Bayer (BAYRY) AI Stock Analysis

• Market Cap: $52.36B
• Dividend Yield: 0.29%
• Average Volume (3M): 115.22K
• 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: 137,567
• 30 Day Avg. Volume: 115,218
• 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: 1.49
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 12.80
• 1Y Price Target: $12.35
• Price Target Upside: -7.28% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $14.00 ▲(5.11% Upside)

The score is held back primarily by weak profitability, leverage, and deteriorating free cash flow, despite stable operating cash generation. Technicals show an uptrend but are overextended, raising pullback risk. Valuation is supported by a very high dividend yield, while the earnings call adds a modest positive from pharma growth and approvals but is offset by debt, negative free cash flow, and litigation/regulatory risks.

Positive Factors

Diversified life‑sciences footprint

Bayer's multi‑segment business model spreads revenue across pharma, consumer health, crop science and animal health, reducing reliance on any single cyclical market. This diversification supports more stable long‑term cash flows and funding for R&D and strategic investments.

Operating cash generation supportive

Despite net losses, Bayer generates positive operating cash flow, indicating core businesses convert earnings into cash. This durable cash generation helps fund operations, R&D and servicing obligations, providing financial flexibility while management addresses profitability and deleveraging.

Pharma product momentum and approvals

Strong double‑digit growth in key drugs and recent FDA approval give Bayer durable revenue uplift and pipeline validation. Successful launches and rising market share suggest sustainable prescription adoption and recurring revenue, supporting medium‑term top‑line and margin improvement.

Negative Factors

High leverage and large net debt

Elevated leverage and sizable gross/net debt limit strategic flexibility and increase refinancing and interest risks. Over time, high debt burdens constrain investment, reduce agility to pursue M&A or buybacks, and heighten vulnerability to cost or revenue shocks, slowing recovery.

Negative and declining free cash flow

Material negative FCF and weakening FCF growth undermine the company's ability to self‑fund R&D, dividends and debt reduction. Persistent cash deficits force reliance on external financing or asset sales, increasing long‑term cost of capital and constraining strategic investment.

Ongoing litigation and regulatory overhangs

Prolonged litigation and regulatory issues create structural revenue and cost uncertainty, potentially leading to settlements, restrictions or lost product licenses. These overhangs can depress investment, limit market access, and impose recurring legal and compliance costs over multiple years.

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

Financial results are mixed: modest revenue growth and a healthy gross margin are offset by negative net profitability, elevated leverage (debt-to-equity 1.34), and declining free cash flow (-19.37%). Operating cash flow remains supportive despite net losses, but overall profitability and balance-sheet risk limit the score.

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: 13.32
• 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 13.32 is above the 20-day moving average (MA) of 12.60, above the 50-day MA of 11.13, and above the 200-day MA of 8.57, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 67.63 is Neutral, neither overbought nor oversold. The STOCH value of 39.97 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	$181.42B	22.19	40.53%	2.52%	2.76%	6407.19%
GSK	77 Outperform	$114.53B	15.01	35.61%	3.41%	5.97%	128.66%
BMY	73 Outperform	$117.30B	18.91	33.84%	4.84%	1.26%	―
PFE	73 Outperform	$152.26B	18.95	―	6.65%	4.44%	128.96%
SNY	69 Neutral	$117.01B	13.15	6.76%	4.58%	-9.32%	120.62%
BAYRY	54 Neutral	$52.36B	-153.40	-0.99%	0.29%	-0.40%	66.67%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%