XTRA:BAYN

Stock Analysis Report

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Executive Summary

Bayer Aktiengesellschaft operates as a life science company worldwide.


Snowflake Analysis

Established dividend payer and good 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

Stable Share Price: BAYN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

BAYN

1.6%

DE Pharmaceuticals

2.8%

DE Market


1 Year Return

9.8%

BAYN

12.1%

DE Pharmaceuticals

0.2%

DE Market

Return vs Industry: BAYN underperformed the German Pharmaceuticals industry which returned 12.1% over the past year.

Return vs Market: BAYN exceeded the German Market which returned 0.3% over the past year.


Shareholder returns

BAYNIndustryMarket
7 Day-0.2%1.6%2.8%
30 Day0.8%1.1%-1.6%
90 Day19.5%17.5%22.0%
1 Year14.9%9.8%15.7%12.1%2.3%0.2%
3 Year-30.6%-39.4%31.6%16.3%3.4%-5.0%
5 Year-39.6%-49.8%28.7%6.5%11.4%-3.4%

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

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

Below Fair Value: BAYN (€66.68) is trading below our estimate of fair value (€169.11)

Significantly Below Fair Value: BAYN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BAYN is good value based on its PE Ratio (24.7x) compared to the Pharmaceuticals industry average (24.7x).

PE vs Market: BAYN is poor value based on its PE Ratio (24.7x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: BAYN is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: BAYN is good value based on its PB Ratio (1.3x) compared to the DE Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Bayer forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAYN's forecast earnings growth (13.9% per year) is above the savings rate (0.2%).

Earnings vs Market: BAYN's earnings (13.9% per year) are forecast to grow slower than the German market (22.3% per year).

High Growth Earnings: BAYN's earnings are forecast to grow, but not significantly.

Revenue vs Market: BAYN's revenue (2.8% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: BAYN's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAYN's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has Bayer performed over the past 5 years?

-17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAYN has a large one-off loss of €2.9B impacting its March 31 2005 financial results.

Growing Profit Margin: BAYN's current net profit margins (6%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: BAYN's earnings have declined by -17.6% per year over the past 5 years.

Accelerating Growth: BAYN's earnings growth over the past year (375.4%) exceeds its 5-year average (-17.6% per year).

Earnings vs Industry: BAYN earnings growth over the past year (375.4%) exceeded the Pharmaceuticals industry 15.8%.


Return on Equity

High ROE: BAYN's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Bayer's financial position?


Financial Position Analysis

Short Term Liabilities: BAYN's short term assets (€33.0B) exceed its short term liabilities (€22.3B).

Long Term Liabilities: BAYN's short term assets (€33.0B) do not cover its long term liabilities (€54.4B).


Debt to Equity History and Analysis

Debt Level: BAYN's debt to equity ratio (79.5%) is considered high.

Reducing Debt: BAYN's debt to equity ratio has reduced from 105.2% to 79.5% over the past 5 years.

Debt Coverage: BAYN's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: BAYN's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


Next Steps

Dividend

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

4.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAYN's dividend (4.2%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: BAYN's dividend (4.2%) is in the top 25% of dividend payers in the German market (3.83%)


Stability and Growth of Payments

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 (103.7%), 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 (38.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Werner Baumann (58yo)

4.17yrs

Tenure

€7,461,000

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 ($USD8.39M) is above average for companies of similar size in the German market ($USD5.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Werner Baumann
Chairman of the Board of Management & CEO4.17yrs€7.46mno data
Wolfgang Nickl
CFO & Member of Management Board2.08yrs€3.22mno data
Liam Condon
Member of Management Board4.5yrs€4.41mno data
Heiko W. Schipper
Head of Consumer Health Division & Member of Management Board2.33yrs€3.53mno data
Stefan Oelrich
President of Pharmaceuticals Division & Member of the Board of Management1.67yrs€4.03mno data
Bernd-Peter Bier
Head of Accounting and Head of Taxes4.25yrsno datano data
Oliver Maier
Head of Investor Relations3.33yrsno datano data
Gabriel Harnier
Head of Lawno datano datano data
Michael Preuss
Head of Communications4.17yrsno datano data
Frank Rittgen
Head of Mergersno datano datano data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: BAYN's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul M. Achleitner
Member of Supervisory Board18.25yrs€204.00kno data
Wolfgang Plischke
Member of Supervisory Board4.25yrs€275.00kno data
Daniel Hartert
Chairman of Executive Board - Bayer Business Servicesno datano datano data
Reiner Hoffmann
Member of Supervisory Board13.75yrs€135.00kno data
Oliver Zühlke
Vice Chairman of Supervisory Board5yrs€270.00kno data
Günter Hilken
Chairman of Executive Board - Currentano datano datano data
Horst Baier
Member of Supervisory Board0.25yrno datano data
André van Broich
Member of Supervisory Board8.25yrs€205.00kno data
Michael Schmidt-Kießling
Member of Supervisory Board8.25yrs€137.00kno data
Norbert Winkeljohann
Chairman of Supervisory Board0.25yr€290.00kno data

6.6yrs

Average Tenure

63yo

Average Age

Experienced Board: BAYN's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Top Shareholders

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: €65.508b
  • Shares outstanding: 982.42m
  • 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)SPON ADR-EACH REPR 1 ORD NPVUSUSDDec 1972
BAYADB (Deutsche Boerse AG)SPON ADR-EACH REPR 1 ORD NPVDEEURDec 1972
BAYAXTRA (XETRA Trading Platform)SPON ADR-EACH REPR 1 ORD NPVDEEURDec 1972
BAYZ.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1975
0P6SLSE (London Stock Exchange)YesRegistered SharesGBEURJan 1975
BAYNDB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1975
BAYNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1975
BAYBIT (Borsa Italiana)YesRegistered SharesITEURJan 1975
BAYNXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJan 1975
BAYERBUSE (Budapest Stock Exchange)YesRegistered SharesHUHUFJan 1975
BAYNDBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURJan 1975
BAYN NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJan 1975
BAYNWBAG (Wiener Boerse AG)YesRegistered SharesATEURJan 1975
BAY1DB (Deutsche Boerse AG)NPV (NEW)DEEURJan 2018

Biography

Bayer Aktiengesellschaft 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. The Consumer Health segment markets nonprescription over-the-counter medicines, medical products, medicated skincare products, and self-care solutions in the 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. Bayer Aktiengesellschaft has a collaboration agreement with MD Anderson Cancer Center at the University of Texas to develop cancer treatments; and research collaboration agreements with Haplogen GmbH and Kyoto University to identify new drugs candidates for the treatment of pulmonary diseases. The company distributes its products through wholesalers, pharmacies, supermarket and drugstore chains, online and other retailers, and hospitals, as well as directly to farmers. It has strategic research alliance with Kyoto University, Sensyne Health plc, and Atomwise Inc. Bayer Aktiengesellschaft was founded in 1863 and is based in Leverkusen, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 20:46
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.