Don't overlook NASDAQ:SNY—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Nov 15, 2023

Take a closer look at SANOFI-ADR (NASDAQ:SNY), a remarkable value stock uncovered by our stock screener. NASDAQ:SNY excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

How We Gauge Valuation for NASDAQ:SNY

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:SNY has achieved a 8 out of 10:

Based on the Price/Earnings ratio of 10.09, the valuation of SNY can be described as reasonable.
Based on the Price/Earnings ratio, SNY is valued cheaply inside the industry as 87.86% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SNY to the average of the S&P500 Index (24.68), we can say SNY is valued rather cheaply.
SNY is valuated reasonably with a Price/Forward Earnings ratio of 9.59.
Based on the Price/Forward Earnings ratio, SNY is valued cheaper than 87.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.34, SNY is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, SNY is valued cheaply inside the industry as 94.66% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SNY is valued cheaper than 88.83% of the companies in the same industry.
The excellent profitability rating of SNY may justify a higher PE ratio.

Assessing Profitability for NASDAQ:SNY

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:SNY, the assigned 8 is noteworthy for profitability:

SNY has a better Return On Assets (10.12%) than 92.23% of its industry peers.
SNY has a Return On Equity of 17.47%. This is amongst the best in the industry. SNY outperforms 89.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.53%, SNY belongs to the top of the industry, outperforming 92.23% of the companies in the same industry.
The 3 year average ROIC (6.95%) for SNY is below the current ROIC(15.53%), indicating increased profibility in the last year.
The Profit Margin of SNY (18.09%) is better than 91.75% of its industry peers.
SNY's Operating Margin of 27.75% is amongst the best of the industry. SNY outperforms 93.69% of its industry peers.
SNY's Operating Margin has improved in the last couple of years.
SNY's Gross Margin of 70.31% is fine compared to the rest of the industry. SNY outperforms 78.16% of its industry peers.

Exploring NASDAQ:SNY's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:SNY was assigned a score of 7 for health:

SNY has an Altman-Z score of 3.07. This indicates that SNY is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.07, SNY is doing good in the industry, outperforming 77.67% of the companies in the same industry.
The Debt to FCF ratio of SNY is 2.59, which is a good value as it means it would take SNY, 2.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.59, SNY belongs to the top of the industry, outperforming 91.26% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that SNY is not too dependend on debt financing.
SNY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Growth for NASDAQ:SNY

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:SNY scores a 5 out of 10:

SNY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.29%, which is quite good.
SNY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.29% yearly.
The Revenue has grown by 11.47% in the past year. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of SNY

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.