BayWa AG (BYW6) AI Stock Analysis

• Market Cap: €1.63B
• Dividend Yield: N/A
• Average Volume (3M): 39.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -11.67%
• EPS Growth: -1069.47%
• Country: DE
• Employees: 23,144
• Sector: Services
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): -6.16
• Shares Outstanding: 104,665,410
• 10 Day Avg. Volume: 23,782
• 30 Day Avg. Volume: 39,406
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.45
• Price to Sales (P/S): 0.02
• P/FCF Ratio: 1.13
• 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: €9.00
• Price Target Upside: 291.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: €2.00 ▼(-13.04% Downside)

BayWa AG's overall stock score is primarily impacted by its challenging financial performance, characterized by negative profitability and high leverage. The technical analysis further supports a bearish outlook, with the stock showing signs of being oversold. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, making the stock less attractive to investors.

Positive Factors

Cash Flow Improvement

Improved operating cash flow indicates better cash generation from core operations, enhancing financial flexibility and long-term sustainability.

Renewable Energy Focus

Strong focus on renewable energy aligns with global sustainability trends, positioning BayWa AG for growth in a key future market.

Diverse Revenue Streams

Diversified revenue streams reduce dependency on any single market, providing resilience against sector-specific downturns.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or pricing power, potentially impacting long-term growth prospects.

High Leverage

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

Negative Profitability

Negative profitability reflects operational inefficiencies and may hinder the company's ability to reinvest in its business for future growth.

BayWa AG Business Overview & Revenue Model

Company Description

BayWa Aktiengesellschaft provides wholesale, retail, logistics, and support and consultancy services in Germany and internationally. The company's Renewable Energies segment plans, manages, and constructs wind farms and solar park. It is also involved in the power production activities. Its Energy segment supplies heating oil, fuels, and lubricants, as well as wood pellets and heating solutions. This segment also offers solutions in electromobility, liquified natural gas, and digital mobility fields. The company's Cefetra Group segment trades in grains and oilseeds, starch products, rice and legumes, and organic products. Its Global Produce segment sells dessert pome fruits for wholesalers and retailers in the food industry; and supplies organic pome fruits. It also collects, sorts, stores, packages, and provides services for fruit customers. The company's Agri Trade & Service segment collects, sells, and services value chain stages for farms, as well as supplies seeds, fertilizers, crop protection products, and feedstuffs to farmers. Its Agricultural Equipment segment offers machinery, equipment, and systems for agriculture areas. It offers tractors, combine harvesters, versatile municipal vehicles, road sweeping vehicles, and mobile systems, as well as forklift trucks; wood splitting and chipping machinery, forest milling cutters and mulchers, cable winches, and road and path construction machinery; chainsaws and brush cutters; and maintenance and repair services for machinery and equipment. The company's Building Materials segment trades in building materials for construction companies, tradesmen, commercial enterprises, and municipalities, as well as private developers and homeowners. Its Innovation & Digitalisation segment develops and markets NEXT Farming OFFICE and NEXT Farming LIVE software solutions; and offers analysis and advisory services, as well as hardware components. The company was founded in 1923 and is headquartered in Munich, Germany.

How the Company Makes Money

BayWa AG generates revenue through several key streams. The Agriculture segment contributes substantially by selling agricultural products and providing services to farmers, including logistics and consultancy. The Energy segment earns revenue through the sale and distribution of renewable energy products and services, including solar installations and energy trading. The Building Materials segment derives income from the retail and wholesale distribution of construction materials. Additionally, BayWa benefits from strategic partnerships with other companies and organizations in the renewable energy sector, enhancing its market reach and operational capabilities. Overall, the company’s diverse portfolio allows it to mitigate risks and capitalize on growth opportunities across its various sectors.

BayWa AG Financial Statement Overview

Summary

BayWa AG faces significant financial challenges, with declining revenues, negative profitability, and high leverage. The negative equity position is a critical concern, indicating potential solvency issues. While cash flow generation has improved, the company needs to address its operational inefficiencies and financial structure to stabilize its financial health.

Income Statement

BayWa AG's income statement shows a challenging financial year with a decline in revenue and negative profit margins. The gross profit margin has decreased slightly from the previous year, and the net profit margin is negative, indicating losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Revenue has contracted by 1.49% compared to the previous year, highlighting a need for strategic improvements.

Balance Sheet

The balance sheet reveals significant financial stress, with a negative stockholders' equity indicating insolvency risks. The debt-to-equity ratio is extremely high, suggesting over-leverage. Although the return on equity is positive, it is due to the negative equity, which is not a favorable sign. The equity ratio is negative, further emphasizing financial instability.

Cash Flow

Cash flow analysis shows some positive aspects, with a substantial increase in operating cash flow. However, the free cash flow growth rate is not meaningful due to the previous year's negative free cash flow. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. The free cash flow to net income ratio is also positive, suggesting some cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.46B	21.60B	23.99B	27.06B	19.84B	16.48B
Gross Profit	2.34B	2.71B	2.78B	2.81B	2.25B	1.92B
EBITDA	-384.20M	-137.50M	607.60M	851.50M	578.80M	467.10M
Net Income	-1.40B	-1.16B	-98.10M	168.10M	70.70M	35.90M
Balance Sheet
Total Assets	9.12B	10.85B	12.52B	13.90B	11.77B	8.95B
Cash, Cash Equivalents and Short-Term Investments	348.70M	776.60M	234.30M	222.70M	400.40M	169.60M
Total Debt	5.44B	5.71B	6.49B	6.28B	5.12B	4.17B
Total Liabilities	9.76B	10.82B	10.81B	11.99B	9.96B	7.79B
Stockholders Equity	-606.40M	-263.90M	876.70M	999.70M	1.01B	828.80M
Cash Flow
Free Cash Flow	-340.00M	340.30M	-86.60M	-716.30M	-822.60M	342.80M
Operating Cash Flow	-211.40M	941.50M	455.00M	-337.20M	-583.60M	674.80M
Investing Cash Flow	14.80M	-352.00M	-378.70M	-293.20M	-197.20M	-251.50M
Financing Cash Flow	273.60M	-436.00M	-61.00M	451.50M	1.01B	-482.60M

BayWa AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BYW6, the sentiment is Negative. The current price of 2.3 is below the 20-day moving average (MA) of 4.02, below the 50-day MA of 4.38, and below the 200-day MA of 4.84, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 31.60 is Neutral, neither overbought nor oversold. The STOCH value of 7.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:BYW6.

BayWa AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JEN	72 Outperform	€1.09B	14.09	7.17%	1.94%	-5.27%	-13.70%
TGHN	72 Outperform	€712.95M	11.35	17.81%	5.29%	21.42%	-10.98%
SUR	56 Neutral	€182.97M	―	-1.18%	2.54%	-3.01%	-151.69%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
BYW6	40 Underperform	€1.63B	-0.30	―	―	-11.67%	-1069.47%
IUR	37 Underperform	€32.31M	―	-21.95%	―	―	―