Bayer (BAYN) AI Stock Analysis

• Market Cap: €26.57B
• Dividend Yield: 0.39%
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -1.99%
• EPS Growth: -169.98%
• Country: DE
• Employees: 90,587
• Sector: Healthcare
• Sector Strength: 50
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.23
• Shares Outstanding: 982,424,100
• 10 Day Avg. Volume: 3,273,871
• 30 Day Avg. Volume: 2,911,601
• 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: €28.00
• Price Target Upside: -0.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 53 Neutral
• Price Target: €28.00 ▼(-0.32% Downside)

Bayer's overall stock score reflects a mix of financial challenges and positive corporate actions. The company's profitability and leverage issues weigh heavily on the score, but effective cash flow management and positive corporate events provide some support. Technical indicators suggest a cautious outlook, and valuation concerns persist due to a negative P/E ratio.

Positive Factors

Debt Management

Net debt decreased to €32.6bn from €34.5bn, indicating effective debt management.

Financial Performance

FY-24 FCF came in at €3.1bn ahead of guidance, signaling strong financial performance.

Long-Term Outlook

Long-term assumptions remain intact, supported by higher sector multiples and DCF rollover.

Negative Factors

Earnings

Q4 clean EBITDA came in materially down y/y (-22%), which raises concerns about earnings.

Generic Competition

The Crop Science business is facing a broader-than-expected generics impact, affecting the company's overall performance.

Legal Issues

Ongoing litigation related to glyphosate is creating uncertainty for investors, with 67,000 cases still unsettled.

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 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's financial performance is mixed. The company faces challenges with profitability and leverage, as indicated by a negative net income and high debt levels. However, strong gross margins and effective cash flow management provide some stability. Strategic improvements in cost management and debt reduction could enhance financial stability.

Income Statement

Bayer's income statement shows weak profitability with net losses in recent years. The TTM (Trailing-Twelve-Months) gross profit margin is 54.0%, which is strong, but the net profit margin is negative due to the significant net loss. Revenue growth has been inconsistent, with a recent decline from 2023 to 2024. EBIT and EBITDA margins are also under pressure, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, signaling significant leverage, which poses risk in times of financial stress. The equity ratio stands at 29.7%, indicating moderate equity financing. Return on Equity (ROE) is negative due to net losses, demonstrating challenges in generating returns for shareholders.

Cash Flow

Bayer's cash flow statement shows resilience with a positive operating cash flow and a decent free cash flow. The free cash flow has grown compared to the previous period, highlighting effective cash management. The operating cash flow to net income ratio is favorable, suggesting robust cash generation despite accounting losses.

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: 28.09
• 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 28.09 is above the 20-day moving average (MA) of 27.36, above the 50-day MA of 27.16, and above the 200-day MA of 23.12, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 84.49 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
BAYN	53 Neutral	€26.57B	―	-10.35%	0.39%	-1.99%	-169.98%
Sector *	51 Neutral	$7.73B	-0.08	-44.77%	2.23%	22.72%	-1.44%
0H9X	―	€12.51B	19.15	4.83%	―	―	―
0OO9	―	€25.99B	23.05	7.30%	―	―	―
0O14	―	€48.72B	17.02	10.08%	―	―	―
0NIQ	―	€12.25B	106.25	3.88%	0.45%	―	―
SEMHF	―	$61.18B	26.68	11.75%	1.75%	―	―

Bayer Corporate Events

Bayer AG Management Engages in Share Purchase to Boost Stakeholder Confidence

Bayer AG announced a transaction involving Rodrigo Peixoto dos Santos, a member of its managing body, who purchased shares as part of a commitment by the Board of Management to buy Bayer AG shares. This transaction, conducted on the XETRA platform, reflects the company’s ongoing efforts to align management interests with shareholder value, potentially impacting market perceptions and investor confidence.

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.