Skip to Content
Morningstar

Lonza Group Ltd LONN

Morningstar Rating
Unlock
Stock XSWX Rating as of
CHF 484.80 −1.60 (0.33%)
View Full Chart
As of Delayed Price Post-Trading: —
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Lonza Earnings: Biologics and Cell and Gene Therapies Should Deliver Strong Long-Term Growth

Rachel Elfman

Narrow-moat Lonza provided a first-quarter 2024 qualitative update, and the company is tracking our expectations. Management will release additional details when it reports its half-yearly results in July. We continue to forecast flat sales growth in 2024, which reflects the impact of Moderna's canceled contract for its covid vaccine. However, we maintain our positive long-term outlook for Lonza thanks to strong demand for outsourced manufacturing of biologics and cell and gene therapies. We maintain our fair value estimate of CHF 530 per share, and we view the stock as fairly valued, currently trading in 3-star territory.

Read Full Report

Price vs Fair Value

View History
LONN is trading at a 251% premium.
Price
CHF 486.40
Fair Value
CHF 714.00
Uncertainty
Medium
1-Star Price
CHF 565.70
5-Star Price
CHF 659.00
Economic Moat
Gczwpl
Capital Allocation
Jnlkgvy

Bulls Say, Bears Say

Bulls

The pharma biotech and nutrition segment is a sticky business with long-term contracts and high switching costs for its customers.

Bears

Lonza is vulnerable to facility closures whether from natural disasters or manufacturing issues, as a warning letter from the FDA can result in manufacturing delays or closures.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if LONN is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
CHF 486.40
Day Range
CHF 482.60–493.50
52-Week Range
CHF 308.60–599.40
Bid/Ask
CHF 0.00 / CHF 487.80
Market Cap
CHF 34.96 Bil
Volume/Avg
165,674 / 213,175

Key Statistics

Price/Earnings (Normalized)
30.47
Price/Sales
5.36
Dividend Yield (Trailing)
0.82%
Dividend Yield (Forward)
0.82%
Total Yield
3.69%

Company Profile

Lonza Group ltd is a contract development and manufacturing organization, or CDMO. It operates under four segments: small molecules, biologics, cell & gene, and capsules & health ingredients. Lonza derives its revenue primarily from long-term supply agreements with pharmaceutical customers. The company provides a range of development and manufacturing services throughout the entire lifecycle of a product from drug research to commercial supply. The majority of Lonza's customers are pharmaceutical and biotechnology companies, academic institutions, and government research organizations.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Large Growth
Total Number of Employees
18,000
Website
https://www.lonza.com

Competitors

Valuation

View More
Metric
LONN
CTLT
02269
Price/Earnings (Normalized)
 30.4794.0712.08
Price/Book Value
 3.732.681.14
Price/Sales
 5.362.362.57
Price/Cash Flow
 27.0539.918.19
Price/Earnings
LONN
CTLT
02269

Financial Strength

Metric
LONN
CTLT
02269
Quick Ratio
 1.121.562.35
Current Ratio
 1.772.512.78
Interest Coverage
 9.00−4.0725.95
Quick Ratio
LONN
CTLT
02269

Profitability

Metric
LONN
CTLT
02269
Return on Assets (Normalized)
 5.28%−3.09%8.91%
Return on Equity (Normalized)
 9.02%−7.79%13.28%
Return on Invested Capital (Normalized)
 7.29%−0.96%10.45%
Return on Assets
LONN
CTLT
02269
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Diagnostics & Research Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
TMO
Thermo Fisher Scientific IncJtcvfnvycfBwpzw$216.8 Bil
DHR
Danaher CorpMwrksrrsvjNfzlw$190.2 Bil
IQV
IQVIA Holdings IncFczvpwqdpDknly$41.8 Bil
IDXX
IDEXX Laboratories IncQxjhbhwxJbzbm$41.0 Bil
A
Agilent Technologies IncYhpchjsgQsnx$38.2 Bil
MTD
Mettler-Toledo International IncDndvbtdmlyFyvxdl$30.0 Bil
ICLR
Icon PLCTfbqmdylSwhqqj$26.9 Bil
WAT
Waters CorpYyjbjtnhFffm$18.3 Bil
ILMN
Illumina IncSjckrqmgMbmlsc$16.6 Bil
LH
Labcorp Holdings IncXxcstyrjpPqcqr$16.2 Bil

Sponsor Center