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Bayer

DB:BAYN
Snowflake Description

Established dividend payer with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BAYN
DB
€57B
Market Cap
  1. Home
  2. DE
  3. Pharmaceuticals & Biotech
Company description

Bayer Aktiengesellschaft operates as a life science company worldwide. The last earnings update was 55 days ago. More info.


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BAYN Share Price and Events
7 Day Returns
1%
DB:BAYN
-0.9%
DE Pharmaceuticals
1.5%
DE Market
1 Year Returns
-36%
DB:BAYN
-21.6%
DE Pharmaceuticals
-6.2%
DE Market
BAYN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bayer (BAYN) 1% 4.5% -6.1% -36% -43% -38.8%
DE Pharmaceuticals -0.9% 0.2% -0.9% -21.6% -25.8% 6.4%
DE Market 1.5% 6% 8.5% -6.2% 10.7% 15.3%
1 Year Return vs Industry and Market
  • BAYN underperformed the Pharmaceuticals industry which returned -21.6% over the past year.
  • BAYN underperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
BAYN
Industry
5yr Volatility vs Market

Value

 Is Bayer undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bayer to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bayer.

DB:BAYN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:BAYN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.733 (1 + (1- 30%) (72.03%))
1.068
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.068 * 5.96%)
6.6%

Discounted Cash Flow Calculation for DB:BAYN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Bayer is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:BAYN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 6.6%)
2019 4,911.02 Analyst x13 4,607.15
2020 6,012.38 Analyst x17 5,291.37
2021 7,072.51 Analyst x14 5,839.24
2022 8,905.75 Analyst x4 6,897.85
2023 9,479.67 Analyst x3 6,888.07
2024 9,900.71 Est @ 4.44% 6,748.88
2025 10,215.30 Est @ 3.18% 6,532.47
2026 10,449.50 Est @ 2.29% 6,268.77
2027 10,624.34 Est @ 1.67% 5,979.30
2028 10,756.05 Est @ 1.24% 5,678.87
Present value of next 10 years cash flows €60,731.97
DB:BAYN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €10,756.05 × (1 + 0.23%) ÷ (6.6% – 0.23%)
€169,304.63
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €169,304.63 ÷ (1 + 6.6%)10
€89,387.69
DB:BAYN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €60,731.97 + €89,387.69
€150,119.65
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €150,119.65 / 932.55
€160.98
DB:BAYN Discount to Share Price
Calculation Result
Value per share (EUR) From above. €160.98
Current discount Discount to share price of €62.10
= -1 x (€62.10 - €160.98) / €160.98
61.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Bayer is available for.
Intrinsic value
>50%
Share price is €62.1 vs Future cash flow value of €160.98
Current Discount Checks
For Bayer to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Bayer's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Bayer's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bayer's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bayer's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:BAYN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €1.80
DB:BAYN Share Price ** DB (2019-04-23) in EUR €62.1
Germany Pharmaceuticals Industry PE Ratio Median Figure of 6 Publicly-Listed Pharmaceuticals Companies 26.82x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.6x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bayer.

DB:BAYN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= DB:BAYN Share Price ÷ EPS (both in EUR)

= 62.1 ÷ 1.80

34.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bayer is overvalued based on earnings compared to the DE Pharmaceuticals industry average.
  • Bayer is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Bayer's expected growth come at a high price?
Raw Data
DB:BAYN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
25.2%per year
Europe Pharmaceuticals Industry PEG Ratio Median Figure of 35 Publicly-Listed Pharmaceuticals Companies 1.78x
Germany Market PEG Ratio Median Figure of 269 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

DB:BAYN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.47x ÷ 25.2%

1.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bayer is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bayer's assets?
Raw Data
DB:BAYN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €49.30
DB:BAYN Share Price * DB (2019-04-23) in EUR €62.1
Germany Pharmaceuticals Industry PB Ratio Median Figure of 9 Publicly-Listed Pharmaceuticals Companies 2.39x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.84x
DB:BAYN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= DB:BAYN Share Price ÷ Book Value per Share (both in EUR)

= 62.1 ÷ 49.30

1.26x

* Primary Listing of Bayer.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bayer is good value based on assets compared to the DE Pharmaceuticals industry average.
X
Value checks
We assess Bayer's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Bayer has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
25.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bayer expected to grow at an attractive rate?
  • Bayer's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Bayer's earnings growth is expected to exceed the Germany market average.
  • Bayer's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:BAYN Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:BAYN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 25.2%
DB:BAYN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 5.3%
Germany Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 19.7%
Germany Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:BAYN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:BAYN Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 52,568 12,509 7,839 8
2022-12-31 51,344 11,918 7,342 9
2021-12-31 49,200 10,514 5,761 21
2020-12-31 47,920 9,241 4,820 25
2019-12-31 46,414 7,549 3,584 25
DB:BAYN Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 39,586 7,917 1,695
2018-09-30 37,120 7,218 6,328
2018-06-30 35,240 7,878 3,459
2018-03-31 34,473 7,951 3,486
2017-12-31 35,015 8,134 3,249
2017-09-30 35,242 8,597 3,087
2017-06-30 35,475 8,939 3,924
2017-03-31 32,769 8,608 3,991
2016-12-31 34,943 9,089 3,743
2016-09-30 37,405 8,234 3,837
2016-06-30 40,151 7,511 3,971
2016-03-31 46,146 7,488 4,210

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bayer's earnings are expected to grow significantly at over 20% yearly.
  • Bayer's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:BAYN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from Bayer Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BAYN Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 7.68 8.06 7.48 3.00
2022-12-31 7.04 7.58 6.64 4.00
2021-12-31 5.88 7.75 3.63 11.00
2020-12-31 4.90 6.53 3.75 14.00
2019-12-31 3.81 5.71 2.95 15.00
DB:BAYN Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 1.80
2018-09-30 6.93
2018-06-30 3.90
2018-03-31 4.00
2017-12-31 3.73
2017-09-30 3.56
2017-06-30 4.59
2017-03-31 4.73
2016-12-31 4.50
2016-09-30 4.64
2016-06-30 4.80
2016-03-31 5.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bayer is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bayer's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bayer has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Bayer performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bayer's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bayer's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Bayer's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Bayer's 1-year earnings growth is negative, it can't be compared to the DE Pharmaceuticals industry average.
Earnings and Revenue History
Bayer's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bayer Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BAYN Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 39,586.00 1,695.00 14,888.00 4,884.00
2018-09-30 37,120.00 6,328.00 13,255.00 4,524.00
2018-06-30 35,240.00 3,459.00 12,583.00 4,442.00
2018-03-31 34,473.00 3,486.00 12,474.00 4,251.00
2017-12-31 35,015.00 3,249.00 12,923.00 4,482.00
2017-09-30 35,242.00 3,087.00 12,878.00 4,381.00
2017-06-30 35,475.00 3,924.00 12,949.00 4,347.00
2017-03-31 32,769.00 3,991.00 12,448.00 4,305.00
2016-12-31 34,943.00 3,743.00 12,686.00 4,321.00
2016-09-30 37,405.00 3,837.00 12,959.00 4,299.00
2016-06-30 40,151.00 3,971.00 13,327.00 4,291.00
2016-03-31 46,146.00 4,210.00 14,110.00 4,339.00
2015-12-31 46,085.00 4,025.00 14,250.00 4,207.00
2015-09-30 45,592.00 3,616.00 14,145.00 4,020.00
2015-06-30 44,555.00 3,429.00 13,796.00 3,852.00
2015-03-31 42,780.00 3,206.00 13,144.00 3,665.00
2014-12-31 41,339.00 3,326.00 12,576.00 3,535.00
2014-09-30 40,435.00 3,569.00 11,878.00 3,642.00
2014-06-30 40,111.00 3,501.00 11,898.00 3,558.00
2014-03-31 40,243.00 3,425.00 12,131.00 3,495.00
2013-12-31 40,157.00 3,189.00 12,195.00 3,407.00
2013-09-30 40,129.00 3,100.00 12,513.00 3,104.00
2013-06-30 40,147.00 2,883.00 12,493.00 3,063.00
2013-03-31 39,953.00 2,523.00 12,374.00 3,038.00
2012-12-31 39,741.00 2,403.00 12,237.00 3,013.00
2012-09-30 39,072.00 2,434.00 11,921.00 2,968.00
2012-06-30 38,081.00 2,560.00 11,510.00 2,918.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bayer has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bayer used its assets less efficiently than the DE Pharmaceuticals industry average last year based on Return on Assets.
  • Bayer's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Bayer's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bayer has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Bayer's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Bayer's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Bayer is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bayer's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Bayer's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bayer Company Filings, last reported 3 months ago.

DB:BAYN Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 46,148.00 41,394.00 5,002.00
2018-09-30 50,417.00 43,850.00 6,449.00
2018-06-30 47,219.00 52,129.00 6,537.00
2018-03-31 38,384.00 14,034.00 12,647.00
2017-12-31 36,861.00 14,418.00 9,098.00
2017-09-30 37,254.00 16,117.00 11,621.00
2017-06-30 35,483.00 19,205.00 10,006.00
2017-03-31 35,857.00 18,987.00 8,886.00
2016-12-31 31,897.00 19,581.00 5,424.00
2016-09-30 24,788.00 19,229.00 3,397.00
2016-06-30 24,035.00 19,708.00 1,968.00
2016-03-31 24,773.00 20,310.00 4,102.00
2015-12-31 25,445.00 19,934.00 2,131.00
2015-09-30 22,580.00 22,776.00 3,937.00
2015-06-30 22,423.00 24,854.00 4,063.00
2015-03-31 21,863.00 23,433.00 2,455.00
2014-12-31 20,218.00 21,860.00 2,057.00
2014-09-30 20,290.00 14,509.00 6,199.00
2014-06-30 19,541.00 11,597.00 1,845.00
2014-03-31 21,094.00 12,241.00 3,421.00
2013-12-31 20,804.00 9,031.00 1,829.00
2013-09-30 20,144.00 9,923.00 2,356.00
2013-06-30 19,496.00 11,300.00 2,472.00
2013-03-31 19,780.00 9,552.00 2,108.00
2012-12-31 18,551.00 9,530.00 2,037.00
2012-09-30 18,706.00 9,747.00 2,992.00
2012-06-30 18,554.00 9,905.00 1,988.00
  • Bayer's level of debt (89.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (43.6% vs 89.7% today).
  • Debt is not well covered by operating cash flow (19.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).
X
Financial health checks
We assess Bayer's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bayer has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.51%
Current annual income from Bayer dividends. Estimated to be 5.01% next year.
If you bought €2,000 of Bayer shares you are expected to receive €90 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bayer's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • Bayer's dividend is above the markets top 25% of dividend payers in Germany (3.71%).
Upcoming dividend payment

Purchase Bayer before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:BAYN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
Germany Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:BAYN Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 3.52 5.00
2022-12-31 3.42 6.00
2021-12-31 3.24 21.00
2020-12-31 3.07 26.00
2019-12-31 2.89 26.00
DB:BAYN Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-27 2.800 4.403
2018-02-28 2.800 3.510
2018-01-15 2.800 2.762
2017-02-22 2.700 2.442
2016-04-15 2.500 2.638
2016-02-25 2.500 2.484
2015-02-25 2.250 1.854
2014-02-26 2.100 1.976
2013-02-28 1.900 2.171
2012-08-01 1.650 2.422
2012-07-31 1.650 2.666
2012-02-23 1.650 3.071
2011-02-28 1.500 2.999
2010-02-26 1.400 2.746
2009-04-24 1.400 3.105

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Bayer's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess Bayer's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bayer afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bayer has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Werner Baumann
COMPENSATION €6,361,000
AGE 56
TENURE AS CEO 2.9 years
CEO Bio

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 served as Chief of Strategy & Portfolio Management - Europe / Middle East / Africa Region at Bayer AG. He served as the Chairman of Management Board and Chief Executive Officer of Bayer HealthCare AG from March 31, 2015 to December 2015. He served as the Chief Strategy & Portfolio Officer of Bayer AG from October 1, 2014 to May 1, 2016 and was responsible for the Europe, Middle East and Africa Region. He served as the Chief Financial Officer of Bayer AG from January 1, 2010 to October 1, 2014. He served as the President of Business Development & Licensing at Bayer HealthCare AG since March 1, 2006 and also its President of Central Administration & Organization from July 2002 to 2009. He joined Bayer AG in Leverkusen as a Commercial Trainee on April 1, 1966. Mr. Baumann served as a Member of Management Board at Bayer HealthCare AG since October 1, 2003 and served as its Labor Director. As a member of the Board of Management and Labor Director of Bayer Schering Pharma AG, Berlin, Germany, from 2006 through September 2009, he actively participated in its integration into the former HealthCare subgroup. He served as a Vice President of German Chemical Industry Association (VCI), Frankfurt. He served as President of German Chemical Industry Association from September 2005 to September 2007 and Vice President of the Federation of German Industries (BDI), Berlin. He served as the Head of Business Planning & Administration of Bayer HealthCare AG until 2002. He joined Bayer AG in 1988 and served in Southwest Europe section of Corporate Finance Department. He served as Controller of Bayer Hispania Comercial in Barcelona, Spain since 1991 and also served as Assistant to managing director there since 1995. He moved to Bayer Corporation in Tarrytown, New York, where he held various positions in Bayer's global Diagnostics Business Group. Since 1978, he served as Managing Director and administrative head of the Peruvian company. Since April 1996, he served as Head of Corporate Planning and Controlling in Leverkusen. From 1970 to 1975, Mr. Baumann established and managed the finance and accounting department of Bayer Industrial S.A. He serves as the Chairman of Supervisory Board at Bayer CropScience AG. He served as the Chairman of Supervisory Board at Covestro AG until March 26, 2015. He serves as a Member of the Supervisory board of Henkel KGaA. He serves as a Member of Advisory Council at Allianz Global Corporate & Specialty SE. Mr. Baumann served as a Member of the Supervisory Board at Bayer Business Services GmbH. He studied Economics from RWTH Aachen Technical University and the University of Cologne.

CEO Compensation
  • Werner's compensation has been consistent with company performance over the past year.
  • Werner's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Bayer management team in years:

2.9
Average Tenure
50
Average Age
  • The tenure for the Bayer management team is about average.
Management Team

Werner Baumann

TITLE
Chairman of the Board of Management & CEO
COMPENSATION
€6M
AGE
56
TENURE
2.9 yrs

Wolfgang Nickl

TITLE
CFO & Member of Management Board
COMPENSATION
€3M
AGE
49
TENURE
0.8 yrs

Liam Condon

TITLE
President of Bayer Crop Science Division & Member of Management Board
COMPENSATION
€3M
AGE
50
TENURE
3.3 yrs

Kemal Malik

TITLE
Head of Innovation & Member of Management Board
COMPENSATION
€3M
AGE
56
TENURE
5.2 yrs

Hartmut Klusik

TITLE
Head of Human Resources
COMPENSATION
€3M
AGE
62
TENURE
3.3 yrs

Heiko Schipper

TITLE
Head of Consumer Health Division & Member of Management Board
COMPENSATION
€4M
AGE
49
TENURE
1.1 yrs

Stefan Oelrich

TITLE
Head of the Pharmaceuticals Division & Member of the Board of Management
COMPENSATION
€2M
AGE
50
TENURE
0.4 yrs

Bernd-Peter Bier

TITLE
Head of Accounting and Head of Taxes
AGE
51
TENURE
3 yrs

O. Maier

TITLE
Head of Investor Relations
TENURE
2.1 yrs

Gabriel Harnier

TITLE
Head of Law
AGE
47
Board of Directors Tenure

Average tenure and age of the Bayer board of directors in years:

6.8
Average Tenure
61.5
Average Age
  • The tenure for the Bayer board of directors is about average.
Board of Directors

Werner Wenning

TITLE
Chairman of Supervisory Board
COMPENSATION
€407K
AGE
72
TENURE
6.5 yrs

Oliver Zühlke

TITLE
Vice Chairman of Supervisory Board
COMPENSATION
€273K
AGE
50
TENURE
3.8 yrs

Daniel Hartert

TITLE
Chairman of Executive Board - Bayer Business Services
AGE
60

Günter Hilken

TITLE
Chairman of Executive Board - Currenta
AGE
64

Norbert Winkeljohann

TITLE
Member of Supervisory Board
COMPENSATION
€165K
AGE
61
TENURE
0.9 yrs

Paul M. Achleitner

TITLE
Member of Supervisory Board
COMPENSATION
€204K
AGE
62
TENURE
17 yrs

Wolfgang Plischke

TITLE
Member of Supervisory Board
COMPENSATION
€274K
AGE
67
TENURE
3 yrs

Reiner Hoffmann

TITLE
Member of Supervisory Board
COMPENSATION
€136K
AGE
63
TENURE
12.5 yrs

Thomas Ebeling

TITLE
Member of Supervisory Board
COMPENSATION
€135K
AGE
59
TENURE
7 yrs

André van Broich

TITLE
Member of Supervisory Board
COMPENSATION
€205K
AGE
48
TENURE
7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Bayer's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bayer has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did Bayer Aktiengesellschaft (FRA:BAYN) Use Debt To Deliver Its ROE Of 11%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

A Look At The Intrinsic Value Of Bayer Aktiengesellschaft (FRA:BAYN)

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Will Bayer Aktiengesellschaft's (FRA:BAYN) Earnings Grow In The Year Ahead?

After Bayer Aktiengesellschaft's (FRA:BAYN) earnings announcement in March 2018,. … with profits predicted to increase by 31.49% next year … the past 5-year average growth rate of 6.47%

Simply Wall St -

Bayer Aktiengesellschaft (FRA:BAYN) Is An Attractive Dividend Stock, Here's Why

Over the past 10 years Bayer Aktiengesellschaft (FRA:BAYN) has returned an average of 3.00% per year from dividend payouts. … The company currently pays out a dividend yield of 2.92% to shareholders, making it a relatively attractive dividend stock. … Here's how I find good dividend stocks

Simply Wall St -

Bayer Aktiengesellschaft (FRA:BAYN): Can Growth Justify Its July Share Price?

Bayer Aktiengesellschaft (FRA:BAYN) is considered a high-growth stock, but its last closing price of €92 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Where's the growth. … Bayer's growth potential is very attractive

Simply Wall St -

Should You Be Tempted To Sell Bayer Aktiengesellschaft (FRA:BAYN) At Its Current PE Ratio?

and want to better understand how you can grow your money by investing in Bayer Aktiengesellschaft (FRA:BAYN). … Bayer Aktiengesellschaft (FRA:BAYN) is trading with a trailing P/E of 23.7x, which is higher than the industry average of 21.9x. … While BAYN might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

Does Bayer Aktiengesellschaft's (FRA:BAYN) Debt Level Pose A Problem?

The size of Bayer Aktiengesellschaft (FRA:BAYN), a €89.18b large-cap, often attracts investors seeking a reliable investment in the stock market. … Today we will look at Bayer’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

What Makes Bayer Aktiengesellschaft (FRA:BAYN) An Attractive Investment?

Bayer Aktiengesellschaft (FRA:BAYN) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … that has been able to sustain great financial health over the past

Simply Wall St -

What Do Analysts Think About Bayer Aktiengesellschaft's (FRA:BAYN) Profit Margin?

Margin Calculation for BAYN Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 3.49 Billion ÷ 34.47 Billion = 10.11% Bayer's margin has expanded in the past five years, as a result of positive average net income growth of 7.45% and decline in revenue growth of -0.90% on average, indicating that that despite the previous revenue decline, the company has managed to maintain positive earnigns growth and therefore increase the proportion of revenue that falls to the bottom line. … This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth. … Thus, it is essential to run your own analysis on Bayer's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.

Simply Wall St -

Estimating The Intrinsic Value Of Bayer Aktiengesellschaft (FRA:BAYN)

The sum of these cash flows is then discounted to today's value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF (€, Millions) €5,147.78 €5,214.60 €5,773.50 €6,953.03 €7,629.00 Source Analyst x9 Analyst x18 Analyst x12 Analyst x4 Analyst x1 Present Value Discounted @ 8.13% €4,760.56 €4,459.60 €4,566.17 €5,085.40 €5,160.08 Present Value of 5-year Cash Flow (PVCF)= €24,032 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = €7,629 × (1 + 0.7%) ÷ (8.1% – 0.7%) = €102,895 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = €102,895 / ( 1 + 8.1%)5 = €69,596 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is €93,628.

Simply Wall St -

Company Info

Description

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. Bayer Aktiengesellschaft was founded in 1863 and is headquartered in Leverkusen, Germany.

Details
Name: Bayer Aktiengesellschaft
BAYN
Exchange: DB
Founded: 1863
€57,463,852,021
932,551,964
Website: http://www.bayer.com
Address: Bayer Aktiengesellschaft
Kaiser-Wilhelm-Allee 1,
Leverkusen,
North Rhine-Westphalia, 51368,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
DB BAYN Registered Shares Deutsche Boerse AG DE EUR 06. Jan 1975
OTCPK BAYZ.F Registered Shares Pink Sheets LLC US USD 06. Jan 1975
XTRA BAYN Registered Shares XETRA Trading Platform DE EUR 06. Jan 1975
LSE 0P6S Registered Shares London Stock Exchange GB EUR 06. Jan 1975
SWX BAYN Registered Shares SIX Swiss Exchange CH CHF 06. Jan 1975
BIT BAY Registered Shares Borsa Italiana IT EUR 06. Jan 1975
WBAG BAYN Registered Shares Wiener Boerse AG AT EUR 06. Jan 1975
BUSE BAYER Registered Shares Budapest Stock Exchange HU HUF 06. Jan 1975
BMV BAYN N Registered Shares Bolsa Mexicana de Valores MX MXN 06. Jan 1975
BME BAY Registered Shares Bolsas y Mercados Espanoles ES EUR 06. Jan 1975
OTCPK BAYR.Y SPON ADR-EACH REPR 1 ORD NPV Pink Sheets LLC US USD 14. Dec 1972
DB BAY1 NPV (NEW) Deutsche Boerse AG DE EUR 02. Jan 2018
DB BAY9 NPV REGD (NEW SHS) Deutsche Boerse AG DE EUR 03. Jan 2019
DB BAYA SPON ADR-EACH REPR 1 ORD NPV Deutsche Boerse AG DE EUR 14. Dec 1972
XTRA BAYA SPON ADR-EACH REPR 1 ORD NPV XETRA Trading Platform DE EUR 14. Dec 1972
Number of employees
Current staff
Staff numbers
111,015
Bayer employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 20:44
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/19
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.