Lonza Group AG Fundamental Analysis (SIX: LONN.SW)
Lonza Group AG (SIX: LONN.SW) shows weak financial fundamentals with a PE ratio of -384.55, profit margin of -1.74%, and ROE of -1.28%. The company generates $6.3B in annual revenue with weak year-over-year growth of -0.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LONN.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakLONN.SW struggles to generate sufficient returns from assets.
Valuation Score
ModerateLONN.SW shows balanced valuation metrics.
Growth Score
ModerateLONN.SW shows steady but slowing expansion.
Financial Health Score
ExcellentLONN.SW maintains a strong and stable balance sheet.
Profitability Score
WeakLONN.SW struggles to sustain strong margins.
Key Financial Metrics
Is LONN.SW Expensive or Cheap?
P/E Ratio
LONN.SW trades at -384.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LONN.SW's PEG of 2.40 indicates potential overvaluation.
Price to Book
The market values Lonza Group AG at 5.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.18 times EBITDA. This signals the market has high growth expectations.
How Well Does LONN.SW Make Money?
Net Profit Margin
For every $100 in sales, Lonza Group AG keeps $-1.74 as profit after all expenses.
Operating Margin
Core operations generate 23.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.28 in profit for every $100 of shareholder equity.
ROA
Lonza Group AG generates $-0.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lonza Group AG produces operating cash flow of $1.44B, showing steady but balanced cash generation.
Free Cash Flow
Lonza Group AG generates weak or negative free cash flow of $163.00M, restricting financial flexibility.
FCF Per Share
Each share generates $2.33 in free cash annually.
FCF Yield
LONN.SW converts 0.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-384.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How LONN.SW Stacks Against Its Sector Peers
| Metric | LONN.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -384.55 | 30.97 | Better (Cheaper) |
| ROE | -1.28% | 515.00% | Weak |
| Net Margin | -1.74% | 30197.00% | Weak |
| Debt/Equity | 0.51 | 0.53 | Neutral |
| Current Ratio | 1.66 | 5.71 | Neutral |
| ROA | -0.60% | -16.00% (disorted) | Weak |
LONN.SW outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lonza Group AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.59%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
15.78%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
9.10%
Industry Style: Defensive, Growth, Innovation
Growing