Lonza Group Ltd (LONN) AI Stock Analysis

• Market Cap: CHF39.69B
• Dividend Yield: 0.71%
• Average Volume (3M): 131.75K
• Price to Earnings (P/E): 63.2
• Beta (1Y): 1.24
• Revenue Growth: -2.13%
• EPS Growth: 2.50%
• Country: CH
• Employees: 17,995
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 7.99
• Shares Outstanding: 72,226,180
• 10 Day Avg. Volume: 97,342
• 30 Day Avg. Volume: 131,745
• PEG Ratio: 5.35
• Price to Book (P/B): 4.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -456.94
• 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: CHF657.00
• Price Target Upside: 16.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: CHF601.00 ▲(7.02%Upside)

Lonza Group's stock score is primarily influenced by its strong operational efficiency, despite challenges in revenue growth and free cash flow. Technical indicators suggest a neutral trend, and high valuation metrics limit the score. These factors collectively result in a moderate overall stock score.

Positive Factors

Business Expansion

Leading biologics contract drug service provider expanding even more.

Market Position

Beneficiary of US-China conflict.

Revenue Potential

Lonza will continue expanding its ADC services through R&D and acquisitions, which would boost its revenue potential and share price as the market sees increased ADC exposure to be a share price driver.

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 Performance

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

Lonza Group Ltd exhibits robust operational efficiency and a strong equity foundation. However, challenges such as declining revenues and negative free cash flows are areas of concern. While the company is maintaining profitability through efficient operations, strategic actions may be needed to address revenue growth and cash flow stability in the future.

Income Statement

Lonza Group has shown a mixed performance in its income statement. The gross profit margin for the latest year stands at 32.8%, reflecting solid profitability. However, the net profit margin decreased to 9.7% from the previous year's 9.7%, indicating some pressure on net profitability. Revenue growth has been inconsistent, with a recent decline of 2.1% in total revenue. Despite these challenges, the company maintains a respectable EBIT margin of 14.7% and EBITDA margin of 15.7%, highlighting operational efficiency.

Balance Sheet

The balance sheet of Lonza Group reveals a strong equity base, with an equity ratio of 47.3%, providing financial stability. The debt-to-equity ratio has increased to 0.50, suggesting moderate use of leverage. Return on equity is moderate at 6.8%, indicating efficient use of equity capital. Overall, the balance sheet reflects a stable financial position, supported by a strong equity foundation.

Cash Flow

Cash flow analysis shows challenges, with a negative free cash flow of -143 million CHF, although an improvement from the previous year's -263 million CHF. The operating cash flow to net income ratio stands at 2.0, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio remains negative, highlighting ongoing capital expenditure demands.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.57B	6.72B	6.22B	5.41B	4.51B
	Gross Profit
2.16B	1.95B	2.30B	1.97B	1.71B
	EBIT
964.00M	880.00M	1.35B	819.00M	937.00M
	EBITDA
1.54B	1.53B	2.12B	1.38B	1.39B
	Net Income Common Stockholders
636.00M	654.00M	1.22B	2.94B	869.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.71B	1.67B	2.22B	3.18B	495.00M
	Total Assets
19.73B	16.85B	17.56B	16.69B	14.63B
	Total Debt
5.12B	3.13B	2.59B	2.75B	3.81B
	Net Debt
4.01B	1.66B	1.25B	1.17B	3.32B
	Total Liabilities
10.35B	7.34B	6.89B	6.87B	7.74B
	Stockholders Equity
9.33B	9.45B	10.60B	9.75B	6.82B
Cash Flow		Free Cash Flow
-143.00M	-263.00M	-833.00M	-126.00M	163.00M
	Operating Cash Flow
1.27B	1.39B	1.04B	1.22B	1.14B
	Investing Cash Flow
-2.92B	-1.10B	-991.00M	1.02B	-1.09B
	Financing Cash Flow
1.28B	-152.00M	-286.00M	-1.28B	93.00M

Lonza Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 561.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LONN, the sentiment is Negative. The current price of 561.6 is below the 20-day moving average (MA) of 567.50, above the 50-day MA of 556.06, and above the 200-day MA of 549.25, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 50.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	81 Outperform	CHF182.78B	16.93		3.63%	6.34%	-13.16%
STMN	78 Outperform	CHF16.98B	43.85		0.88%	3.82%	57.08%
BANB	76 Outperform	CHF3.78B	33.42	8.87%	1.60%	4.84%	7.45%
SFZN	74 Outperform	$4.26B	25.58	18.36%	0.40%	1.82%	39.11%
LONN	64 Neutral	CHF39.69B	63.16		0.71%	-2.13%	2.50%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%

Lonza Group Ltd Corporate Events

Lonza Unveils 2024 Financials Under New Organizational Structure

Lonza Group Ltd has announced its 2024 comparative financials under the new One Lonza organizational structure, effective from April 2025. This structure includes three CDMO Business Platforms: Integrated Biologics, Advanced Synthesis, and Specialized Modalities, while the Capsules & Health Ingredients business remains unchanged. The updated financials aim to provide investors with comparable figures ahead of the Half-Year 2025 results, reflecting the company’s strategic focus on its core business areas.

The most recent analyst rating on (CH:LONN) stock is a Buy with a CHF645.00 price target. To see the full list of analyst forecasts on Lonza Group Ltd stock, see the CH:LONN Stock Forecast page.

Lonza Appoints Andreas Bohrer as Chief Legal & Corporate Affairs Officer

Lonza Group Ltd has appointed Andreas Bohrer as the Chief Legal & Corporate Affairs Officer, effective July 1, 2025. Andreas, who has been with the company since 2015, will join the Executive Committee and continue to influence Lonza’s strategic direction, particularly in legal, compliance, and public affairs. This appointment reflects his significant contributions, including his leadership during the Covid-19 pandemic, and is expected to strengthen Lonza’s industry positioning and stakeholder relations.

The most recent analyst rating on (CH:LONN) stock is a Buy with a CHF645.00 price target. To see the full list of analyst forecasts on Lonza Group Ltd stock, see the CH:LONN Stock Forecast page.

Lonza Group’s 2025 General Meeting Approves All Board Proposals

Lonza Group Ltd held its 2025 General Meeting, where all proposals by the Board of Directors were approved, including the re-election of Jean-Marc Huët as Chairman and the election of new board members. A dividend of CHF 4.00 per share will be distributed from May 15, 2025. Deloitte was re-elected as the auditor for 2026, and the shareholders supported all other proposals, including the compensation report and non-financial matters.

Lonza Reports Strong Q1 2025 Performance and Confirms 2025 Outlook

Lonza Group Ltd reported a strong performance in Q1 2025, aligning with its full-year expectations. The company confirmed its outlook for 2025, with significant growth anticipated in its CDMO and Capsules & Health Ingredients divisions. Lonza is progressing well with its growth projects, including new facilities in Visp and Stein, and is preparing for the exit of its CHI business. The company also completed a share buyback program, reflecting confidence in its strategic direction.

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.