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Bayer (BAYRY)
OTHER OTC:BAYRY
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Bayer
(OTC:BAYRY)
Rating:67Neutral
Price Target:
$8.50
▲(7.59%Upside)
Bayer (BAYRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.06B
Dividend Yield0.39%
Average Volume (3M)78.75K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-2.06%
EPS Growth-6.04%
CountryUS
Employees90,587
SectorHealthcare
Sector Strength42
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.69
Shares Outstanding3,929,696,000
10 Day Avg. Volume0
30 Day Avg. Volume78,751
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.30
Price to Sales (P/S)0.00
P/FCF Ratio2.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.50Price Target Upside-5.06% Downside
Rating ConsensusHold
Number of Analyst Covering1
Bayer Business Overview & Revenue Model
Company DescriptionBayer AG, a global enterprise with core competencies in the Life Science fields of health care and agriculture, operates through three main divisions: Pharmaceuticals, Consumer Health, and Crop Science. The Pharmaceuticals division focuses on prescription products, particularly for cardiology and oncology, as well as specialty therapeutics. Consumer Health offers non-prescription products in dermatology, nutritional supplements, and pain management. The Crop Science division provides a broad range of products including high-value seeds, innovative chemical and biological crop protection solutions, and digital farming applications.
How the Company Makes MoneyBayer AG generates revenue through its diverse portfolio across its Pharmaceuticals, Consumer Health, and Crop Science divisions. The Pharmaceuticals division earns money by developing, manufacturing, and marketing prescription products that address significant medical needs, with particular emphasis on specialties like cardiology and oncology. The Consumer Health division profits from the sale of over-the-counter medications and health products, catering to consumer demand for self-care and wellness solutions. Crop Science, Bayer's largest division by sales, contributes substantially to revenue through its integrated product offerings in seeds, crop protection, and digital agriculture, serving farmers worldwide. Strategic partnerships, research collaborations, and licensing agreements further bolster Bayer's revenue potential, enabling the company to leverage innovation and expand its market reach.
Bayer Key Performance Indicators (KPIs)
Any
EBITDA by Segment
Data provided by:
Main Street Data
Main Street DataBayer Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q4-2024)
| % Change Since: 18.26%|
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
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.55
Neutral
Balance Sheet
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.60
Neutral
Cash Flow
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.70
Positive
| 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
Positive
7.90
Price Trends
6.99
Positive
6.47
Positive
6.33
Positive
Market Momentum
0.24
Positive
64.98
Neutral
43.37
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 7.9 is above the 20-day moving average (MA) of 7.63, above the 50-day MA of 6.99, and above the 200-day MA of 6.33, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 64.98 is Neutral, neither overbought nor oversold. The STOCH value of 43.37 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $137.53B | 17.53 | 8.62% | 7.11% | 13.38% | ― | |
71 Outperform | $131.77B | 22.27 | 32.51% | 2.85% | 4.63% | 1144.01% | |
67 Neutral | $117.89B | 19.91 | 7.34% | 4.62% | -4.57% | 2.96% | |
67 Neutral | $31.06B | ― | -9.86% | 0.39% | -2.06% | -6.04% | |
63 Neutral | $94.33B | 17.40 | 31.99% | 5.35% | 4.62% | ― | |
63 Neutral | $78.04B | 19.79 | 22.26% | 4.45% | 4.17% | -29.96% | |
51 Neutral | $7.41B | 0.36 | -61.88% | 2.33% | 16.99% | 1.69% |
* Healthcare Sector Average
Performance Comparison
BAYRY
Bayer
7.90
0.90
12.86%
BMY
Bristol Myers
46.35
6.99
17.76%
GILD
Gilead Sciences
110.67
44.17
66.42%
GSK
GlaxoSmithKline
38.58
1.78
4.84%
PFE
Pfizer
24.19
-2.26
-8.54%
SNY
Sanofi
47.85
-0.21
-0.44%
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.