Bayer Aktiengesellschaft (BAYN.DE) Stock Analysis & Winston Score

Bayer AG is a German company that makes medicines, crop protection products, and consumer health goods. Its pharmaceutical division sells prescription drugs like Xarelto (a blood thinner) and Eylea (an eye disease treatment), while its Crop Science division sells pesticides, herbicides, and seeds — including the well-known Roundup brand — to farmers worldwide. Bayer is one of the largest integrated life science companies in the world, operating across both healthcare and agriculture.

Bayer earns money by selling its products directly to hospitals, pharmacies, distributors, and agricultural retailers across more than 100 countries, with significant revenue coming from Europe, North America, and Asia. Its competitive position comes from a large patent portfolio, deep regulatory expertise, and established farmer and physician relationships. However, the company carries substantial legal and financial risk from tens of thousands of ongoing Roundup-related cancer lawsuits, and several key drug patents are approaching expiration, which could meaningfully reduce future revenue.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-2.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+112.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$5.8B/ year

↓ Declining (-7% vs prior year)

12.7% of revenue

Below sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.0%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~7 months

$5.7B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Bayer Aktiengesellschaft has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 982.4M (2021) → 982.4M (2025)

Score breakdown

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Quality

Gross Margin

61.0%

Premium pricing power — 61.0% gross margin

Operating Margin

23.2%

Excellent — 23.2% operating margin

ROCE

4.6%

Weak — 4.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-2.9%

Shrinking sales (-2.9% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

4.4%

Thin free cash flow (4.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.35

Elevated debt (1.35)

Interest Cover

2.67x

Tight — interest eats into profit (2.7x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

0.21%

Small dividend — 0.21% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

-71.6%

Dividend cut (-71.6% YoY) — warning sign

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