Shares in Lonza Group are approaching an important resistance level. The stock's technical chart suggests that this pivot level will be broken.
Summary
● For a short-term investment strategy, the company has poor fundamentals.
Strengths
● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 56% by 2019.
● The group's high margin levels account for strong profits.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The tendency within the weekly time frame is positive above the technical support level at 222.3 CHF
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● The group shows a rather high level of debt in proportion to its EBITDA.
● The company's enterprise value to sales, at 4.71 times its current sales, is high.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 39.7 times its estimated earnings per share for the ongoing year.
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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%).
LONZA GROUP AG 
