BAYER AG-REG (1BAYN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1BAYN - DE000BAY0017 - Common Stock
46.365 EUR
+1.8 (+4.05%)
Overall 1BAYN gets a fundamental rating of 2 out of 10. We evaluated 1BAYN against 55 industry peers in the Pharmaceuticals industry. 1BAYN has a bad profitability rating. Also its financial health evaluation is rather negative. 1BAYN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- 1BAYN had positive earnings in the past year.
- 1BAYN had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: 1BAYN reported negative net income in multiple years.
- Each year in the past 5 years 1BAYN had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -0.19%, 1BAYN is not doing good in the industry: 69.09% of the companies in the same industry are doing better.
- The Return On Equity of 1BAYN (-0.67%) is worse than 69.09% of its industry peers.
- 1BAYN has a Return On Invested Capital of 1.92%. This is in the lower half of the industry: 1BAYN underperforms 65.45% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1BAYN is significantly below the industry average of 14.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -0.67% | ||
| ROIC | 1.92% |
ROA(3y)-0.5%
ROA(5y)-1.93%
ROE(3y)-2.08%
ROE(5y)-7.52%
ROIC(3y)5.87%
ROIC(5y)N/A
1.3 Margins
- 1BAYN has a worse Operating Margin (4.20%) than 67.27% of its industry peers.
- 1BAYN's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 56.35%, 1BAYN is not doing good in the industry: 70.91% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of 1BAYN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.2% | ||
| PM (TTM) | N/A | ||
| GM | 56.35% |
OM growth 3Y-18.1%
OM growth 5Y-4.34%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.21%
GM growth 5Y-1.81%
2. Health
2.1 Basic Checks
- 1BAYN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, 1BAYN has about the same amount of shares outstanding.
- 1BAYN has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1BAYN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.02, we must say that 1BAYN is in the distress zone and has some risk of bankruptcy.
- 1BAYN has a Altman-Z score of 1.02. This is in the lower half of the industry: 1BAYN underperforms 70.91% of its industry peers.
- The Debt to FCF ratio of 1BAYN is 10.07, which is on the high side as it means it would take 1BAYN, 10.07 years of fcf income to pay off all of its debts.
- 1BAYN has a worse Debt to FCF ratio (10.07) than 60.00% of its industry peers.
- 1BAYN has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
- 1BAYN's Debt to Equity ratio of 1.11 is on the low side compared to the rest of the industry. 1BAYN is outperformed by 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 10.07 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.28
WACC6.85%
2.3 Liquidity
- 1BAYN has a Current Ratio of 1.14. This is a normal value and indicates that 1BAYN is financially healthy and should not expect problems in meeting its short term obligations.
- 1BAYN's Current ratio of 1.14 is on the low side compared to the rest of the industry. 1BAYN is outperformed by 61.82% of its industry peers.
- 1BAYN has a Quick Ratio of 1.14. This is a bad value and indicates that 1BAYN is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1BAYN has a worse Quick ratio (0.71) than 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- The earnings per share for 1BAYN have decreased by -8.72% in the last year.
- 1BAYN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.27% yearly.
- 1BAYN shows a decrease in Revenue. In the last year, the revenue decreased by -1.87%.
- Measured over the past years, 1BAYN shows a small growth in Revenue. The Revenue has been growing by 1.37% on average per year.
EPS 1Y (TTM)-8.72%
EPS 3Y-8.12%
EPS 5Y-5.27%
EPS Q2Q%137.5%
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y1.87%
Revenue growth 5Y1.37%
Sales Q2Q%-3.09%
3.2 Future
- The Earnings Per Share is expected to grow by 3.51% on average over the next years.
- The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y-5.02%
EPS Next 2Y-1.64%
EPS Next 3Y1.75%
EPS Next 5Y3.51%
Revenue Next Year-1.56%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.49%
Revenue Next 5Y1.22%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.68, the valuation of 1BAYN can be described as very reasonable.
- Based on the Price/Earnings ratio, 1BAYN is valued cheaper than 89.09% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. 1BAYN is valued rather cheaply when compared to this.
- 1BAYN is valuated reasonably with a Price/Forward Earnings ratio of 9.49.
- Based on the Price/Forward Earnings ratio, 1BAYN is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of 1BAYN to the average of the S&P500 Index (25.98), we can say 1BAYN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
- 1BAYN's Enterprise Value to EBITDA is on the same level as the industry average.
- 1BAYN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1BAYN is cheaper than 87.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 12.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.64%
EPS Next 3Y1.75%
5. Dividend
5.1 Amount
- 1BAYN has a yearly dividend return of 0.25%, which is pretty low.
- 1BAYN's Dividend Yield is slightly below the industry average, which is at 1.62.
- With a Dividend Yield of 0.25, 1BAYN pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
- The dividend of 1BAYN decreases each year by -45.34%.
Dividend Growth(5Y)-45.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of 1BAYN are negative and hence is the payout ratio. 1BAYN will probably not be able to sustain this dividend level.
DP-65.15%
EPS Next 2Y-1.64%
EPS Next 3Y1.75%
BAYER AG-REG / 1BAYN.MI FAQ
What is the fundamental rating for 1BAYN stock?
ChartMill assigns a fundamental rating of 2 / 10 to 1BAYN.MI.
What is the valuation status of BAYER AG-REG (1BAYN.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to BAYER AG-REG (1BAYN.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for BAYER AG-REG?
BAYER AG-REG (1BAYN.MI) has a profitability rating of 2 / 10.
What are the PE and PB ratios of BAYER AG-REG (1BAYN.MI) stock?
The Price/Earnings (PE) ratio for BAYER AG-REG (1BAYN.MI) is 8.68 and the Price/Book (PB) ratio is 1.54.
Can you provide the expected EPS growth for 1BAYN stock?
The Earnings per Share (EPS) of BAYER AG-REG (1BAYN.MI) is expected to decline by -5.02% in the next year.