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Bayer (BAYRY) AI Stock Analysis

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Bayer

(OTC:BAYRY)

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Neutral 59 (OpenAI - 5.2)

Rating:59Neutral

Price Target:

$15.00

▲(14.50% Upside)

Action:Reiterated

Date:08/07/26

The score is held back primarily by weak financial performance—ongoing net losses, elevated leverage, and deteriorating free cash flow. Offsetting this, technicals are supportive with a strong uptrend and positive momentum, and valuation benefits from a very high dividend yield (despite a loss-driven negative P/E). The latest earnings call adds moderate support via reiterated guidance, improving EBITDA, and litigation/financing progress, but near-term cash outflows and debt remain meaningful risks.

Positive Factors

Crop Science margin expansion

Sustained margin expansion in Crop Science reflects a shift to higher‑value seeds & traits and licensing revenue, improving structural profitability. Higher divisional margins support group cash generation through commodity cycles and make Crop Science a durable earnings driver over the next 2‑6 months.

Negative Factors

Elevated leverage and limited flexibility

Sustained high leverage restricts strategic optionality and increases sensitivity to earnings volatility; negative ROE and sizable net debt amplify refinancing and interest risks. Over the coming months, elevated leverage limits capacity to absorb shocks or pursue large M&A without further funding actions.

Read all positive and negative factors

Positive Factors

Negative Factors

Crop Science margin expansion

Read all positive factors

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.

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

Market Cap

$55.80B

Dividend Yield0.23%

Average Volume (3M)134.93K

Price to Earnings (P/E)―

Beta (1Y)0.45

Revenue Growth5.66%

EPS Growth47.23%

CountryUS

Employees88,078

SectorHealthcare

Sector Strength45

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)-0.42

Shares Outstanding3,929,696,000

10 Day Avg. Volume237,622

30 Day Avg. Volume134,926

Financial Highlights & Ratios

PEG Ratio-0.29

Price to Book (P/B)1.40

Price to Sales (P/S)0.83

P/FCF Ratio18.08

Enterprise Value/Market Cap<0.01

Enterprise Value/Revenue<0.01

Enterprise Value/Gross Profit<0.01

Enterprise Value/Ebitda<0.01

Forecast

1Y Price Target

$15.80

Price Target Upside20.61% Upside

Rating ConsensusHold

Number of Analyst Covering1

EPS Forecast (FY)1.29

Revenue Forecast (FY)$52.68B

Bayer Business Overview & Revenue Model

Company Description

Bayer Aktiengesellschaft, commonly known as Bayer AG, functions as a prominent global life sciences company through its various subsidiaries. Its extensive operations are strategically segmented into Pharmaceuticals, Consumer Health, and Crop Scie...

How the Company Makes Money

Bayer makes money mainly by selling products across its three operating segments. (1) Pharmaceuticals: revenue is generated from sales of branded prescription drugs to wholesalers, pharmacies, hospitals, and healthcare providers. Earnings are driv...

Bayer Earnings Call Summary

Earnings Call Date:Aug 04, 2026

(Q2-2026)

% Change Since: |

Next Earnings Date:Nov 03, 2026

Earnings Call Sentiment Positive

The call presented multiple clear operational and strategic positives — steady group sales (+3%), EBITDA improvement (+7%), Crop Science margin expansion to 31%, strong growth in several Pharma assets (Nubeqa and Kerendia +66%), successful capital transactions (EUR 3bn Apollo investment and USD 5bn bond issuance) and a favorable U.S. Supreme Court ruling that materially strengthens litigation containment. Offsetting these strengths are meaningful near-term financial drains: negative free cash flow (‑EUR 2.7bn) driven by EUR 2.5bn in litigation payouts, elevated net debt in the near term (EUR 33.6bn), a 17% drop in Q2 core EPS due to normalization, Eylea sales down 27%, and continued legal and external-market risks. On balance, the highlights materially outweigh the lowlights given improving profitability, strategic progress, and decisive financing actions that reduce medium-term balance-sheet risk.

Positive Updates

Group Sales Growth

Net sales grew 3% year-over-year to EUR 24.3 billion in the first half (Q2 sales +2% to EUR 10.9 billion), showing the group is pacing to meet full-year guidance.

Negative Updates

Negative Free Cash Flow and Litigation Payouts

Free cash flow was negative EUR 2.7 billion in H1 versus minus EUR 1.4 billion a year earlier, driven by material litigation-related payouts of about EUR 2.5 billion in the period.

Read all updates

Q2-2026 Updates

Positive

Negative

Group Sales Growth

Net sales grew 3% year-over-year to EUR 24.3 billion in the first half (Q2 sales +2% to EUR 10.9 billion), showing the group is pacing to meet full-year guidance.

Read all positive updates

Company Guidance

Bayer reiterated its full‑year 2026 outlook at constant currencies after a H1 showing that it says keeps the group on track: net sales H1 EUR 24.3bn (+3% cc) and Q2 EUR 10.9bn (+2% cc); EBITDA before special items H1 EUR 6.6bn (+7%) and Q2 EUR 2.1bn (+2%); core EPS H1 EUR 3.66 (+3%) with Q2 core EPS EUR 0.95 (‑17% YoY); H1 free cash flow was negative EUR 2.7bn (vs ‑EUR 1.4bn LY), driven by ~EUR 2.5bn of litigation‑related payouts. By division: Crop Science sales +5.5% (EBITDA margin 31%), Pharma sales flat (Nubeqa+Kerendia +66%, Eylea ‑27%, Pharma EBITDA margin 26%), and Consumer Health +3.5% (EBITDA margin trailing prior year). Net financial debt stood at EUR 33.6bn (slightly up YoY; +EUR 1.1bn vs Q1) but management now expects EUR 29–30bn after a EUR 3bn Apollo minority equity investment (to close H2) and notes a successful USD 5bn bond placement; FX updated to June month‑end rates slightly lowers the headwind to sales and core EPS versus the prior estimate.

Bayer Financial Statement Overview

Summary

Overall fundamentals are weak-to-mixed: persistent net losses and negative net margins (2023–TTM) weigh heavily despite strong gross margins. Leverage is elevated (debt-to-equity ~1.1x–1.4x) and ROE is negative in recent years, increasing financial risk. Operating cash flow is a stabilizer, but free cash flow weakened sharply in TTM, making cash conversion a key concern even with a recent revenue rebound.

Income Statement

Negative

Balance Sheet

Neutral

Cash Flow

Neutral

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.67B	43.78B	46.61B	47.64B	50.74B	44.08B
Gross Profit	26.97B	25.92B	25.34B	27.89B	30.87B	27.27B
EBITDA	9.14B	10.57B	8.81B	4.21B	10.44B	6.97B
Net Income	-1.65B	-3.48B	-2.55B	-2.94B	4.15B	1.00B
Balance Sheet
Total Assets	107.24B	110.56B	110.85B	116.26B	124.88B	120.24B
Cash, Cash Equivalents and Short-Term Investments	4.29B	7.85B	8.09B	10.59B	10.15B	7.74B
Total Debt	38.42B	37.43B	40.70B	44.79B	41.65B	39.53B
Total Liabilities	77.54B	84.51B	78.81B	83.18B	85.95B	87.07B
Stockholders Equity	29.57B	25.94B	31.91B	32.93B	38.77B	33.02B
Cash Flow
Free Cash Flow	663.41M	2.00B	4.59B	2.37B	4.14B	2.48B
Operating Cash Flow	3.51B	4.39B	7.37B	5.12B	7.09B	5.09B
Investing Cash Flow	-2.49B	-1.55B	164.00M	-4.01B	-2.38B	855.00M
Financing Cash Flow	-1.32B	-2.10B	-7.18B	-679.00M	-4.22B	-5.64B

Bayer Technical Analysis

Technical Analysis Sentiment

Positive

Last Price13.10

Price Trends

50DMA

12.73

Positive

100DMA

12.01

Positive

200DMA

11.40

Positive

Market Momentum

MACD

0.33

Positive

RSI

58.62

Neutral

STOCH

82.52

Negative

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 13.1 is below the 20-day moving average (MA) of 13.73, above the 50-day MA of 12.73, and above the 200-day MA of 11.40, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 82.52 is Negative, 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
BMY	74 Outperform	$132.45B	14.28	46.75%	3.84%	3.13%	83.17%
GSK	72 Outperform	$104.30B	15.80	28.35%	3.50%	8.82%	48.32%
GILD	70 Outperform	$164.99B	-52.22	-16.30%	2.49%	6.05%	-151.43%
SNY	69 Neutral	$104.53B	23.06	5.52%	5.58%	23.68%	-30.90%
PFE	66 Neutral	$154.18B	35.17	4.89%	7.01%	-0.21%	-59.71%
BAYRY	59 Neutral	$55.80B	-27.81	-7.52%	0.25%	5.66%	47.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

BAYRY

Bayer

14.13

6.58

87.09%

BMY

Bristol-Myers Squibb

63.61

19.19

43.21%

GILD

Gilead Sciences

135.77

18.80

16.07%

GSK

GlaxoSmithKline

50.90

14.05

38.12%

PFE

Pfizer

26.62

3.59

15.57%

SNY

Sanofi

43.56

-2.65

-5.73%

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 07, 2026