Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BAYER AG-REG. We currently have 13 research reports from 1 professional analysts.
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Research reports on
Suffering CropScience, operating CF’s tide is high
22 Feb 17
Bayer reported +2% (organic: +4%) higher sales at €46,769m and the gross profit margin improved from 54.4% to 56.6% in 2016. EBITDA rose +13% to €10,785m and net profit attributable to shareholders came in at €4,531m, up by +10%. Operating CF (+32% to €9,089m) benefited from the good operating basis and higher D/A (+12%), but the significantly lower NWC outflow (€-149m after €-817m) and the contribution from discontinued operations (Diabetes Care and CS Consumer) were the afterburner. Investing CF reflects the company’s willingness to hoard cash for the Monsanto takeover as it moved from €-2,762m to €-8,729m, primarily due to the outflows for current financial assets (€-5,645m after €-344m). Financing CF (€-350m after €-3,974m) saw a strong inflow from capital contributions and lower net gross debt repayments (€-730m after €-2,929m). Management will propose a +8% higher dividend of €2.70 (€2.50) per share at the AGM on 28 April 2017. Management gave a detailed 2017 guidance and expects sales to increase to over €49bn. EBITDA before one-offs is seen to increase by a mid single-digit percentage and core earnings per share from continuing operations by a mid single-digit percentage as well.
Higher volumes, but lower FCF
26 Oct 16
Q3 sales slightly increased by +2% to €11,262m (volumes: +4%; price: 0%, FX: -1%, portfolio: 0%) and the gross profit margin strongly rose from 55.1% to 57.1%. EBITDA increased +10% to €2,560m and net profit attributable to shareholders improved +19% to €1,187m. Operating CF came in at €3,053m (€2,330m), driven by the higher operating performance and additionally helped by a higher NWC inflow (€1,086m after €798m) due to a more moderate inventory increase and stronger decrease in receivables. Investing CF heavily suffered from higher outflows for net financial assets (€-1,435m after €-252m) moving from €-965m to €-2,039m). FCF was €998m after €1,365m. Lower net cross debt repayments (€-554m after €-1,938m) helped financing CF (€-846m after €-2,162m). Due to the signed divestment of the Consumer business of Environmental Science, management marginally adjusted the detailed 2016 guidance. It is still expecting sales of €46-47bn, EBITDA before one-offs increasing at a high single-digit percentage and core earnings per share from continuing operations increasing by a high single-digit percentage (previously: mid-to-high single-digit percentage).
Pharmaceuticals made the pace
28 Jul 16
Management lifted FY guidance after another strong quarter. Sales weakened 1% to €11,883m (volumes: +4%; prices: -2%; FX: -4%) in Q2, but the gross profit margin improved further (57.5% after 56.1%). EBITDA grew +12% to €2,952m and net profit attributable to shareholders rose +19% to €1,448m. Despite the stronger operating performance, operating CF stood fairly unchanged at €1,982m as NWC outflow strongly moved up from €-205m to €-374m, hit by significantly higher other changes in working capital (€-773m after €-51m). Investing CF moved from €-527m to €-1,245m driven by higher outflows for current and non-current financial assets. Financing CF swung from €334m to €-3,235m primarily due to the more than €3bn swing in debt moving from net gross debt proceeds of €2,349m to net gross debt repayments of €-950m. Management adjusted the detailed 2016 guidance, now expecting sales of €46-47bn (above €47bn) and EBITDA before one-offs is seen to increase at a high single-digit (mid-single) percentage.
Mad German money
23 May 16
Bayer has made a 37% premium offer (on 9 May closing price), bidding USD122 per Monsanto share, to acquire fully the agrochem giant. In absolute terms, Monsanto is valued at USD62bn (~€55bn) and the transaction is intended to be financed by an expected equity portion of c.25% of the enterprise value. Backed by the expected strong cash flow generation, Bayer sees its single ‘A’ credit rating not at risk in the long term.
What a Treatt
18 Jan 17
Treatt is steadily transforming itself from a seller of flavour and fragrance-based commodities to a value-added ingredients supplier. The strategy of deep customer knowledge is paying off, leading to stronger relationships, a real competitive advantage and greater profitability, with EBIT margins increasing from 9.6% in 2014 to 10.8% in 2016. Management has delivered four consecutive years of earnings above expectations and the momentum remains strong. Our DCF analysis calculates a fair value of 293p, supported by benchmark analysis that places the stock at a c 30% discount to its peer group.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Continued progress since interims
01 Feb 17
Carclo has announced that H217 trading remains strong and the outlook for the full year is in line with its expectations. Growth is being driven by the two larger divisions, Technical Plastics (TP) and LED Technologies, while the Aerospace division is experiencing stable trading conditions. We leave our estimates unchanged, but note potential currency upside should foreign exchange rates remain at current levels for the remainder of FY17.
29 Nov 16
The prospect of Hilary Clinton creating an oversight panel with the power to impose a set of harsh enforcement rules to control aggressive pricing of pharmaceuticals in the US fell away with the election of Trump, leading to a 16% bounce in the NASDAQ Biotech index and an 8% increase in the US Pharma & Biotech index, some of which has already been given back.
Still solid, but not perfect in an unadjusted, real world
23 Feb 17
Henkel increased sales by +4% (organic: +3%) to €18,714m, the gross profit margin weakened 30bp to 47.9% in 2016. EBITDA moved up +8% to €3,345m and net profit attributable to shareholders came in at €2,053m, +7% higher. Operating CF strongly increased +20% to €2,850m seeing a higher operating basis and a stronger NWC inflow (€281m after €20) due to higher payables as well as other liabilities and provisions. Investing CF (€-4,250m after €-893m) was clearly impacted by acquisition-related costs (€-3,727m after €-322m) for e.g. Sun Products. Financing CF swung from €-1,555m to €1,678m primarily due to the financing measures in the context of the large acquisition, which had been fully debt and cash financed as net gross debt repayment of €-1,025m swung to net gross debt issuance of €2,740m. Management proposes a +10% higher dividend of €1.60 (€1.45) per share at the AGM on 6 April 2017. For 2017, management expects organic sales growth of 2-4% with all divisions in this range, an adjusted EBIT of >17.0% and an adjusted EPS growth of 7-9%.
N+1 Singer - Strategy - Best Ideas 2017
04 Jan 17
Today we publish our Best Ideas for 2017. We have chosen 12 stocks that we believe have excellent prospects in the current year, together with an in depth discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec, Severfield. Please see the separate note for further details.