Lonza Group AG (LONN.SW) stock analysis

In our weekly check, Lonza Group AG is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 8.

About Lonza Group AG

Lonza Group AG is a Healthcare company (Medical - Diagnostics & Research) based in Switzerland, listed on SIX as LONN.SW.

What our checks show for LONN.SW

Red flags

• The net margin fell by 58.6 points over 5 years, to -4.2%: the company keeps less of each sale as profit.
• Earnings per share fell 37.8% a year over the last 3 years.
• The company is losing money: the net margin is -4.2%.
• Free cash flow is negative (-3.1% of revenue): the business spends more cash than it brings in.
• Lonza Group AG pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 79% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.3 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The gross margin fell by 1.2 points, to 35.2%: costs are rising faster than prices.
• Revenue grew only 1.6% a year over the last 3 years.
• Thinly traded (about 128 thousand shares a day): buying and selling can move the price.

Strengths

• Operating profit covers interest 10 times over.
• Operating cash flow is 4.25x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 86.3% a year over the next years.
• Analysts expect the net margin to improve by 25.2 points from today's -4.2%.
• A large company: market value $53.47 billion.

Similar companies

ONC · RVMD · UCB.BR · ARGX · ALNY · 1548.HK

Questions

What grade does Lonza Group AG (LONN.SW) have?

In our weekly check, Lonza Group AG is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of LONN.SW stock?

This week's biggest flags for Lonza Group AG: Margins falling, Weak EPS growth, Thin margins. In total 11 of 23 checks show a warning or a red flag.

What does Lonza Group AG do?

Lonza Group AG is a Healthcare company (Medical - Diagnostics & Research) based in Switzerland, listed on SIX as LONN.SW.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis