Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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.
Lonza GroupFRA:LO3 -0.87%81 5-Year Yield-on-Cost % is 1.33 as of Jul. 19, 2026, which is 25% above its 10-year median of 1.06. GuruFocus rates FRA:LO3 with a GF Score™ of 81/100 and a GF Value™ of €649.23 (Fairly Valued). The stock has 4 warning signs investors should review. Among 64 Medical Diagnostics & Research companies, Lonza Group ranks worse than 68.75% on this metric.
Lonza Group's yield on cost for the quarter that ended in Dec. 2025 was 1.33.
The historical rank and industry rank for Lonza Group's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:LO3'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.53 Med: 1.06 Max: 2.24
Current: 1.33
During the past 13 years, Lonza Group's highest Yield on Cost was 2.24. The lowest was 0.53. And the median was 1.06.
FRA:LO3's 5-Year Yield-on-Cost % is ranked worse than 68.75% of 64
companies
in the Medical Diagnostics & Research industry
Industry Median: 2.51
vs FRA:LO3: 1.33
Lonza Group (FRA:LO3) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Lonza Group 5-Year Yield-on-Cost % Related Terms
FRA:LO3 vs TMO, DHR, IDXX: 5-Year Yield-on-Cost % Comparison
For the Diagnostics & Research subindustry, Lonza Group's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Lonza Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Lonza Group's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Lonza Group is calculated as
Lonza Group (FRA:LO3) has a 5-Year Yield-on-Cost % of 1.33 as of Jul. 19, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Lonza Group and its competitors. This is 25% above median its historical median of 1.06. Over the past decade, Lonza Group's 5-Year Yield-on-Cost % has ranged from 0.53 to 2.24. According to the industry distribution chart, Lonza Group ranks #44 out of 64 companies in the Medical Diagnostics & Research industry, placing it in the top 68.7%.
Is Lonza Group's 5-Year Yield-on-Cost % too high?
Lonza Group's current 5-Year Yield-on-Cost % of 1.33 is 25% above median its 10-year median of 1.06. Over the past 10 years, this metric has ranged from a low of 0.53 to a high of 2.24. The Medical Diagnostics & Research industry median 5-Year Yield-on-Cost % is 2.51. Lonza Group's value of 1.33 is 47% below this industry median. Based on the distribution chart, Lonza Group ranks #44 out of 64 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Lonza Group has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lonza Group's 5-Year Yield-on-Cost % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Lonza Group ranks #44 out of 64 companies for 5-Year Yield-on-Cost %. This places Lonza Group in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 2.51. Lonza Group's value of 1.33 is 47% below this benchmark. Historically, Lonza Group's own 5-Year Yield-on-Cost % has ranged from 0.53 to 2.24 over the past decade. While the company's 10-year median is 1.06 vs. the industry median of 2.51, 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 5-Year Yield-on-Cost % for a Medical Diagnostics & Research company?
The median 5-Year Yield-on-Cost % among Medical Diagnostics & Research companies is 2.51, based on 64 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lonza Group's current 5-Year Yield-on-Cost % of 1.33 is 47% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Lonza Group and its competitors. For the Medical Diagnostics & Research industry, the median 5-Year Yield-on-Cost % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lonza Group's current 5-Year Yield-on-Cost % is 1.33, which is 25% above median its own 10-year median of 1.06. 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 Fairly Valued. The stock's GF Value™ is €649.23, compared to a current price of €618.40 — trading 4.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 1.33, which is 25% above median its 10-year median of 1.06 and 47% below the Medical Diagnostics & Research industry median of 2.51. Lonza Group's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Lonza Group (FRA:LO3), the current 5-Year Yield-on-Cost % is 1.33 as of Jul. 19, 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 (FRA:LO3) Overvalued in 2026?
Based on GuruFocus' analysis, Lonza Group stock appears to be undervalued.
The current stock price of €618.40 is trading 4.7% below its estimated GF Value™ of €649.23.
GuruFocus considers Lonza Group to be Fairly Valued.
Key valuation signals for FRA:LO3:
5-Year Yield-on-Cost %: 1.33 (25% above median its 10-year median of 1.06)
GF Value™: €649.23 vs. price of €618.40 (4.7% below fair value)
Industry Position: 47% below the Medical Diagnostics & Research median (#44 of 64)
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
Get the complete analysis for FRA:LO3
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:LO3 has been successfully added to your 
