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 17 industry peers in the Life Sciences Tools & Services industry. Both the profitability and the financial health of LO3 get a neutral evaluation. Nothing too spectacular is happening here. LO3 is valied quite expensively at the moment, while it does show a decent growth rate.
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 has a better Return On Assets (3.20%) than 64.71% of its industry peers.
LO3's Return On Equity of 6.13% is fine compared to the rest of the industry. LO3 outperforms 64.71% of its industry peers.
With a Return On Invested Capital value of 4.79%, LO3 perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LO3 is in line with the industry average of 6.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.13% | ||
| ROIC | 4.79% |
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
LO3 has a Profit Margin of 8.56%. This is amongst the best in the industry. LO3 outperforms 82.35% of its industry peers.
In the last couple of years the Profit Margin of LO3 has declined.
LO3's Operating Margin of 13.05% is in line compared to the rest of the industry. LO3 outperforms 47.06% of its industry peers.
LO3's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 29.21%, LO3 is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
LO3's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.05% | ||
| PM (TTM) | 8.56% | ||
| GM | 29.21% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LO3 is still creating some value.
LO3 has less shares outstanding than it did 1 year ago.
LO3 has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LO3 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.32 indicates that LO3 is not in any danger for bankruptcy at the moment.
The Altman-Z score of LO3 (4.32) is better than 94.12% 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.
With a decent Debt to Equity ratio value of 0.39, LO3 is doing good in the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.32 |
ROIC/WACC0.85
WACC5.66%
2.3 Liquidity
A Current Ratio of 2.04 indicates that LO3 has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.04, LO3 belongs to the best of the industry, outperforming 94.12% 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.
LO3 has a better Quick ratio (1.38) than 82.35% 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 impressive 21.15% over the past year.
LO3 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.01% yearly.
The Revenue has decreased by -2.13% in the past year.
Measured over the past years, LO3 shows a quite strong growth in Revenue. The Revenue has been growing by 9.34% on average per year.
EPS 1Y (TTM)21.15%
EPS 3Y5.92%
EPS 5Y2.01%
EPS Q2Q%27.43%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y6.72%
Revenue growth 5Y9.34%
Sales Q2Q%-3.35%
3.2 Future
Based on estimates for the next years, LO3 will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.00% on average per year.
Based on estimates for the next years, LO3 will show a quite strong growth in Revenue. The Revenue will grow by 11.28% on average per year.
EPS Next Y10.44%
EPS Next 2Y14.88%
EPS Next 3Y16.24%
EPS Next 5Y17%
Revenue Next Year15.86%
Revenue Next 2Y13.48%
Revenue Next 3Y12.93%
Revenue Next 5Y11.28%
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
Based on the Price/Earnings ratio of 37.80, the valuation of LO3 can be described as expensive.
LO3's Price/Earnings is on the same level as the industry average.
LO3's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.25.
Based on the Price/Forward Earnings ratio of 34.23, the valuation of LO3 can be described as expensive.
Based on the Price/Forward Earnings ratio, LO3 is valued a bit more expensive than 64.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. LO3 is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.8 | ||
| Fwd PE | 34.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LO3 is valued a bit more expensive than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as LO3's earnings are expected to grow with 16.24% in the coming years.
PEG (NY)3.62
PEG (5Y)18.83
EPS Next 2Y14.88%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
LO3 has a yearly dividend return of 0.70%, which is pretty low.
LO3's Dividend Yield is a higher than the industry average which is at 0.91.
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
On average, the dividend of LO3 grows each year by 7.74%, which is quite nice.
Dividend Growth(5Y)7.74%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
49.74% of the earnings are spent on dividend by LO3. This is a bit on the high side, but may be sustainable.
The dividend of LO3 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.74%
EPS Next 2Y14.88%
EPS Next 3Y16.24%
FRA:LO3 (5/15/2025, 7:00:00 PM)
605.2
+3.4 (+0.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners54.82%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap43.71B
Analysts80
Price Target712.84 (17.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend4.27
Dividend Growth(5Y)7.74%
DP49.74%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.8 | ||
| Fwd PE | 34.23 | ||
| P/S | 6.12 | ||
| P/FCF | N/A | ||
| P/OCF | 26.9 | ||
| P/B | 4.38 | ||
| P/tB | 9.11 | ||
| EV/EBITDA | 27.71 |
EPS(TTM)16.01
EY2.65%
EPS(NY)17.68
Fwd EY2.92%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)22.5
OCFY3.72%
SpS98.86
BVpS138.06
TBVpS66.41
PEG (NY)3.62
PEG (5Y)18.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.13% | ||
| ROCE | 5.72% | ||
| ROIC | 4.79% | ||
| ROICexc | 5.52% | ||
| ROICexgc | 8.7% | ||
| OM | 13.05% | ||
| PM (TTM) | 8.56% | ||
| GM | 29.21% | ||
| 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-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 243.28% | ||
| Cap/Sales | 23.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.2% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 4.32 |
F-Score5
WACC5.66%
ROIC/WACC0.85
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)21.15%
EPS 3Y5.92%
EPS 5Y2.01%
EPS Q2Q%27.43%
EPS Next Y10.44%
EPS Next 2Y14.88%
EPS Next 3Y16.24%
EPS Next 5Y17%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y6.72%
Revenue growth 5Y9.34%
Sales Q2Q%-3.35%
Revenue Next Year15.86%
Revenue Next 2Y13.48%
Revenue Next 3Y12.93%
Revenue Next 5Y11.28%
EBIT growth 1Y-39.14%
EBIT growth 3Y11.91%
EBIT growth 5Y4.7%
EBIT Next Year83.32%
EBIT Next 3Y34.59%
EBIT Next 5Y24.23%
FCF growth 1Y92.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y39.94%
OCF growth 3Y1.54%
OCF growth 5Y5.45%