Bayer AGXTER:BAYN +18.72%62 Gross Margin % is 60.97% as of Mar. 2026, which is 3% above its 10-year median of 59.16. GuruFocus rates XTER:BAYN with a GF Score™ of 62/100 and a GF Value™ of €27.37 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 938 Drug Manufacturers companies, Bayer AG ranks better than 67.7% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Bayer AG's Gross Profit for the
three
months ended in Mar. 2026 was €8,173 Mil. Bayer AG's Revenue for the
three
months ended in Mar. 2026 was €13,405 Mil. Therefore, Bayer AG's Gross Margin % for the quarter that ended in Mar. 2026 was 60.97%.
The historical rank and industry rank for Bayer AG's Gross Margin % or its related term are showing as below:
XTER:BAYN'
s Gross Margin % Range Over the Past 10 Years
Min: 53.77 Med: 59.16 Max: 67.49
Current: 59.32
During the past 13 years, the highestGross Margin % of Bayer AG was 67.49%. The lowest was 53.77%. And the median was 59.16%.
XTER:BAYN's Gross Margin % is ranked better than 67.7% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs XTER:BAYN: 59.32
Bayer AG had a gross margin of 60.97% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Bayer AG was 0.10% per year.
Bayer AG (XTER:BAYN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Bayer AG had a gross margin of 60.97% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Bayer AG Gross Margin % Related Terms
Bayer AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Bayer AG's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XTER:BAYN vs LLY, JNJ, ABBV: Gross Margin % Comparison
For the Drug Manufacturers - General subindustry, Bayer AG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bayer AG Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Bayer AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bayer AG's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Bayer AG (XTER:BAYN) has a Gross Margin % of 60.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Bayer AG and its competitors. This is near median its historical median of 59.16. Over the past decade, Bayer AG's Gross Margin % has ranged from 53.77 to 67.49. According to the industry distribution chart, Bayer AG ranks #303 out of 938 companies in the Drug Manufacturers industry, placing it in the top 32.3%.
Is Bayer AG's Gross Margin % too high?
Bayer AG's current Gross Margin % of 60.97% is near median its 10-year median of 59.16. Over the past 10 years, this metric has ranged from a low of 53.77 to a high of 67.49. The Drug Manufacturers industry median Gross Margin % is 48.44. Bayer AG's value of 60.97% is 25.9% above this industry median. Based on the distribution chart, Bayer AG ranks #303 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Bayer AG has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bayer AG's Gross Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Bayer AG ranks #303 out of 938 companies for Gross Margin %. This puts Bayer AG in the upper half of its industry. The industry median Gross Margin % is 48.44. Bayer AG's value of 60.97% is 25.9% above this benchmark. Historically, Bayer AG's own Gross Margin % has ranged from 53.77 to 67.49 over the past decade. While the company's 10-year median is 59.16 vs. the industry median of 48.44, Bayer AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bayer AG's current Gross Margin % of 60.97% is 25.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Bayer AG and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bayer AG's current Gross Margin % is 60.97%, which is near median its own 10-year median of 59.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bayer AG stock overvalued right now?
Based on GuruFocus' analysis, Bayer AG (XTER:BAYN) is currently considered Significantly Overvalued. The stock's GF Value™ is €27.37, compared to a current price of €47.00 — trading 71.7% above its estimated fair value. The current Gross Margin % is 60.97%, which is near median its 10-year median of 59.16 and 25.9% above the Drug Manufacturers industry median of 48.44. Bayer AG's overall GF Score™ is 62/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Bayer AG (XTER:BAYN), the current Gross Margin % is 60.97% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bayer AG (XTER:BAYN) Overvalued in 2026?
Based on GuruFocus' analysis, Bayer AG stock appears to be overvalued.
The current stock price of €47.00 is trading 71.7% above its estimated GF Value™ of €27.37.
GuruFocus considers Bayer AG to be Significantly Overvalued.
Key valuation signals for XTER:BAYN:
Gross Margin %: 60.97% (near median its 10-year median of 59.16)
GF Value™: €27.37 vs. price of €47.00 (71.7% above fair value)
Industry Position: 25.9% above the Drug Manufacturers median (#303 of 938)
No single metric tells the full story. See the XTER:BAYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bayer is a German healthcare and agriculture conglomerate. Healthcare provides close to half of the company's sales and includes pharmaceutical drugs (about 38% of total sales in 2025) as well as vitamins and other consumer healthcare products (13% of total). The firm's crop science business (47% of total) sells seeds, pesticides, herbicides, and fungicides, which was expanded through its 2018 acquisition of Monsanto.
62GF Score
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