Lonza Group (LZAGY) AI Stock Analysis

• Market Cap: $48.16B
• Dividend Yield: 0.61%
• Average Volume (3M): 6.07K
• Price to Earnings (P/E): 67.5
• Beta (1Y): 1.06
• Revenue Growth: -0.20%
• EPS Growth: 4.89%
• Country: US
• Employees: 17,995
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.96
• Shares Outstanding: 722,261,840
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 6,065
• PEG Ratio: -0.05
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.01
• 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: $74.80
• Price Target Upside: 9.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $76.00 ▲(10.93%Upside)

The overall stock score for Lonza Group is driven primarily by its strong technical analysis indicators, suggesting a positive market trend. However, the high P/E ratio indicates overvaluation concerns, and financial performance highlights challenges in revenue growth and cash flow. The absence of earnings call data and corporate events limits further contextual insights.

Lonza Group Business Overview & Revenue Model

Company Description

Lonza Group AG, together with its subsidiaries, supplies various products and services for pharmaceutical, biotech, and nutrition markets in Europe, North and Central America, Latin America, Asia, Australia and New Zealand, and internationally. It operates through Biologics, Small Molecules, Cell & Gene, and Capsules & Health Ingredients segments. The Biologics segment engages in the contract development and manufacturing of biopharmaceuticals for clinical and commercial manufacturing needs throughout the product lifecycle, including drug substance and drug product manufacturing. The Small Molecules segment operates as an integrated development and manufacturing service provider for small molecule drug substances and their intermediates. It supports customers across various aspects of design, development, and manufacturing. The Cell & Gene segment develops technologies and platforms that industrialize the manufacturing processes and production of cell and gene therapies. It also offers contract development and manufacturing services, and regulatory support for a range of allogeneic and autologous cell therapies, and exosome-based therapies, as well as viral vector gene therapies. In addition, this segment provides specialty raw materials and enabling technology solutions in cell and gene therapy, injectable drugs, vaccines, and bio-manufacturing markets. The Capsules & Health Ingredients segment offers capsules, dosage form solutions, and health ingredients for pharmaceutical and nutraceutical customers. The company was founded in 1897 and is headquartered in Basel, Switzerland.

How the Company Makes Money

Lonza Group generates revenue through a diversified business model focusing on the Pharma & Biotech and Specialty Ingredients segments. In the Pharma & Biotech segment, Lonza offers custom development and manufacturing services, including contract development and manufacturing organization (CDMO) services, which support the development and production of biologics, cell and gene therapies, and small molecule drugs. This segment is a key revenue driver, benefiting from long-term contracts and strategic partnerships with pharmaceutical and biotechnology companies. The Specialty Ingredients segment provides high-quality ingredients and solutions for the nutrition, hygiene, preservation, and personal care industries, contributing to Lonza's revenue through the sale of specialty chemicals and consumer health products. The company's earnings are further supported by its investment in innovation, strategic acquisitions, and global operations, which enhance its ability to meet the evolving needs of its clients.

Lonza Group Financial Statement Overview

Summary

Lonza Group presents a mixed financial picture. Strong profitability and operational efficiency are offset by inconsistent revenue growth and negative free cash flow due to high capital expenditures. The balance sheet is stable with a manageable debt level, but increasing liabilities require attention.

Income Statement

Lonza Group's income statement reflects stable revenue with a slight decline from the previous year. The gross profit margin and net profit margin are healthy, indicating good profitability. However, the revenue growth rate has been inconsistent, with a recent decrease. The EBIT and EBITDA margins show strong operational efficiency, but the net income has declined from its peak in 2021, suggesting some challenges in maintaining profitability growth.

Balance Sheet

The balance sheet is robust, with a solid equity base and a moderate debt-to-equity ratio, ensuring financial stability. Return on Equity (ROE) is positive but has declined, pointing to decreased efficiency in generating profits from shareholders' equity. The equity ratio is strong, indicating a healthy proportion of assets financed by shareholders' equity. However, the increase in total liabilities over time is a concern that needs monitoring.

Cash Flow

Lonza Group's cash flow situation shows mixed results. Operating cash flow remains strong, although free cash flow is negative, primarily due to significant capital expenditures. The operating cash flow to net income ratio suggests effective cash generation from operations, but the negative free cash flow to net income ratio highlights challenges in covering capital expenditures from operating activities.

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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LZAGY, the sentiment is Positive. The current price of 68.51 is below the 20-day moving average (MA) of 69.11, above the 50-day MA of 68.45, and above the 200-day MA of 63.67, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 47.42 is Neutral, neither overbought nor oversold. The STOCH value of 2.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LZAGY.

Lonza Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A	79 Outperform	$32.83B	28.50	18.88%	0.86%	0.56%	-4.08%
ICLR	77 Outperform	$11.83B	15.94	8.01%	―	-0.48%	11.47%
IQV	76 Outperform	$26.77B	21.09	21.65%	―	2.84%	-0.16%
DHR	71 Outperform	$140.55B	38.07	7.22%	0.65%	-9.19%	-12.75%
TMO	69 Neutral	$150.20B	23.35	13.73%	0.43%	0.96%	9.19%
LZAGY	67 Neutral	$48.16B	67.52	6.71%	0.61%	-0.20%	4.89%
Sector *	51 Neutral	$7.32B	0.30	-60.36%	2.39%	17.47%	1.73%