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LONZA GROUP AG-REG (LO3.DE) Stock Fundamental Analysis

FRA:LO3 - Deutsche Boerse Ag - CH0013841017 - Common Stock - Currency: EUR

598.2  -2.8 (-0.47%)

Fundamental Rating

4

LO3 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 18 industry peers in the Life Sciences Tools & Services industry. LO3 has an average financial health and profitability rating. LO3 is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

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.
In the past 5 years LO3 has always been profitable.
In the past 5 years LO3 always reported a positive cash flow from operatings.
LO3.DE Yearly Net Income VS EBIT VS OCF VS FCFLO3.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

1.2 Ratios

LO3 has a better Return On Assets (3.20%) than 61.11% of its industry peers.
LO3 has a Return On Equity of 6.13%. This is in the better half of the industry: LO3 outperforms 61.11% of its industry peers.
The Return On Invested Capital of LO3 (4.79%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LO3 is in line with the industry average of 6.90%.
Industry RankSector 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%
LO3.DE Yearly ROA, ROE, ROICLO3.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

With a decent Profit Margin value of 8.56%, LO3 is doing good in 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.
LO3 has a Operating Margin (13.05%) which is in line with its industry peers.
In the last couple of years the Operating Margin of LO3 has declined.
LO3 has a worse Gross Margin (29.21%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of LO3 has declined.
Industry RankSector 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%
LO3.DE Yearly Profit, Operating, Gross MarginsLO3.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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6

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.
Compared to 1 year ago, LO3 has less shares outstanding
LO3 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LO3 is higher compared to a year ago.
LO3.DE Yearly Shares OutstandingLO3.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
LO3.DE Yearly Total Debt VS Total AssetsLO3.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

LO3 has an Altman-Z score of 4.28. This indicates that LO3 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LO3 (4.28) is better than 94.44% 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 better Debt to Equity ratio (0.39) than 72.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Altman-Z 4.28
ROIC/WACC0.87
WACC5.51%
LO3.DE Yearly LT Debt VS Equity VS FCFLO3.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 2.04 indicates that LO3 has no problem at all paying its short term obligations.
LO3's Current ratio of 2.04 is amongst the best of the industry. LO3 outperforms 94.44% of its industry peers.
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 83.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.04
Quick Ratio 1.38
LO3.DE Yearly Current Assets VS Current LiabilitesLO3.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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6

3. Growth

3.1 Past

LO3 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.15%, which is quite impressive.
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.
The Revenue has decreased by -2.13% in the past year.
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)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.
The Revenue is expected to grow by 11.28% on average over the next years. This is quite good.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
LO3.DE Yearly Revenue VS EstimatesLO3.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
LO3.DE Yearly EPS VS EstimatesLO3.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30

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0

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 37.32 indicates a quite expensive valuation of LO3.
Based on the Price/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/Earnings ratio is at 26.52. LO3 is valued slightly more expensive when compared to this.
LO3 is valuated quite expensively with a Price/Forward Earnings ratio of 33.80.
72.22% of the companies in the same industry are cheaper than LO3, based on the Price/Forward Earnings ratio.
LO3's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.25.
Industry RankSector Rank
PE 37.32
Fwd PE 33.8
LO3.DE Price Earnings VS Forward Price EarningsLO3.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

LO3's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LO3 is more expensive than 72.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 27.37
LO3.DE Per share dataLO3.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

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 16.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.58
PEG (5Y)18.59
EPS Next 2Y14.88%
EPS Next 3Y16.24%

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4

5. Dividend

5.1 Amount

With a yearly dividend of 0.71%, LO3 is not a good candidate for dividend investing.
LO3's Dividend Yield is a higher than the industry average which is at 0.87.
Compared to an average S&P500 Dividend Yield of 2.38, LO3's dividend is way lower than the S&P500 average.
Industry RankSector 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
LO3.DE Yearly Dividends per shareLO3.DE Yearly Dividends per shareYearly Dividends per share 2025 0.5 1 1.5

5.3 Sustainability

LO3 pays out 49.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
LO3's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.74%
EPS Next 2Y14.88%
EPS Next 3Y16.24%
LO3.DE Yearly Income VS Free CF VS DividendLO3.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B
LO3.DE Dividend Payout.LO3.DE Dividend Payout, showing the Payout Ratio.LO3.DE Dividend Payout.PayoutRetained Earnings

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LONZA GROUP AG-REG

FRA:LO3 (6/5/2025, 7:00:00 PM)

598.2

-2.8 (-0.47%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)01-29 2025-01-29/dmh
Earnings (Next)07-23 2025-07-23
Inst Owners54.82%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap43.21B
Analysts80
Price Target712.84 (19.16%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.71%
Yearly Dividend4.27
Dividend Growth(5Y)7.74%
DP49.74%
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)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 RankSector Rank
PE 37.32
Fwd PE 33.8
P/S 6.04
P/FCF N/A
P/OCF 26.55
P/B 4.33
P/tB 9
EV/EBITDA 27.37
EPS(TTM)16.03
EY2.68%
EPS(NY)17.7
Fwd EY2.96%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)22.53
OCFY3.77%
SpS98.99
BVpS138.24
TBVpS66.5
PEG (NY)3.58
PEG (5Y)18.59
Profitability
Industry RankSector 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 RankSector 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 4.28
F-Score5
WACC5.51%
ROIC/WACC0.87
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 Year82.18%
EBIT Next 3Y34.31%
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%