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Bayer
(OTC:BAYRY)
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Rating:57Neutral
Price Target:
$14.50
â–²(31.58% Upside)
Action:Reiterated
Date:07/02/26
The score is held back primarily by weak financial performance—multi-year revenue decline, ongoing net losses, and elevated leverage—despite positive operating/free cash flow and solid gross margins. Technicals are a secondary positive with the stock above major moving averages, while valuation is mixed: an unusually high dividend yield supports the score, but negative earnings (negative P/E) limit confidence.
Positive Factors
Strategic crop-business consolidation
Bayer’s move to fold U.S. glyphosate operations into Ruveon is a structural repositioning that creates a dedicated, more nimble unit focused on commodity market dynamics. Over the medium term this can sharpen go-to-market execution, reduce complexity in Crop Science and improve margins and competitiveness in the U.S. glyphosate market.
Negative Factors
Multi-year revenue decline
A persistent top-line contraction (TTM ~-25% YoY) erodes scale benefits, weakens pricing power, and strains R&D payback. Without durable new product growth or market share gains, revenue decline undermines the business’s ability to restore sustainable operating margins and long-term EPS recovery.
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Positive Factors
Negative Factors
Strategic crop-business consolidation
Bayer’s move to fold U.S. glyphosate operations into Ruveon is a structural repositioning that creates a dedicated, more nimble unit focused on commodity market dynamics. Over the medium term this can sharpen go-to-market execution, reduce complexity in Crop Science and improve margins and competitiveness in the U.S. glyphosate market.
Read all positive factors
Bayer Key Performance Indicators (KPIs)
Any
EBITDA by Segment
Reveals the profitability of each business unit before interest, taxes, depreciation, and amortization, indicating which segments drive earnings and operational efficiency.
Reveals the profitability of each business unit before interest, taxes, depreciation, and amortization, indicating which segments drive earnings and operational efficiency.
Data provided by:
The Fly
The FlyBayer (BAYRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.83B
Dividend Yield0.29%
Average Volume (3M)120.37K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth5.09%
EPS Growth31.21%
CountryUS
Employees90,587
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)-0.53
Shares Outstanding3,929,696,000
10 Day Avg. Volume59,336
30 Day Avg. Volume120,373
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 Cap1.26
Enterprise Value/Revenue1.55
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda9.63
Forecast
1Y Price Target
$15.80Price Target Upside43.38% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.26
Revenue Forecast (FY)$52.62B
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:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational progress—delivery of raised guidance, improved launch momentum in Pharma, meaningful DSO-driven cost savings, and a reduced net financial debt position in 2025—against substantial legal and cashflow headwinds. Management articulated tangible growth drivers across Crop Science, Pharma and Consumer Health and concrete cost-savings milestones, but also disclosed large litigation provisions (EUR 11.8 billion liabilities), expected negative free cash flow in 2026 due to ~EUR 5 billion litigation-related payouts, projected net debt increase and significant product declines (notably Xarelto and Eylea). Given the mix of strong operational execution and material financial/legal risks that will weigh on near-term cash flow and balance-sheet metrics, the tone of the call is cautiously constructive but realistic about the challenges ahead.Positive Updates
Delivered Raised Guidance and Full-Year Results
Currency- and portfolio-adjusted group net sales of EUR 45.5 billion for 2025; group net sales grew ~1% year-over-year on a currency- and portfolio-adjusted basis. Core earnings per share (reported definition) of EUR 4.91 and group EBITDA before special items of EUR 9.7 billion. Free cash flow of EUR 2.1 billion (upper end of guidance).
Negative Updates
Large Litigation-Related Costs and Provisions
Litigation-related special items of EUR 7.5 billion in 2025; total litigation-related provisions and liabilities assessed at EUR 11.8 billion covering known and reliably forecast costs (including past glyphosate verdicts).
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Q4-2025 Updates
Positive
Negative
Delivered Raised Guidance and Full-Year Results
Currency- and portfolio-adjusted group net sales of EUR 45.5 billion for 2025; group net sales grew ~1% year-over-year on a currency- and portfolio-adjusted basis. Core earnings per share (reported definition) of EUR 4.91 and group EBITDA before special items of EUR 9.7 billion. Free cash flow of EUR 2.1 billion (upper end of guidance).
Read all positive updates
Company Guidance
Bayer's 2026 guidance (at constant currencies) targets group net sales of €45–47bn, EBITDA before special items of €9.6–10.1bn (≈ -1% to +4% y/y) and core EPS of €4.30–4.80 (after a 2025 core‑EPS methodology change that adjusts 2025 from €4.91 to €4.57, a ~€0.35 step‑down); the company expects negative free cash flow of about -€1.5bn to -€2.5bn due to an anticipated ~€5bn litigation payout and forecasts net financial debt rising to €32–33bn (from <€30bn at end‑2025), with FX headwinds of ~€0.30 on core EPS. Division-level guidance includes Crop Science core growth of 1–4% c/p‑adj and an EBITDA margin before special items of 20–22% (glyphosate sales -2% to -6%; Corteva‑related licensing supported ~€300m in Q4‑25 and ~€450m in Q1‑26), Pharmaceuticals revenue 0–3% with Nubeqa/Kerendia growth ~50%, Xarelto -35% to -40% and Eylea -20% to -25% and a Pharma margin of 23–25%, and Consumer Health sales 0–4% with a margin of 22–24%. Management also reiterated DSO savings of ~€700m in 2025 and cumulative DSO savings of €2bn by year‑end, reported litigation‑related special items of €7.5bn and litigation provisions/liabilities of €11.8bn, and said financing is planned via senior bonds and instruments that can receive equity credit.Bayer Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
48
Neutral
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.36B | 43.78B | 46.61B | 47.64B | 50.74B | 44.08B |
| Gross Profit | 26.91B | 25.92B | 25.34B | 27.89B | 30.87B | 27.27B |
| EBITDA | 7.30B | 10.57B | 8.81B | 4.21B | 10.44B | 6.97B |
| Net Income | -2.07B | -3.48B | -2.55B | -2.94B | 4.15B | 1.00B |
Balance Sheet | ||||||
| Total Assets | 108.06B | 110.56B | 110.85B | 116.26B | 124.88B | 120.24B |
| Cash, Cash Equivalents and Short-Term Investments | 6.66B | 7.85B | 8.09B | 10.59B | 10.15B | 7.74B |
| Total Debt | 38.93B | 37.43B | 40.70B | 44.79B | 41.65B | 39.53B |
| Total Liabilities | 79.06B | 84.51B | 78.81B | 83.18B | 85.95B | 87.07B |
| Stockholders Equity | 28.88B | 25.94B | 31.91B | 32.93B | 38.77B | 33.02B |
Cash Flow | ||||||
| Free Cash Flow | 1.63B | 2.00B | 4.59B | 2.37B | 4.14B | 2.48B |
| Operating Cash Flow | 4.27B | 4.39B | 7.37B | 5.12B | 7.09B | 5.09B |
| Investing Cash Flow | -1.55B | -1.55B | 164.00M | -4.01B | -2.38B | 855.00M |
| Financing Cash Flow | -766.94M | -2.10B | -7.18B | -679.00M | -4.22B | -5.64B |
Bayer Technical Analysis
Positive
11.02
Price Trends
11.46
Positive
11.60
Positive
10.74
Positive
Market Momentum
1.01
Negative
70.01
Negative
64.39
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 11.02 is below the 20-day moving average (MA) of 12.37, below the 50-day MA of 11.46, and above the 200-day MA of 10.74, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 64.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAYRY.
Bayer Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $168.63B | 18.17 | 42.16% | 2.52% | 3.83% | 55.01% | |
69 Neutral | $104.04B | 19.17 | 14.41% | 4.58% | 11.19% | -0.23% | |
66 Neutral | $106.53B | 13.51 | 35.78% | 3.41% | 9.19% | 98.98% | |
64 Neutral | $117.50B | 16.28 | 39.05% | 4.33% | 1.78% | 33.76% | |
64 Neutral | $137.07B | 18.51 | 8.37% | 6.65% | 1.36% | -5.39% | |
57 Neutral | $55.83B | -23.15 | -7.52% | 0.29% | 5.09% | 31.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
BAYRY
Bayer
14.31
6.34
79.45%
BMY
Bristol-Myers Squibb
57.58
12.87
28.78%
GILD
Gilead Sciences
129.83
22.97
21.50%
GSK
GlaxoSmithKline
52.78
15.87
42.99%
PFE
Pfizer
24.17
0.20
0.82%
SNY
Sanofi
43.50
-3.25
-6.94%
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.