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Lonza Group

SWX:LONN
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LONN
SWX
CHF25B
Market Cap
  1. Home
  2. CH
  3. Pharmaceuticals & Biotech
Company description

Lonza Group Ltd supplies products and services to the pharmaceutical, biotech, and specialty ingredients markets worldwide. The last earnings update was 104 days ago. More info.


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LONN Share Price and Events
7 Day Returns
-0.5%
SWX:LONN
2.7%
Europe Life Sciences
1.3%
CH Market
1 Year Returns
23.6%
SWX:LONN
21.3%
Europe Life Sciences
9.8%
CH Market
LONN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lonza Group (LONN) -0.5% 7.8% 12.6% 23.6% 107.6% 249.9%
Europe Life Sciences 2.7% 2.5% 10.4% 21.3% 84.6% 204.2%
CH Market 1.3% 2.9% 3.1% 9.8% 18.7% 13.6%
1 Year Return vs Industry and Market
  • LONN outperformed the Life Sciences industry which returned 21.3% over the past year.
  • LONN outperformed the Market in Switzerland which returned 9.8% over the past year.
Price Volatility
LONN
Industry
5yr Volatility vs Market

Value

 Is Lonza Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lonza Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lonza Group.

SWX:LONN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year CH Government Bond Rate 3.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SWX:LONN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate 3.3%
Equity Risk Premium S&P Global 6%
Life Sciences Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.99 (1 + (1- 18%) (16.59%))
1.084
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (1.084 * 5.96%)
9.73%

Discounted Cash Flow Calculation for SWX:LONN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lonza Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SWX:LONN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CHF, Millions) Source Present Value
Discounted (@ 9.73%)
2019 505.82 Analyst x5 460.95
2020 718.07 Analyst x7 596.34
2021 829.04 Analyst x5 627.43
2022 921.50 Analyst x1 635.54
2023 998.74 Est @ 8.38% 627.72
2024 1,067.15 Est @ 6.85% 611.22
2025 1,128.81 Est @ 5.78% 589.19
2026 1,185.55 Est @ 5.03% 563.92
2027 1,238.91 Est @ 4.5% 537.03
2028 1,290.12 Est @ 4.13% 509.63
Present value of next 10 years cash flows CHF5,758.96
SWX:LONN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CHF1,290.12 × (1 + 3.28%) ÷ (9.73% – 3.28%)
CHF20,630.83
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CHF20,630.83 ÷ (1 + 9.73%)10
CHF8,149.64
SWX:LONN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CHF5,758.96 + CHF8,149.64
CHF13,908.60
Equity Value per Share
(CHF)
= Total value / Shares Outstanding
= CHF13,908.60 / 74.25
CHF187.33
SWX:LONN Discount to Share Price
Calculation Result
Value per share (CHF) From above. CHF187.33
Current discount Discount to share price of CHF334.70
= -1 x (CHF334.70 - CHF187.33) / CHF187.33
-78.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Lonza Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lonza Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lonza Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:LONN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CHF CHF8.80
SWX:LONN Share Price ** SWX (2019-06-19) in CHF CHF334.7
Europe Life Sciences Industry PE Ratio Median Figure of 16 Publicly-Listed Life Sciences Companies 37.98x
Switzerland Market PE Ratio Median Figure of 174 Publicly-Listed Companies 18.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lonza Group.

SWX:LONN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SWX:LONN Share Price ÷ EPS (both in CHF)

= 334.7 ÷ 8.80

38.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lonza Group is overvalued based on earnings compared to the Europe Life Sciences industry average.
  • Lonza Group is overvalued based on earnings compared to the Switzerland market.
Price based on expected Growth
Does Lonza Group's expected growth come at a high price?
Raw Data
SWX:LONN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
14.5%per year
Europe Life Sciences Industry PEG Ratio Median Figure of 12 Publicly-Listed Life Sciences Companies 2.7x
Switzerland Market PEG Ratio Median Figure of 125 Publicly-Listed Companies 2.19x

*Line of best fit is calculated by linear regression .

SWX:LONN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 38.02x ÷ 14.5%

2.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lonza Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Lonza Group's assets?
Raw Data
SWX:LONN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CHF CHF83.75
SWX:LONN Share Price * SWX (2019-06-19) in CHF CHF334.7
Europe Life Sciences Industry PB Ratio Median Figure of 35 Publicly-Listed Life Sciences Companies 2.5x
Switzerland Market PB Ratio Median Figure of 215 Publicly-Listed Companies 1.68x
SWX:LONN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SWX:LONN Share Price ÷ Book Value per Share (both in CHF)

= 334.7 ÷ 83.75

4x

* Primary Listing of Lonza Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lonza Group is overvalued based on assets compared to the Europe Life Sciences industry average.
X
Value checks
We assess Lonza Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Life Sciences industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Life Sciences industry average (and greater than 0)? (1 check)
  5. Lonza Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Lonza Group expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lonza Group expected to grow at an attractive rate?
  • Lonza Group's earnings growth is expected to exceed the low risk savings rate of 3.3%.
Growth vs Market Checks
  • Lonza Group's earnings growth is expected to exceed the Switzerland market average.
  • Lonza Group's revenue growth is expected to exceed the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:LONN Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:LONN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 14.5%
SWX:LONN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 7%
Europe Life Sciences Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
Europe Life Sciences Industry Revenue Growth Rate Market Cap Weighted Average 7.9%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SWX:LONN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in CHF Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:LONN Future Estimates Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,968 2,081 1,510 4
2022-12-31 7,385 1,813 1,265 6
2021-12-31 6,786 1,594 1,065 10
2020-12-31 6,333 1,434 922 13
2019-12-31 5,930 1,249 828 13
SWX:LONN Past Financials Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income *
2018-12-31 5,542 1,082 655
2018-06-30 5,874 882 902
2018-03-31 5,490 873 814
2017-12-31 4,548 841 664
2017-09-30 4,758 798 527
2017-06-30 4,423 738 334
2017-03-31 4,278 745 318
2016-12-31 4,132 752 301
2016-09-30 4,025 779 331
2016-06-30 3,918 805 360
2016-03-31 3,861 773 319

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lonza Group's earnings are expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).
  • Lonza Group's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:LONN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Lonza Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:LONN Future Estimates Data
Date (Data in CHF Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 19.41 20.61 18.48 3.00
2022-12-31 16.68 17.92 14.65 5.00
2021-12-31 14.17 15.11 13.30 9.00
2020-12-31 12.24 13.64 11.33 11.00
2019-12-31 10.98 14.82 9.72 11.00
SWX:LONN Past Financials Data
Date (Data in CHF Millions) EPS *
2018-12-31 8.80
2018-06-30 12.12
2018-03-31 11.44
2017-12-31 9.78
2017-09-30 7.10
2017-06-30 5.86
2017-03-31 5.17
2016-12-31 5.73
2016-09-30 6.26
2016-06-30 6.88
2016-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lonza Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Lonza Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lonza Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Lonza Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lonza Group's growth in the last year to its industry (Life Sciences).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lonza Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Lonza Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Lonza Group's 1-year earnings growth is negative, it can't be compared to the Europe Life Sciences industry average.
Earnings and Revenue History
Lonza Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lonza Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:LONN Past Revenue, Cash Flow and Net Income Data
Date (Data in CHF Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,542.00 655.00 1,022.00 110.00
2018-06-30 5,874.00 902.00 1,111.00 103.00
2018-03-31 5,489.50 814.00 1,030.00 103.00
2017-12-31 4,548.00 664.00 831.00 95.00
2017-09-30 4,757.50 527.00 891.00 93.50
2017-06-30 4,423.00 334.00 833.00 84.00
2017-03-31 4,277.50 317.50 782.50 84.00
2016-12-31 4,132.00 301.00 732.00 84.00
2016-09-30 4,025.00 330.50 671.50 93.50
2016-06-30 3,918.00 360.00 611.00 103.00
2016-03-31 3,860.50 318.50 573.50 103.00
2015-12-31 3,803.00 277.00 536.00 103.00
2015-09-30 3,773.50 242.50 528.50 102.00
2015-06-30 3,744.00 208.00 521.00 101.00
2015-03-31 3,692.00 222.50 520.00 101.00
2014-12-31 3,640.00 237.00 519.00 101.00
2014-09-30 3,640.00 211.50 489.50 105.50
2014-06-30 3,640.00 186.00 460.00 110.00
2014-03-31 3,612.00 136.50 444.50 110.00
2013-12-31 3,584.00 87.00 429.00 110.00
2013-09-30 3,644.50 109.00 622.50 113.00
2013-06-30 3,705.00 131.00 816.00 116.00
2013-03-31 3,815.00 152.50 668.00 116.00
2012-12-31 3,925.00 174.00 520.00 116.00
2012-09-30 3,694.00 156.00 430.50 105.00
2012-06-30 3,463.00 140.00 324.00 94.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lonza Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lonza Group used its assets less efficiently than the Europe Life Sciences industry average last year based on Return on Assets.
  • Lonza Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lonza Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Life Sciences industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lonza Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Lonza Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lonza Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lonza Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lonza Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Lonza Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lonza Group Company Filings, last reported 5 months ago.

SWX:LONN Past Debt and Equity Data
Date (Data in CHF Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 6,290.00 4,122.00 478.00
2018-06-30 6,407.00 4,219.00 488.00
2018-03-31 6,407.00 4,219.00 488.00
2017-12-31 6,181.00 4,326.00 487.00
2017-09-30 6,253.00 4,326.00 487.00
2017-06-30 5,311.00 1,716.00 3,187.00
2017-03-31 5,311.00 1,716.00 3,187.00
2016-12-31 2,355.00 1,917.00 286.00
2016-09-30 2,355.00 1,917.00 286.00
2016-06-30 2,052.00 1,763.00 257.00
2016-03-31 2,052.00 1,763.00 257.00
2015-12-31 2,135.00 1,987.00 280.00
2015-09-30 2,135.00 1,987.00 280.00
2015-06-30 1,959.00 2,067.00 224.00
2015-03-31 1,959.00 2,067.00 224.00
2014-12-31 2,130.00 2,296.00 218.00
2014-09-30 2,130.00 2,296.00 218.00
2014-06-30 2,078.00 2,460.00 275.00
2014-03-31 2,078.00 2,460.00 275.00
2013-12-31 2,126.00 2,522.00 332.00
2013-09-30 2,126.00 2,522.00 332.00
2013-06-30 2,146.00 2,790.00 275.00
2013-03-31 2,146.00 2,790.00 275.00
2012-12-31 2,102.00 2,865.00 439.00
2012-09-30 2,406.00 2,865.00 429.00
2012-06-30 2,352.00 2,888.00 278.00
  • Lonza Group's level of debt (65.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (118.6% vs 65.5% today).
  • Debt is well covered by operating cash flow (26.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.8x coverage).
X
Financial health checks
We assess Lonza Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lonza Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Lonza Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.82%
Current annual income from Lonza Group dividends. Estimated to be 1% next year.
If you bought CHF2,000 of Lonza Group shares you are expected to receive CHF16 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lonza Group's pays a lower dividend yield than the bottom 25% of dividend payers in Switzerland (1.98%).
  • Lonza Group's dividend is below the markets top 25% of dividend payers in Switzerland (3.67%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SWX:LONN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Europe Life Sciences Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 0.8%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 166 Stocks 3%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.2%
Switzerland Bottom 25% Dividend Yield 25th Percentile 2%
Switzerland Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SWX:LONN Future Dividends Estimate Data
Date (Data in CHF) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 5.33 2.00
2022-12-31 4.23 4.00
2021-12-31 3.47 11.00
2020-12-31 3.16 14.00
2019-12-31 2.91 14.00
SWX:LONN Past Annualized Dividends Data
Date (Data in CHF) Dividend per share (annual) Avg. Yield (%)
2019-03-07 2.750 0.890
2018-02-07 2.750 0.991
2017-04-25 2.750 1.168
2016-03-16 2.500 1.418
2015-02-26 2.500 1.810
2015-01-21 2.500 2.313
2014-04-17 2.150 2.094
2013-04-10 2.150 2.767
2012-04-03 2.150 4.651
2011-03-04 2.150 3.688
2011-01-17 2.150 2.827
2010-01-28 1.750 2.167
2010-01-04 1.750 2.208

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lonza Group is not paying a notable dividend for Switzerland, therefore no need to check if the payments are stable.
  • Lonza Group is not paying a notable dividend for Switzerland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Lonza Group's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Lonza Group's dividends as it is not paying a notable one for Switzerland.
Future Payout to shareholders
  • No need to calculate the sustainability of Lonza Group's dividends in 3 years as they are not expected to pay a notable one for Switzerland.
X
Income/ dividend checks
We assess Lonza Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lonza Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lonza Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Lonza Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marc Funk
AGE 58
TENURE AS CEO 0.3 years
CEO Bio

Mr. Marc Funk serves as Chief Executive Officer at Lonza Group Ltd since March 01, 2019. Mr. Funk had been the Chief Operating Officer of Pharma & Biotech Market Segment at Lonza Group Ltd (known as Lonza Group AG) since May 2014 till March 01, 2019, served as its Chief Legal Officer since April 2012, and served as its Secretary. Mr. Funk served as Group General Counsel and Board Secretary at Lonza Group Ltd., from 2009 to 2014. He joined Lonza in January 2009. He served as an Associate General Counsel at Merck Serono (formerly Serono) from 2004 to 2008. He served as CO-CEO and General Counsel of GeneProt from 2000 to 2004. He holds a Master of Law from the University of Geneva and a Master of Law and Diplomacy from the Fletcher School (Tuft University MA).

CEO Compensation
  • Insufficient data for Marc to compare compensation growth.
  • Insufficient data for Marc to establish whether their remuneration is reasonable compared to companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the Lonza Group management team in years:

1.9
Average Tenure
57
Average Age
  • The average tenure for the Lonza Group management team is less than 2 years, this suggests a new team.
Management Team

Marc Funk

TITLE
Chief Executive Officer
AGE
58
TENURE
0.3 yrs

Rodolfo Savitzky

TITLE
Chief Financial Officer
AGE
56
TENURE
2.7 yrs

Dirk Oehlers

TITLE
Head of Investor Relations

Dominik Werner

TITLE
Head of Corporate Communications & VP
TENURE
8.8 yrs

Joseph Colleluori

TITLE
Senior Vice President of Corporate Development
TENURE
13.4 yrs

Jennifer Clancy

TITLE
Senior Director of Global Marketing
TENURE
1.2 yrs

Richard Ridinger

TITLE
COMPENSATION
CHF5M
AGE
60
TENURE
0.3 yrs

Constance Ward

TITLE
Head of External Communications

Sven Abend

TITLE
Chief Operating Officer of Specialty Ingredients Segment
AGE
50
TENURE
4.9 yrs

Stefan Stoffel

TITLE
Chief Operating Officer of Lonza Pharma Biotech & Nutrition
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Lonza Group board of directors in years:

5.2
Average Tenure
60
Average Age
  • The tenure for the Lonza Group board of directors is about average.
Board of Directors

Albert Baehny

TITLE
Chairman of the Board
COMPENSATION
CHF548K
AGE
66
TENURE
1.1 yrs

Patrick Aebischer

TITLE
Vice Chairman of the Board
COMPENSATION
CHF293K
AGE
64
TENURE
5.2 yrs

Margot Scheltema

TITLE
Independent Director
COMPENSATION
CHF279K
AGE
64
TENURE
7.2 yrs

Christoph Mäder

TITLE
Independent Director
COMPENSATION
CHF282K
AGE
59
TENURE
3.2 yrs

Werner Bauer

TITLE
Independent Director
COMPENSATION
CHF250K
AGE
68
TENURE
6.2 yrs

Barbara Richmond

TITLE
Independent Non-Executive Director
COMPENSATION
CHF271K
AGE
58
TENURE
5.2 yrs

Jürgen Steinemann

TITLE
Independent Director
COMPENSATION
CHF240K
AGE
60
TENURE
5.2 yrs

Angelic Kohlmann

TITLE
Independent Director
COMPENSATION
CHF188K
AGE
58
TENURE
1.1 yrs

Olivier Verscheure

TITLE
Independent Director
COMPENSATION
CHF188K
AGE
46
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
X
Management checks
We assess Lonza Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lonza Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Lonza Group Ltd's (VTX:LONN) Earnings Growth Stacks Up Against The Industry

View our latest analysis for Lonza Group How Did LONN's Recent Performance Stack Up Against Its Past? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 36%, indicating the rate at which LONN is growing has slowed down. … I recommend you continue to research Lonza Group to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for LONN’s future growth?

Simply Wall St -

Taking A Look At Lonza Group Ltd's (VTX:LONN) ROE

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Lonza Group: 10% = CHF655m ÷ CHF6.3b (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Lonza Group Have A Good Return On Equity? … Combining Lonza Group's Debt And Its 10% Return On Equity Although Lonza Group does use debt, its debt to equity ratio of 0.66 is still low.

Simply Wall St -

Lonza Group Ltd (VTX:LONN): Is Growth Priced In?

SWX:LONN Price Estimation Relative to Market, May 20th 2019 Lonza Group's price-to-earnings ratio stands at 36.03x, which is low, relative to the industry average. … But, since Lonza Group is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 36.03x and expected year-on-year earnings growth of 14% give Lonza Group a quite high PEG ratio of 2.61x.

Simply Wall St -

What Should We Expect From Lonza Group Ltd's (VTX:LONN) Earnings In The Year Ahead?

Help shape the future of investing tools and you could win a $250 gift card! … Based on Lonza Group Ltd's (VTX:LONN) earnings update in December 2018, … analyst consensus outlook appear cautiously optimistic,

Simply Wall St -

How Financially Strong Is Lonza Group Ltd (VTX:LONN)?

There are a number of reasons that attract investors towards large-cap companies such as Lonza Group Ltd (VTX:LONN), with a market cap of CHF22b. … I will provide an overview of Lonza Group’s financial liquidity and leverage to give you an idea of Lonza Group’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

How Do Analysts See Lonza Group Ltd (VTX:LONN) Performing In The Next Couple Of Years?

The most recent earnings release Lonza Group Ltd's (VTX:LONN) announced in December 2018a

Simply Wall St -

Lonza Group (VTX:LONN) Shareholders Have Enjoyed An Impressive 240% Share Price Gain

But on a lighter note, a good company can see its share price rise well over 100%. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Over half a decade, Lonza Group managed to grow its earnings per share at 39% a year.

Simply Wall St -

Is Lonza Group Ltd (VTX:LONN) Potentially Undervalued?

led the SWX gainers with a relatively large price hike in the past couple of weeks. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

How Much Of Lonza Group Ltd (VTX:LONN) Do Institutions Own?

If you want to know who really controls Lonza Group Ltd (VTX:LONN), then you'll have to look at the makeup of its share registry. … With a market capitalization of CHF21b, Lonza Group is rather large. … We'd expect to see institutional investors on the register.

Simply Wall St -

Does Lonza Group Ltd (VTX:LONN) Have A Good P/E Ratio?

To keep it practical, we'll show how Lonza Group Ltd's (VTX:LONN) P/E ratio could help you assess the value on offer. … How Do I Calculate Lonza Group's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

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 was founded in 1897 and is headquartered in Basel, Switzerland.

Details
Name: Lonza Group Ltd
LONN
Exchange: SWX
Founded: 1897
CHF24,850,188,747
74,246,157
Website: http://www.lonza.com
Address: Lonza Group Ltd
Muenchensteinerstrasse 38,
Basel,
Basel-Stadt, 4002,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX LONN Registered Shares SIX Swiss Exchange CH CHF 01. Nov 1999
OTCPK LZAG.F Registered Shares Pink Sheets LLC US USD 01. Nov 1999
DB LO3 Registered Shares Deutsche Boerse AG DE EUR 01. Nov 1999
LSE 0QNO Registered Shares London Stock Exchange GB CHF 01. Nov 1999
BATS-CHIXE LONNZ Registered Shares BATS 'Chi-X Europe' GB CHF 01. Nov 1999
OTCPK LZAG.Y UNSPONSORED ADR Pink Sheets LLC US USD 13. Oct 2008
Number of employees
Current staff
Staff numbers
15,375
Lonza Group employees.
Industry
Life Sciences Tools and Services
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 20:46
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/11
Last earnings filing: 2019/03/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.