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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Lonza Group's Interest Coverage for the quarter that ended in Jun. 2026 was 10.96.
Lonza Group's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.62.
As of today, Lonza Group's Altman Z-Score is 3.74.
Lonza Group (XSWX:LONN) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Lonza Group has the Financial Strength Rank of 5.
Lonza Group Financial Strength Related Terms
XSWX:LONN vs TMO, DHR, NTRA: Financial Strength Comparison
For the Diagnostics & Research subindustry, Lonza Group's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Lonza Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Lonza Group's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Lonza Group has a Z-score of 3.74, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3.74 is strong.
* 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 (XSWX:LONN) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lonza Group and its competitors. This is near median its historical median of 5.00. Over the past decade, Lonza Group's Financial Strength has ranged from 4.00 to 8.00.
Is Lonza Group's Financial Strength too high?
Lonza Group's current Financial Strength of 5 is near median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 8.00. Overall, Lonza Group has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lonza Group's Financial Strength compare to TMO and DHR?
Lonza Group's Financial Strength of 5 can be compared against companies in the Medical Diagnostics & Research industry. Historically, Lonza Group's own Financial Strength has ranged from 4.00 to 8.00 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 Financial Strength for a Medical Diagnostics & Research company?
A good Financial Strength depends on the Medical Diagnostics & Research industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lonza Group and its competitors. Lonza Group's current Financial Strength is 5, which is near median its own 10-year median of 5.00. 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 (XSWX:LONN) is currently considered Fairly Valued. The stock's GF Value™ is CHF581.29, compared to a current price of CHF567.20 — trading 2.4% below its estimated fair value. The current Financial Strength is 5, which is near median its 10-year median of 5.00. Lonza Group's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Lonza Group (XSWX:LONN), the current Financial Strength is 5 as of Jun. 2026. 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 (XSWX:LONN) Overvalued in 2026?
Based on GuruFocus' analysis, Lonza Group stock appears to be undervalued.
The current stock price of CHF567.20 is trading 2.4% below its estimated GF Value™ of CHF581.29.
GuruFocus considers Lonza Group to be Fairly Valued.
Key valuation signals for XSWX:LONN:
Financial Strength: 5 (near median its 10-year median of 5.00)
GF Value™: CHF581.29 vs. price of CHF567.20 (2.4% below fair value)
No single metric tells the full story. See the XSWX:LONN 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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