Lonza GroupFRA:LO3 -0.07%81 Pretax Margin % is 19.49% as of Dec. 2025, which is 36% above its 10-year median of 14.31. GuruFocus rates FRA:LO3 with a GF Score™ of 81/100 and a GF Value™ of €642.72 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 202 Medical Diagnostics & Research companies, Lonza Group ranks better than 85.15% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Lonza Group's Pre-Tax Income for the
six
months ended in Dec. 2025 was €617 Mil. Lonza Group's Revenue for the
six
months ended in Dec. 2025 was €3,167 Mil. Therefore, Lonza Group's pretax margin for the quarter that ended in Dec. 2025 was 19.49%.
The historical rank and industry rank for Lonza Group's Pretax Margin % or its related term are showing as below:
FRA:LO3'
s Pretax Margin % Range Over the Past 10 Years
Min: 9.03 Med: 14.31 Max: 23.27
Current: 16.86
FRA:LO3's Pretax Margin % is ranked better than 85.15% of 202
companies
in the Medical Diagnostics & Research industry
Industry Median: -3.565
vs FRA:LO3: 16.86
Lonza Group (FRA:LO3) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Lonza Group Pretax Margin % Related Terms
Lonza Group Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Lonza Group's Pretax 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: Pretax Margin % Comparison
For the Diagnostics & Research subindustry, Lonza Group's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Lonza Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Lonza Group's Pretax 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.
Lonza Group (FRA:LO3) has a Pretax Margin % of 19.49% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lonza Group and its competitors. This is 36% above median its historical median of 14.31. Over the past decade, Lonza Group's Pretax Margin % has ranged from 9.03 to 23.27. According to the industry distribution chart, Lonza Group ranks #30 out of 202 companies in the Medical Diagnostics & Research industry, placing it in the top 14.9%.
Is Lonza Group's Pretax Margin % too high?
Lonza Group's current Pretax Margin % of 19.49% is 36% above median its 10-year median of 14.31. Over the past 10 years, this metric has ranged from a low of 9.03 to a high of 23.27. Based on the distribution chart, Lonza Group ranks #30 out of 202 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 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lonza Group's Pretax Margin % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Lonza Group ranks #30 out of 202 companies for Pretax Margin %. This places Lonza Group in the top 15% of its industry — outperforming the majority of peers. Historically, Lonza Group's own Pretax Margin % has ranged from 9.03 to 23.27 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 Pretax Margin % for a Medical Diagnostics & Research company?
A good Pretax Margin % depends on the Medical Diagnostics & Research industry context. However, Pretax 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lonza Group and its competitors. Lonza Group's current Pretax Margin % is 19.49%, which is 36% above median its own 10-year median of 14.31. 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 Pretax Margin % is 19.49%, which is 36% above median its 10-year median of 14.31. Lonza Group's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Lonza Group (FRA:LO3), the current Pretax Margin % is 19.49% 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:
Pretax Margin %: 19.49% (36% above median its 10-year median of 14.31)
GF Value™: €642.72 vs. price of €579.60 (9.8% below fair value)
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.
81GF Score
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