Why NASDAQ:SNY is a Top Pick for Dividend Investors.

Last update: Jan 2, 2024

Our stock screener has singled out SANOFI-ADR (NASDAQ:SNY) as a promising choice for dividend investors. NASDAQ:SNY not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Understanding NASDAQ:SNY's Dividend

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:SNY has been assigned a 7 for dividend:

Compared to an average industry Dividend Yield of 4.29, SNY pays a better dividend. On top of this SNY pays more dividend than 95.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, SNY pays a better dividend.
SNY has been paying a dividend for at least 10 years, so it has a reliable track record.
35.10% of the earnings are spent on dividend by SNY. This is a low number and sustainable payout ratio.
SNY's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How We Gauge 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 3.14 indicates that SNY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.14, SNY is doing good in the industry, outperforming 75.74% 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.
The Debt to FCF ratio of SNY (2.59) is better than 90.59% 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.
The current and quick ratio evaluation for SNY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Exploring NASDAQ:SNY's Profitability

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:

The Return On Assets of SNY (10.12%) is better than 93.07% of its industry peers.
The Return On Equity of SNY (17.47%) is better than 91.09% of its industry peers.
With an excellent Return On Invested Capital value of 15.53%, SNY belongs to the best of the industry, outperforming 92.08% of the companies in the same industry.
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 93.07% of the companies in the same industry.
SNY has a better Operating Margin (27.75%) than 94.06% of its industry peers.
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 78.22% of its industry peers.

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

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.