Bayer (BAYRY) AI Stock Analysis

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Bayer

(OTC:BAYRY)

56Neutral

Bayer's overall score reflects the company's financial challenges, particularly declining profitability and high debt levels, despite strong cash flow management. While technical indicators and valuation show some concerns, the earnings call highlights mixed future prospects with both opportunities and significant challenges. The company's strategic focus on debt reduction, cash generation, and new pharmaceutical launches remains crucial for its recovery.

Bayer (BAYRY) vs. S&P 500 (SPY)

Market Cap

$27.21B

Dividend Yield0.33%

Average Volume (3M)417.40K

Price to Earnings (P/E)―

Beta (1Y)0.65

Revenue Growth-2.07%

EPS Growth13.27%

CountryUS

Employees90,587

SectorHealthcare

Sector Strength39

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)0.69

Shares Outstanding3,929,696,000

10 Day Avg. Volume0

30 Day Avg. Volume417,405

Financial Highlights & Ratios

PEG Ratio0.22

Price to Book (P/B)2.89

Price to Sales (P/S)0.00

P/FCF Ratio22.73

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$7.20

Price Target Upside15.76% Upside

Rating ConsensusHold

Number of Analyst Covering1

Bayer Business Overview & Revenue Model

Company DescriptionBayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide. It operates through Pharmaceuticals, Consumer Health, and Crop Science segments. The Pharmaceuticals segment offers prescription products primarily for cardiology and women's health care; specialty therapeutics in the areas of oncology, hematology, and ophthalmology; and diagnostic imaging equipment and contrast agents, as well as cell and gene therapy. The Consumer Health segment markets nonprescription over-the-counter medicines, medical products, medicated skincare products, nutritional supplements, and self-care solutions in dermatology, nutritional supplements, pain and cardiovascular risk prevention, digestive health, allergy, and cold and cough. The Crop Science segment offers chemical and biological crop protection products, improved plant traits, seeds, digital solution, and pest and weed control products, as well as customer service for agriculture. This segment also provides breeding, propagation, and production/processing of seeds, including seed dressing. The company has a collaboration agreement with MD Anderson Cancer Center to develop oncology drugs; research and license agreement with Dewpoint Therapeutics, Inc. for the development of new treatments for cardiovascular and gynecological diseases; collaboration agreement with Exscientia Ltd, Foundation Medicine Inc., and Evotec AG; research collaboration with Arvinas Inc.; strategic research partnership with University of Oxford to develop novel gynecological therapies; and Kyoto University to identify new drugs candidates for the treatment of pulmonary diseases. It distributes its products through wholesalers, pharmacies and pharmacy chains, supermarkets, online and other retailers, and hospitals, as well as directly to farmers. Bayer Aktiengesellschaft was founded in 1863 and is headquartered in Leverkusen, Germany.

How the Company Makes MoneyBayer AG generates revenue through its diverse portfolio across its Pharmaceuticals, Consumer Health, and Crop Science divisions. The Pharmaceuticals division earns money by developing, manufacturing, and marketing prescription products that address significant medical needs, with particular emphasis on specialties like cardiology and oncology. The Consumer Health division profits from the sale of over-the-counter medications and health products, catering to consumer demand for self-care and wellness solutions. Crop Science, Bayer's largest division by sales, contributes substantially to revenue through its integrated product offerings in seeds, crop protection, and digital agriculture, serving farmers worldwide. Strategic partnerships, research collaborations, and licensing agreements further bolster Bayer's revenue potential, enabling the company to leverage innovation and expand its market reach.

Bayer Financial Statement Overview

Summary

Bayer's financial health presents a mixed picture. While the company struggles with declining revenue and profitability, its cash flow generation remains robust. High debt levels pose a risk, but the company's substantial asset base offers some stability. Continued focus on cash management and operational improvements will be crucial for future performance.

Income Statement

Neutral

Bayer has faced declining revenue and profitability with a notable net loss in recent years. Revenue decreased by 2.2% from 2023 to 2024, and the net profit margin is negative due to losses. The company has not generated EBIT in the latest period, indicating operational challenges. However, the EBITDA margin remains positive, suggesting some operational efficiency.

Balance Sheet

Neutral

The balance sheet shows a significant level of debt, with a debt-to-equity ratio of 1.28 in 2024, indicating high leverage. The equity ratio is 28.8%, showing a moderate reliance on equity financing. Return on equity is negative due to net losses, posing a risk to shareholders. However, the company's asset base remains strong, providing stability.

Cash Flow

Positive

Bayer's cash flow is relatively strong, with a positive free cash flow growth of 93.9% from 2023 to 2024, driven by increased operating cash flow. The operating cash flow to net income ratio is high, indicating good cash conversion, despite overall losses. Free cash flow to net income is also positive, showing cash generation capability despite profitability challenges.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
46.61B	47.64B	50.74B	44.08B	41.40B
	Gross Profit
25.34B	27.89B	30.87B	27.27B	22.26B
	EBIT
0.00	-150.00M	6.26B	6.97B	-2.94B
	EBITDA
8.81B	10.45B	13.03B	6.45B	10.32B
	Net Income Common Stockholders
-2.55B	-2.94B	4.15B	1.00B	-15.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.09B	10.59B	10.15B	7.74B	11.88B
	Total Assets
110.85B	116.26B	124.88B	120.24B	117.05B
	Total Debt
40.70B	42.87B	41.32B	39.53B	41.55B
	Net Debt
34.51B	36.97B	36.15B	34.97B	37.36B
	Total Liabilities
78.81B	83.18B	85.95B	87.07B	86.35B
	Stockholders Equity
31.91B	32.93B	38.77B	33.02B	30.52B
Cash Flow		Free Cash Flow
4.59B	2.37B	4.14B	2.48B	2.48B
	Operating Cash Flow
7.37B	5.12B	7.09B	5.09B	4.90B
	Investing Cash Flow
164.00M	-3.52B	-2.38B	855.00M	-4.07B
	Financing Cash Flow
-7.18B	-679.00M	-4.22B	-5.64B	423.00M

Bayer Technical Analysis

Technical Analysis Sentiment

Negative

Last Price6.22

Price Trends

50DMA

6.25

Negative

100DMA

5.83

Positive

200DMA

6.35

Negative

Market Momentum

MACD

0.16

Positive

RSI

45.56

Neutral

STOCH

50.14

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAYRY, the sentiment is Negative. The current price of 6.22 is below the 20-day moving average (MA) of 6.48, below the 50-day MA of 6.25, and below the 200-day MA of 6.35, indicating a bearish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 50.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAYRY.

Bayer Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILD	73 Outperform	$129.14B	21.83	32.51%	3.06%	4.63%	1144.01%
SNY	70 Outperform	$122.46B	20.79	7.34%	2.96%	-4.57%	2.96%
PFE	66 Neutral	$130.02B	16.57	8.62%	7.39%	13.38%	―
BMY	63 Neutral	$98.05B	18.09	31.99%	5.24%	4.62%	―
GSK	62 Neutral	$72.86B	18.65	22.26%	4.21%	4.17%	-29.96%
BAYRY	56 Neutral	$27.21B	―	-9.86%	0.33%	-2.07%	13.27%
Sector *	52 Neutral	$5.14B	3.39	-43.55%	2.83%	16.49%	-0.19%

* Healthcare Sector Average

Performance Comparison

BAYRY

Bayer

6.22

-1.54

-19.85%

BMY

Bristol Myers

44.12

2.08

4.95%

GILD

Gilead Sciences

98.38

32.98

50.43%

GSK

GlaxoSmithKline

36.22

-7.30

-16.77%

PFE

Pfizer

22.02

-5.09

-18.78%

SNY

Sanofi

49.21

1.90

4.02%

Bayer Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q4-2024)

% Change Since: -6.89%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

The earnings call presents a mixed outlook. While the company achieved debt reduction and saw strong performance in its Pharmaceuticals and Consumer Health divisions, significant challenges remain in the Crop Science division with ongoing regulatory and litigation issues. The year 2025 is expected to be challenging, particularly for the Pharmaceuticals division, due to anticipated sales declines and regulatory pressures.

Q4-2024 Updates

Positive Updates

Pharmaceutical Division Exceeds Expectations

The Pharmaceuticals division performed better than expected, contributing significantly to the company's ability to meet its EBITDA targets. The division saw a 3.3% net sales growth on a currency and portfolio-adjusted basis, driven by a 78% and 74% growth in Nubeqa and Kerendia, respectively.

Debt Reduction Achieved

Net debt was reduced to EUR 32.6 billion by the end of 2024, in line with the company's guidance, reflecting a strong commitment to debt reduction.

Consumer Health Growth

Consumer Health saw a 1.9% increase in global sales, with growth in nearly all categories, offsetting a decline in allergy and cold products. The division maintained a solid EBITDA margin of 23.3%.

Pipeline and Launch Developments

The company plans to launch two new pharmaceutical drugs in 2025, Beyonttra and elinzanetant, and is rejuvenating its pipeline with successful completion of 9 positive Phase III trials and advancement of over 20 clinical programs.

Negative Updates

Crop Science Challenges

The Crop Science division faced a 4% decline in sales due to pricing pressures from generics and continued destocking, with glyphosate sales declining 6%. The division's EBITDA margin was impacted, coming in at 19.4%.

Expected Decline in Pharmaceuticals

The company anticipates a decline in net sales for the Pharmaceuticals division in 2025, with a projected 4% to 1% decrease due to the acceleration of sales decline of Xarelto.

Litigation and Regulatory Challenges

Ongoing litigation, particularly in the Crop Science division, continues to be a focus, with significant regulatory challenges impacting product approvals and market dynamics.

Foreign Exchange Impacts

The company faced significant FX headwinds, impacting net sales by over EUR 1.3 billion and EBITDA before special items by almost EUR 600 million.

Company Guidance

In the conference call discussing Bayer's financial performance for 2024 and the outlook for 2025, the company highlighted several key metrics and strategic focus areas. For 2024, Bayer reported an EBITDA of EUR 10.1 billion, a 14% decrease from the previous year, while net sales grew slightly by 1% on a currency and portfolio-adjusted basis. The net financial debt was reduced to EUR 32.6 billion. The company is navigating challenges such as the Xarelto patent loss and regulatory headwinds in Crop Science, with an emphasis on improving profitability in this sector. For 2025, Bayer anticipates net sales between EUR 45 billion and EUR 47 billion, with an EBITDA before special items ranging from EUR 9.5 billion to EUR 10 billion, and aims to achieve core earnings per share between EUR 4.50 and EUR 5. The company plans to focus on cash generation, debt reduction, and launching new pharmaceutical products, while also targeting an EBITDA margin improvement in Crop Science to the mid-20s by 2029.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.