Lonza GroupFRA:LO3 -0.07%72 Gross Margin % is 34.42% as of Dec. 2025, which is 7% below its 10-year median of 37.08. GuruFocus rates FRA:LO3 with a GF Score™ of 72/100 and a GF Value™ of €642.72 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 194 Medical Diagnostics & Research companies, Lonza Group ranks worse than 68.56% on this metric.
Lonza Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.4%.
The historical rank and industry rank for Lonza Group's Gross Margin % or its related term are showing as below:
FRA:LO3'
s Gross Margin % Range Over the Past 10 Years
Min: 29 Med: 37.08 Max: 41.91
Current: 35.35
During the past 13 years, the highestGross Margin % of Lonza Group was 41.91%. The lowest was 29.00%. And the median was 37.08%.
FRA:LO3's Gross Margin % is ranked worse than 68.56% of 194
companies
in the Medical Diagnostics & Research industry
Industry Median: 50.45
vs FRA:LO3: 35.35
Lonza Group had a gross margin of 34.42% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lonza Group was -4.40% per year.
Lonza Group (FRA:LO3) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lonza Group had a gross margin of 34.42% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lonza Group Gross Margin % Related Terms
Lonza Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lonza Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:LO3 vs TMO, DHR, IDXX: Gross Margin % Comparison
For the Diagnostics & Research subindustry, Lonza Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lonza Group Gross Margin % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Lonza Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lonza Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lonza Group (FRA:LO3) has a Gross Margin % of 34.42% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lonza Group and its competitors. This is near median its historical median of 37.08. Over the past decade, Lonza Group's Gross Margin % has ranged from 29.00 to 41.91. According to the industry distribution chart, Lonza Group ranks #133 out of 194 companies in the Medical Diagnostics & Research industry, placing it in the top 68.6%.
Is Lonza Group's Gross Margin % too high?
Lonza Group's current Gross Margin % of 34.42% is near median its 10-year median of 37.08. Over the past 10 years, this metric has ranged from a low of 29.00 to a high of 41.91. The Medical Diagnostics & Research industry median Gross Margin % is 50.45. Lonza Group's value of 34.42% is 31.8% below this industry median. Based on the distribution chart, Lonza Group ranks #133 out of 194 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Lonza Group has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lonza Group's Gross Margin % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Lonza Group ranks #133 out of 194 companies for Gross Margin %. This places Lonza Group in the lower half of its industry. The industry median Gross Margin % is 50.45. Lonza Group's value of 34.42% is 31.8% below this benchmark. Historically, Lonza Group's own Gross Margin % has ranged from 29.00 to 41.91 over the past decade. While the company's 10-year median is 37.08 vs. the industry median of 50.45, Lonza Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Diagnostics & Research company?
The median Gross Margin % among Medical Diagnostics & Research companies is 50.45, based on 194 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lonza Group's current Gross Margin % of 34.42% is 31.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lonza Group and its competitors. For the Medical Diagnostics & Research industry, the median Gross Margin % is 50.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lonza Group's current Gross Margin % is 34.42%, which is near median its own 10-year median of 37.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lonza Group stock overvalued right now?
Based on GuruFocus' analysis, Lonza Group (FRA:LO3) is currently considered Modestly Undervalued. The stock's GF Value™ is €642.72, compared to a current price of €579.60 — trading 9.8% below its estimated fair value. The current Gross Margin % is 34.42%, which is near median its 10-year median of 37.08 and 31.8% below the Medical Diagnostics & Research industry median of 50.45. Lonza Group's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lonza Group (FRA:LO3), the current Gross Margin % is 34.42% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lonza Group (FRA:LO3) Overvalued in 2026?
Based on GuruFocus' analysis, Lonza Group stock appears to be undervalued.
The current stock price of €579.60 is trading 9.8% below its estimated GF Value™ of €642.72.
GuruFocus considers Lonza Group to be Modestly Undervalued.
Key valuation signals for FRA:LO3:
Gross Margin %: 34.42% (near median its 10-year median of 37.08)
GF Value™: €642.72 vs. price of €579.60 (9.8% below fair value)
Industry Position: 31.8% below the Medical Diagnostics & Research median (#133 of 194)
No single metric tells the full story. See the FRA:LO3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lonza Group is a contract development and manufacturing organization. It operates under four segments: small molecules, biologics, cell and gene, and capsules and health ingredients. Lonza derives its revenue primarily from long-term supply agreements with pharmaceutical customers. The company provides development and manufacturing services throughout the entire lifecycle of a product, from drug research to commercial supply. The majority of Lonza's customers are pharmaceutical and biotechnology companies, academic institutions, and government research organizations.
72GF Score
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