Lonza Group Ltd (LONN) AI Stock Analysis

• Market Cap: CHF40.35B
• Dividend Yield: 0.7%
• Average Volume (3M): 196.06K
• Price to Earnings (P/E): 64.2
• Beta (1Y): 1.26
• Revenue Growth: -2.13%
• EPS Growth: 2.50%
• Country: CH
• Employees: 17,995
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 9.13
• Shares Outstanding: 72,226,180
• 10 Day Avg. Volume: 161,213
• 30 Day Avg. Volume: 196,060
• PEG Ratio: 25.73
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF666.56
• Price Target Upside: 16.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Lonza Group Ltd's stock score is influenced by its strong operational efficiency and stable balance sheet. However, challenges such as declining revenues, negative free cash flows, and a bearish technical outlook weigh heavily on the overall assessment. Additionally, the high P/E ratio suggests potential overvaluation, impacting the attractiveness of the stock for new investors.

Positive Factors

Business Expansion

Leading biologics contract drug service provider expanding even more.

Financial Performance

Better profitability with a 7% EBITDA beat supported by a favorable product mix and strong operational performance in biologics.

Strategic Focus

The new 'One Lonza' strategy, focusing on Core CDMO and the strategic review concluding that CH&I no longer fits Lonza, is incrementally positive given the risks CH&I has posed on growth, margins, and returns over the past two years.

Negative Factors

Financial Impact

The financial impact of divesting Capsules could impact FCF more.

Market Share Risk

Lonza is at risk of losing market share to players that have better growth potential.

Segment Weakness

Capsules & Health Ingredients segment experienced a 13% EBITDA miss due to destocking in pharma capsules and negative pricing in nutraceuticals.

Lonza Group Ltd Business Overview & Revenue Model

Company Description

Lonza Group Ltd is a leading global provider of integrated healthcare solutions, specializing in pharmaceutical, biotech, and nutrition sectors. The company offers a wide range of products and services, including contract development and manufacturing, innovative delivery technologies, and bioscience solutions. Lonza is known for its expertise in providing end-to-end solutions that help bring innovative medicines and healthcare products to market efficiently and effectively.

How the Company Makes Money

Lonza Group Ltd generates revenue primarily through its contract development and manufacturing services (CDMO) for the pharmaceutical and biotech industries. The company partners with pharmaceutical and biotechnology companies to provide customized solutions, including the development and manufacturing of active pharmaceutical ingredients (APIs), biologics, and cell and gene therapies. Lonza also offers a range of bioscience products and services, such as research tools and cell culture media, which contribute to its revenue streams. Strategic partnerships and long-term contracts with major pharmaceutical companies significantly bolster Lonza's earnings, alongside its focus on expanding its portfolio of high-value, specialized services.

Lonza Group Ltd Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.70B	6.57B	6.72B	6.22B	5.41B	4.51B
	Gross Profit
1.96B	2.16B	1.95B	2.30B	1.97B	1.71B
	EBIT
1.24B	964.00M	880.00M	1.35B	819.00M	937.00M
	EBITDA
1.84B	1.03B	1.53B	2.12B	1.38B	1.39B
	Net Income Common Stockholders
573.00M	636.00M	654.00M	1.22B	2.94B	869.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
505.00M	1.71B	1.67B	2.22B	3.18B	495.00M
	Total Assets
13.84B	19.73B	16.85B	17.56B	16.69B	14.63B
	Total Debt
3.78B	4.71B	3.13B	2.59B	2.75B	3.81B
	Net Debt
3.28B	3.60B	1.66B	1.25B	1.17B	3.32B
	Total Liabilities
7.28B	10.35B	7.34B	6.89B	6.87B	7.74B
	Stockholders Equity
6.49B	9.33B	9.45B	10.60B	9.75B	6.82B
Cash Flow		Free Cash Flow
26.00M	-143.00M	-263.00M	-833.00M	-126.00M	163.00M
	Operating Cash Flow
1.54B	1.27B	1.39B	1.04B	1.22B	1.14B
	Investing Cash Flow
-1.73B	-2.92B	-1.10B	-991.00M	1.02B	-1.09B
	Financing Cash Flow
-109.00M	1.28B	-152.00M	-286.00M	-1.28B	93.00M

Lonza Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 573.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LONN, the sentiment is Positive. The current price of 573.8 is above the 20-day moving average (MA) of 537.24, above the 50-day MA of 556.93, and above the 200-day MA of 549.41, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 92.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:LONN.

Lonza Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOVN	74 Outperform	CHF176.12B	17.66		3.80%	-1.03%	-18.94%
SFZN	74 Outperform	$4.00B	24.45	18.36%	0.37%	1.82%	39.11%
STMN	74 Outperform	CHF16.25B	42.02		0.83%	3.82%	57.08%
BANB	70 Outperform	CHF3.71B	30.59	8.87%	1.62%	4.84%	7.45%
LONN	58 Neutral	CHF40.35B	64.21		0.70%	-2.13%	2.50%
Sector *	51 Neutral	$5.32B	3.41	-40.36%	2.89%	17.93%	2.52%

Lonza Group Ltd Corporate Events

Lonza Announces 2025 AGM and Publishes 2024 Reports

Lonza has released its 2024 Annual and Sustainability Reports and announced the 2025 Annual General Meeting (AGM) details. The AGM will see the re-election of Jean-Marc Huët as Chair of the Board and the introduction of three new board members. The company maintains a dividend of CHF 4.00 per share, with half being tax-free. The Sustainability Report highlights Lonza’s commitment to ESG metrics, integrated into its compensation policy, underscoring its dedication to responsible business practices and transparency.

Lonza Group Implements New Operating Model to Enhance Growth and Efficiency

Lonza Group Ltd has implemented a new simplified and streamlined operating model as part of its One Lonza vision, effective immediately. This restructuring replaces the previous divisional structure with three CDMO Business Platforms: Integrated Biologics, Advanced Synthesis, and Specialized Modalities, aimed at enhancing customer experience and scalability for future growth. The reorganization is expected to empower key functions, improve execution capabilities, and maintain the company’s leadership in the healthcare CDMO market.