XTRA:BAYN

Stock Analysis Report

Executive Summary

Bayer Aktiengesellschaft operates as a life science company worldwide.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Bayer's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.03%

BAYN

0.8%

DE Pharmaceuticals

1.4%

DE Market


1 Year Return

-15.9%

BAYN

-4.8%

DE Pharmaceuticals

3.7%

DE Market

Return vs Industry: BAYN underperformed the German Pharmaceuticals industry which returned -4.8% over the past year.

Return vs Market: BAYN underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

BAYNIndustryMarket
7 Day0.03%0.8%1.4%
30 Day-1.5%2.0%1.8%
90 Day9.6%10.4%3.4%
1 Year-11.9%-15.9%-1.6%-4.8%7.0%3.7%
3 Year-19.0%-27.8%-5.3%-13.2%18.5%8.3%
5 Year-27.9%-38.3%-3.0%-14.9%42.2%22.9%

Price Volatility Vs. Market

How volatile is Bayer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bayer undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BAYN (€65.24) is trading below our estimate of fair value (€186.15)

Significantly Undervalued: BAYN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BAYN is poor value based on its PE Ratio (108.1x) compared to the Pharmaceuticals industry average (31.7x).

PE vs Market: BAYN is poor value based on its PE Ratio (108.1x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: BAYN is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: BAYN is good value based on its PB Ratio (1.4x) compared to the DE Pharmaceuticals industry average (2.6x).


Next Steps

Future Growth

How is Bayer forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAYN's forecast earnings growth (25.8% per year) is above the savings rate (0.2%).

Earnings vs Market: BAYN's earnings (25.8% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BAYN's revenue (3.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: BAYN's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BAYN's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Bayer performed over the past 5 years?

-7.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BAYN's earnings have declined by -7.7% per year over the past 5 years.

Accelerating Growth: BAYN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BAYN had negative earnings growth (-82.9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (0.4%).


Return on Equity

High ROE: BAYN's Return on Equity (1.3%) is considered low.


Return on Assets

ROA vs Industry: BAYN's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: BAYN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Bayer's financial position?


Financial Position Analysis

Short Term Liabilities: BAYN's short term assets (€32.8B) exceeds its short term liabilities (€25.4B)

Long Term Liabilities: BAYN's short term assets (32.8B) do not cover its long term liabilities (58.0B)


Debt to Equity History and Analysis

Debt Level: BAYN's debt to equity ratio (95.5%) is considered high

Reducing Debt: BAYN's debt to equity ratio has increased from 57.5% to 95.5% over the past 5 years.

Debt Coverage: BAYN's debt is not well covered by operating cash flow (17.9%).

Interest Coverage: BAYN's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: BAYN has a low level of unsold assets or inventory.

Debt Coverage by Assets: BAYN's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Bayer's current dividend yield, its reliability and sustainability?

4.29%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years4.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BAYN's dividend (4.29%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: BAYN's dividend (4.29%) is in the top 25% of dividend payers in the German market (3.8%)

Stable Dividend: BAYN's dividends per share have been stable in the past 10 years.

Growing Dividend: BAYN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (463.9%), BAYN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAYN's dividends in 3 years are forecast to be well covered by earnings (38.9% payout ratio).


Next Steps

Management

What is the CEO of Bayer's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Werner Baumann (57yo)

3.4yrs

Tenure

€6,361,000

Compensation

Mr. Werner Baumann has been Chairman of the Board of Management and Chief Executive Officer at Bayer AG since May 1, 2016 and has been its Member of Management Board since January 1, 2010. Mr. Baumann serv ...


CEO Compensation Analysis

Compensation vs. Market: Werner's total compensation ($USD7.09M) is about average for companies of similar size in the German market ($USD4.64M).

Compensation vs Earnings: Werner's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.4yrs

Average Tenure

51yo

Average Age

Experienced Management: BAYN's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: BAYN's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Werner Baumann (57yo)

    Chairman of the Board of Management & CEO

    • Tenure: 3.4yrs
    • Compensation: €6.36m
  • Wolfgang Nickl (50yo)

    CFO & Member of Management Board

    • Tenure: 1.3yrs
    • Compensation: €2.58m
  • Hartmut Klusik (63yo)

    Head of Human Resources

    • Tenure: 3.8yrs
    • Compensation: €2.87m
  • Kemal Malik (57yo)

    Head of Innovation & Member of Management Board

    • Tenure: 5.7yrs
    • Compensation: €3.00m
  • Bernd-Peter Bier (52yo)

    Head of Accounting and Head of Taxes

    • Tenure: 3.5yrs
  • Liam Condon (51yo)

    President of Bayer Crop Science Division & Member of Management Board

    • Tenure: 3.8yrs
    • Compensation: €3.02m
  • Gabriel Harnier (48yo)

    Head of Law

    • Tenure: 0yrs
  • Heiko Schipper (50yo)

    Head of Consumer Health Division & Member of Management Board

    • Tenure: 1.6yrs
    • Compensation: €4.09m
  • Stefan Oelrich (51yo)

    President of Pharmaceuticals Division & Member of the Board of Management

    • Tenure: 0.9yrs
    • Compensation: €2.10m
  • O. Maier

    Head of Investor Relations

    • Tenure: 2.6yrs

Board Members

  • Paul M. Achleitner (63yo)

    Member of Supervisory Board

    • Tenure: 17.5yrs
    • Compensation: €204.00k
  • Werner Wenning (73yo)

    Chairman of Supervisory Board

    • Tenure: 7yrs
    • Compensation: €407.00k
  • Wolfgang Plischke (68yo)

    Member of Supervisory Board

    • Tenure: 3.5yrs
    • Compensation: €274.00k
  • Daniel Hartert (61yo)

    Chairman of Executive Board - Bayer Business Services

    • Tenure: 0yrs
  • Reiner Hoffmann (64yo)

    Member of Supervisory Board

    • Tenure: 13yrs
    • Compensation: €136.00k
  • Oliver Zühlke (51yo)

    Vice Chairman of Supervisory Board

    • Tenure: 4.3yrs
    • Compensation: €273.00k
  • Günter Hilken (65yo)

    Chairman of Executive Board - Currenta

    • Tenure: 0yrs
  • André van Broich (49yo)

    Member of Supervisory Board

    • Tenure: 7.5yrs
    • Compensation: €205.00k
  • Michael Schmidt-Kießling (60yo)

    Member of Supervisory Board

    • Tenure: 7.5yrs
    • Compensation: €138.00k
  • Norbert Winkeljohann (62yo)

    Member of Supervisory Board

    • Tenure: 1.4yrs
    • Compensation: €165.00k

Company Information

Bayer Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bayer Aktiengesellschaft
  • Ticker: BAYN
  • Exchange: XTRA
  • Founded: 1863
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €60.840b
  • Shares outstanding: 932.56m
  • Website: https://www.bayer.com

Number of Employees


Location

  • Bayer Aktiengesellschaft
  • Kaiser-Wilhelm-Allee 1
  • Leverkusen
  • North Rhine-Westphalia
  • 51368
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAYR.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 1972
BAYADB (Deutsche Boerse AG)SPONSORED ADRDEEURDec 1972
BAYAXTRA (XETRA Trading Platform)SPONSORED ADRDEEURDec 1972
BAYNDB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1975
BAYNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1975
BAYBIT (Borsa Italiana)YesRegistered SharesITEURJan 1975
BAYZ.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1975
BAYNWBAG (Wiener Boerse AG)YesRegistered SharesATEURJan 1975
0P6SLSE (London Stock Exchange)YesRegistered SharesGBEURJan 1975
BAYERBUSE (Budapest Stock Exchange)YesRegistered SharesHUHUFJan 1975
BAYN NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJan 1975
BAYNXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJan 1975

Biography

Bayer Aktiengesellschaft operates as a life science company worldwide. It operates through Pharmaceuticals, Consumer Health, Crop Science, and Animal Health segments. The Pharmaceuticals segment offers pre ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 21:00
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.