Bayer (XTRA:BAYN) - Share price, News & Analysis

BAYN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	1/6
Financial Health	2/6
Dividends	4/6

BAYN Stock Overview

Bayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide.

Rewards

Trading at 75.2% below our estimate of its fair value

Earnings are forecast to grow 8.15% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results

Bayer Competitors

Johnson & Johnson

NYSE:JNJ

US$465.4b

Procter & Gamble

NYSE:PG

US$368.6b

Pfizer

NYSE:PFE

US$280.1b

AbbVie

NYSE:ABBV

US$274.7b

Price History & Performance

Summary of all time highs, changes and price drops for Bayer
Historical stock prices
Current Share Price	€64.12
52 Week High	€67.99
52 Week Low	€43.91
Beta	1.12
1 Month Change	-4.73%
3 Month Change	18.59%
1 Year Change	13.85%
3 Year Change	14.36%
5 Year Change	-45.68%
Change since IPO	370.80%

Recent News & Updates

May 13

Results: Bayer Aktiengesellschaft Exceeded Expectations And The Consensus Has Updated Its Estimates

Bayer Aktiengesellschaft ( ETR:BAYN ) investors will be delighted, with the company turning in some strong numbers with...

Shareholder Returns

	BAYN	DE Pharmaceuticals	DE Market
7D	3.6%	2.6%	3.8%
1Y	13.8%	11.3%	-12.4%

Return vs Industry: BAYN exceeded the German Pharmaceuticals industry which returned 11.3% over the past year.

Return vs Market: BAYN exceeded the German Market which returned -12.4% over the past year.

Price Volatility

Is BAYN's price volatile compared to industry and market?
BAYN volatility
BAYN Average Weekly Movement	5.2%
Pharmaceuticals Industry Average Movement	6.5%
Market Average Movement	6.4%
10% most volatile stocks in DE Market	10.8%
10% least volatile stocks in DE Market	3.5%

Stable Share Price: BAYN is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BAYN's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1863	100,753	Werner Baumann	https://www.bayer.com

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.

Bayer Fundamentals Summary

How do Bayer's earnings and revenue compare to its market cap?
BAYN fundamental statistics
Market Cap	€62.10b
Earnings (TTM)	€2.20b
Revenue (TTM)	€46.39b

28.6x

P/E Ratio

1.4x

P/S Ratio

Is BAYN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAYN income statement (TTM)
Revenue	€46.39b
Cost of Revenue	€17.52b
Gross Profit	€28.87b
Other Expenses	€26.67b
Earnings	€2.20b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	2.24
Gross Margin	62.23%
Net Profit Margin	4.75%
Debt/Equity Ratio	113.1%

How did BAYN perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

89%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BAYN (€64.12) is trading below our estimate of fair value (€258.04)

Significantly Below Fair Value: 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 (28.6x) compared to the German Pharmaceuticals industry average (22x).

PE vs Market: BAYN is poor value based on its PE Ratio (28.6x) compared to the German market (17.5x).

Price to Earnings Growth Ratio

PEG Ratio: BAYN is poor value based on its PEG Ratio (3.5x)

Price to Book Ratio

PB vs Industry: BAYN is good value based on its PB Ratio (1.7x) compared to the DE Pharmaceuticals industry average (2.7x).

Future Growth

How is Bayer forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAYN's forecast earnings growth (8.2% per year) is above the savings rate (-0.05%).

Earnings vs Market: BAYN's earnings (8.2% per year) are forecast to grow faster than the German market (7.8% per year).

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

Revenue vs Market: BAYN's revenue (1.7% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: BAYN's revenue (1.7% 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 high in 3 years time (20.4%)

Past Performance

How has Bayer performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-49.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BAYN has a large one-off loss of €3.9B impacting its March 31 2022 financial results.

Growing Profit Margin: BAYN became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: BAYN's earnings have declined by 49.4% per year over the past 5 years.

Accelerating Growth: BAYN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BAYN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (15.1%).

Return on Equity

High ROE: BAYN's Return on Equity (5.9%) is considered low.

Financial Health

How is Bayer's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BAYN's short term assets (€38.2B) exceed its short term liabilities (€31.0B).

Long Term Liabilities: BAYN's short term assets (€38.2B) do not cover its long term liabilities (€57.2B).

Debt to Equity History and Analysis

Debt Level: BAYN's net debt to equity ratio (91.3%) is considered high.

Reducing Debt: BAYN's debt to equity ratio has increased from 51.8% to 113.1% over the past 5 years.

Debt Coverage: BAYN's debt is not well covered by operating cash flow (16.8%).

Interest Coverage: BAYN's interest payments on its debt are well covered by EBIT (8x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.12%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BAYN's dividend (3.12%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: BAYN's dividend (3.12%) is low compared to the top 25% of dividend payers in the German market (4.31%).

Stability and Growth of Payments

Stable Dividend: BAYN's dividend payments have been volatile in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (89.2%), BAYN's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (43.7%), BAYN's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Pharmaceuticals & Biotech industry.

Management

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

4.7yrs

Average management tenure

CEO

Werner Baumann (59 yo)

12.33yrs

Tenure

€8,208,000

Compensation

Mr. Werner Baumann has been Chairman of Management Board and Chief Executive Officer at Bayer AG since May 1, 2016 and has been its Member of Management Board since January 1, 2010. Since January 1, 2020,...

CEO Compensation Analysis

Compensation vs Market: Werner's total compensation ($USD8.65M) is above average for companies of similar size in the German market ($USD4.70M).

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

Leadership Team

Experienced Management: BAYN's management team is considered experienced (4.7 years average tenure).

Board Members

Experienced Board: BAYN's board of directors are seasoned and experienced ( 10.1 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31