Is Lonza (LONN) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 11.8% / 30% | 2.0% / 30% | 4.9% / 30% | 0.64% / 5% | ✓ HALAL |
| DJIM | 11.8% / 33% | 2.0% / 33% | 4.9% / 33% | 0.64% / 5% | ✓ HALAL |
| MSCI | 22.1% / 33% | 3.8% / 33% | 9.2% / 33% | 0.64% / 5% | ✓ HALAL |
| S&P | 11.8% / 33% | 2.0% / 33% | 4.9% / 33% | 0.64% / 5% | ✓ HALAL |
| FTSE | 22.1% / 33% | 3.8% / 33% | 9.2% / 50% | 0.64% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 36.0% | |
| Operating Margin | 21.2% | |
| Net Margin | 14.5% | |
| Return on Equity (ROE) | 9.8% | |
| Return on Assets (ROA) | 4.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.2B |
| Free Cash Flow | -$217M |
| Total Debt | $4.2B |
| Debt-to-Equity | 45.6 |
| Current Ratio | 2.2 |
| Total Assets | $19.0B |
Price & Trading
| Last Close | CHF 494.20 |
| 50-Day MA | CHF 516.12 |
| 200-Day MA | CHF 542.32 |
| Avg Volume | 163K |
| Beta | 0.9 |
|
52-Week Range
CHF 454.60
| |
About Lonza (LONN)
Lonza Group AG, together with its subsidiaries, supplies various products and services for pharmaceutical, biotech, and nutrition markets in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and internationally. It operates through Biologics; Small Molecules; Cell & Gene; and Capsules & Health Ingredients segments. The Biologics segment engages in the contract development and manufacturing of biopharmaceuticals for clinical and commercial manufacturing needs throughout the product lifecycle, including drug substance and drug product manufacturing. Its Small Molecules segment provides integrated development and manufacturing services for small molecule drug substances and their intermediates. This segment also supports customers across aspects of design, development, and manufacturing, such as particle engineering and drug product packaging. The Cell & Gene segment develops technologies and platforms that industrialize the manufacturing processes and production of cell and gene therapies; offers contract development and manufacturing services, and regulatory support for a range of allogeneic and autologous cell therapies, and exosome-based therapies, as well as viral vector gene therapies. This segment also provides Cocoon platform, a closed automated system for patient-scale cell therapy manufacturing; and specialty raw materials and enabling technology solutions in cell and gene therapy, injectable drugs, vaccines, and bio-manufacturing markets. Its Capsules & Health Ingredients segment offers capsules, dosage form solutions, and health ingredients for pharmaceutical and nutraceutical customers. Lonza Group AG was incorporated in 1897 and is headquartered in Basel, Switzerland.
Purification Calculator
As a halal stock with 0.64% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Lonza (LONN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Lonza is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Lonza's debt ratio?
Lonza's debt ratio is 11.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 22.1%.
Does Lonza require dividend purification?
Yes, Lonza has an impermissible income ratio of 0.64%, which means 0.64% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Lonza's key financial metrics?
Lonza has a market capitalization of $34.5B, trailing P/E ratio of 37.9, and revenue of $6.5B. The company maintains a gross margin of 36.0% and a net margin of 14.5%. Return on equity stands at 9.8%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.