LONZA GROUP AG-REG (LO3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LO3 - CH0013841017 - Common Stock
592 EUR
-7.4 (-1.23%)
Overall LO3 gets a fundamental rating of 4 out of 10. We evaluated LO3 against 22 industry peers in the Life Sciences Tools & Services industry. LO3 has an average financial health and profitability rating. LO3 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- LO3 had positive earnings in the past year.
- LO3 had a positive operating cash flow in the past year.
- LO3 had positive earnings in each of the past 5 years.
- Each year in the past 5 years LO3 had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of LO3 (3.90%) is comparable to the rest of the industry.
- With a decent Return On Equity value of 8.50%, LO3 is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- LO3 has a Return On Invested Capital (5.60%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LO3 is below the industry average of 9.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 8.5% | ||
| ROIC | 5.6% |
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
- With a decent Profit Margin value of 10.33%, LO3 is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- In the last couple of years the Profit Margin of LO3 has declined.
- With a Operating Margin value of 14.76%, LO3 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- LO3's Operating Margin has declined in the last couple of years.
- LO3's Gross Margin of 32.93% is on the low side compared to the rest of the industry. LO3 is outperformed by 72.73% of its industry peers.
- LO3's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.76% | ||
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LO3 is still creating some value.
- The number of shares outstanding for LO3 has been reduced compared to 1 year ago.
- LO3 has less shares outstanding than it did 5 years ago.
- LO3 has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.60 indicates that LO3 is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.60, LO3 is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- A Debt/Equity ratio of 0.49 indicates that LO3 is not too dependend on debt financing.
- LO3 has a better Debt to Equity ratio (0.49) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.6 |
ROIC/WACC0.85
WACC6.62%
2.3 Liquidity
- A Current Ratio of 1.46 indicates that LO3 should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.46, LO3 perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- LO3 has a Quick Ratio of 1.46. This is a bad value and indicates that LO3 is not financially healthy enough and could expect problems in meeting its short term obligations.
- LO3 has a Quick ratio (0.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.63% 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.
- 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
- The Earnings Per Share is expected to grow by 17.05% 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 11.26% on average per year.
EPS Next Y12.04%
EPS Next 2Y14.88%
EPS Next 3Y16.28%
EPS Next 5Y17.05%
Revenue Next Year14.34%
Revenue Next 2Y11.92%
Revenue Next 3Y11.91%
Revenue Next 5Y11.26%
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.
- 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 35.13, which means the current valuation is very expensive for LO3.
- LO3's Price/Earnings ratio is a bit more expensive when compared to the industry. LO3 is more expensive than 63.64% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, LO3 is valued a bit more expensive.
- The Price/Forward Earnings ratio is 27.49, which means the current valuation is very expensive for LO3.
- LO3's Price/Forward Earnings ratio is in line with the industry average.
- LO3 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.13 | ||
| Fwd PE | 27.49 |
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 | 24.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- LO3's earnings are expected to grow with 16.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.92
PEG (5Y)17.5
EPS Next 2Y14.88%
EPS Next 3Y16.28%
5. Dividend
5.1 Amount
- LO3 has a yearly dividend return of 0.72%, which is pretty low.
- LO3's Dividend Yield is a higher than the industry average which is at 0.48.
- With a Dividend Yield of 0.72, LO3 pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 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 3Y16.28%
LONZA GROUP AG-REG / LO3.DE FAQ
What is the fundamental rating for LO3 stock?
ChartMill assigns a fundamental rating of 4 / 10 to LO3.DE.
What is the valuation status for LO3 stock?
ChartMill assigns a valuation rating of 1 / 10 to LONZA GROUP AG-REG (LO3.DE). This can be considered as Overvalued.
Can you provide the profitability details for LONZA GROUP AG-REG?
LONZA GROUP AG-REG (LO3.DE) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for LO3 stock?
The Earnings per Share (EPS) of LONZA GROUP AG-REG (LO3.DE) is expected to grow by 12.04% in the next year.
Is the dividend of LONZA GROUP AG-REG sustainable?
The dividend rating of LONZA GROUP AG-REG (LO3.DE) is 5 / 10 and the dividend payout ratio is 38.2%.