Analyzing NASDAQ:SNY's Dividend Potential.

SANOFI-ADR (NASDAQ:SNY) was identified as a stock worth exploring by dividend investors by our stock screener. NASDAQ:SNY scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Evaluating Dividend: NASDAQ:SNY

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NASDAQ:SNY has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.42, 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 2.50, SNY pays a better dividend.
• SNY has been paying a dividend for at least 10 years, so it has 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.

Evaluating Health: NASDAQ:SNY

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:SNY has achieved a 7 out of 10:

• SNY has an Altman-Z score of 3.17. This indicates that SNY is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.17, SNY is in the better half of the industry, outperforming 77.83% 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.
• SNY has a better Debt to FCF ratio (2.59) than 91.13% of its industry peers.
• A Debt/Equity ratio of 0.22 indicates that SNY is not too dependend on debt financing.
• 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.

Assessing Profitability for NASDAQ:SNY

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:SNY has earned a 8 out of 10:

• SNY has a better Return On Assets (10.12%) than 93.60% of its industry peers.
• SNY has a Return On Equity of 17.47%. This is amongst the best in the industry. SNY outperforms 92.12% of its industry peers.
• The Return On Invested Capital of SNY (15.53%) is better than 92.61% 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.
• The Operating Margin of SNY (27.75%) is better than 94.09% 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 78.33% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of SNY for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.