BAYER AG-REG (BAYN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAYN - DE000BAY0017 - Common Stock
46.365 EUR
+1.81 (+4.06%)
BAYN gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. BAYN may be in some trouble as it scores bad on both profitability and health. BAYN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- BAYN had positive earnings in the past year.
- In the past year BAYN had a positive cash flow from operations.
- In multiple years BAYN reported negative net income over the last 5 years.
- In the past 5 years BAYN always reported a positive cash flow from operatings.
1.2 Ratios
- BAYN's Return On Assets of -0.19% is on the low side compared to the rest of the industry. BAYN is outperformed by 67.27% of its industry peers.
- The Return On Equity of BAYN (-0.67%) is worse than 67.27% of its industry peers.
- With a Return On Invested Capital value of 1.80%, BAYN is not doing good in the industry: 67.27% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for BAYN is significantly below the industry average of 14.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -0.67% | ||
| ROIC | 1.8% |
ROA(3y)-0.5%
ROA(5y)-1.93%
ROE(3y)-2.08%
ROE(5y)-7.52%
ROIC(3y)5.51%
ROIC(5y)N/A
1.3 Margins
- With a Operating Margin value of 4.20%, BAYN is not doing good in the industry: 65.45% of the companies in the same industry are doing better.
- BAYN's Operating Margin has declined in the last couple of years.
- BAYN has a Gross Margin of 56.35%. This is in the lower half of the industry: BAYN underperforms 69.09% of its industry peers.
- In the last couple of years the Gross Margin of BAYN 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
- BAYN 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, BAYN has about the same amount of shares outstanding.
- The number of shares outstanding for BAYN remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, BAYN has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.02, we must say that BAYN is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.02, BAYN is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- The Debt to FCF ratio of BAYN is 10.07, which is on the high side as it means it would take BAYN, 10.07 years of fcf income to pay off all of its debts.
- BAYN has a worse Debt to FCF ratio (10.07) than 61.82% of its industry peers.
- A Debt/Equity ratio of 1.11 is on the high side and indicates that BAYN has dependencies on debt financing.
- BAYN has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: BAYN underperforms 67.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 10.07 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.27
WACC6.64%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that BAYN should not have too much problems paying its short term obligations.
- BAYN has a Current ratio of 1.14. This is in the lower half of the industry: BAYN underperforms 63.64% of its industry peers.
- A Quick Ratio of 0.71 indicates that BAYN may have some problems paying its short term obligations.
- BAYN has a worse Quick ratio (0.71) than 70.91% 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 BAYN have decreased by -8.72% in the last year.
- BAYN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.27% yearly.
- Looking at the last year, BAYN shows a decrease in Revenue. The Revenue has decreased by -1.87% in the last year.
- The Revenue has been growing slightly by 1.37% on average over the past years.
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
- BAYN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.51% yearly.
- Based on estimates for the next years, BAYN will show a small growth in Revenue. The Revenue will grow by 1.22% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- BAYN is valuated reasonably with a Price/Earnings ratio of 8.68.
- Based on the Price/Earnings ratio, BAYN is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
- BAYN is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 9.49, the valuation of BAYN can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BAYN indicates a rather cheap valuation: BAYN is cheaper than 90.91% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BAYN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
- BAYN's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, BAYN is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 12.17 |
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
- With a yearly dividend of 0.25%, BAYN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.62, BAYN is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, BAYN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
- The dividend of BAYN decreases each year by -45.34%.
Dividend Growth(5Y)-45.34%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- BAYN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-65.15%
EPS Next 2Y-1.64%
EPS Next 3Y1.75%
BAYER AG-REG / BAYN.DE FAQ
What is the fundamental rating for BAYN stock?
ChartMill assigns a fundamental rating of 2 / 10 to BAYN.DE.
What is the valuation status of BAYER AG-REG (BAYN.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to BAYER AG-REG (BAYN.DE). This can be considered as Fairly Valued.
How profitable is BAYER AG-REG (BAYN.DE) stock?
BAYER AG-REG (BAYN.DE) has a profitability rating of 2 / 10.
How financially healthy is BAYER AG-REG?
The financial health rating of BAYER AG-REG (BAYN.DE) is 1 / 10.
How sustainable is the dividend of BAYER AG-REG (BAYN.DE) stock?
The dividend rating of BAYER AG-REG (BAYN.DE) is 0 / 10 and the dividend payout ratio is -65.15%.