Lonza Group
Market Cap
CHF40.7b
Last Updated
2021/04/11 17:10 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
Excellent balance sheet with acceptable track record.
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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 +/- 3% a week.
Volatility Over Time: LONN's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
2.3%
LONN
3.7%
CH Life Sciences
1.1%
CH Market
1 Year Return
37.3%
LONN
67.7%
CH Life Sciences
21.5%
CH Market
Return vs Industry: LONN underperformed the Swiss Life Sciences industry which returned 64.7% over the past year.
Return vs Market: LONN exceeded the Swiss Market which returned 21% over the past year.
Shareholder returns
| LONN | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 3.7% | 1.1% |
| 30 Day | 0.4% | 7.0% | 3.7% |
| 90 Day | -7.3% | 9.4% | 5.7% |
| 1 Year | 38.2%37.3% | 68.4%67.7% | 25.2%21.5% |
| 3 Year | 140.2%134.1% | 167.7%161.7% | 35.5%19.5% |
| 5 Year | 281.6%234.8% | 297.6%271.9% | 61.3%32.1% |
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 week ago | Simply Wall St
Will Weakness in Lonza Group Ltd's (VTX:LONN) Stock Prove Temporary Given Strong Fundamentals?1 month ago | Simply Wall St
How Many Lonza Group Ltd (VTX:LONN) Shares Do Institutions Own?2 months ago | Simply Wall St
The Lonza Group Ltd (VTX:LONN) Analysts Have Been Trimming Their Sales ForecastsValuation
Is Lonza Group undervalued compared to its fair value and its price relative to the market?
55.89x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LONN (CHF548.4) is trading above our estimate of fair value (CHF363.9)
Significantly Below Fair Value: LONN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LONN is poor value based on its PE Ratio (55.9x) compared to the XE Life Sciences industry average (52.2x).
PE vs Market: LONN is poor value based on its PE Ratio (55.9x) compared to the Swiss market (24.9x).
Price to Earnings Growth Ratio
PEG Ratio: LONN is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: LONN is overvalued based on its PB Ratio (6x) compared to the XE Life Sciences industry average (5.9x).
Future Growth
How is Lonza Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
12.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LONN's forecast earnings growth (12.8% per year) is above the savings rate (-0.3%).
Earnings vs Market: LONN's earnings (12.8% per year) are forecast to grow slower than the Swiss market (13.5% per year).
High Growth Earnings: LONN's earnings are forecast to grow, but not significantly.
Revenue vs Market: LONN's revenue (9.6% per year) is forecast to grow faster than the Swiss market (4.5% per year).
High Growth Revenue: LONN's revenue (9.6% 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 (12.2%).
Past Performance
How has Lonza Group performed over the past 5 years?
20.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LONN has high quality earnings.
Growing Profit Margin: LONN's current net profit margins (16.2%) are higher than last year (12.9%).
Past Earnings Growth Analysis
Earnings Trend: LONN's earnings have grown significantly by 20.8% 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 (-4.3%) over the past year, making it difficult to compare to the Life Sciences industry average (43.9%).
Return on Equity
High ROE: LONN's Return on Equity (10.7%) is considered low.
Financial Health
How is Lonza Group's financial position?
Financial Position Analysis
Short Term Liabilities: LONN's short term assets (CHF4.8B) exceed its short term liabilities (CHF3.1B).
Long Term Liabilities: LONN's short term assets (CHF4.8B) exceed its long term liabilities (CHF4.5B).
Debt to Equity History and Analysis
Debt Level: LONN's debt to equity ratio (48.7%) is considered high.
Reducing Debt: LONN's debt to equity ratio has reduced from 92.7% to 48.7% over the past 5 years.
Debt Coverage: LONN's debt is well covered by operating cash flow (33.9%).
Interest Coverage: LONN's interest payments on its debt are well covered by EBIT (14x coverage).
Balance Sheet
Dividend
What is Lonza Group current dividend yield, its reliability and sustainability?
0.55%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LONN's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.51%).
High Dividend: LONN's dividend (0.55%) is low compared to the top 25% of dividend payers in the Swiss market (3.49%).
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?
2.5yrs
Average management tenure
CEO
Pierre-Alain Ruffieux (51 yo)
0.42
Tenure
Dr. Pierre-Alain Ruffieux, PhD has been the 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 te...
Leadership Team
Experienced Management: LONN's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: LONN's board of directors are not considered experienced ( 2.9 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: CHF40.737b
- Shares outstanding: 74.28m
- Website: https://www.lonza.com
Number of Employees
Location
- Lonza Group Ltd
- Muenchensteinerstrasse 38
- Basel
- Basel-Stadt
- 4002
- Switzerland
Listings
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 | 2021/04/11 17:10 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.