LONZA GROUP AG-REG (LO3.DE) Stock Fundamental Analysis
FRA:LO3 - Deutsche Boerse Ag - CH0013841017 - Common Stock - Currency: EUR
Taking everything into account, LO3 scores 5 out of 10 in our fundamental rating. LO3 was compared to 18 industry peers in the Life Sciences Tools & Services industry. LO3 has only an average score on both its financial health and profitability. While showing a medium growth rate, LO3 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
LO3 had positive earnings in the past year.
In the past year LO3 had a positive cash flow from operations.
Each year in the past 5 years LO3 has been profitable.
In the past 5 years LO3 always reported a positive cash flow from operatings.
1.2 Ratios
LO3's Return On Assets of 4.10% is fine compared to the rest of the industry. LO3 outperforms 72.22% of its industry peers.
LO3 has a Return On Equity of 7.84%. This is in the better half of the industry: LO3 outperforms 77.78% of its industry peers.
LO3's Return On Invested Capital of 7.82% is fine compared to the rest of the industry. LO3 outperforms 72.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LO3 is in line with the industry average of 6.95%.
The last Return On Invested Capital (7.82%) for LO3 is above the 3 year average (7.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 7.84% | ||
| ROIC | 7.82% |
ROA(3y)4.7%
ROA(5y)7.6%
ROE(3y)8.4%
ROE(5y)13.63%
ROIC(3y)7.29%
ROIC(5y)6.79%
1.3 Margins
Looking at the Profit Margin, with a value of 10.33%, LO3 is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of LO3 has declined.
Looking at the Operating Margin, with a value of 20.13%, LO3 belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of LO3 has declined.
LO3 has a Gross Margin (32.93%) which is in line with its industry peers.
In the last couple of years the Gross Margin of LO3 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.13% | ||
| PM (TTM) | 10.33% | ||
| GM | 32.93% |
OM growth 3Y4.86%
OM growth 5Y-4.24%
PM growth 3Y-43.77%
PM growth 5Y-8.8%
GM growth 3Y-2.04%
GM growth 5Y-2.8%
2. Health
2.1 Basic Checks
LO3 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LO3 has been reduced compared to 1 year ago.
Compared to 5 years ago, LO3 has less shares outstanding
Compared to 1 year ago, LO3 has a worse debt to assets ratio.
2.2 Solvency
LO3 has an Altman-Z score of 4.35. This indicates that LO3 is financially healthy and has little risk of bankruptcy at the moment.
LO3 has a Altman-Z score of 4.35. This is amongst the best in the industry. LO3 outperforms 88.89% of its industry peers.
LO3 has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
LO3 has a Debt to Equity ratio of 0.39. This is in the better half of the industry: LO3 outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.35 |
ROIC/WACC1.55
WACC5.04%
2.3 Liquidity
LO3 has a Current Ratio of 2.04. This indicates that LO3 is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.04, LO3 belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that LO3 should not have too much problems paying its short term obligations.
The Quick ratio of LO3 (1.38) is better than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.63% over the past year.
The Earnings Per Share has been growing slightly by 2.01% on average over the past years.
Looking at the last year, LO3 shows a small growth in Revenue. The Revenue has grown by 5.93% in the last year.
The Revenue has been growing by 9.34% on average over the past years. This is quite good.
EPS 1Y (TTM)16.63%
EPS 3Y5.92%
EPS 5Y2.01%
EPS Q2Q%6.98%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y6.72%
Revenue growth 5Y9.34%
Sales Q2Q%16.98%
3.2 Future
LO3 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.12% yearly.
Based on estimates for the next years, LO3 will show a quite strong growth in Revenue. The Revenue will grow by 13.02% on average per year.
EPS Next Y10.44%
EPS Next 2Y14.88%
EPS Next 3Y16.24%
EPS Next 5Y17.12%
Revenue Next Year14.77%
Revenue Next 2Y12.02%
Revenue Next 3Y11.71%
Revenue Next 5Y13.02%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.42 indicates a quite expensive valuation of LO3.
Compared to the rest of the industry, the Price/Earnings ratio of LO3 indicates a slightly more expensive valuation: LO3 is more expensive than 66.67% of the companies listed in the same industry.
LO3's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.03.
A Price/Forward Earnings ratio of 28.50 indicates a quite expensive valuation of LO3.
Based on the Price/Forward Earnings ratio, LO3 is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 36.28. LO3 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 28.5 |
4.2 Price Multiples
LO3's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LO3 does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LO3 may justify a higher PE ratio.
LO3's earnings are expected to grow with 16.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.49
PEG (5Y)18.14
EPS Next 2Y14.88%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, LO3 is not a good candidate for dividend investing.
LO3's Dividend Yield is a higher than the industry average which is at 0.73.
Compared to an average S&P500 Dividend Yield of 2.40, LO3's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of LO3 is nicely growing with an annual growth rate of 7.74%!
Dividend Growth(5Y)7.74%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LO3 pays out 38.20% of its income as dividend. This is a sustainable payout ratio.
LO3's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.2%
EPS Next 2Y14.88%
EPS Next 3Y16.24%
FRA:LO3 (8/1/2025, 7:00:00 PM)
604.2
-12.6 (-2.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.56%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap42.43B
Analysts81.29
Price Target713.2 (18.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend4.29
Dividend Growth(5Y)7.74%
DP38.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.13%
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 28.5 | ||
| P/S | 5.59 | ||
| P/FCF | N/A | ||
| P/OCF | 34.57 | ||
| P/B | 4.24 | ||
| P/tB | 8.81 | ||
| EV/EBITDA | 19.67 |
EPS(TTM)16.59
EY2.75%
EPS(NY)21.2
Fwd EY3.51%
FCF(TTM)-4.51
FCFYN/A
OCF(TTM)17.48
OCFY2.89%
SpS108.09
BVpS142.5
TBVpS68.54
PEG (NY)3.49
PEG (5Y)18.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 7.84% | ||
| ROCE | 9.35% | ||
| ROIC | 7.82% | ||
| ROICexc | 9.01% | ||
| ROICexgc | 14.22% | ||
| OM | 20.13% | ||
| PM (TTM) | 10.33% | ||
| GM | 32.93% | ||
| FCFM | N/A |
ROA(3y)4.7%
ROA(5y)7.6%
ROE(3y)8.4%
ROE(5y)13.63%
ROIC(3y)7.29%
ROIC(5y)6.79%
ROICexc(3y)8.37%
ROICexc(5y)7.79%
ROICexgc(3y)13.84%
ROICexgc(5y)14.01%
ROCE(3y)8.71%
ROCE(5y)8.12%
ROICexcg growth 3Y-5.48%
ROICexcg growth 5Y-11.37%
ROICexc growth 3Y1.9%
ROICexc growth 5Y-1.45%
OM growth 3Y4.86%
OM growth 5Y-4.24%
PM growth 3Y-43.77%
PM growth 5Y-8.8%
GM growth 3Y-2.04%
GM growth 5Y-2.8%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 223.03% | ||
| Cap/Sales | 20.34% | ||
| Interest Coverage | 10.5 | ||
| Cash Conversion | 55.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 4.35 |
F-Score7
WACC5.04%
ROIC/WACC1.55
Cap/Depr(3y)267.99%
Cap/Depr(5y)249.17%
Cap/Sales(3y)25.56%
Cap/Sales(5y)24.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.63%
EPS 3Y5.92%
EPS 5Y2.01%
EPS Q2Q%6.98%
EPS Next Y10.44%
EPS Next 2Y14.88%
EPS Next 3Y16.24%
EPS Next 5Y17.12%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y6.72%
Revenue growth 5Y9.34%
Sales Q2Q%16.98%
Revenue Next Year14.77%
Revenue Next 2Y12.02%
Revenue Next 3Y11.71%
Revenue Next 5Y13.02%
EBIT growth 1Y63.39%
EBIT growth 3Y11.91%
EBIT growth 5Y4.7%
EBIT Next Year82.18%
EBIT Next 3Y34.31%
EBIT Next 5Y25.12%
FCF growth 1Y58.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.33%
OCF growth 3Y1.54%
OCF growth 5Y5.45%