SWX:LONN

Stock Analysis Report

Executive Summary

Lonza Group Ltd supplies products and services to the pharmaceutical, biotech, and specialty ingredients markets worldwide.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

5.1%

SWX:LONN

4.0%

CH Life Sciences

2.2%

CH Market


1 Year Return

13.1%

SWX:LONN

7.1%

CH Life Sciences

3.3%

CH Market

LONN outperformed the Life Sciences industry which returned 5.5% over the past year.

LONN outperformed the Market in Switzerland which returned 2.1% over the past year.


Share holder returns

LONNIndustryMarket
7 Day5.1%4.0%2.2%
30 Day4.2%-1.9%-0.4%
90 Day13.6%6.2%2.5%
1 Year14.1%13.1%8.0%7.1%8.7%3.3%
3 Year110.4%88.7%77.4%68.2%30.4%13.9%
5 Year301.6%247.7%225.6%201.5%32.9%12.3%

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

Valuation

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

40.17x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Lonza Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Lonza Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Lonza Group is poor value based on expected growth next year.


Price Based on Value of Assets

Lonza Group is overvalued based on assets compared to the Europe Life Sciences industry average.


Next Steps

Future Growth

How is Lonza Group expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lonza Group's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

Lonza Group's earnings are expected to grow by 16.5% yearly, however this is not considered high growth (20% yearly).

Lonza Group's revenue growth is expected to exceed the Switzerland market average.

Lonza Group's earnings growth is expected to exceed the Switzerland market average.

Lonza Group's earnings growth is expected to exceed the low risk savings rate of 3.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Lonza Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Lonza Group performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Lonza Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Lonza Group used its assets less efficiently than the Europe Life Sciences industry average last year based on Return on Assets.


Return on Capital Employed

Lonza Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Lonza Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Lonza Group's level of debt (60.4%) 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 (118.1% vs 60.4% today).

Debt is well covered by operating cash flow (21.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

0.97%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Lonza Group's pays a lower dividend yield than the bottom 25% of dividend payers in Switzerland (2.03%).

Lonza Group's dividend is below the markets top 25% of dividend payers in Switzerland (3.87%).

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

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.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Marc Funk (59yo)

0.4yrs

Tenure

0

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  ...


Management Age and Tenure

2.1yrs

Average Tenure

58yo

Average Age

The tenure for the Lonza Group management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

61yo

Average Age

The tenure for the Lonza Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Richard Ridinger (61yo)

    • Tenure: 0.4yrs
    • Compensation: CHF4.78m
  • Dominik Werner

    Head of Corporate Communications & VP

    • Tenure: 8.9yrs
  • Joseph Colleluori

    Senior Vice President of Corporate Development

    • Tenure: 13.6yrs
  • Dirk Oehlers

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Marc Funk (59yo)

    Chief Executive Officer

    • Tenure: 0.4yrs
  • Constance Ward

    Head of External Communications

    • Tenure: 0.0yrs
  • Sven Abend (51yo)

    Chief Operating Officer of Specialty Ingredients Segment

    • Tenure: 5.1yrs
  • Rodolfo Savitzky (57yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
  • Jennifer Clancy

    Senior Director of Global Marketing

    • Tenure: 1.3yrs
  • Stefan Stoffel

    Chief Operating Officer of Lonza Pharma Biotech & Nutrition

    • Tenure: 0.4yrs

Board Members

  • Patrick Aebischer (65yo)

    Vice Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: CHF292.60k
  • Barbara Richmond (59yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CHF271.07k
  • Christoph Mäder (60yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: CHF282.17k
  • Werner Bauer (69yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CHF249.99k
  • Albert Baehny (67yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: CHF548.32k
  • Jürgen Steinemann (61yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CHF239.56k
  • Margot Scheltema (65yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: CHF279.43k
  • Angelic Kohlmann (59yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CHF188.22k
  • Olivier Verscheure (47yo)

    Independent Director

    • Tenure: 1.3yrs
    • 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: CHF26.432b
  • Shares outstanding: 74.25m
  • Website: https://www.lonza.com

Number of Employees


Location

  • Lonza Group Ltd
  • Muenchensteinerstrasse 38
  • Basel
  • Basel-Stadt
  • 4002
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LZAG.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDNov 1999
LONNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFNov 1999
LO3DB (Deutsche Boerse AG)YesRegistered SharesDEEURNov 1999
0QNOLSE (London Stock Exchange)YesRegistered SharesGBCHFNov 1999
LZAG.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 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 Ingredien ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 20:48
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.