Bayer (BAYN) AI Stock Analysis

• Market Cap: €28.34B
• Dividend Yield: 0.39%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• 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: 2,166,107
• 30 Day Avg. Volume: 2,177,242
• 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: €27.88
• Price Target Upside: -1.66% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 50 Neutral
• Price Target: €27.00 ▼(-4.76% Downside)

Bayer's overall stock score reflects significant financial challenges, with declining revenues and persistent losses impacting profitability. The technical analysis indicates a lack of strong momentum, while the negative P/E ratio suggests valuation concerns. Despite these issues, the high dividend yield may provide some appeal to income-focused investors.

Positive Factors

Strategic Partnerships

This partnership enhances Bayer's marketing capabilities for its Consumer Health division, potentially increasing brand visibility and market reach, supporting long-term revenue growth in the self-care segment.

R&D Commitment

Strong R&D focus allows Bayer to innovate and develop new products, maintaining competitive advantage and addressing evolving market needs, crucial for sustained growth in pharmaceuticals and crop science.

Diverse Revenue Streams

Diversified revenue streams across different sectors reduce dependency on a single market, enhancing resilience against sector-specific downturns and supporting stable long-term financial performance.

Negative Factors

Declining Revenue

Decreasing revenue indicates challenges in market competitiveness and demand, which can impact long-term profitability and necessitate strategic adjustments to reverse the trend.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities and weather economic downturns.

Negative Profit Margins

Sustained negative profit margins highlight operational inefficiencies and profitability challenges, which can undermine financial stability and investor confidence if not addressed.

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 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: 28.35
• 50DMA: Positive
• 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 28.35 is above the 20-day moving average (MA) of 27.95, above the 50-day MA of 27.69, and above the 200-day MA of 24.44, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 65.58 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	77 Outperform	$53.16B	24.60	11.75%	1.99%	5.85%	16.20%
FME	70 Outperform	€13.28B	20.37	4.83%	3.15%	0.53%	23.79%
SRT	70 Neutral	€14.28B	122.16	3.88%	0.40%	3.80%	33.31%
FRE	69 Neutral	€25.98B	23.61	7.30%	2.15%	-0.59%	―
MRK	65 Neutral	€52.26B	18.35	10.08%	1.83%	1.67%	9.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAYN	50 Neutral	€28.34B	―	-10.35%	0.39%	-1.99%	-169.98%

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.