XTRA:BAYN

Stock Analysis Report

Executive Summary

Bayer Aktiengesellschaft operates as a life science company worldwide.

Rewards

Trading at 61.5% below its fair value

Earnings are forecast to grow 19.81% per year

Pays a high and reliable dividend of 3.76%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 3.76% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Procter & Gamble

NYSE:PG

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

-0.9%

BAYN

0.4%

DE Pharmaceuticals

-0.3%

DE Market


1 Year Return

12.2%

BAYN

18.7%

DE Pharmaceuticals

14.0%

DE Market

Return vs Industry: BAYN underperformed the German Pharmaceuticals industry which returned 18.8% over the past year.

Return vs Market: BAYN underperformed the German Market which returned 15.9% over the past year.


Shareholder returns

BAYNIndustryMarket
7 Day-0.9%0.4%-0.3%
30 Day0.7%4.6%0.5%
90 Day11.4%10.3%4.5%
1 Year17.6%12.2%22.8%18.7%17.6%14.0%
3 Year-22.0%-30.4%43.9%27.4%14.3%4.2%
5 Year-32.7%-42.4%40.4%16.3%26.0%8.9%

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

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 (€74.54) is trading below our estimate of fair value (€193.51)

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


Price To Earnings Ratio

PE vs Industry: BAYN is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: BAYN is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BAYN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BAYN is good value based on its PB Ratio (1.6x) compared to the DE Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

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

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAYN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: BAYN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BAYN's is expected to become profitable in the next 3 years.

Revenue vs Market: BAYN's revenue (2.8% per year) is forecast to grow slower than the German market (4.8% 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 (14.8%).


Next Steps

Past Performance

How has Bayer performed over the past 5 years?

-15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAYN is currently unprofitable.

Growing Profit Margin: BAYN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BAYN is unprofitable, and losses have increased over the past 5 years at a rate of -15.6% per year.

Accelerating Growth: Unable to compare BAYN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BAYN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-1.6%).


Return on Equity

High ROE: BAYN has a negative Return on Equity (-2.57%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bayer's financial position?


Financial Position Analysis

Short Term Liabilities: BAYN's short term assets (€33.5B) exceed its short term liabilities (€26.1B).

Long Term Liabilities: BAYN's short term assets (€33.5B) do not cover its long term liabilities (€58.6B).


Debt to Equity History and Analysis

Debt Level: BAYN's debt to equity ratio (94%) is considered high.

Reducing Debt: BAYN's debt to equity ratio has increased from 70% to 94% over the past 5 years.

Debt Coverage: BAYN's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: BAYN is unprofitable, therefore interest payments are not well covered by earnings.


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?

3.78%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: BAYN's dividend (3.76%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: BAYN's dividend (3.76%) is in the top 25% of dividend payers in the German market (3.53%)


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: BAYN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BAYN's dividends in 3 years are forecast to be well covered by earnings (38.4% 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?

3.3yrs

Average management tenure


CEO

Werner Baumann (57yo)

3.7yrs

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 ($USD7.08M) is above average for companies of similar size in the German market ($USD4.52M).

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


Management Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: BAYN's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: BAYN's board of directors are considered experienced (7.5 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.4%.


Management Team

  • Werner Baumann (57yo)

    Chairman of the Board of Management & CEO

    • Tenure: 3.7yrs
    • Compensation: €6.36m
  • Frank Rittgen (52yo)

    Head of Mergers

    • Wolfgang Nickl (50yo)

      CFO & Member of Management Board

      • Tenure: 1.6yrs
      • Compensation: €2.58m
    • Bernd-Peter Bier (52yo)

      Head of Accounting and Head of Taxes

      • Tenure: 3.8yrs
    • Liam Condon (51yo)

      Member of Management Board

      • Tenure: 4yrs
      • Compensation: €3.02m
    • Gabriel Harnier (48yo)

      Head of Law

      • Heiko Schipper (50yo)

        Head of Consumer Health Division & Member of Management Board

        • Tenure: 1.8yrs
        • Compensation: €4.09m
      • Michael Preuss

        Head of Communications

        • Tenure: 3.7yrs
      • Stefan Oelrich (51yo)

        President of Pharmaceuticals Division & Member of the Board of Management

        • Tenure: 1.2yrs
        • Compensation: €2.10m
      • O. Maier

        Head of Investor Relations

        • Tenure: 2.8yrs

      Board Members

      • Paul M. Achleitner (63yo)

        Member of Supervisory Board

        • Tenure: 17.8yrs
        • Compensation: €204.00k
      • Werner Wenning (73yo)

        Chairman of Supervisory Board

        • Tenure: 7.3yrs
        • Compensation: €407.00k
      • Wolfgang Plischke (68yo)

        Member of Supervisory Board

        • Tenure: 3.8yrs
        • Compensation: €274.00k
      • Daniel Hartert (61yo)

        Chairman of Executive Board - Bayer Business Services

        • Reiner Hoffmann (64yo)

          Member of Supervisory Board

          • Tenure: 13.3yrs
          • Compensation: €136.00k
        • Oliver Zühlke (51yo)

          Vice Chairman of Supervisory Board

          • Tenure: 4.5yrs
          • Compensation: €273.00k
        • Günter Hilken (65yo)

          Chairman of Executive Board - Currenta

          • André van Broich (49yo)

            Member of Supervisory Board

            • Tenure: 7.8yrs
            • Compensation: €205.00k
          • Michael Schmidt-Kießling (60yo)

            Member of Supervisory Board

            • Tenure: 7.8yrs
            • Compensation: €138.00k
          • Norbert Winkeljohann (62yo)

            Member of Supervisory Board

            • Tenure: 1.7yrs
            • 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: €72.798b
          • 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)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
          BAYNXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJan 1975
          0P6SLSE (London Stock Exchange)YesRegistered SharesGBEURJan 1975
          BAYERBUSE (Budapest Stock Exchange)YesRegistered SharesHUHUFJan 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, Crop Science, and Animal Health 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, cosmetics, and self-care solutions in the dermatology, nutritional supplements, pain and cardiovascular risk prevention, digestive health, allergy, cold and cough, foot care, and sun protection categories. 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. The Animal Health segment develops and markets products and solutions for the prevention and treatment of disease in companion and farm animals to veterinarians. 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 to jointly identify new drug targets for the treatment of pulmonary diseases, such as idiopathic pulmonary fibrosis; and with Sensyne Health plc. Bayer Aktiengesellschaft was founded in 1863 and is headquartered in Leverkusen, Germany. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/23 21:17
          End of Day Share Price2020/01/23 00:00
          Earnings2019/09/30
          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.