BAYER AG-REG (BAYN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAYN - DE000BAY0017 - Common Stock
46.365 EUR
+1.81 (+4.06%)
Overall BAYN gets a fundamental rating of 2 out of 10. We evaluated BAYN against 55 industry peers in the Pharmaceuticals industry. Both the profitability and financial health of BAYN have multiple concerns. 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.
- 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.
- Each year in the past 5 years BAYN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BAYN (-0.19%) is worse than 67.27% of its industry peers.
- BAYN has a Return On Equity of -0.67%. This is in the lower half of the industry: BAYN underperforms 67.27% of its industry peers.
- BAYN's Return On Invested Capital of 1.80% is on the low side compared to the rest of the industry. BAYN is outperformed by 67.27% of its industry peers.
- 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
- Looking at the Operating Margin, with a value of 4.20%, BAYN is doing worse than 65.45% of the companies in the same industry.
- BAYN's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 56.35%, BAYN is doing worse than 69.09% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BAYN is destroying value.
- Compared to 1 year ago, BAYN has about the same amount of shares outstanding.
- BAYN has about the same amout of shares outstanding than it did 5 years ago.
- BAYN has a better debt/assets ratio than last year.
2.2 Solvency
- BAYN has an Altman-Z score of 1.02. This is a bad value and indicates that BAYN is not financially healthy and even 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 Debt to FCF ratio of 10.07. This is in the lower half of the industry: BAYN underperforms 61.82% 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.
- With a Debt to Equity ratio value of 1.11, BAYN is not doing good in the industry: 67.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 10.07 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.27
WACC6.65%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that BAYN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.14, BAYN is doing worse than 63.64% of the companies in the same industry.
- 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.
- 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.
- The Earnings Per Share has been decreasing by -5.27% on average over the past years.
- The Revenue has decreased by -1.87% in the past 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
- 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.
- BAYN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.22% yearly.
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
- Based on the Price/Earnings ratio of 8.68, the valuation of BAYN can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of BAYN indicates a rather cheap valuation: BAYN is cheaper than 90.91% of the companies listed in the same industry.
- BAYN is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.49, which indicates a very decent valuation of BAYN.
- Based on the Price/Forward Earnings ratio, BAYN is valued cheaper than 90.91% of the companies in the same industry.
- BAYN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAYN is on the same level as its industry peers.
- 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.
- BAYN's Dividend Yield is slightly below the industry average, which is at 1.62.
- With a Dividend Yield of 0.25, BAYN 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 BAYN decreases each year by -45.34%.
Dividend Growth(5Y)-45.34%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- The earnings of BAYN are negative and hence is the payout ratio. BAYN 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 / 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%.