DB:BAYN

Stock Analysis Report

Executive Summary

Bayer Aktiengesellschaft operates as a life science company worldwide.

Rewards

Trading at 61.9% below its fair value

Earnings are forecast to grow 19.34% per year

Pays a high and reliable dividend of 3.69%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 3.69% 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

-0.02%

DE Pharmaceuticals

2.0%

DE Market


1 Year Return

12.1%

BAYN

16.9%

DE Pharmaceuticals

15.1%

DE Market

Return vs Industry: BAYN underperformed the German Pharmaceuticals industry which returned 18.1% over the past year.

Return vs Market: BAYN underperformed the German Market which returned 15% over the past year.


Shareholder returns

BAYNIndustryMarket
7 Day-0.9%-0.02%2.0%
30 Day1.5%2.9%1.0%
90 Day9.2%9.8%3.8%
1 Year17.5%12.1%21.0%16.9%18.6%15.1%
3 Year-20.1%-28.7%40.2%24.3%16.8%6.6%
5 Year-29.1%-39.3%38.4%14.9%23.7%6.7%

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 (€76.63) is trading below our estimate of fair value (€201.1)

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 (2.3x).


Next Steps

Future Growth

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

19.3%

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 (3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: BAYN's revenue (3% 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 (14.3%).


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 (-5%).


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 (92%) is considered high.

Reducing Debt: BAYN's debt to equity ratio has increased from 69.8% to 92% over the past 5 years.


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).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BAYN has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: BAYN has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

3.69%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.3%markettop25%3.6%industryaverage2.8%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: BAYN's dividend (3.69%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: BAYN's dividend (3.69%) is in the top 25% of dividend payers in the German market (3.59%)


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 (39.8% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Werner Baumann (57yo)

3.8yrs

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 ($USD6.89M) is above average for companies of similar size in the German market ($USD4.37M).

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 & CEO3.8yrs€6.36mno data
Wolfgang Nickl
CFO & Member of Management Board1.7yrs€2.58mno data
Liam Condon
Member of Management Board4.1yrs€3.02mno data
Heiko Schipper
Head of Consumer Health Division & Member of Management Board1.9yrs€4.09mno data
Stefan Oelrich
President of Pharmaceuticals Division & Member of the Board of Management1.3yrs€2.10mno data
Bernd-Peter Bier
Head of Accounting and Head of Taxes3.8yrsno datano data
O. Maier
Head of Investor Relations2.9yrsno datano data
Gabriel Harnier
Head of Law0yrsno datano data
Michael Preuss
Head of Communications3.8yrsno datano data
Frank Rittgen
Head of Mergers0yrsno datano data

3.3yrs

Average Tenure

51yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Paul M. Achleitner
Member of Supervisory Board17.8yrs€204.00kno data
Werner Wenning
Chairman of Supervisory Board7.3yrs€407.00kno data
Wolfgang Plischke
Member of Supervisory Board3.8yrs€274.00kno data
Daniel Hartert
Chairman of Executive Board - Bayer Business Services0yrsno datano data
Reiner Hoffmann
Member of Supervisory Board13.3yrs€136.00kno data
Oliver Zühlke
Vice Chairman of Supervisory Board4.6yrs€273.00kno data
Günter Hilken
Chairman of Executive Board - Currenta0yrsno datano data
André van Broich
Member of Supervisory Board7.8yrs€205.00kno data
Michael Schmidt-Kießling
Member of Supervisory Board7.8yrs€138.00kno data
Norbert Winkeljohann
Member of Supervisory Board1.8yrs€165.00kno data

7.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: BAYN's board of directors are considered experienced (7.6 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 7.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Bayer Aktiengesellschaft
  • Ticker: BAYN
  • Exchange: DB
  • Founded: 1863
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €76.010b
  • 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
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, Sensyne Health plc, and Atomwise Inc. 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 Analysis2020/02/17 20:51
End of Day Share Price2020/02/17 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.