LONZA GROUP AG-REG (LO3.DE) Stock Fundamental Analysis
FRA:LO3 - CH0013841017 - Common Stock
611.8 EUR
+17.6 (+2.96%)
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. 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
In the past year LO3 was profitable.
LO3 had a positive operating cash flow in the past year.
LO3 had positive earnings in each of the past 5 years.
LO3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LO3 has a better Return On Assets (4.10%) than 61.11% of its industry peers.
LO3 has a Return On Equity of 7.84%. This is comparable to the rest of the industry: LO3 outperforms 55.56% of its industry peers.
LO3 has a Return On Invested Capital of 7.82%. This is in the better half of the industry: LO3 outperforms 66.67% 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 7.13%.
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 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of LO3 has declined.
LO3 has a better Operating Margin (20.13%) than 88.89% of its industry peers.
LO3's Operating Margin has declined in the last couple of years.
The Gross Margin of LO3 (32.93%) is worse than 61.11% of its industry peers.
LO3's Gross Margin has declined in the last couple of years.
| 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
An Altman-Z score of 4.40 indicates that LO3 is not in any danger for bankruptcy at the moment.
LO3 has a better Altman-Z score (4.40) than 94.44% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that LO3 is not too dependend on debt financing.
LO3's Debt to Equity ratio of 0.39 is fine compared to the rest 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 | 4.4 |
ROIC/WACC1.44
WACC5.42%
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.
LO3 has a Current ratio of 2.04. This is amongst the best in the industry. LO3 outperforms 94.44% of its industry peers.
LO3 has a Quick Ratio of 1.38. This is a normal value and indicates that LO3 is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LO3 (1.38) is better than 77.78% 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.
Measured over the past 5 years, LO3 shows a small growth in Earnings Per Share. The EPS has been growing by 2.01% on average per year.
LO3 shows a small growth in Revenue. In the last year, the Revenue has grown by 5.93%.
LO3 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.34% yearly.
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
The Earnings Per Share is expected to grow by 17.33% on average over the next years. This is quite good.
Based on estimates for the next years, LO3 will show a quite strong growth in Revenue. The Revenue will grow by 11.92% on average per year.
EPS Next Y11.64%
EPS Next 2Y14.72%
EPS Next 3Y16.09%
EPS Next 5Y17.33%
Revenue Next Year14.61%
Revenue Next 2Y12.23%
Revenue Next 3Y12.01%
Revenue Next 5Y11.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.03, which means the current valuation is very expensive for LO3.
Based on the Price/Earnings ratio, LO3 is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, LO3 is valued a bit more expensive.
A Price/Forward Earnings ratio of 29.07 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 61.11% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.63. LO3 is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.03 | ||
| Fwd PE | 29.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LO3 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LO3 may justify a higher PE ratio.
A more expensive valuation may be justified as LO3's earnings are expected to grow with 16.09% in the coming years.
PEG (NY)3.18
PEG (5Y)18.45
EPS Next 2Y14.72%
EPS Next 3Y16.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, LO3 is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.70, LO3 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, LO3's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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
38.20% of the earnings are spent on dividend by LO3. This is a low number and sustainable payout ratio.
LO3's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.2%
EPS Next 2Y14.72%
EPS Next 3Y16.09%
FRA:LO3 (8/25/2025, 7:00:00 PM)
611.8
+17.6 (+2.96%)
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 Cap42.97B
Analysts81.29
Price Target713.2 (16.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend4.26
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)0%
PT rev (3m)0.05%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.09%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.03 | ||
| Fwd PE | 29.07 | ||
| P/S | 5.69 | ||
| P/FCF | N/A | ||
| P/OCF | 35.16 | ||
| P/B | 4.31 | ||
| P/tB | 8.96 | ||
| EV/EBITDA | 19.99 |
EPS(TTM)16.52
EY2.7%
EPS(NY)21.05
Fwd EY3.44%
FCF(TTM)-4.49
FCFYN/A
OCF(TTM)17.4
OCFY2.84%
SpS107.62
BVpS141.87
TBVpS68.24
PEG (NY)3.18
PEG (5Y)18.45
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 | 4.4 |
F-Score7
WACC5.42%
ROIC/WACC1.44
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 Y11.64%
EPS Next 2Y14.72%
EPS Next 3Y16.09%
EPS Next 5Y17.33%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y6.72%
Revenue growth 5Y9.34%
Sales Q2Q%16.98%
Revenue Next Year14.61%
Revenue Next 2Y12.23%
Revenue Next 3Y12.01%
Revenue Next 5Y11.92%
EBIT growth 1Y63.39%
EBIT growth 3Y11.91%
EBIT growth 5Y4.7%
EBIT Next Year82.18%
EBIT Next 3Y34.31%
EBIT Next 5Y26.77%
FCF growth 1Y58.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.33%
OCF growth 3Y1.54%
OCF growth 5Y5.45%