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Bayer (DE:BAYN)
XETRA:BAYN

Bayer (BAYN) AI Stock Analysis

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DE

Bayer

(XETRA:BAYN)

Rating:56Neutral
Price Target:
Bayer's overall stock score reflects a challenging financial performance, with significant leverage and declining profitability. Despite these challenges, positive cash flow and recent insider buying provide some stability and confidence in future prospects. Technical indicators suggest cautious optimism with upward momentum, though valuation concerns persist due to negative earnings. Overall, the company must focus on improving profitability and managing leverage to strengthen its financial position.
Positive Factors
Debt Management
FY-24 FCF came in at €3.1bn ahead of guidance. Net debt at €32.6bn (FY-23: 34.5bn), which is good news.
Financial Performance
The company has implemented measures to maximize cash flow generation, which is crucial given the high level of debt.
Negative Factors
Generic Competition
The Crop Science business is facing a broader-than-expected generics impact, affecting the company's overall performance.
Litigation
Ongoing litigation related to glyphosate is creating uncertainty for investors, with 67,000 cases still unsettled.
Pharma Growth Concerns
Bayer underperformed significantly due to weaker-than-expected agrochemicals performance and questions on long-term pharma growth.

Bayer (BAYN) vs. iShares MSCI Germany ETF (EWG)

Bayer Business Overview & Revenue Model

Company DescriptionBayer AG is a global life sciences company based in Germany, operating in the sectors of healthcare, agriculture, and consumer health. Its core divisions include Pharmaceuticals, which focuses on prescription medicines for cardiology, oncology, gynecology, hematology, and ophthalmology; Consumer Health, which offers over-the-counter (OTC) products; and Crop Science, which provides agricultural products and services aimed at enhancing crop productivity and quality. Bayer is well-known for its research-driven approach, innovation, and commitment to improving people's lives and advancing sustainable agricultural practices.
How the Company Makes MoneyBayer makes money through its three main divisions: Pharmaceuticals, Consumer Health, and Crop Science. The Pharmaceuticals division generates revenue through the sale of prescription drugs, which are often protected by patents, allowing for premium pricing and a significant share of the company's income. The Consumer Health division provides over-the-counter products available to consumers worldwide, contributing to a steady stream of revenue through well-known brands. The Crop Science division earns money by selling seeds, crop protection products, and digital farming solutions that help farmers increase crop yields and efficiency. Revenue is further supported by strategic partnerships, collaborations, and acquisitions that enhance Bayer's product offerings and market reach.

Bayer Financial Statement Overview

Summary
Bayer's financial health presents a mixed scenario. The income statement shows declining revenues and negative profitability, while the balance sheet's high leverage poses risk. However, cash flow resilience offers some stability, highlighting the company's ability to operate despite financial challenges. Overall, the company needs to address profitability and leverage to enhance its financial position.
Income Statement
45
Neutral
Bayer's income statement presents several challenges. The company has experienced declining revenues from 2022 to 2023, with a negative net profit margin due to consistent net losses over the past three years. Gross profit margins have been relatively stable, but the absence of EBIT indicates operational challenges. The EBITDA margin shows operational efficiency but is overshadowed by negative net income, impacting the overall assessment.
Balance Sheet
55
Neutral
The balance sheet reveals a mixed picture. Bayer has a high debt-to-equity ratio, indicating significant leverage, which can pose financial risks. The equity ratio is moderately healthy, showing some stability in its asset financing. However, consistent net losses negatively affect return on equity, limiting potential shareholder returns.
Cash Flow
60
Neutral
Despite the challenges, Bayer's cash flow statement displays some positive aspects. The operating cash flow shows improvement, and free cash flow remains positive, signaling operational resilience. However, the free cash flow growth rate fluctuates, and the reliance on operating cash flow to net income is critical, given the negative net income figures.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
46.58B46.61B47.64B50.74B44.08B41.40B
Gross Profit
25.15B25.34B27.89B30.87B27.27B22.26B
EBIT
2.96B3.33B-150.00M6.26B6.97B-2.94B
EBITDA
8.08B8.81B4.21B10.44B6.97B-11.48B
Net Income Common Stockholders
-3.25B-2.55B-2.94B4.15B1.00B-15.56B
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.65B8.09B10.59B10.15B7.74B11.88B
Total Assets
75.39B110.85B116.26B124.88B120.24B117.05B
Total Debt
14.03B40.70B44.79B41.32B39.53B41.55B
Net Debt
8.70B34.51B38.88B36.15B34.97B37.36B
Total Liabilities
37.01B78.81B83.18B85.95B87.07B86.35B
Stockholders Equity
38.33B31.91B32.93B38.77B33.02B30.52B
Cash FlowFree Cash Flow
5.27B4.59B2.37B4.14B2.48B2.48B
Operating Cash Flow
7.99B7.37B5.12B7.09B5.09B4.90B
Investing Cash Flow
22.00M164.00M-4.01B-2.38B855.00M-4.07B
Financing Cash Flow
-9.10B-7.18B-679.00M-4.22B-5.64B423.00M

Bayer Technical Analysis

Technical Analysis Sentiment
Positive
Last Price24.96
Price Trends
50DMA
22.74
Positive
100DMA
22.34
Positive
200DMA
23.22
Positive
Market Momentum
MACD
0.62
Negative
RSI
62.34
Neutral
STOCH
81.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BAYN, the sentiment is Positive. The current price of 24.96 is above the 20-day moving average (MA) of 24.02, above the 50-day MA of 22.74, and above the 200-day MA of 23.22, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 81.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:BAYN.

Bayer Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DESHL
77
Outperform
$51.09B24.5411.14%2.00%5.83%13.44%
DEFME
65
Neutral
€14.79B23.924.37%2.86%0.10%27.83%
DESRT
63
Neutral
€12.78B119.283.55%0.44%3.99%-36.36%
DEFRE
61
Neutral
€24.55B58.776.28%2.27%-18.90%
DEMRK
59
Neutral
€49.89B17.709.74%1.92%2.38%3.49%
56
Neutral
€24.70B-9.56%0.44%-0.92%-4.30%
53
Neutral
$5.23B3.23-44.27%2.82%16.82%0.11%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:BAYN
Bayer
25.32
-3.14
-11.03%
DE:FME
Fresenius Medical Care AG & Co. KGaA
49.82
11.73
30.78%
DE:FRE
Fresenius SE & Co. KGaA
43.49
14.54
50.21%
DE:SRT
Sartorius
167.40
-28.37
-14.49%
DE:MRK
Merck KGaA
116.30
-51.35
-30.63%
DE:SHL
Siemens Healthineers AG
46.11
-7.56
-14.09%

Bayer Corporate Events

Business Operations and Strategy
Bayer Supervisory Board Member Purchases Company Shares
Positive
Apr 1, 2025

Bayer Aktiengesellschaft announced a transaction involving the purchase of shares by a member of its supervisory board, Kimberly Mathisen. This transaction, conducted at the Frankfurt Stock Exchange, reflects the board members’ commitment to buy Bayer AG shares, potentially signaling confidence in the company’s future performance.

Business Operations and Strategy
Bayer’s Managerial Share Purchase Highlights Commitment to Shareholder Alignment
Positive
Mar 13, 2025

Bayer Aktiengesellschaft announced a managerial transaction involving Dr. Nancy Simonian, a member of the administrative or supervisory body, who purchased shares as part of the Board of Management’s commitment to buy Bayer AG shares. The transaction, executed on March 11, 2025, at the Frankfurt Stock Exchange, involved a total volume of 36,293.88 USD at a price of 25.9242 USD per share, reflecting the company’s ongoing efforts to align management interests with shareholder value.

Business Operations and Strategy
Bayer AG Management Share Purchase Signals Strategic Confidence
Positive
Mar 11, 2025

Bayer AG announced a managerial transaction involving Ertharin Cousin, a member of its administrative body, who purchased shares as part of a commitment by the Board of Management to buy Bayer AG shares. This transaction, valued at approximately $45,518.52, reflects the company’s ongoing efforts to align management interests with shareholder value, potentially impacting investor confidence and market perception.

Other
Bayer Supervisory Board Member Engages in Share Purchase
Positive
Mar 10, 2025

Bayer Aktiengesellschaft announced a transaction involving the purchase of shares by the Hebert-Schechter Trust, associated with Lori Schechter, a member of the company’s supervisory body. This transaction reflects a commitment by the supervisory board members to invest in Bayer AG shares, potentially signaling confidence in the company’s future performance and stability.

Other
Bayer Announces Managerial Share Purchase
Neutral
Mar 10, 2025

Bayer Aktiengesellschaft announced a managerial transaction involving Prof. Dr. Norbert Winkeljohann, a member of the administrative or supervisory body, who purchased shares valued at approximately 99,984.66 EUR on March 6, 2025. This transaction, conducted on the Xetra trading platform, reflects ongoing investment activities within the company, potentially impacting stakeholder perceptions and market positioning.

Business Operations and Strategy
Bayer Supervisory Board Member Engages in Share Purchase
Positive
Mar 10, 2025

Bayer Aktiengesellschaft announced a transaction involving the purchase of shares by the Hebert-Schechter Trust, associated with Lori Schechter, a member of the company’s supervisory body. This transaction, executed on March 7, 2025, at a price of 23.37 EUR per share, reflects the commitment of Bayer’s supervisory board members to invest in the company, potentially signaling confidence in Bayer’s strategic direction and future performance.

Other
Bayer Supervisory Board Member Purchases Shares, Signaling Confidence
Positive
Mar 10, 2025

Bayer Aktiengesellschaft announced a transaction involving the purchase of shares by a member of its Supervisory Board, Lori Schechter, through the Hebert-Schechter Trust. This transaction, part of the board members’ commitment to buy Bayer AG shares, reflects confidence in the company’s future and may positively influence stakeholder perceptions.

Other
Bayer Supervisory Board Member Purchases Shares, Signaling Confidence
Positive
Mar 10, 2025

Bayer AG announced a transaction involving Horst Baier, a member of its supervisory board, who purchased shares as part of the board members’ commitment to buy Bayer AG shares. This transaction, conducted on the Xetra platform, reflects the board’s confidence in the company’s future prospects and is likely to impact investor sentiment positively.

Other
Bayer’s Supervisory Member Purchases Shares, Signaling Confidence
Positive
Mar 10, 2025

Bayer Aktiengesellschaft announced a managerial transaction involving Dr. Paul Achleitner, a member of their supervisory body, who purchased shares valued at approximately 49,992.33 EUR on March 6, 2025. This transaction, conducted on the Xetra trading platform, reflects internal confidence in the company’s market position and may influence stakeholder perceptions of Bayer’s financial health.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.