# Lonza Group AG (LONN.SW)

Canonical: https://gigainvestors.com/s/LONN.SW

Analysis as of: 2026-10-16T07:33:55.585Z. Financial observations: FY2004–FY2025.

Listing currency: CHF. Reporting currency: CHF.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CHF 603.80 per share; close as of 2026-10-15.

Estimated value: low CHF 6.57 per share, central CHF 6.82 per share, high CHF 7.10 per share. Buy at or below the central value CHF 6.82 per share. Valuation as of 2026-10-16T07:33:55.585Z; scenarios are not confidence intervals.

Expected annual return: 3.0% at the stated quote. About 3.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CH 10-year bond 0.5% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.13×

- FY2017: 0.15×

- FY2018: 0.17×

- FY2019: 0.20×

- FY2020: 0.21×

- FY2021: 0.15×

- FY2022: 0.22×

- FY2023: 0.13×

- FY2024: 0.20×

- FY2025: 0.21×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.0%

- ROIC, second-lowest year: 9.9%

- Typical minus recent gross margin: 0.9 pp

- Typical gross margin (annual median): 36.2%

- Recent gross margin (lower of latest and 3-year median): 35.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 21.3%

- ROIC including acquisitions, ten-year median: 5.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.7%

- FY2017: 11.7%

- FY2018: 12.8%

- FY2019: 12.5%

- FY2020: 12.4%

- FY2021: 11.5%

- FY2022: 14.0%

- FY2023: 8.7%

- FY2024: 9.9%

- FY2025: 10.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.53×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CHF 2.7B

- Net income, five-year total: CHF 5.2B

- Return on incremental invested capital: 10.3%

- Working capital / revenue, annual change: 1.4 pp

- Working capital / revenue, change between three-year averages: 10.6 pp

- Working capital / revenue, final three-year average: 45.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.93×

- FY2022: 0.44×

- FY2023: 0.01×

- FY2024: -0.34×

- FY2025: 1.26×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- ROIC first 3 years vs last 3 years: 12.8% vs 9.9%

- Per-share earnings: 5.69 to 8.58 (three-year endpoint medians)

- material buybacks concentrated at lower earnings yields (Spearman rho below threshold)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.9%

- Ordinary dilution, 5-year annual growth: -1.3%

- Market cap gain: CHF 29B

- Cumulative retained earnings: CHF 7.4B

- Diluted shares, 10-year annual growth: 2.9%

- Diluted shares, 5-year annual growth: -1.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.3%

- Per-share value change: CHF 2.89

- Per-share value, starting three-year median: CHF 5.69

- Per-share value, ending three-year median: CHF 8.58

- Buybacks concentrated in cheaper years (correlation): -0.57

- Average buyback yield: 1.0%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: CHF 8.5B

- Cumulative net income, 10 years: CHF 8.4B

- ROIC, first three-year median: 12.8%

- ROIC, last three-year median: 9.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CHF 5.69

- FY2017: CHF 10.33

- FY2018: CHF 7.49

- FY2019: CHF 10.13

- FY2020: CHF 11.62

- FY2021: CHF 39.52

- FY2022: CHF 16.35

- FY2023: CHF 9.00

- FY2024: CHF 8.58

- FY2025: CHF -3.92

### accounting: pass

- Sloan accruals: -7.6%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.9%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.25×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.6%

- FY2017: -1.0%

- FY2018: -3.8%

- FY2019: -1.7%

- FY2020: -1.8%

- FY2021: 10.5%

- FY2022: 1.1%

- FY2023: -4.3%

- FY2024: -3.2%

- FY2025: -7.6%

## Holders

## Price story

Down 21% since Dec 2021 · sales +19.2%

Story as of 2026-10-16T09:59:58.337Z; price observation 2026-10-15.

Price needs cash profits to grow 90.3% a year for ten years

- 2025-10-23: Lonza confirms "long-term commercial supply agreement" at U.S. biologic drug site ([finance.yahoo.com](https://finance.yahoo.com/news/lonza-confirms-long-term-commercial-093938175.html))

### Sales · FY2024–2025

sales +19.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CHF 4.1B 

- FY2017: CHF 4.5B 

- FY2018: CHF 5.5B 

- FY2019: CHF 4.2B 

- FY2020: CHF 4.5B 

- FY2021: CHF 5.4B 

- FY2022: CHF 6.2B 

- FY2023: CHF 6.7B 

- FY2024: CHF 5.5B 

- FY2025: CHF 6.5B 

### Gross margin · FY2025

gross margin 35.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 34.6% 

- FY2017: 35.8% 

- FY2018: 36.4% 

- FY2019: 38.5% 

- FY2020: 37.8% 

- FY2021: 36.4% 

- FY2022: 37.0% 

- FY2023: 27.0% 

- FY2024: 36.0% 

- FY2025: 35.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diagnostics & research; annual sales are CHF 6.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2025: revenue 6531000000; grossProfit 2302000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LONN.SW: 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.

### Why customers stay

Margins ranged from 27% to 36% during 2023–25; it earns 12% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2023: grossProfit / revenue = 27%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2024: grossProfit / revenue = 36%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2025: grossProfit / revenue = 35.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); 10-year return on capital observations [[2016,0.16676983274917653],[2017,0.1168081494057725],[2018,0.12774144106485694],[2019,0.12538888749277513],[2020,0.12372381472923173],[2021,0.11527201436994289],[2022,0.14014142745727393],[2023,0.08672994746928472],[2024,0.09912549104049015],[2025,0.10377419510726325]]; median 0.12026598206750211. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CHF 518 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2016: growth capex 48000000; upkeep 307000000; owner earnings 301000000. Growth capex / owner earnings = 0.15946843853820597.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2017: growth capex 9000000; upkeep 411000000; owner earnings 707000000. Growth capex / owner earnings = 0.01272984441301273.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2018: growth capex 2000000; upkeep 526000000; owner earnings 559000000. Growth capex / owner earnings = 0.0035778175313059034.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2019: growth capex 0; upkeep 807000000; owner earnings 444200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2020: growth capex 214283818.76279116; upkeep 758716181.2372088; owner earnings 589483818.7627912. Growth capex / owner earnings = 0.3635109428661335.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2021: growth capex 692618177.5116652; upkeep 648381822.4883348; owner earnings 2748418177.5116653. Growth capex / owner earnings = 0.2520061114348839.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2022: growth capex 671369350.4283242; upkeep 1200630649.5716758; owner earnings 539369350.4283242. Growth capex / owner earnings = 1.2447302574667547.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2023: growth capex 448577195.5580194; upkeep 1199422804.4419806; owner earnings 9377195.5580194. Growth capex / owner earnings = 47.83703110194765.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); Dividend observations: [[2016,131000000],[2017,160000000],[2018,206000000],[2019,206000000],[2020,206000000],[2021,225000000],[2022,228000000],[2023,260000000],[2024,288000000],[2025,280000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); FY2025: cash repurchases 518000000 CHF.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LONN.SW SharesStats.PercentInsiders = 0.09 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 90.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:55.585Z); Ten-year compound average after fade. Initial solved rate 1.3804925301141773. Price 603.8; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 6.08187223142187 → FY2025 -4.930095239180863. Closing-price date 2026-10-15.

## Monthly share-price history (CHF per share)

- 2016-11: CHF 168.21 per share

- 2016-12: CHF 163.30 per share

- 2017-01: CHF 167.57 per share

- 2017-02: CHF 171.36 per share

- 2017-03: CHF 175.44 per share

- 2017-04: CHF 188.50 per share

- 2017-05: CHF 200.60 per share

- 2017-06: CHF 207.30 per share

- 2017-07: CHF 230.00 per share

- 2017-08: CHF 242.80 per share

- 2017-09: CHF 254.00 per share

- 2017-10: CHF 265.00 per share

- 2017-11: CHF 257.10 per share

- 2017-12: CHF 263.30 per share

- 2018-01: CHF 258.90 per share

- 2018-02: CHF 240.80 per share

- 2018-03: CHF 225.20 per share

- 2018-04: CHF 244.20 per share

- 2018-05: CHF 263.70 per share

- 2018-06: CHF 263.50 per share

- 2018-07: CHF 305.30 per share

- 2018-08: CHF 311.90 per share

- 2018-09: CHF 335.00 per share

- 2018-10: CHF 316.70 per share

- 2018-11: CHF 322.90 per share

- 2018-12: CHF 254.70 per share

- 2019-01: CHF 261.90 per share

- 2019-02: CHF 277.50 per share

- 2019-03: CHF 309.10 per share

- 2019-04: CHF 314.70 per share

- 2019-05: CHF 308.40 per share

- 2019-06: CHF 329.40 per share

- 2019-07: CHF 341.30 per share

- 2019-08: CHF 349.80 per share

- 2019-09: CHF 337.40 per share

- 2019-10: CHF 355.00 per share

- 2019-11: CHF 339.60 per share

- 2019-12: CHF 353.20 per share

- 2020-01: CHF 396.20 per share

- 2020-02: CHF 382.40 per share

- 2020-03: CHF 402.20 per share

- 2020-04: CHF 421.40 per share

- 2020-05: CHF 471.50 per share

- 2020-06: CHF 500.20 per share

- 2020-07: CHF 568.60 per share

- 2020-08: CHF 560.40 per share

- 2020-09: CHF 568.60 per share

- 2020-10: CHF 555.20 per share

- 2020-11: CHF 569.60 per share

- 2020-12: CHF 568.80 per share

- 2021-01: CHF 570.00 per share

- 2021-02: CHF 573.80 per share

- 2021-03: CHF 528.40 per share

- 2021-04: CHF 580.80 per share

- 2021-05: CHF 579.00 per share

- 2021-06: CHF 655.80 per share

- 2021-07: CHF 705.20 per share

- 2021-08: CHF 775.00 per share

- 2021-09: CHF 701.60 per share

- 2021-10: CHF 750.60 per share

- 2021-11: CHF 743.00 per share

- 2021-12: CHF 761.60 per share

- 2022-01: CHF 633.40 per share

- 2022-02: CHF 637.40 per share

- 2022-03: CHF 672.20 per share

- 2022-04: CHF 578.40 per share

- 2022-05: CHF 577.20 per share

- 2022-06: CHF 509.00 per share

- 2022-07: CHF 576.20 per share

- 2022-08: CHF 523.40 per share

- 2022-09: CHF 486.30 per share

- 2022-10: CHF 515.40 per share

- 2022-11: CHF 490.20 per share

- 2022-12: CHF 453.10 per share

- 2023-01: CHF 519.60 per share

- 2023-02: CHF 560.80 per share

- 2023-03: CHF 547.40 per share

- 2023-04: CHF 553.80 per share

- 2023-05: CHF 569.40 per share

- 2023-06: CHF 533.40 per share

- 2023-07: CHF 505.20 per share

- 2023-08: CHF 488.90 per share

- 2023-09: CHF 425.60 per share

- 2023-10: CHF 316.80 per share

- 2023-11: CHF 338.40 per share

- 2023-12: CHF 353.70 per share

- 2024-01: CHF 424.80 per share

- 2024-02: CHF 462.00 per share

- 2024-03: CHF 540.20 per share

- 2024-04: CHF 510.40 per share

- 2024-05: CHF 486.40 per share

- 2024-06: CHF 490.40 per share

- 2024-07: CHF 587.40 per share

- 2024-08: CHF 555.60 per share

- 2024-09: CHF 534.60 per share

- 2024-10: CHF 532.60 per share

- 2024-11: CHF 526.40 per share

- 2024-12: CHF 535.80 per share

- 2025-01: CHF 582.00 per share

- 2025-02: CHF 568.60 per share

- 2025-03: CHF 542.20 per share

- 2025-04: CHF 588.60 per share

- 2025-05: CHF 569.20 per share

- 2025-06: CHF 565.00 per share

- 2025-07: CHF 572.00 per share

- 2025-08: CHF 567.00 per share

- 2025-09: CHF 527.20 per share

- 2025-10: CHF 554.20 per share

- 2025-11: CHF 550.00 per share

- 2025-12: CHF 537.80 per share

- 2026-01: CHF 525.00 per share

- 2026-02: CHF 536.20 per share

- 2026-03: CHF 504.80 per share

- 2026-04: CHF 479.20 per share

- 2026-05: CHF 500.40 per share

- 2026-06: CHF 545.80 per share

- 2026-07: CHF 562.20 per share

- 2026-08: CHF 576.60 per share

- 2026-09: CHF 575.20 per share

- 2026-10: CHF 566.40 per share

## Annual estimated value (CHF per share)

- FY2016: low CHF 71.00 per share, central CHF 86.62 per share, high CHF 100.39 per share

- FY2017: low CHF 68.23 per share, central CHF 78.26 per share, high CHF 90.05 per share

- FY2018: low CHF 88.71 per share, central CHF 102.89 per share, high CHF 118.89 per share

- FY2019: low CHF 68.49 per share, central CHF 77.97 per share, high CHF 89.69 per share

- FY2020: low CHF 74.95 per share, central CHF 84.54 per share, high CHF 97.31 per share

- FY2021: low CHF 145.09 per share, central CHF 159.40 per share, high CHF 178.45 per share

- FY2022: low CHF 126.29 per share, central CHF 141.50 per share, high CHF 159.88 per share

- FY2023: low CHF 127.72 per share, central CHF 142.43 per share, high CHF 162.00 per share

- FY2024: low CHF 92.09 per share, central CHF 102.33 per share, high CHF 115.39 per share

- FY2025: low CHF 9.84 per share, central CHF 10.10 per share, high CHF 10.37 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.