Bayer (BAYRY) AI Stock Analysis

• Market Cap: $45.41B
• Dividend Yield: 0.29%
• Average Volume (3M): 125.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -0.40%
• EPS Growth: 66.67%
• Country: US
• Employees: 90,587
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.17
• Shares Outstanding: 3,929,696,000
• 10 Day Avg. Volume: 196,423
• 30 Day Avg. Volume: 125,182
• PEG Ratio: 0.56
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 4.03
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 2.52
• Enterprise Value/Ebitda: 11.05
• 1Y Price Target: $12.00
• Price Target Upside: 3.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $10.50 ▼(-9.48% Downside)

Bayer's overall stock score reflects a mixed financial performance with significant challenges in profitability and leverage. Technical analysis indicates positive momentum, which is a strong point, but the valuation suggests potential overvaluation due to negative earnings. The dividend yield provides some support, but investors should be cautious of the financial and operational challenges.

Positive Factors

Pharmaceuticals Division Growth

Strong growth in key pharmaceutical products like Nubeqa and Kerendia indicates robust demand and successful market penetration, supporting long-term revenue growth.

FDA Approval of Lynkuet

FDA approval of Lynkuet opens new revenue streams and strengthens Bayer's market position in the U.S., enhancing its competitive advantage in the pharmaceutical sector.

QUANTI Pediatric Study Success

Successful pediatric study results and pending global marketing authorizations for gadoquatrane could expand Bayer's product offerings, boosting long-term growth prospects.

Negative Factors

Free Cash Flow and Debt Concerns

Negative free cash flow and high debt levels may limit Bayer's financial flexibility, posing risks to its ability to invest in growth and manage economic downturns.

Consumer Health Market Challenges

Market challenges in key regions for Consumer Health could hinder revenue growth and profitability, impacting Bayer's overall financial performance and strategic goals.

Litigation and Regulatory Challenges

Ongoing litigation and regulatory hurdles, such as glyphosate issues, could lead to financial liabilities and operational disruptions, affecting Bayer's long-term stability.

Bayer Business Overview & Revenue Model

Company Description

Bayer 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 Money

Bayer generates revenue through multiple key streams across its business sectors. In pharmaceuticals, the company earns money from the sale of prescription drugs, including treatments for cardiovascular diseases, oncology, and women's health. The consumer health segment contributes by selling over-the-counter medications and health products. In the crop science division, Bayer profits from the sale of seeds, crop protection products, and digital farming solutions that enhance agricultural productivity. Additionally, Bayer's animal health segment generates revenue through veterinary products and services. The company also engages in strategic partnerships and collaborations, particularly in research and development, enhancing its product pipeline and market reach, which further contributes to its financial performance.

Bayer Financial Statement Overview

Summary

Bayer's financial performance is mixed. The company shows strengths in revenue growth and gross profit margins but faces challenges with profitability and high leverage. The negative net income and high debt levels are concerning, although the company maintains a stable asset structure and generates cash from operations.

Income Statement

Bayer's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 2.86%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -0.43%. The gross profit margin remains healthy at 56.35%, suggesting efficient production processes. However, the negative net income and declining EBIT margins highlight ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a moderate level of financial stability. The debt-to-equity ratio of 1.34 indicates a relatively high leverage, which could pose risks if not managed properly. The return on equity is negative, at -0.64%, reflecting the company's struggles with profitability. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals some concerns but also strengths. The free cash flow growth is negative at -19.37%, indicating potential liquidity issues. However, the operating cash flow to net income ratio is positive, suggesting that the company is generating cash from its operations despite net losses. The free cash flow to net income ratio of 0.59 indicates a reasonable conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.49B	46.61B	47.64B	50.74B	44.08B	41.40B
Gross Profit	26.75B	25.34B	27.89B	30.87B	27.27B	22.26B
EBITDA	6.10B	8.81B	4.21B	10.44B	6.97B	-11.48B
Net Income	-360.31M	-2.55B	-2.94B	4.15B	1.00B	-15.56B
Balance Sheet
Total Assets	122.45B	110.85B	116.26B	124.88B	120.24B	117.05B
Cash, Cash Equivalents and Short-Term Investments	7.24B	8.09B	10.59B	10.15B	7.74B	11.88B
Total Debt	46.57B	40.70B	44.79B	41.65B	39.53B	41.55B
Total Liabilities	87.55B	78.81B	83.18B	85.95B	87.07B	86.35B
Stockholders Equity	34.75B	31.91B	32.93B	38.77B	33.02B	30.52B
Cash Flow
Free Cash Flow	3.70B	4.59B	2.37B	4.14B	2.48B	2.48B
Operating Cash Flow	6.63B	7.37B	5.12B	7.09B	5.09B	4.90B
Investing Cash Flow	-2.29B	164.00M	-4.01B	-2.38B	855.00M	-4.07B
Financing Cash Flow	-2.64B	-7.18B	-679.00M	-4.22B	-5.64B	423.00M

Bayer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAYRY, the sentiment is Positive. The current price of 11.6 is above the 20-day moving average (MA) of 10.86, above the 50-day MA of 9.60, and above the 200-day MA of 8.02, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 67.11 is Neutral, neither overbought nor oversold. The STOCH value of 79.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAYRY.

Bayer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILD	78 Outperform	$152.11B	18.86	40.53%	2.52%	2.76%	6407.19%
GSK	77 Outperform	$101.66B	14.04	35.62%	3.41%	5.97%	128.66%
SNY	75 Outperform	$116.18B	11.74	8.39%	4.58%	-9.32%	120.62%
PFE	74 Outperform	$143.68B	14.66	10.59%	6.65%	4.44%	128.96%
BMY	73 Outperform	$113.53B	18.88	33.84%	4.84%	1.26%	―
BAYRY	55 Neutral	$45.41B	-130.69	-0.99%	0.29%	-0.40%	66.67%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%