NASDAQ:SNY is an undervalued gem with solid fundamentals.

Last update: Feb 14, 2024

Our stock screening tool has identified SANOFI-ADR (NASDAQ:SNY) as an undervalued gem with strong fundamentals. NASDAQ:SNY boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Valuation Assessment of NASDAQ:SNY

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:SNY has earned a 7 for valuation:

Based on the Price/Earnings ratio of 9.99, the valuation of SNY can be described as reasonable.
Based on the Price/Earnings ratio, SNY is valued cheaply inside the industry as 90.10% of the companies are valued more expensively.
SNY is valuated cheaply when we compare the Price/Earnings ratio to 26.01, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.57 indicates a reasonable valuation of SNY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNY indicates a rather cheap valuation: SNY is cheaper than 88.12% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SNY to the average of the S&P500 Index (21.13), we can say SNY is valued slightly cheaper.
SNY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SNY is cheaper than 96.04% of the companies in the same industry.
87.62% of the companies in the same industry are more expensive than SNY, based on the Price/Free Cash Flow ratio.
SNY has a very decent profitability rating, which may justify a higher PE ratio.

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 7 for profitability:

With an excellent Return On Assets value of 10.12%, SNY belongs to the best of the industry, outperforming 94.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.47%, SNY belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.53%, SNY belongs to the best of the industry, outperforming 92.57% 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.
With an excellent Profit Margin value of 18.09%, SNY belongs to the best of the industry, outperforming 93.56% of the companies in the same industry.
With an excellent Operating Margin value of 27.75%, SNY belongs to the best of the industry, outperforming 94.06% of the companies in the same industry.
In the last couple of years the Operating Margin of SNY has grown nicely.
Looking at the Gross Margin, with a value of 70.31%, SNY is in the better half of the industry, outperforming 78.22% of the companies in the same industry.

Understanding NASDAQ:SNY's Health Score

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:SNY has earned a 5 out of 10:

An Altman-Z score of 3.06 indicates that SNY is not in any danger for bankruptcy at the moment.
The Altman-Z score of SNY (3.06) is better than 77.72% of its industry peers.
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 91.09% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that SNY is not too dependend on debt financing.

Understanding NASDAQ:SNY's Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:SNY, the assigned 4 reflects its growth potential:

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.
The Earnings Per Share has been growing by 8.29% on average over the past years. This is quite good.
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.