Bayer (BAYN) AI Stock Analysis

• Market Cap: €38.20B
• Dividend Yield: 0.31%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: -1.87%
• EPS Growth: 77.51%
• Country: DE
• Employees: 90,587
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.57
• Shares Outstanding: 982,424,100
• 10 Day Avg. Volume: 2,239,372
• 30 Day Avg. Volume: 2,240,598
• PEG Ratio: 0.57
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 4.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €36.79
• Price Target Upside: -7.35% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €37.00 ▼(-6.82% Downside)

Bayer's overall stock score is primarily impacted by its financial challenges, including declining revenue and high leverage. While technical analysis shows bullish momentum, the overbought indicators suggest caution. The valuation is weak due to a negative P/E ratio and low dividend yield, further weighing down the score.

Positive Factors

Innovative Clinical Trials

The initiation of a Phase IIa trial for a new monoclonal antibody indicates Bayer's commitment to innovation in pharmaceuticals, potentially leading to new revenue streams and strengthening its competitive position in the market.

Product Pipeline Expansion

Expanding its product pipeline with gadoquatrane, a low-dose MRI contrast agent, Bayer is poised to capture new market opportunities, enhancing its long-term growth prospects and reinforcing its presence in the medical imaging field.

Sustainability Initiatives

Bayer's focus on sustainability initiatives not only aligns with global trends but also leads to cost savings and improved efficiencies, positively impacting long-term profitability and operational resilience.

Negative Factors

High Leverage

Bayer's high leverage, indicated by a significant debt-to-equity ratio, poses risks to financial stability, potentially limiting its ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Declining Revenue

The declining revenue trend highlights potential market or operational challenges, which could undermine Bayer's market position and long-term growth prospects if not addressed effectively.

Negative Profitability

Ongoing challenges in achieving profitability, as reflected by a negative net profit margin, suggest operational inefficiencies that could hinder Bayer's ability to generate sustainable earnings over the long term.

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 streams across its three core sectors. The Pharmaceuticals division is a significant contributor, driven by the sales of patented drugs and ongoing investments in research and development to bring new medications to market. The Consumer Health segment earns revenue from a diverse portfolio of over-the-counter healthcare products, leveraging strong brand recognition and customer loyalty. Crop Science generates income through the sale of seeds, crop protection products, and digital farming solutions, capitalizing on global agricultural needs. Additionally, Bayer engages in strategic partnerships and collaborations with other companies and research institutions, enhancing its capabilities and market reach, which further contributes to its earnings. The company also invests in sustainability initiatives, which can lead to cost savings and improved efficiencies, positively impacting its bottom line.

Bayer Financial Statement Overview

Summary

Bayer is facing significant financial challenges, with declining revenues and persistent losses impacting profitability. The high leverage and negative return on equity highlight financial risks, while cash flow management shows some resilience despite declining free cash flow. The company needs to address operational inefficiencies and improve profitability to enhance its financial position.

Income Statement

Bayer's income statement shows significant challenges, with a negative net profit margin of -6.98% for TTM, indicating ongoing losses. Revenue has been declining, with a notable drop of 8.69% in the TTM period. The gross profit margin remains relatively strong at 53.99%, but the negative EBIT margin highlights operational inefficiencies. Overall, the company is struggling with profitability and revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.21, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio is relatively stable, suggesting a balanced asset structure. The high leverage and negative ROE are concerning, but the equity ratio provides some stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 12.89% in the TTM period, indicating challenges in generating cash. The operating cash flow to net income ratio is 0.29, suggesting that operating cash flow is not sufficient to cover net losses. However, the free cash flow to net income ratio of 0.66 indicates some ability to generate cash relative to net losses. Overall, cash flow management is under pressure but shows some resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.87B	46.61B	47.64B	50.74B	44.08B	41.40B
Gross Profit	25.85B	25.34B	27.89B	30.87B	27.27B	22.26B
EBITDA	6.10B	3.81B	4.21B	10.44B	6.97B	-11.48B
Net Income	-198.00M	-2.55B	-2.94B	4.15B	1.00B	-15.56B
Balance Sheet
Total Assets	104.21B	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	39.64B	40.81B	44.79B	41.65B	39.53B	41.55B
Total Liabilities	74.51B	78.81B	83.18B	85.95B	87.07B	86.35B
Stockholders Equity	29.58B	31.91B	32.93B	38.77B	33.02B	30.52B
Cash Flow
Free Cash Flow	3.94B	4.59B	2.37B	4.14B	2.48B	2.48B
Operating Cash Flow	6.72B	7.37B	5.12B	7.09B	5.09B	4.90B
Investing Cash Flow	-2.05B	164.00M	-4.01B	-2.38B	855.00M	-4.07B
Financing Cash Flow	-3.10B	-7.18B	-679.00M	-4.22B	-5.64B	423.00M

Bayer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 39.71 is above the 20-day moving average (MA) of 36.93, above the 50-day MA of 32.59, and above the 200-day MA of 27.70, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 75.23 is Negative, neither overbought nor oversold. The STOCH value of 85.51 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	76 Outperform	€55.78B	18.87	10.32%	1.82%	1.47%	9.64%
SHL	67 Neutral	€51.90B	24.29	11.45%	2.13%	4.53%	10.12%
FME	64 Neutral	€11.48B	16.11	5.41%	3.54%	2.10%	9.19%
SRT	64 Neutral	€15.77B	102.76	5.01%	0.39%	5.82%	59.90%
FRE	62 Neutral	€27.45B	24.26	7.50%	2.05%	0.63%	―
BAYN	54 Neutral	€38.20B	-197.07	-0.66%	0.31%	-1.87%	77.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Bayer Corporate Events

Bayer AG Announces Upcoming Financial Report Releases

Bayer Aktiengesellschaft has announced the upcoming disclosure of its financial reports, including the year report for 2025 and the half-year report for 2026. These reports, set to be published in February and August 2026, respectively, will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and market perception.

The most recent analyst rating on (DE:BAYN) stock is a Hold with a EUR30.00 price target. To see the full list of analyst forecasts on Bayer stock, see the DE:BAYN Stock Forecast page.