Bayer CropScience Limited engages in the manufacture, sale, and distribution of insecticides, fungicides, herbicides, and various other agrochemical products in India.
The last earnings update was 107 days ago.
Discounted Cash Flow Calculation for BSE:506285 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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.
BSE:506285 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
is considered below, and whether this is a fair price.
Price based on past earnings
Bayer CropScience's earnings available for a low price, and how does
this compare to other companies in the same industry?
Bayer CropScience's earnings are expected to grow significantly at over 20% yearly.
Bayer CropScience's revenue is expected to grow by 13.4% 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.
Bayer CropScience's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Bayer CropScience's finances.
The net worth of a company is the difference between its assets and liabilities.
Bayer CropScience is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Bayer CropScience's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Bayer CropScience'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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 14.5x debt.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
Mr. Duraiswami Narain has been Vice Chairman & Managing Director and CEO of Bayer CropScience Limited since December 1, 2018 and its Director since October 23, 2018. Mr. Narain served as Vice President and Treasurer at Monsanto Company from October 2015 to June 7, 2018. Mr. Narain led the Treasury function (Financing, Cash Management, Insurance, Credit, Foreign Currency and Commodity Risk, Pension and 401K) at Monsanto Company. He served as an EMEA Regional Finance Lead at Monsanto Company and also served as its India Regional Business Lead from July 2010 to February 2013, International Finance Lead from March 2013 to August 2014 and Assistant Treasurer from September 2014 to October 2015. Mr. Narain holds a Bachelor’s Degree in Commerce from University of Madras, Chennai, India and MBA from Kellogg School of Management, Northwestern University. He is a Chartered Accountant.
Insufficient data for Duraiswami to compare compensation growth.
Insufficient data for Duraiswami to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Bayer CropScience management team is about average.
CFO & Executive Director
Head of Law
VP of Marketing & Co-operations
Head of Manufacturing
Head of BBS AP ODC
Head of Strategy & Portfolio Management
Head of Bayer CropScience
General Manager of Zonal Accounts
General Manager of Business Development & Stewardship
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Bayer CropScience board of directors is less than 3 years, this suggests a new board.
What Should You Know About Bayer CropScience Limited's (BOM:506285) Growth?
After Bayer CropScience Limited's (BOM:506285) earnings announcement in March 2018,. … With net income at current levels of ₹3.00b, we should see this rise to ₹3.62b in 2019 … Below is a brief commentary on the longer term outlook the market has for Bayer CropScience
506285’s projected future profit growth is a robust 20.19%, with an underlying 53.25% growth from its revenues expected over the upcoming years. … BSE:506285 Future Profit Mar 13th 18 Havells India Limited (BSE:517354) Havells India Limited manufactures and sells industrial and consumer electrical products in India and internationally. … BSE:517354 Future Profit Mar 13th 18 Symphony Limited (BSE:517385) Symphony Limited engages in the manufacturing and trading of residential, commercial, and industrial air coolers in India and internationally.
Bayer CropScience Limited engages in the manufacture, sale, and distribution of insecticides, fungicides, herbicides, and various other agrochemical products in India. It also provides pharmaceutical products, such as prescription products primarily for cardiology and women’s healthcare; specialty therapeutics in the areas of oncology, hematology, and ophthalmology; and contrast-enhanced diagnostic imaging equipment and other contrast agents. In addition, the company offers consumer health products that primarily comprise non-prescription products for the dermatology, dietary supplement, analgesic, gastrointestinal, allergy, cold and flu, foot care, sun protection, and cardiovascular risk prevention areas under the Claritin, Aspirin, Aleve, Bepanthen/Bepanthol, Canesten, Dr. Scholl’s, and Coppertone brand names. Further, it provides animal health products for farm animals and companion animals, as well as involved in the sale and distribution of hybrid seeds. The company also exports its products. Bayer CropScience Limited was incorporated in 1958 and is based in Thane, India.
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