Lonza Group (FRA:LO3) ROCE %: 8.78% (As of Dec. 2025)


FRA:LO3 Lonza Group Ltd FRA:LO3
73 GF Score
Price €579.60
GF Value €641.26
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Lonza Group ROCE %?

Lonza Group FRA:LO3 -0.07% 73 ROCE % is 8.78% as of Dec. 2025. GuruFocus rates FRA:LO3 with a GF Score™ of 73/100 and a GF Value™ of €641.26 (Modestly Undervalued). The stock has 2 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Lonza Group's annualized ROCE % for the quarter that ended in Dec. 2025 was 8.78%.

Lonza Group  (FRA:LO3) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Lonza Group ROCE % Related Terms

Lonza Group ROCE % Historical Data

* Premium members only.

The historical data trend for Lonza Group's ROCE % 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.

Lonza Group ROCE % Chart

Lonza Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.70 10.93 6.37 5.63 8.31

Lonza Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.13 5.09 7.64 8.78
FRA:LO3
73GF Score
Lonza Group Ltd FRA:LO3
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Lonza Group ROCE % Calculation

Lonza Group's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=1354.569/( ( (21136.177 - 3833.496) + (19190.084 - 3884.741) )/ 2 )
=1354.569/( (17302.681+15305.343)/ 2 )
=1354.569/16304.012
=8.31 %

Lonza Group's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=1403.864/( ( (20046.976 - 3359.465) + (19190.084 - 3884.741) )/ 2 )
=1403.864/( ( 16687.511 + 15305.343 )/ 2 )
=1403.864/15996.427
=8.78 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 8.78% mean?
Lonza Group (FRA:LO3) has a ROCE % of 8.78% as of Dec. 2025.
Is Lonza Group's ROCE % too high?
Lonza Group's current ROCE % is 8.78%. Overall, Lonza Group has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lonza Group's ROCE % compare to TMO and DHR?
Lonza Group's ROCE % of 8.78% can be compared against companies in the Medical Diagnostics & Research industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Medical Diagnostics & Research company?
A good ROCE % depends on the Medical Diagnostics & Research industry context. However, ROCE % 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. Lonza Group's current ROCE % is 8.78%. 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 €641.26, compared to a current price of €579.60 — trading 9.6% below its estimated fair value. The current ROCE % is 8.78%. Lonza Group's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Lonza Group (FRA:LO3), the current ROCE % is 8.78% 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 9.6% below its estimated GF Value™ of €641.26. GuruFocus considers Lonza Group to be Modestly Undervalued.

Key valuation signals for FRA:LO3:

  • ROCE %: 8.78%
  • GF Value™: €641.26 vs. price of €579.60 (9.6% below fair value)
  • GF Score™: 73/100 with 2 warning signs

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 Business Description

Address Muenchensteinerstrasse 38, Basel, CHE, 4002
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.
73GF Score

Get the complete analysis for FRA:LO3

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€579.60
Price
€641.26
GF Value