Bayer (BAYN) AI Stock Analysis

• Market Cap: €26.28B
• Dividend Yield: 0.33%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• 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: €31.26
• Price Target Upside: -6.13% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: €34.00 ▲(2.10% Upside)

Bayer's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and persistent losses. The technical analysis shows bullish momentum, but the valuation is concerning due to a negative P/E ratio. The high dividend yield provides some appeal to investors, but the financial risks and operational inefficiencies weigh heavily on the score.

Positive Factors

Product Innovation

The successful QUANTI Pediatric study and pending global marketing applications for gadoquatrane highlight Bayer's commitment to innovation in pharmaceuticals, potentially enhancing its competitive edge in the diagnostic imaging market.

Regulatory Support

The U.S. government's support in the Roundup litigation could lead to favorable legal outcomes, providing regulatory clarity and reducing long-term legal risks, which is crucial for Bayer's agricultural business stability.

Product Expansion

FDA clearance for the MEDRAD Centargo system expands Bayer's product offerings in medical imaging, potentially increasing market share and revenue in the high-throughput imaging sector.

Negative Factors

Declining Revenue

The decline in revenue indicates challenges in maintaining market position and competitiveness, which could impact long-term growth and profitability if not addressed.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting Bayer's ability to invest in growth opportunities and manage economic downturns effectively.

Operational Inefficiencies

Operational inefficiencies reflected in the negative EBIT margin suggest challenges in cost management and productivity, which could hinder long-term profitability and require strategic restructuring.

Bayer Business Overview & Revenue Model

Company Description

Bayer AG is a global life sciences company headquartered in Leverkusen, Germany, with a rich history that dates back to 1863. It operates primarily in three main sectors: Pharmaceuticals, Consumer Health, and Crop Science. Bayer's Pharmaceuticals division focuses on prescription products in areas such as cardiology, oncology, and women's health. The Consumer Health division offers over-the-counter products including pain relievers, dietary supplements, and dermatological solutions. The Crop Science sector provides innovative agricultural solutions, including crop protection, seeds, and digital farming technologies, aimed at enhancing agricultural productivity and sustainability.

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	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	41.65B	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: 33.30
• 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 33.3 is above the 20-day moving average (MA) of 29.84, above the 50-day MA of 28.45, and above the 200-day MA of 26.15, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 77.70 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
SRT	69 Neutral	€14.33B	94.60	5.01%	0.37%	5.82%	59.90%
FRE	69 Neutral	€26.51B	23.43	7.50%	2.10%	0.63%	―
SHL	67 Neutral	€48.55B	22.73	11.45%	2.23%	4.53%	10.12%
MRK	66 Neutral	€49.00B	17.11	10.32%	1.82%	1.47%	9.64%
FME	60 Neutral	€11.96B	18.40	5.41%	3.57%	2.10%	9.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAYN	51 Neutral	€26.28B	-7.69	-0.66%	0.33%	-1.87%	77.51%

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.