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

1.1%

LONN

-0.03%

CH Life Sciences

-0.5%

CH Market


1 Year Return

3.1%

LONN

7.3%

CH Life Sciences

8.9%

CH Market

Return vs Industry: LONN underperformed the Swiss Life Sciences industry which returned 7.3% over the past year.

Return vs Market: LONN underperformed the Swiss Market which returned 8.9% over the past year.


Shareholder returns

LONNIndustryMarket
7 Day1.1%-0.03%-0.5%
30 Day-2.1%-3.2%-0.1%
90 Day-1.0%-5.0%1.1%
1 Year4.1%3.1%8.2%7.3%14.7%8.9%
3 Year102.4%81.5%63.6%55.4%34.0%16.6%
5 Year257.9%209.9%227.6%202.4%38.0%16.3%

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 compared to its fair value and its price relative to the market?

37.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: LONN (CHF335.6) is trading above our estimate of fair value (CHF301.26)

Significantly Undervalued: 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 (37.9x) compared to the Life Sciences industry average (39.7x).

PE vs Market: LONN is poor value based on its PE Ratio (37.9x) compared to the Swiss market (18.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: LONN is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: LONN is overvalued based on its PB Ratio (4x) compared to the XE Life Sciences industry average (3.5x).


Next Steps

Future Growth

How is Lonza Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LONN's forecast earnings growth (17% per year) is above the savings rate (3.3%).

Earnings vs Market: LONN's earnings (17% per year) are forecast to grow faster than the Swiss market (10.2% per year).

High Growth Earnings: LONN's earnings are forecast to grow, but not significantly.

Revenue vs Market: LONN's revenue (7.3% per year) is forecast to grow faster than the Swiss market (3.5% per year).

High Growth Revenue: LONN's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LONN's Return on Equity is forecast to be low in 3 years time (14.4%).


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

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 (14%).


Return on Equity

High ROE: LONN's Return on Equity (10.6%) is considered low.


Return on Assets

ROA vs Industry: LONN's Return on Assets is below or equal to the Life Sciences industry average last year.


Return on Capital Employed

ROCE Improving: LONN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lonza Group's financial position?


Financial Position Analysis

Short Term Liabilities: LONN's short term assets (CHF2.9B) exceeds its short term liabilities (CHF2.3B)

Long Term Liabilities: LONN's short term assets (2.9B) do not cover its long term liabilities (5.0B)


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?

0.82%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.9%markettop25%3.7%industryaverage0.8%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LONN's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.91%).

High Dividend: LONN's dividend (0.82%) is low compared to the top 25% of dividend payers in the Swiss market (3.7%).

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?

2.3yrs

Average management tenure


CEO

Marc Funk (59yo)

0.6yrs

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

2.3yrs

Average Tenure

58yo

Average Age

Experienced Management: LONN's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

61yo

Average Age

Experienced Board: LONN's board of directors are considered experienced (5.5 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


Management Team

  • Richard Ridinger (61yo)

    • Tenure: 0.6yrs
    • Compensation: CHF4.78m
  • Dominik Werner

    Head of Corporate Communications & VP

    • Tenure: 9.1yrs
  • Joseph Colleluori

    Senior Vice President of Corporate Development

    • Tenure: 13.8yrs
  • Dirk Oehlers

    Head of Investor Relations

    • Tenure: 0yrs
  • Marc Funk (59yo)

    Chief Executive Officer

    • Tenure: 0.6yrs
  • Constance Ward

    Head of External Communications

    • Tenure: 0yrs
  • Sven Abend (51yo)

    Chief Operating Officer of Specialty Ingredients Segment

    • Tenure: 5.3yrs
  • Rodolfo Savitzky (57yo)

    Chief Financial Officer

    • Tenure: 3yrs
  • Jennifer Clancy

    Senior Director of Global Marketing

    • Tenure: 1.5yrs
  • Stefan Stoffel

    Chief Operating Officer of Lonza Pharma Biotech & Nutrition

    • Tenure: 0.6yrs

Board Members

  • Patrick Aebischer (65yo)

    Independent Vice Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: CHF292.60k
  • Barbara Richmond (59yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: CHF271.07k
  • Christoph Mäder (60yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: CHF282.17k
  • Werner Bauer (69yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: CHF249.99k
  • Albert Baehny (67yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: CHF548.32k
  • Jürgen Steinemann (61yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: CHF239.56k
  • Margot Scheltema (65yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: CHF279.43k
  • Angelic Kohlmann (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CHF188.22k
  • Olivier Verscheure (47yo)

    Independent Director

    • Tenure: 1.4yrs
    • 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: CHF24.917b
  • 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 Analysis2019/10/18 20:56
End of Day Share Price2019/10/18 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.