NASDAQ:SNY is probably undervalued for the fundamentals it is displaying.

Last update: Nov 29, 2024

Our stock screener has spotted SANOFI-ADR (NASDAQ:SNY) as an undervalued stock with solid fundamentals. NASDAQ:SNY shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Evaluating Valuation: 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 8 for valuation:

A Price/Earnings ratio of 11.52 indicates a reasonable valuation of SNY.
Based on the Price/Earnings ratio, SNY is valued cheaply inside the industry as 91.15% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SNY to the average of the S&P500 Index (29.55), we can say SNY is valued rather cheaply.
A Price/Forward Earnings ratio of 10.61 indicates a reasonable valuation of SNY.
Based on the Price/Forward Earnings ratio, SNY is valued cheaply inside the industry as 88.54% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.22. SNY is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNY indicates a rather cheap valuation: SNY is cheaper than 94.27% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SNY is valued cheaper than 81.77% of the companies in the same industry.
The excellent profitability rating of SNY may justify a higher PE ratio.

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 6.07%, SNY belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
SNY has a better Return On Equity (10.83%) than 89.06% of its industry peers.
The Return On Invested Capital of SNY (12.36%) is better than 91.15% of its industry peers.
The 3 year average ROIC (7.23%) for SNY is below the current ROIC(12.36%), indicating increased profibility in the last year.
SNY's Profit Margin of 11.06% is amongst the best of the industry. SNY outperforms 86.98% of its industry peers.
SNY has a better Operating Margin (21.92%) than 88.02% of its industry peers.
In the last couple of years the Operating Margin of SNY has grown nicely.
SNY has a Gross Margin of 69.08%. This is in the better half of the industry: SNY outperforms 71.88% of its industry peers.

Unpacking NASDAQ:SNY's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:SNY has earned a 5 out of 10:

With a decent Altman-Z score value of 2.87, SNY is doing good in the industry, outperforming 70.83% of the companies in the same industry.
Looking at the Debt to FCF ratio, with a value of 5.74, SNY belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
SNY has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.

Understanding NASDAQ:SNY's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:SNY has achieved a 4 out of 10:

SNY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.19% yearly.

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

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.