Bayer (BAYRY) AI Stock Analysis

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Bayer

(OTC:BAYRY)

Rating:67Neutral

Price Target:

$8.50

▲(5.46%Upside)

Bayer's stock score is driven by strong technical momentum, despite financial challenges. The robust cash flow supports stability, but high leverage and negative profitability weigh on valuation. Investors should be cautious of overbought technical signals.

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

Market Cap

$31.49B

Dividend Yield0.28%

Average Volume (3M)27.77K

Price to Earnings (P/E)―

Beta (1Y)0.45

Revenue Growth-2.06%

EPS Growth-6.04%

CountryUS

Employees90,587

SectorHealthcare

Sector Strength40

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)0.69

Shares Outstanding3,929,696,000

10 Day Avg. Volume36,917

30 Day Avg. Volume27,770

Financial Highlights & Ratios

PEG Ratio0.30

Price to Book (P/B)0.83

Price to Sales (P/S)0.00

P/FCF Ratio5.09

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$7.50

Price Target Upside-6.95% Downside

Rating ConsensusHold

Number of Analyst Covering1

Bayer Business Overview & Revenue Model

Company DescriptionBayer AG is a global life sciences company based in Germany, focusing on the healthcare and agriculture sectors. The company operates through three main divisions: Pharmaceuticals, Consumer Health, and Crop Science. The Pharmaceuticals segment offers prescription products, particularly for cardiology and oncology, as well as women’s healthcare products. The Consumer Health division provides over-the-counter medications, dietary supplements, and dermatology products. The Crop Science division is involved in the development of seeds, crop protection solutions, and digital farming technologies.

How the Company Makes MoneyBayer generates revenue primarily through the sale of its pharmaceutical products, consumer health goods, and agricultural solutions. The Pharmaceuticals division is a major revenue driver, with income derived from prescription medications and specialty therapeutics. The Consumer Health division contributes through the sale of over-the-counter medicines and health-related products directly to consumers. In the Crop Science division, revenue is obtained via the sale of seeds and crop protection products to farmers, as well as through digital agriculture services. Additionally, Bayer engages in strategic partnerships and collaborations with other companies to enhance its product offerings and expand market reach, contributing to its overall earnings.

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:May 13, 2025

(Q4-2024)

% Change Since: 20.66%|

Next Earnings Date:Aug 06, 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 shows financial challenges with declining revenue and profitability, and a net loss impacting its income statement negatively. The balance sheet is weighed down by high debt with a debt-to-equity ratio of 1.28. However, robust cash flow provides some resilience, supported by significant free cash flow growth and positive cash conversion.

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

Bayer Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.06

Price Trends

50DMA

7.41

Positive

100DMA

6.79

Positive

200DMA

6.33

Positive

Market Momentum

MACD

0.17

Positive

RSI

60.06

Neutral

STOCH

80.47

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 8.06 is above the 20-day moving average (MA) of 7.84, above the 50-day MA of 7.41, and above the 200-day MA of 6.33, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 60.06 is Neutral, neither overbought nor oversold. The STOCH value of 80.47 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFE	72 Outperform	$139.92B	17.81	8.62%	7.00%	13.38%	―
GILD	71 Outperform	$136.65B	22.88	32.51%	2.90%	4.63%	1144.01%
BMY	70 Outperform	$96.38B	17.78	31.99%	5.16%	4.62%	―
SNY	67 Neutral	$117.81B	20.11	7.34%	4.55%	-4.57%	2.96%
BAYRY	67 Neutral	$31.49B	―	-9.86%	0.28%	-2.06%	-6.04%
Sector *	60 Neutral	HK$17.01B	5.47	-7.44%	3.80%	11.55%	-28.15%
GSK	59 Neutral	$77.16B	18.71	22.26%	4.71%	4.17%	-29.96%

* Healthcare Sector Average

Performance Comparison

BAYRY

Bayer

8.06

0.94

13.20%

BMY

Bristol-Myers Squibb

47.36

6.64

16.31%

GILD

Gilead Sciences

108.22

37.93

53.96%

GSK

GlaxoSmithKline

36.31

-1.42

-3.76%

PFE

Pfizer

24.47

-3.62

-12.89%

SNY

Sanofi

48.32

-0.74

-1.51%

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: Jun 12, 2025