OTCPK:LZAG.F

Stock Analysis Report

Executive Summary

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


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: LZAG.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

LZAG.F

-9.2%

US Life Sciences

-7.4%

US Market


1 Year Return

46.9%

LZAG.F

7.3%

US Life Sciences

10.5%

US Market

Return vs Industry: LZAG.F exceeded the US Life Sciences industry which returned 7.3% over the past year.

Return vs Market: LZAG.F exceeded the US Market which returned 10.5% over the past year.


Shareholder returns

LZAG.FIndustryMarket
7 Day-1.2%-9.2%-7.4%
30 Day4.1%-8.7%-3.6%
90 Day24.7%-4.0%-0.6%
1 Year46.9%46.9%7.5%7.3%12.8%10.5%
3 Year131.6%131.6%76.5%75.3%37.4%28.6%
5 Year245.5%245.5%105.7%102.8%61.3%43.6%

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

No news available

Valuation

Is Lonza Group undervalued compared to its fair value and its price relative to the market?

40.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LZAG.F ($422.47) is trading above our estimate of fair value ($308.33)

Significantly Below Fair Value: LZAG.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LZAG.F is poor value based on its PE Ratio (40.1x) compared to the Life Sciences industry average (34.8x).

PE vs Market: LZAG.F is poor value based on its PE Ratio (40.1x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: LZAG.F is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: LZAG.F is good value based on its PB Ratio (4.7x) compared to the US 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 17 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LZAG.F's forecast earnings growth (14% per year) is above the savings rate (1.7%).

Earnings vs Market: LZAG.F's earnings (14% per year) are forecast to grow faster than the US market (13.2% per year).

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

Revenue vs Market: LZAG.F's revenue (6.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: LZAG.F's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LZAG.F's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has Lonza Group performed over the past 5 years?

28.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LZAG.F has high quality earnings.

Growing Profit Margin: LZAG.F's current net profit margins (12.9%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: LZAG.F's earnings have grown significantly by 28% per year over the past 5 years.

Accelerating Growth: LZAG.F's earnings growth over the past year (16.3%) is below its 5-year average (28% per year).

Earnings vs Industry: LZAG.F earnings growth over the past year (16.3%) exceeded the Life Sciences industry 15.3%.


Return on Equity

High ROE: LZAG.F's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Lonza Group's financial position?


Financial Position Analysis

Short Term Liabilities: LZAG.F's short term assets (CHF3.0B) exceed its short term liabilities (CHF2.6B).

Long Term Liabilities: LZAG.F's short term assets (CHF3.0B) do not cover its long term liabilities (CHF4.6B).


Debt to Equity History and Analysis

Debt Level: LZAG.F's debt to equity ratio (53.8%) is considered high.

Reducing Debt: LZAG.F's debt to equity ratio has reduced from 107.6% to 53.8% over the past 5 years.

Debt Coverage: LZAG.F's debt is well covered by operating cash flow (27.9%).

Interest Coverage: LZAG.F's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet

Inventory Level: LZAG.F has a high level of physical assets or inventory.

Debt Coverage by Assets: LZAG.F's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

0.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LZAG.F's dividend (0.67%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: LZAG.F's dividend (0.67%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: LZAG.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: LZAG.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: LZAG.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LZAG.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Albert Baehny (67yo)

0.3yrs

Tenure

CHF548,318

Compensation

Mr. Albert M. Baehny has been Vice Chairman of Investis Holding SA. Mr. Baehny has been an Interim Chief Executive Officer of Lonza Group Ltd. since November 12, 2019. He serves as the Chief Executive Offi ...


Leadership Team

NamePositionTenureCompensationOwnership
Albert Baehny
Chairman of the Board & Interim CEO0.3yrsCHF548.32k0.0015% CHF486.2k
Rodolfo Savitzky
Chief Financial Officer3.3yrsno data0.0082% CHF2.6m
Dirk Oehlers
Head of Investor Relations0yrsno datano data
Dominik Werner
Head of Corporate Communications & VP9.4yrsno datano data
Joseph Colleluori
Senior Vice President of Corporate Development14.1yrsno datano data
Jennifer Clancy
Senior Director of Global Marketing1.8yrsno datano data
Constance Ward
Head of External Communications0yrsno datano data
Sven Abend
Chief Operating Officer of Specialty Ingredients Segment5.6yrsno data0.013% CHF4.2m
Stefan Stoffel
Chief Operating Officer of Lonza Pharma Biotech & Nutrition0.9yrsno datano data
Sanna Fowler
Head of External Communications0yrsno datano data

3.3yrs

Average Tenure

57yo

Average Age

Experienced Management: LZAG.F's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albert Baehny
Chairman of the Board & Interim CEO0.3yrsCHF548.32k0.0015% CHF486.2k
Patrick Aebischer
Independent Vice Chairman of the Board5.8yrsCHF292.60k0.0079% CHF2.5m
Barbara Richmond
Independent Non-Executive Director5.8yrsCHF271.07k0.0053% CHF1.7m
Christoph Mäder
Lead Independent Director0.3yrsCHF282.17k0.0036% CHF1.1m
Werner Bauer
Independent Director6.8yrsCHF249.99k0.035% CHF10.9m
Jürgen Steinemann
Independent Director5.8yrsCHF239.56k0.0081% CHF2.6m
Margot Scheltema
Independent Director7.8yrsCHF279.43k0.013% CHF4.1m
Angelic Kohlmann
Independent Director1.8yrsCHF188.22k0.00028% CHF87.8k
Olivier Verscheure
Independent Director1.8yrsCHF188.22k0.00028% CHF87.8k

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: LZAG.F's board of directors are considered experienced (5.8 years average tenure).


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: LZAG.F
  • Exchange: OTCPK
  • Founded: 1897
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CHF30.612b
  • Listing Market Cap: CHF31.368b
  • 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 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 has a strategic collaboration agreement with Prevail Therapeutics Inc. to develop and manufacture Prevail’s AAV9 gene therapy programs for patients with neurodegenerative diseases. Lonza Group Ltd was founded in 1897 and is headquartered in Basel, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:40
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.