Bayer AG operates as a life science company worldwide, it is one of the world's leaders in designing, producing, and marketing,
The Consumer Health segment markets nonprescription over-the-counter medicines, medical products, medicated skincare products, nutritional supplements, and self-care solutions in dermatology, nutritional supplements, pain and cardiovascular risk prevention, digestive health, allergy, and cold and cough.
The Crop Science segment offers chemical and biological crop protection products, improved plant traits, seeds, digital solution, and pest and weed control products, as well as customer service for agriculture. This segment also provides
Net sales are distributed by product family as follows:
As we see in the picture above, Bayer AG owns and markets a wide range of brands across its different business segments. Some of the notable brands include pharmaceuticals, such Aspring, Xarelo, Adalat, Levitra and Nexavar. Bayern’s widely recognized agriculture brands are Roundup, Dekalb, Seresto, Poncho and Basta, in addition to the agriculture and pharmaceuticals brand, Bayern owns a trusted and popular brand such as Claritin, Alveve and DR. Scoll’s.
Bayer AG - Technical Analysis
Historical daily share price chart and data for Bayer AG since 2017 adjusted for splits. The latest closing stock price for Bayer as of April 08, 2023, is 60.
It is with a good reason once, George Box said, “ All models are wrong, but some are useful”.
Many widely used financial models assume a normal distribution of stock price returns, despite increasing evidence that this is not the case. These assumptions ignore the real chances of extreme events and fluctuations occurring, as we can see few declines greater than 8 %, with one recently in March 2020 decline over 10% in ROC model, therefore we can observe they underestimate the risk of investing in the market.
Briefly the most significant difference in the case between normal and power law distributions is tail size. Power law distributions have fatter tails than normal distributions, meaning that the probability of extreme events happening is much higher in power law distributions than in those that are normal.
When we look at BAYER last 1000 trading days distribution, it is clear that 80 % of the price fluctuation falls within the range of [ 13 to 16].
BAYRY Yearly Adjusted price
Bayer is leader in life sciences, it aims to improve health and spread health around the world by focusing on innovation and sustainability core competitive advantage. As date April 2023 Bayer is the world's 229th most valuable company by market cap according to our data.
The following chart provide a summary of
BAYER AG. Income Statements
Eleven-years compound annual growth rate in revenue.
The revenue CAGR for Bayer (BAYN.BE) stock is 0.37% for the period of 2022. Compound annual growth rate (CAGR) is a commonly used business and investing term that measures the growth of a metric over multiple periods. CAGRs are useful since they reduce the effect of volatility in specific periods, unlike arithmetic means. We can conclude that Bayer has one of the worst CAGR within the blue-chip companies.
What do they offer ?
Price to Earnings Ratio vs IndustryBayer AG ~ Price-To-Earnings vs Peers: As date April 2023 BAYN is good value based on its Price-To-Earnings Ratio 14.3x compared to the peer average 27.8x.
Bayer AG generates 8 cents for each dollar of sales, while Eli Lilly, which operates in the same sector generates 3x than Bayer. Based on the latest financial disclosure, Bayer AG performs far less than that of the drag manufactures sector and significantly less than that of the pharmaceuticals industry. The P/E ratio is an excellent indicator that we can rely on while investing in equites. Comparing Bayer’s P/E ratio and market cap
Since a stock's share price can swing wildly from day to day and week to week, we had argued that a market cap is not really the best way to determine what a company is worth. Using discounted cash flow analysis is a more useful way to value a company (and thus know what to pay for its shares), though as with any valuation method it has its own flaws.
We notice that on the table, Bayern overall had bad performance for several years.
Bayer AG - Competitors
Bayer’s products and services are designed to benefit people and improve their quality of life
Some of the key competitors of Bayer AG in each of its business segments are:
Bayer AG - SWOT Analysis
Swot Analysis of BayerThe goal of SWOT analysis is to formulate a successful strategy for the future. Accordingly, the SWOT analysis of Bayer is carried out.
Strengths:Strong brand portfolio: Bayer AG owns and markets well-known brands in the pharmaceuticals, agriculture, and consumer health sectors, which provide a competitive advantage in the market. Diversified business segments: Bayer AG operates in multiple industries, including pharmaceuticals, agriculture, and consumer health, which diversifies its revenue streams and reduces dependency on a single market.
Research and development capabilities: Bayer AG has a strong focus on research and development (R&D), investing significantly in innovation to develop new products and technologies, which can lead to competitive advantages and market leadership. Global presence: Bayer AG has a global presence with operations in multiple countries, which provides access to diverse markets and customer bases.
Weaknesses:Litigation risks: Bayer AG has faced and continues to face legal challenges related to its acquisition of Monsanto and the alleged harmful effects of glyphosate-containing products, which could result in financial liabilities and reputational damage. Integration challenges: The acquisition of Monsanto has posed integration challenges for Bayer AG, including cultural differences, operational complexities, and regulatory hurdles. Dependence on key products: Bayer AG's revenue is dependent on a few key products, including Xarelto and Eylea, which exposes the company to risks associated with product concentration and potential loss of exclusivity.
Opportunities:Growth in emerging markets: Bayer AG has opportunities for growth in emerging markets, where rising population, urbanization, and increasing healthcare and agricultural needs present significant market potential. Expansion of digital solutions: Bayer AG can leverage digital technologies, such as data analytics, precision farming, and telemedicine, to develop and market innovative solutions for the pharmaceuticals and agriculture sectors. Focus on sustainability: The increasing demand for sustainable products and practices presents an opportunity for Bayer AG to develop and market environmentally friendly products and solutions, aligning with changing consumer preferences and regulatory trends.
Threats:Competitive landscape: Bayer AG faces intense competition from other global players in the pharmaceuticals, agriculture, and consumer health sectors, which could impact its market share, pricing, and profitability. Regulatory challenges: Bayer AG operates in highly regulated industries, and changes in regulations related to product approvals, pricing, labeling, and safety could pose challenges and impact its business operations. Economic and market risks: Bayer AG is exposed to risks associated with economic and market factors, such as currency fluctuations, inflation, trade policies, and geopolitical uncertainties, which could impact its financial performance and operations.
Bayer AG - Management
Average management tenure 5.1 years.
CEO – Wernwr Baumann (60 years young): have 13.3 years tenure, with a
compensation of €7,825,000
Mr. Werner Baumann has been Chairman of Management Board and Chief Executive Officer at Bayer AG since May 1, 2016 and has been its Member of Management Board since January 1, 2010. Since January 1, 2020, Mr. Baumann is a Chief Sustainability Officer of Bayer AG. He served as Labor Director at Bayer AG.
until January 31, 2021. Mr. Baumann served as Chief of Strategy & Portfolio Management - Europe / Middle East / Africa Region at Bayer AG. He served as the Chairman of Management Board and Chief Executive Officer of Bayer HealthCare AG from March 31, 2015 to December 2015. He served as the Chief Strategy & Portfolio Officer of Bayer AG from October 1, 2014 to May 1, 2016 and was responsible for the Europe, Middle East and Africa Region.
He served as Chief Financial Officer of Bayer AG from January 1, 2010 to October 1, 2014. He served as the President of Business Development & Licensing at Bayer HealthCare AG since March 1, 2006 and also served as its President of Central Administration & Organization from July 2002 to 2009. He joined Bayer AG in Leverkusen as a Commercial Trainee on April 1, 1966. Mr. Baumann served as a Member of Management Board at Bayer HealthCare AG since October 1, 2003 and served as its Labor Director.
As a member of the Board of Management and Labor Director of Bayer Schering Pharma AG, Berlin, Germany, from 2006 through September 2009, he actively participated in its integration into the former HealthCare subgroup. He served as Vice President of German Chemical Industry Association (VCI), Frankfurt. He served as President of German Chemical Industry Association from September 2005 to September 2007 and Vice President of Federation of German Industries (BDI), Berlin. He served as Head of Business Planning & Administration at Bayer HealthCare AG until 2002.
He joined Bayer AG in 1988 and served in Southwest Europe section of Corporate Finance Department. He served as Controller of Bayer Hispania Commercial in Barcelona, Spain since 1991 and also served as Assistant to Managing Director since 1995. He moved to Bayer Corporation in Tarrytown, New York, where he held various positions in Bayer's global Diagnostics Business Group. Since 1978, he served as Managing Director and administrative head of the Peruvian company.
Since April 1996, he served as Head of Corporate Planning and Controlling in Leverkusen. From 1970 to 1975, Mr. Baumann established and managed the finance and accounting department of Bayer Industrial S.A. He serves as Chairman of Supervisory Board at Bayer CropScience AG. He served as Chairman of Supervisory Board at Covestro AG until March 26, 2015.
He serves as a Member of Supervisory board of Henkel KGaA. He serves as a Member of the Advisory Council at Allianz Global Corporate & Specialty SE. Mr. Baumann served as a Member of Supervisory Board at Bayer Business Services GmbH. He studied Economics from RWTH Aachen Technical University and the University of Cologne.
Norges Bank Investment Management owns 27.5 million shares of Bayer AG, represents 2.8% of total shares outstanding, as of April 2023. Norges Bank investment, which manages the Government Pension Fund abroad on behalf of the Ministry of Finance. The value of the fund was NOK 14,372 billion in April 2023.
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