Why NASDAQ:SNY provides a good dividend, while having solid fundamentals.

Last update: Dec 12, 2023

SANOFI-ADR (NASDAQ:SNY) has caught the attention of dividend investors as a stock worth considering. NASDAQ:SNY excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

What does the Dividend looks like for NASDAQ:SNY

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NASDAQ:SNY has received a 8 out of 10:

SNY has a Yearly Dividend Yield of 4.18%, which is a nice return.
Compared to an average industry Dividend Yield of 4.60, SNY pays a better dividend. On top of this SNY pays more dividend than 95.07% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.56, SNY pays a better dividend.
SNY has paid a dividend for at least 10 years, which is a reliable track record.
SNY pays out 35.10% of its income as dividend. This is a sustainable payout ratio.
The dividend of SNY is growing, but earnings are growing more, so the dividend growth is sustainable.

Assessing Health for NASDAQ:SNY

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:SNY has received a 7 out of 10:

An Altman-Z score of 3.11 indicates that SNY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.11, SNY is doing good in the industry, outperforming 76.35% of the companies in the same industry.
SNY has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as SNY would need 2.59 years to pay back of all of its debts.
SNY's Debt to FCF ratio of 2.59 is amongst the best of the industry. SNY outperforms 90.64% of its industry peers.
SNY has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
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.

Profitability Assessment of NASDAQ:SNY

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:SNY was assigned a score of 8 for profitability:

With an excellent Return On Assets value of 10.12%, SNY belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
The Return On Equity of SNY (17.47%) is better than 91.13% of its industry peers.
The Return On Invested Capital of SNY (15.53%) is better than 92.12% of its industry peers.
The last Return On Invested Capital (15.53%) for SNY is above the 3 year average (6.95%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 18.09%, SNY belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
Looking at the Operating Margin, with a value of 27.75%, SNY belongs to the top of the industry, outperforming 94.09% of the companies in the same industry.
SNY's Operating Margin has improved in the last couple of years.
SNY has a Gross Margin of 70.31%. This is in the better half of the industry: SNY outperforms 78.33% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of SNY contains the most current fundamental analsysis.

Keep in mind

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.