Bayer (BAYN) AI Stock Analysis

• Market Cap: €27.29B
• Dividend Yield: 0.4%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -1.99%
• EPS Growth: -169.98%
• Country: DE
• Employees: 90,587
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.23
• Shares Outstanding: 982,424,100
• 10 Day Avg. Volume: 2,239,372
• 30 Day Avg. Volume: 2,240,598
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €27.81
• Price Target Upside: 0.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 45 Neutral
• Price Target: €27.00 ▼(-2.21% Downside)

Bayer's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's high leverage and negative profitability metrics pose significant financial risks. The technical analysis further indicates weak market momentum, while the valuation suggests the stock may be overvalued given its current financial state.

Positive Factors

Strong R&D Commitment

Bayer's strong focus on R&D supports innovation in pharmaceuticals and crop science, potentially leading to new products and market expansion.

Diverse Revenue Streams

Diversified revenue streams across multiple sectors reduce dependency on a single market, enhancing stability and resilience against sector-specific downturns.

High Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can support long-term profitability despite revenue challenges.

Negative Factors

Declining Revenue

Declining revenue trends pose a risk to Bayer's financial health, potentially affecting its ability to invest in growth and maintain competitive positioning.

High Leverage

High leverage increases financial risk, limiting Bayer's flexibility to invest in strategic initiatives and potentially impacting long-term financial stability.

Negative Profitability

Ongoing losses and negative profitability highlight operational inefficiencies, which could undermine Bayer's ability to sustain long-term growth and shareholder value.

Bayer Business Overview & Revenue Model

Company Description

Bayer AG is a global life sciences company headquartered in Leverkusen, Germany, operating primarily in the sectors of pharmaceuticals, consumer health, and crop science. The company is dedicated to advancing health and nutrition through innovative products and solutions, including prescription medications, over-the-counter healthcare products, and agricultural solutions such as seeds and crop protection. Bayer's commitment to research and development drives its extensive portfolio, addressing critical health and agricultural challenges worldwide.

How the Company Makes Money

Bayer generates revenue through multiple key streams across its business segments. The Pharmaceuticals division contributes significantly by offering prescription medications in areas such as cardiology, oncology, and women's health. The Consumer Health segment includes over-the-counter products, which provide steady revenue from everyday health solutions. Additionally, the Crop Science division, which focuses on crop protection products and seeds, plays a critical role in the agricultural market. Bayer also engages in strategic partnerships and collaborations with other healthcare and agricultural firms, as well as research institutions, to enhance its product offerings and expand its market reach. The company's strong commitment to innovation and R&D enables it to develop new products that meet evolving consumer and market needs, further driving its revenue growth.

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	46.17B	46.61B	47.64B	50.74B	44.08B	41.40B
Gross Profit	25.37B	25.34B	27.89B	30.87B	27.27B	22.26B
EBITDA	6.55B	3.81B	4.21B	10.44B	6.97B	-11.48B
Net Income	-3.42B	-2.55B	-2.94B	4.15B	1.00B	-15.56B
Balance Sheet
Total Assets	105.24B	110.85B	116.26B	124.88B	120.24B	117.05B
Cash, Cash Equivalents and Short-Term Investments	5.50B	8.09B	10.59B	10.15B	7.74B	11.88B
Total Debt	38.43B	40.81B	44.79B	41.32B	39.53B	41.55B
Total Liabilities	74.74B	78.81B	83.18B	85.95B	87.07B	86.35B
Stockholders Equity	30.37B	31.91B	32.93B	38.77B	33.02B	30.52B
Cash Flow
Free Cash Flow	4.59B	4.59B	2.37B	4.14B	2.48B	2.48B
Operating Cash Flow	7.15B	7.37B	5.12B	7.09B	5.09B	4.90B
Investing Cash Flow	2.78B	164.00M	-4.01B	-2.38B	855.00M	-4.07B
Financing Cash Flow	-8.89B	-7.18B	-679.00M	-4.22B	-5.64B	423.00M

Bayer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.61
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 27.61 is below the 20-day moving average (MA) of 27.85, below the 50-day MA of 27.88, and above the 200-day MA of 25.04, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 49.21 is Neutral, neither overbought nor oversold. The STOCH value of 74.90 is Neutral, 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	―	$55.26B	25.58	11.75%	1.92%	5.85%	16.20%
FME	―	€13.68B	21.05	4.83%	3.06%	0.53%	23.79%
SRT	―	€15.08B	100.80	5.01%	0.37%	5.82%	59.90%
FRE	―	€27.32B	24.53	7.30%	2.04%	-0.59%	―
MRK	―	€50.02B	17.47	10.08%	1.92%	1.67%	9.02%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAYN	―	€27.29B	-7.98	-10.35%	0.40%	-1.99%	-169.98%