Bayer (BAYRY) AI Stock Analysis

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Bayer

(OTC:BAYRY)

Rating:54Neutral

Price Target:

$8.00

▼(-2.56% Downside)

Bayer's overall stock score reflects a challenging financial and valuation environment. The company's strong cash flow and asset base provide some stability, but declining profitability and high debt levels pose significant risks. Technical indicators suggest mixed market sentiment, and the lack of earnings call insights adds uncertainty.

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

Market Cap

$32.21B

Dividend Yield0.38%

Average Volume (3M)135.73K

Price to Earnings (P/E)―

Beta (1Y)0.44

Revenue Growth-1.65%

EPS Growth-172.49%

CountryUS

Employees90,587

SectorHealthcare

Sector Strength54

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)0.36

Shares Outstanding3,929,696,000

10 Day Avg. Volume37,311

30 Day Avg. Volume135,727

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.15

Enterprise Value/Revenue1.50

Enterprise Value/Gross Profit2.73

Enterprise Value/Ebitda10.59

Forecast

1Y Price Target

$7.50

Price Target Upside-8.65% Downside

Rating ConsensusHold

Number of Analyst Covering1

Bayer Business Overview & Revenue Model

Company DescriptionBayer AG is a global life sciences company based in Germany, operating primarily in the sectors of pharmaceuticals, consumer health, and crop science. The company focuses on innovative solutions in healthcare and agriculture, offering a diverse range of products that include prescription medications, over-the-counter products, and agricultural inputs such as seeds and crop protection solutions. Bayer is committed to advancing health and nutrition through scientific research and development, aiming to improve the quality of life for people around the world.

How the Company Makes MoneyBayer generates revenue through several key business segments: Pharmaceuticals, Consumer Health, and Crop Science. The Pharmaceuticals segment contributes significantly to revenue through the sale of prescription drugs, particularly in therapeutic areas such as cardiology, oncology, and women's health. The Consumer Health segment includes over-the-counter products that cater to everyday health needs, generating steady income from a broad consumer base. The Crop Science division earns revenue through the sale of seeds, crop protection products, and digital farming solutions aimed at boosting agricultural productivity. Bayer also engages in strategic partnerships and collaborations with other companies and research institutions, enhancing its R&D capabilities and expanding its market reach. Additionally, the company invests in innovation and new product development, which are critical for maintaining competitive advantage and driving future growth.

Bayer Key Performance Indicators (KPIs)

Any

EBITDA by Segment

EBITDA by Segment
Reveals the profitability of each business unit before interest, taxes, depreciation, and amortization, indicating which segments drive earnings and operational efficiency.

Chart InsightsBayer's Crop Science segment shows significant volatility, with recent quarters reflecting a downturn, possibly due to market pressures or strategic shifts. Pharmaceutical EBITDA has been relatively stable but shows a slight downward trend, indicating potential challenges in maintaining growth. Consumer Health remains consistent, suggesting resilience in this segment. Without recent earnings call insights, investors should monitor external factors affecting Crop Science and strategic moves in Pharmaceuticals to gauge future performance.

Data provided by:

Main Street Data

Bayer Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q4-2024)

% Change Since: |

Next Earnings Date:Nov 11, 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.

Bayer Financial Statement Overview

Summary

Bayer's financial performance is mixed. The company faces declining revenue and profitability, with a negative net profit margin and high debt levels. However, strong cash flow generation and a substantial asset base provide some stability.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.17B	46.61B	47.64B	50.74B	44.08B	41.40B
Gross Profit	25.37B	25.34B	27.89B	30.87B	27.27B	22.26B
EBITDA	6.55B	8.81B	4.21B	10.44B	6.97B	-11.48B
Net Income	-3.42B	-2.55B	-2.94B	4.15B	1.00B	-15.56B
Balance Sheet
Total Assets	105.24B	110.85B	116.26B	124.88B	120.24B	117.05B
Cash, Cash Equivalents and Short-Term Investments	5.50B	8.09B	10.59B	10.15B	7.74B	11.88B
Total Debt	0.00	40.70B	44.79B	41.32B	39.53B	41.55B
Total Liabilities	74.74B	78.81B	83.18B	85.95B	87.07B	86.35B
Stockholders Equity	30.37B	31.91B	32.93B	38.77B	33.02B	30.52B
Cash Flow
Free Cash Flow	4.59B	4.59B	2.37B	4.14B	2.48B	2.48B
Operating Cash Flow	7.15B	7.37B	5.12B	7.09B	5.09B	4.90B
Investing Cash Flow	2.78B	164.00M	-4.01B	-2.38B	855.00M	-4.07B
Financing Cash Flow	-8.89B	-7.18B	-679.00M	-4.22B	-5.64B	423.00M

Bayer Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.21

Price Trends

50DMA

7.96

Positive

100DMA

7.35

Positive

200DMA

6.45

Positive

Market Momentum

MACD

0.10

Negative

RSI

55.22

Neutral

STOCH

42.64

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 8.21 is above the 20-day moving average (MA) of 7.94, above the 50-day MA of 7.96, and above the 200-day MA of 6.45, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 42.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAYRY.

Bayer Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFE	82 Outperform	$140.77B	13.08	12.16%	6.91%	14.72%	―
GSK	78 Outperform	$79.02B	18.16	23.04%	4.15%	3.46%	-13.29%
SNY	76 Outperform	$120.37B	12.30	8.39%	4.47%	-9.32%	120.62%
BMY	68 Neutral	$96.03B	18.92	29.31%	5.21%	2.57%	―
GILD	68 Neutral	$140.17B	22.47	33.26%	2.76%	3.69%	501.26%
BAYRY	54 Neutral	$32.21B	―	-10.31%	0.38%	-1.65%	-172.49%
Sector *	51 Neutral	$7.84B	-0.18	-41.53%	2.28%	22.72%	-1.87%

* Healthcare Sector Average

Performance Comparison

BAYRY

Bayer

8.21

0.56

7.32%

BMY

Bristol-Myers Squibb

47.18

-1.07

-2.22%

GILD

Gilead Sciences

112.97

35.76

46.32%

GSK

GlaxoSmithKline

39.67

-1.90

-4.57%

PFE

Pfizer

24.76

-1.68

-6.35%

SNY

Sanofi

49.48

-6.27

-11.25%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 14, 2025