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Lonza Group AG
OTC:LZAGF

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Lonza Group AG Logo
Lonza Group AG
OTC:LZAGF
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Price: 597 USD 0.84%
Updated: Mar 28, 2024

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%.

Key Points:
LZAGF Intrinsic Value
Base Case
611.37 USD
Undervaluation 2%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Lonza Group AG

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Fundamental Analysis

Lonza Reports Solid H1 2023 Growth
2023-Q2 Earnings Call

Lonza Reports Solid H1 2023 Growth

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.

Financials

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
Efficiency

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

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Fundamental Scores

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.

Positive Gross Profit
Positive Net Income
Positive 3-Year Average ROE
Positive 3-Years Revenue Growth
54/100
Profitability
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.

Low D/E
Long-Term Solvency
Short-Term Solvency
Average Altman Z-Score
61/100
Solvency
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

Wall Street analysts forecast LZAGF stock price to drop over the next 12 months.

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.

Lowest
Price Target
349.57 USD
41% Downside
Average
Price Target
574.06 USD
4% Downside
Highest
Price Target
758.91 USD
27% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

LONN Price
Lonza Group AG

1M 1M
+17%
6M 6M
+28%
1Y 1Y
+2%
3Y 3Y
+0%
5Y 5Y
+82%
10Y 10Y
+618%
Annual Price Range
541.4
52w Low
311.5
52w High
597.8
Price Metrics
Average Annual Return 18.17%
Standard Deviation of Annual Returns 41.5%
Max Drawdown -60%
Shares Statistics
Market Capitalization 39.1B CHF
Shares Outstanding 74 281 674
Percentage of Shares Shorted
N/A

LONN Return Decomposition
Main factors of price return

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Company Profile

Lonza Group AG Logo
Lonza Group AG

Country

Switzerland

Industry

Life Sciences Tools & Services

Market Cap

39.1B USD

Dividend Yield

0.77%

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

BASEL-STADT
Basel
Muenchensteinerstrasse 38
+41613168111.0
https://www.lonza.com/

IPO

2002-04-03

Employees

16 218

Officers

Interim CEO & Chairman
Mr. Albert M. Baehny
Chief Financial Officer
Mr. Philippe Deecke
Head of Group Operations
Ms. Maria Soler Nunez
Vice President of Investor Relations
Mr. Dirk Oehlers
Group General Counsel & Company Secretary
Mr. Andreas Bohrer
Head of External Communications
Ms. Victoria Morgan
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Senior Director of Global Marketing
Ms. Jennifer Clancy
Chief Human Resources Officer
Ulrike Kaeppler
Head of Corporate Environment, Health, Safety & Global Sustainability
Dr. Matthias Hofmann
President of Biologics Division
Mr. Jean-Christophe Hyvert
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See Also

Discover More
What is the Intrinsic Value of one LZAGF stock?

The intrinsic value of one LZAGF stock under the Base Case scenario is 611.37 USD.

Is LZAGF stock undervalued or overvalued?

Compared to the current market price of 597 USD, Lonza Group AG is Undervalued by 2%.