Lonza Group AG
OTC:LZAGF
Intrinsic Value
Lonza Group AG engages in the supply of pharmaceutical, healthcare and life science products. [ Read More ]
The intrinsic value of one LZAGF stock under the Base Case scenario is 611.37 USD. Compared to the current market price of 597 USD, Lonza Group AG is Undervalued by 2%.
Valuation Backtest
Lonza Group AG
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Fundamental Analysis
Lonza Reports Solid H1 2023 Growth
2023-Q2 Earnings Call
Lonza Group achieved CHF 3.1 billion in sales, a 5.6% increase at constant exchange rates over the strong H1 2022 period, driven primarily by high COVID-19 related sales. The company's CORE EBITDA was CHF 922 million, with a 30% margin, while underlying sales growth was approximately 10% thanks to solid commercial CDMO business momentum. Lonza revised its outlook to mid- to high single-digit sales growth and a CORE EBITDA margin of 28-29%, citing lower anticipated growth in early-stage services due to reduced biotech funding and weakness in nutraceutical capsules. The Biologics division showed a robust increase, led by Bioconjugate, Mammalian, and Microbial businesses, with higher contract values in H1 2023 compared to the previous year. Small Molecules maintained strong performance with significant asset utilization. Important strategic moves include a collaboration with Vertex to build a manufacturing facility for diabetes cell therapies and the acquisition of Synaffix, enhancing their antibody-drug conjugates (ADC) offerings. Commitment to environmental sustainability is evidenced by ESG initiatives like reducing greenhouse gas emissions by over 40% by 2030 and signing a 10-year solar electricity purchase agreement. In the second half of the year, Lonza aims to ramp up commercial assets for growth in Biologics, optimize increased capacity by converting early-stage opportunities, and enhance performance with cost efficiency initiatives.
Balance Sheet Decomposition
Lonza Group AG
Current Assets | 4.9B |
Cash & Short-Term Investments | 1.7B |
Receivables | 1.6B |
Other Current Assets | 1.6B |
Non-Current Assets | 11.9B |
PP&E | 6.6B |
Intangibles | 4.7B |
Other Non-Current Assets | 589m |
Current Liabilities | 2.8B |
Other Current Liabilities | 2.8B |
Non-Current Liabilities | 4.6B |
Long-Term Debt | 2.6B |
Other Non-Current Liabilities | 2B |
Earnings Waterfall
Lonza Group AG
Revenue
|
6.7B
CHF
|
Cost of Revenue
|
-4.3B
CHF
|
Gross Profit
|
2.4B
CHF
|
Operating Expenses
|
-1B
CHF
|
Operating Income
|
1.4B
CHF
|
Other Expenses
|
-711m
CHF
|
Net Income
|
654m
CHF
|
Free Cash Flow Analysis
Lonza Group AG
What is Free Cash Flow?
LZAGF Profitability Score
Profitability Due Diligence
Lonza Group AG's profitability score is 54/100. The higher the profitability score, the more profitable the company is.
Score
Lonza Group AG's profitability score is 54/100. The higher the profitability score, the more profitable the company is.
LZAGF Solvency Score
Solvency Due Diligence
Lonza Group AG's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Score
Lonza Group AG's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
LZAGF Price Targets Summary
Lonza Group AG
According to Wall Street analysts, the average 1-year price target for LZAGF is 574.06 USD with a low forecast of 349.57 USD and a high forecast of 758.91 USD.
Shareholder Return
LONN Price
Lonza Group AG
Average Annual Return | 18.17% |
Standard Deviation of Annual Returns | 41.5% |
Max Drawdown | -60% |
Market Capitalization | 39.1B CHF |
Shares Outstanding | 74 281 674 |
Percentage of Shares Shorted |
N/A
|
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Lonza Group AG engages in the supply of pharmaceutical, healthcare and life science products. The company is headquartered in Basel, Basel-Stadt and currently employs 16,218 full-time employees. The company went IPO on 2002-04-03. The firm's offerings include custom development and manufacturing of drugs and drug delivery systems, as well as development of anti-microbial solutions for commercial applications. The firm divides its activities into two segments: Pharma&Biotech and Specialty Ingredients. The Pharma&Biotech comprises the Company's Biologics, Small-Molecule, and Consumables and Research Tools businesses. The segment includes mammalian, microbial, chemical, bioconjugates, cell and gene therapy technology platforms. The Specialty Ingredients segment focuses on anti-microbial applications within Consumer Health division, which covers hygiene, nutrition and personal care products, as well as preservatives, capsules and food supplements, among others, and Consumer & Resources Protection division, which includes coatings and composites, and agro ingredients.
Contact
IPO
Employees
Officers
The intrinsic value of one LZAGF stock under the Base Case scenario is 611.37 USD.
Compared to the current market price of 597 USD, Lonza Group AG is Undervalued by 2%.