Lonza Group AG shares are locked into a trading range. This phase will eventually have to end with a return of a clear trend.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The group's high margin levels account for strong profits.
● The stock is in a well-established, long-term rising trend above the technical support level at 465.5 CHF
Weaknesses
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 51.97 times its estimated earnings per share for the ongoing year.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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Lonza Group AG is one of the world leaders of the development, production and marketing of chemical products. Net sales break down by family of products and services as follows:
- bio-pharmaceuticals (55.4%): exclusive syntheses, microbiological fermentation products , mammalian cell cultures, etc.;
- capsules and dosing solutions for biopharmaceuticals, drugs and nutrition products (17.3%). In addition, the group offers nutritional ingredients;
- small molecule drug substances (13.4%);
- technologies and platforms for manufacturing processes and production of cell and gene therapies (10.4%);
- other (3.5%).
Net sales are distributed geographically as follows: Switzerland (17.4%), Europe (31.7%), the United States (31.8%), the Americas (3.2%), Japan (8.1%), Asia (7.5%) and other (0.3%).