BAYN:DEU - Embedded Expectations Analysis - 2018 04 11
Bayer AG (BAYN:DEU) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 14.2x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about industry trends, their supply chain, and guidanceSpecifically, management is confident that the reclassification of Kang Wang and Pi Kang Wang from OTC to behind the counter affected the products and their top line, and that they have lost relative scale over the last few years due to consolidation in the industry. Additionally, they may lack confidence in the sustainability of top line growth in their Animal Health segment, and may have concerns about supply interruptions due to issues at their production facilities. Furthermore, they may lack confidence in their EBITDA guidance, particularly as a result of foreign currency issues, and may be downplaying concerns about the Monsanto acquisition
Bayer is a life sciences group based in Germany. Co.'s operations are organized along three divisions: Pharmaceuticals (engaged in prescription pharmaceuticals for cardiology and women's healthcare); Consumer Health (engaged in non-prescription products in dermatology, dietary supplement, analgesic, gastrointestinal, allergy, cold and flu, foot care, sun protection and cardiovascular risk prevention categories); and CropScience (engaged in the development of seeds and plant traits; crop protection; and for gardens, the green industry and non-agricultural pest control). Co. also maintains an Animal Health business unit engaged in the development of products for farm and companion animals.
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