Trading212 Portfolio- 24/08/20

Weeks summary

Stock picked: Bayer

Ticker: BAYN

Shares added: 0.092

Total shares owned: 0.232

Dividend yield: 4.97%

Payout ratio: 70.07%


Dividends received: £0.28


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This weeks stock

What does Bayer ticker BAYN do?

Bayer is a life science company which operates throughout the world. The company operates through 4 segments, Pharmaceuticals, Consumer health, Crop science and Animal health.


The Pharma segment focuses on researching, developing and marketing prescription products and speciality therapeutics and women’s health care.

The Consumer health segment develops, produces and markets non-prescription over-the-counter products, such as dietary supplements, cold, allergy and many other products.

The crop science segment offers chemical and biological crop protection products, improved plant traits, seeds, digital solutions and many more.


Interesting Bayer has a collaboration agreement with MD Anderson Cancer Centre at the university of Texas to develop cancer treatments.

https://pharmaphorum.com/news/bayer-md-anderson-novel-targeted-cancer-treatments/

Fundimentals:

Dividend Yield: 4.97%

Payout ratio: 70.07%

Profit margin: -12.91%

Return on assets: 3.59%

Return on equity: -17.96%

P/E ratio (price to earnings): 8.21

Adjusted EPS: €0.677

EPS (Earning per share) Growth: 14%

BETA: 1.26

Cash: 5.71B

Debt: 41.32B

EBITDA: 11.13B

Operating cash flow: 7.71B


Stock breakdown:

Bayer has a very nice looking dividend yield of almost 5%, but seeing that 70% payout ratio we see this is definitely a dividend income stock.


Bayers profit margin is reported at -12.91% but this is due to a recent acquisition of a company called Monsanto which grows GM crops. It was an acquisition worth $63 Billion is the largest foreign takeover by a German company. Click here for link.

The P/E ratio of bayer looks under valued with a P/E of 8.21. Looking at the 1 year chart we can see that Bayer has slightly recovered since March.


The EPS growth is in the double figures which is nice to see at 14%, hopefully their acquisition of Monsanto will enable them to create a stronger crop segment boosting their profit.

The stock has a BETA of 1.26 so is fairly volatile compared to the market.

The one thing I don’t really like is the amount of debt compared to the cash on hand, with 4X more debt that cash. I believe they are banking on their acquisition to really boost their income.

Click here for a more in-depth piece about Bayer’s debt.

Looking at this stock it seems under valued and as so get rewarded with a nice dividend yield. But I would caution as the amount of debt they have, so a close eye is needed to see how they navigate the future.


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Dividends received


This week we received 6 dividend this week totalling £0.28

ABBV @ £0.08

CL @ £0.04

NEP @ £0.07

O @ £0.02

HRL @ £0.03

PG @ £0.04


Total dividend (6 month): £2.68

Amount for charity (6 month): £0.67

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General account summary


I believe this weeks stock picked will be an interesting one looking forward. There are a couple red flags which need an eye kept on but that’s what comes with picking individual stocks.

In the last week we have had a very good time with dividends rolling into the portfolio as its added another £0.07 to our next charitable donation from the portfolio. Now the donation is sitting at £0.67 we are on track to beat the last donation by a fair bit. All these dividends will soon add up and start to compound themselves inside the portfolio.

What to know how investing into Index trackers and adjusting your habits could help you build wealth? Click here.


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What is:

P/E ratio EPS Payout ratio BETA Dividend

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