Lonza GroupLZAGY +1.82%82 Operating Margin % is 22.57% as of Dec. 2025, which is 39% above its 10-year median of 16.21. GuruFocus rates LZAGY with a GF Score™ of 82/100 and a GF Value™ of $73.92 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 204 Medical Diagnostics & Research companies, Lonza Group ranks better than 88.73% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Lonza Group's Operating Income for the
six
months ended in Dec. 2025 was $837 Mil. Lonza Group's Revenue for the
six
months ended in Dec. 2025 was $3,708 Mil. Therefore, Lonza Group's Operating Margin % for the quarter that ended in Dec. 2025 was 22.57%.
The historical rank and industry rank for Lonza Group's Operating Margin % or its related term are showing as below:
LZAGY'
s Operating Margin % Range Over the Past 10 Years
Min: 12.92 Med: 16.21 Max: 21.81
Current: 20.79
LZAGY's Operating Margin % is ranked better than 88.73% of 204
companies
in the Medical Diagnostics & Research industry
Industry Median: -3.195
vs LZAGY: 20.79
Lonza Group's 5-Year Average Operating Margin % Growth Rate was -1.00% per year.
Lonza Group's Operating Income for the
six
months ended in Dec. 2025 was $837 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $1,687 Mil.
Lonza Group (OTCPK:LZAGY) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Lonza Group Operating Margin % Related Terms
Lonza Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Lonza Group's Operating 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.
LZAGY vs TMO, DHR, IDXX: Operating Margin % Comparison
For the Diagnostics & Research subindustry, Lonza Group's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Lonza Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lonza Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Lonza Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Lonza Group (LZAGY) has a Operating Margin % of 22.57% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lonza Group and its competitors. This is 39% above median its historical median of 16.21. Over the past decade, Lonza Group's Operating Margin % has ranged from 12.92 to 21.81. According to the industry distribution chart, Lonza Group ranks #23 out of 204 companies in the Medical Diagnostics & Research industry, placing it in the top 11.3%.
Is Lonza Group's Operating Margin % too high?
Lonza Group's current Operating Margin % of 22.57% is 39% above median its 10-year median of 16.21. Over the past 10 years, this metric has ranged from a low of 12.92 to a high of 21.81. Based on the distribution chart, Lonza Group ranks #23 out of 204 companies in the Medical Diagnostics & Research industry, which is in the top quartile — a strong position relative to peers. Overall, Lonza Group has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lonza Group's Operating Margin % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Lonza Group ranks #23 out of 204 companies for Operating Margin %. This places Lonza Group in the top 11% of its industry — outperforming the majority of peers. Historically, Lonza Group's own Operating Margin % has ranged from 12.92 to 21.81 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Medical Diagnostics & Research company?
A good Operating Margin % depends on the Medical Diagnostics & Research industry context. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Lonza Group and its competitors. Lonza Group's current Operating Margin % is 22.57%, which is 39% above median its own 10-year median of 16.21. 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 (LZAGY) is currently considered Modestly Undervalued. The stock's GF Value™ is $73.92, compared to a current price of $64.90 — trading 12.2% below its estimated fair value. The current Operating Margin % is 22.57%, which is 39% above median its 10-year median of 16.21. Lonza Group's overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Lonza Group (LZAGY), the current Operating Margin % is 22.57% 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 (LZAGY) Overvalued in 2026?
Based on GuruFocus' analysis, Lonza Group stock appears to be undervalued.
The current stock price of $64.90 is trading 12.2% below its estimated GF Value™ of $73.92.
GuruFocus considers Lonza Group to be Modestly Undervalued.
Key valuation signals for LZAGY:
Operating Margin %: 22.57% (39% above median its 10-year median of 16.21)
GF Value™: $73.92 vs. price of $64.90 (12.2% below fair value)
No single metric tells the full story. See the LZAGY 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.
82GF Score
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