BAYER AG-REG (BAYN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAYN - DE000BAY0017 - Common Stock
44.555 EUR
+0.39 (+0.88%)
Taking everything into account, BAYN scores 2 out of 10 in our fundamental rating. BAYN was compared to 55 industry peers in the Pharmaceuticals industry. BAYN may be in some trouble as it scores bad on both profitability and health. BAYN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year BAYN was profitable.
- In the past year BAYN had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: BAYN reported negative net income in multiple years.
- In the past 5 years BAYN always reported a positive cash flow from operatings.
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.
- Looking at the Return On Invested Capital, with a value of 1.80%, BAYN is doing worse than 67.27% of the companies in the same industry.
- 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
- BAYN has a worse Operating Margin (4.20%) than 65.45% of its industry peers.
- BAYN's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 56.35%, BAYN is not doing good in the industry: 69.09% of the companies in the same industry are doing better.
- 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
- 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.
- Compared to 5 years ago, BAYN has about the same amount of shares outstanding.
- 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.
- The Altman-Z score of BAYN (1.02) is worse than 72.73% of its industry peers.
- BAYN has a debt to FCF ratio of 10.07. This is a negative value and a sign of low solvency as BAYN would need 10.07 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 10.07, BAYN is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
- BAYN has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
- BAYN's Debt to Equity ratio of 1.11 is on the low side compared to the rest of the industry. BAYN 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/WACC0.27
WACC6.6%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that BAYN should not have too much problems paying its short term obligations.
- BAYN's Current ratio of 1.14 is on the low side compared to the rest of the industry. BAYN is outperformed by 65.45% 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 Quick ratio of 0.71. This is in the lower half of the industry: BAYN underperforms 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.
- The Revenue has decreased by -1.87% in the past year.
- BAYN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.37% yearly.
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
- A Price/Earnings ratio of 8.34 indicates a reasonable valuation of BAYN.
- 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.
- A Price/Forward Earnings ratio of 9.12 indicates a reasonable valuation of BAYN.
- BAYN's Price/Forward Earnings ratio is rather cheap when compared to the industry. BAYN is cheaper than 90.91% of the companies in the same industry.
- BAYN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BAYN.
- 89.09% 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 | 12.17 |
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.
- With a Dividend Yield of 0.25, BAYN pays less dividend than the S&P500 average, which is at 1.81.
| 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 1 / 10 and the dividend payout ratio is -65.15%.