Bayer (BAYN) AI Stock Analysis

• Market Cap: €24.70B
• Dividend Yield: 0.44%
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -0.92%
• EPS Growth: -4.30%
• Country: DE
• Employees: 90,587
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.49
• Shares Outstanding: 982,424,100
• 10 Day Avg. Volume: 3,165,530
• 30 Day Avg. Volume: 4,004,056
• PEG Ratio: 0.25
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.26
• 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: €26.39
• Price Target Upside: 5.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 56 Neutral
• 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 Business Overview & Revenue Model

Company Description

Bayer 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 Money

Bayer 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
46.58B	46.61B	47.64B	50.74B	44.08B	41.40B
	Gross Profit
25.15B	25.34B	27.89B	30.87B	27.27B	22.26B
	EBIT
2.96B	3.33B	-150.00M	6.26B	6.97B	-2.94B
	EBITDA
8.08B	8.81B	4.21B	10.44B	6.97B	-11.48B
	Net Income Common Stockholders
-3.25B	-2.55B	-2.94B	4.15B	1.00B	-15.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.65B	8.09B	10.59B	10.15B	7.74B	11.88B
	Total Assets
75.39B	110.85B	116.26B	124.88B	120.24B	117.05B
	Total Debt
14.03B	40.70B	44.79B	41.32B	39.53B	41.55B
	Net Debt
8.70B	34.51B	38.88B	36.15B	34.97B	37.36B
	Total Liabilities
37.01B	78.81B	83.18B	85.95B	87.07B	86.35B
	Stockholders Equity
38.33B	31.91B	32.93B	38.77B	33.02B	30.52B
Cash Flow		Free Cash Flow
5.27B	4.59B	2.37B	4.14B	2.48B	2.48B
	Operating Cash Flow
7.99B	7.37B	5.12B	7.09B	5.09B	4.90B
	Investing Cash Flow
22.00M	164.00M	-4.01B	-2.38B	855.00M	-4.07B
	Financing Cash Flow
-9.10B	-7.18B	-679.00M	-4.22B	-5.64B	423.00M

Bayer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	77 Outperform	$51.09B	24.54	11.14%	2.00%	5.83%	13.44%
FME	65 Neutral	€14.79B	23.92	4.37%	2.86%	0.10%	27.83%
SRT	63 Neutral	€12.78B	119.28	3.55%	0.44%	3.99%	-36.36%
FRE	61 Neutral	€24.55B	58.77	6.28%	2.27%	-18.90%	―
MRK	59 Neutral	€49.89B	17.70	9.74%	1.92%	2.38%	3.49%
BAYN	56 Neutral	€24.70B	―	-9.56%	0.44%	-0.92%	-4.30%
Sector *	53 Neutral	$5.23B	3.23	-44.27%	2.82%	16.82%	0.11%

Bayer Corporate Events

Bayer Supervisory Board Member Purchases Company Shares

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.

Bayer’s Managerial Share Purchase Highlights Commitment to Shareholder Alignment

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.

Bayer AG Management Share Purchase Signals Strategic Confidence

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.

Bayer Supervisory Board Member Engages in Share Purchase

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.

Bayer Announces Managerial Share Purchase

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.

Bayer Supervisory Board Member Engages in Share Purchase

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.

Bayer Supervisory Board Member Purchases Shares, Signaling Confidence

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.

Bayer Supervisory Board Member Purchases Shares, Signaling Confidence

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.

Bayer’s Supervisory Member Purchases Shares, Signaling Confidence

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.