BAYER AG-REG (BAYN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAYN - DE000BAY0017 - Common Stock
44.54 EUR
+0.38 (+0.85%)
Overall BAYN gets a fundamental rating of 2 out of 10. We evaluated BAYN against 54 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
- In the past year BAYN was profitable.
- BAYN had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: BAYN reported negative net income in multiple years.
- BAYN had a positive operating cash flow in each of the past 5 years.
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 68.52% of its industry peers.
- Looking at the Return On Equity, with a value of -0.67%, BAYN is doing worse than 68.52% of the companies in the same industry.
- The Return On Invested Capital of BAYN (1.80%) is worse than 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BAYN is significantly below the industry average of 13.93%.
| 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
- Looking at the Operating Margin, with a value of 4.20%, BAYN is doing worse than 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of BAYN has declined.
- The Gross Margin of BAYN (56.35%) is worse than 70.37% of its industry peers.
- BAYN's Gross Margin has declined in the last couple of years.
| 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.
- Compared to 5 years ago, BAYN has about the same amount of shares outstanding.
- The debt/assets ratio for BAYN has been reduced compared to a year ago.
2.2 Solvency
- BAYN has an Altman-Z score of 1.01. This is a bad value and indicates that BAYN is not financially healthy and even has some risk of bankruptcy.
- BAYN has a Altman-Z score of 1.01. This is in the lower half of the industry: BAYN underperforms 70.37% of its industry peers.
- 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's Debt to FCF ratio of 10.07 is on the low side compared to the rest of the industry. BAYN is outperformed by 61.11% of its industry peers.
- BAYN has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.11, BAYN is doing worse than 64.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 10.07 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.27
WACC6.59%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that BAYN should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.14, BAYN is not doing good in the industry: 64.81% of the companies in the same industry are doing better.
- BAYN has a Quick Ratio of 1.14. This is a bad value and indicates that BAYN is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.71, BAYN is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- BAYN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.72%.
- Measured over the past years, BAYN shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.27% on average per year.
- BAYN shows a decrease in Revenue. In the last year, the revenue decreased by -1.87%.
- 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
- Based on estimates for the next years, BAYN will show a small growth in Earnings Per Share. The EPS will grow by 3.51% on average per year.
- The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y-5.16%
EPS Next 2Y-1.81%
EPS Next 3Y1.63%
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
- The Price/Earnings ratio is 8.34, which indicates a very decent valuation of BAYN.
- BAYN's Price/Earnings ratio is rather cheap when compared to the industry. BAYN is cheaper than 90.74% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, BAYN is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.15, the valuation of BAYN can be described as very reasonable.
- 87.04% of the companies in the same industry are more expensive than BAYN, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. BAYN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
- BAYN's Enterprise Value to EBITDA is on the same level as the industry average.
- 87.04% of the companies in the same industry are more expensive than BAYN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.12 | ||
| EV/EBITDA | 12.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.81%
EPS Next 3Y1.63%
5. Dividend
5.1 Amount
- BAYN has a yearly dividend return of 0.26%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.59, BAYN has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, BAYN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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-1.81%
EPS Next 3Y1.63%
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%.