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Bayer
(OTC:BAYRY)
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Rating:59Neutral
Price Target:
$12.50
â–¼(-12.59% Downside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by weak financial performance—ongoing net losses, elevated leverage, and deteriorating free cash flow. Offsetting this, technicals are supportive with a strong uptrend and positive momentum, and valuation benefits from a very high dividend yield (despite a loss-driven negative P/E). The latest earnings call adds moderate support via reiterated guidance, improving EBITDA, and litigation/financing progress, but near-term cash outflows and debt remain meaningful risks.
Positive Factors
Diversified Life-Sciences Portfolio
Bayer’s presence in both pharmaceuticals and crop science provides multiple sources of revenue and exposure to different demand drivers. This diversification can support resilience over the next several quarters because weakness in one portfolio may be partly offset by growth in another.
Negative Factors
Persistent Net Losses
Persistent net losses show that Bayer’s strong gross margins are not currently translating into sustainable bottom-line profitability. Continued losses can constrain internal investment capacity, weaken returns on equity, and make earnings recovery dependent on operating improvement and lower charges.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Life-Sciences Portfolio
Bayer’s presence in both pharmaceuticals and crop science provides multiple sources of revenue and exposure to different demand drivers. This diversification can support resilience over the next several quarters because weakness in one portfolio may be partly offset by growth in another.
Read all positive factors
Bayer Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how different business units contribute to overall sales, highlighting strengths, diversification, and areas of growth or concern within the company’s operations.
Shows how different business units contribute to overall sales, highlighting strengths, diversification, and areas of growth or concern within the company’s operations.
Data provided by:
The Fly
The FlyBayer (BAYRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.88B
Dividend Yield0.27%
Average Volume (3M)44.31K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth5.66%
EPS Growth47.23%
CountryUS
Employees88,078
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)-0.42
Shares Outstanding3,929,696,000
10 Day Avg. Volume0
30 Day Avg. Volume44,308
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)1.40
Price to Sales (P/S)0.83
P/FCF Ratio18.08
Enterprise Value/Market Cap2.00
Enterprise Value/Revenue2.06
Enterprise Value/Gross Profit3.48
Enterprise Value/Ebitda10.15
Forecast
1Y Price Target
$15.50Price Target Upside8.39% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.29
Revenue Forecast (FY)$52.53B
Bayer Business Overview & Revenue Model
Company Description
Bayer Aktiengesellschaft, commonly known as Bayer AG, functions as a prominent global life sciences company through its various subsidiaries. Its extensive operations are strategically segmented into Pharmaceuticals, Consumer Health, and Crop Scie...
How the Company Makes Money
Bayer makes money primarily by selling life-science products through two main business areas: pharmaceuticals and crop science (agriculture). In Pharmaceuticals, revenue is generated from the sale of prescription medicines and specialty therapies ...
Bayer Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented multiple clear operational and strategic positives — steady group sales (+3%), EBITDA improvement (+7%), Crop Science margin expansion to 31%, strong growth in several Pharma assets (Nubeqa and Kerendia +66%), successful capital transactions (EUR 3bn Apollo investment and USD 5bn bond issuance) and a favorable U.S. Supreme Court ruling that materially strengthens litigation containment. Offsetting these strengths are meaningful near-term financial drains: negative free cash flow (‑EUR 2.7bn) driven by EUR 2.5bn in litigation payouts, elevated net debt in the near term (EUR 33.6bn), a 17% drop in Q2 core EPS due to normalization, Eylea sales down 27%, and continued legal and external-market risks. On balance, the highlights materially outweigh the lowlights given improving profitability, strategic progress, and decisive financing actions that reduce medium-term balance-sheet risk.Positive Updates
Group Sales Growth
Net sales grew 3% year-over-year to EUR 24.3 billion in the first half (Q2 sales +2% to EUR 10.9 billion), showing the group is pacing to meet full-year guidance.
Negative Updates
Negative Free Cash Flow and Litigation Payouts
Free cash flow was negative EUR 2.7 billion in H1 versus minus EUR 1.4 billion a year earlier, driven by material litigation-related payouts of about EUR 2.5 billion in the period.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Sales Growth
Net sales grew 3% year-over-year to EUR 24.3 billion in the first half (Q2 sales +2% to EUR 10.9 billion), showing the group is pacing to meet full-year guidance.
Read all positive updates
Company Guidance
Bayer reiterated its full‑year 2026 outlook at constant currencies after a H1 showing that it says keeps the group on track: net sales H1 EUR 24.3bn (+3% cc) and Q2 EUR 10.9bn (+2% cc); EBITDA before special items H1 EUR 6.6bn (+7%) and Q2 EUR 2.1bn (+2%); core EPS H1 EUR 3.66 (+3%) with Q2 core EPS EUR 0.95 (‑17% YoY); H1 free cash flow was negative EUR 2.7bn (vs ‑EUR 1.4bn LY), driven by ~EUR 2.5bn of litigation‑related payouts. By division: Crop Science sales +5.5% (EBITDA margin 31%), Pharma sales flat (Nubeqa+Kerendia +66%, Eylea ‑27%, Pharma EBITDA margin 26%), and Consumer Health +3.5% (EBITDA margin trailing prior year). Net financial debt stood at EUR 33.6bn (slightly up YoY; +EUR 1.1bn vs Q1) but management now expects EUR 29–30bn after a EUR 3bn Apollo minority equity investment (to close H2) and notes a successful USD 5bn bond placement; FX updated to June month‑end rates slightly lowers the headwind to sales and core EPS versus the prior estimate.Bayer Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
45
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.49B | 43.78B | 46.61B | 47.64B | 50.74B | 44.08B |
| Gross Profit | 26.86B | 25.92B | 25.34B | 27.89B | 30.87B | 27.27B |
| EBITDA | 9.22B | 10.57B | 8.81B | 4.32B | 10.49B | 6.95B |
| Net Income | -1.66B | -3.48B | -2.55B | -2.94B | 4.15B | 1.00B |
Balance Sheet | ||||||
| Total Assets | 107.24B | 110.56B | 110.85B | 116.26B | 124.88B | 120.24B |
| Cash, Cash Equivalents and Short-Term Investments | 4.29B | 7.85B | 8.09B | 10.59B | 10.15B | 7.74B |
| Total Debt | 38.42B | 37.43B | 40.70B | 44.79B | 41.65B | 39.53B |
| Total Liabilities | 77.54B | 84.51B | 78.81B | 83.18B | 85.95B | 87.07B |
| Stockholders Equity | 29.57B | 25.94B | 31.91B | 32.93B | 38.77B | 33.02B |
Cash Flow | ||||||
| Free Cash Flow | 663.41M | 2.00B | 4.59B | 2.37B | 4.14B | 2.48B |
| Operating Cash Flow | 3.51B | 4.39B | 7.37B | 5.12B | 7.09B | 5.09B |
| Investing Cash Flow | -2.49B | -1.55B | 164.00M | -4.01B | -2.38B | 855.00M |
| Financing Cash Flow | -1.32B | -2.10B | -7.18B | -679.00M | -4.22B | -5.64B |
Bayer Technical Analysis
Negative
14.30
Price Trends
13.90
Negative
13.05
Negative
12.43
Negative
Market Momentum
-0.47
Positive
25.32
Positive
2.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAYRY, the sentiment is Negative. The current price of 14.3 is above the 20-day moving average (MA) of 13.56, above the 50-day MA of 13.90, and above the 200-day MA of 12.43, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 25.32 is Positive, neither overbought nor oversold. The STOCH value of 2.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAYRY.
Bayer Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $618.09B | 30.09 | 25.73% | 2.06% | 8.07% | -7.21% | |
76 Outperform | $95.33B | 21.87 | 5.52% | 6.01% | 23.68% | -30.90% | |
72 Outperform | $98.19B | 14.58 | 28.35% | 3.90% | 8.82% | 48.32% | |
67 Neutral | $259.41B | 21.78 | 29.64% | 3.31% | 2.33% | -4.08% | |
66 Neutral | $158.56B | 37.25 | 4.89% | 6.18% | -0.21% | -59.71% | |
59 Neutral | $46.88B | -24.87 | -6.10% | 0.27% | 5.66% | 47.23% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
BAYRY
Bayer
11.93
3.85
47.64%
GSK
GlaxoSmithKline
46.54
4.47
10.62%
JNJ
Johnson & Johnson
256.48
69.96
37.51%
NVS
Novartis
143.11
15.58
12.21%
PFE
Pfizer
27.82
4.66
20.14%
SNY
Sanofi
40.23
-6.02
-13.01%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.