2.67yrs | CHF626.89k | 0.0042% CHF 1.8m | |
| Independent Director | 6.75yrs | CHF238.94k | 0.0093% CHF 4.0m | |
| Independent Director | 0.75yr | no data | no data | |
| Independent Director | 2.67yrs | CHF250.21k | 0.00080% CHF 349.1k | |
| Independent Director | 2.67yrs | CHF250.21k | 0.00080% CHF 349.1k |
2.7yrs
Average Tenure
60yo
Average Age
Experienced Board: LONN's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
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.
Top Shareholders
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: CHF43.637b
- Shares outstanding: 74.29m
- 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 |
| LONN N | BMV (Bolsa Mexicana de Valores) | Yes | Registered Shares | MX | MXN | 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 & Nutrition, and Specia...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 02:08 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.