Lonza Group (LONN.SW)
Healthcare · SIX · Europe
Fundamentals
Valuation and ratings
Lonza Group trades at CHF575.20, which is 59% above the CHF234.40 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 45.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Lonza Group
Lonza Group AG, together with its subsidiaries, operates as a contract development and manufacturing organization for pharma and biotech companies in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and internationally. It operates through Integrated Biologics; Advanced Synthesis; and Specialized Modalities segments. The Integrated Biologics segment offers CDMO biologics services from clinical development, drug substance, and drug product manufacturing; and operates mammalian and drug product platforms. Its Advanced Synthesis segment manufactures antibody-drug conjugates (ADCs) and other bioconjugates, small molecules, and highly potent active pharmaceutical ingredients; and operates small molecules and bioconjugates platforms. The Specialized Modalities segment operates various technologies, such as spanning cell & gene, microbial, bioscience, and mRNA. Lonza Group AG was incorporated in 1897 and is headquartered in Basel, Switzerland.
LONN.SW passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Lonza Group (LONN.SW) undervalued?
Against our discounted cash flow estimate of CHF234.40, LONN.SW at CHF575.20 is 59% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is LONN.SW's P/E ratio?
LONN.SW trades at 45.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.