Bayer BAYN.DE
Bayer is a German pharmaceutical and chemical company with businesses in health, agriculture, and consumer products. Bayer trades at a forward P/E of 10.45 and a FCF yield of 13.24%, reflecting the penalty for its high debt (ND/EBITDA 3.29) and litigation risk. The Kerendia approval and asset sales are positive steps, but the negative ROE (-5.69%) and 163% payout limit the appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Bayer is a German pharmaceutical and chemical company with businesses in health, agriculture, and consumer products. Bayer trades at a forward P/E of 10.45 and a FCF yield of 13.24%, reflecting the penalty for its high debt (ND/EBITDA 3.29) and litigation risk. The Kerendia approval and asset sales are positive steps, but the negative ROE (-5.69%) and 163% payout limit the appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.3 |
| Quality / Moat | 4.9 |
| Valuation | 5.0 |
| Growth | 4.6 |
| Dividend | 0.6 |
| Momentum | 9.3 |
| Risk & Context | 6.8 |
OVERALL SCORE: 5.1/10
Context and risks
Bayer maintains high leverage (ND/EBITDA 3.29) and the ECB is in a hiking cycle, making its debt service more expensive. Additionally, glyphosate litigation risk persists, which is not captured in financial metrics.
News considered in the analysis
- Bayer Sells Cancer Drug to Gruenenthal for Up to $431 Million — Venta de un activo no estratégico que aporta caja y permite reducir deuda, aunque el impacto en beneficios es limitado.
- FDA Approves Label Expansion of BAYRY's Kidney Disease Drug Kerendia — Aprobación regulatoria que amplía el mercado del fármaco y refuerza la cartera de productos, con potencial de crecimiento en ventas.
- Bayer (XTRA:BAYN) Wins FDA Approval As Fair Value Stays In Focus — Confirmación de la aprobación de Kerendia, ya cubierta en la noticia anterior; refuerza la percepción positiva.
- Elanco Animal Health Eyes Growth, Deleveraging as Quattro and Zenrelia Gain Ground — Noticia sobre un competidor en salud animal, sin impacto directo en Bayer.
- Can Recursion Pharmaceuticals' Strategic Deals Fuel Long-Term Growth? — Análisis de una empresa farmacéutica distinta, sin relevancia para Bayer.
Verdict: Hold: valuation is attractive, but high debt and legal risk warrant caution until litigation is resolved and leverage is reduced.
Main risk: The main risk is high leverage (ND/EBITDA 3.29) combined with the ECB's hiking cycle, which makes debt more expensive and pressures financial health. Uncertainty over glyphosate litigation adds to this.
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