SANOFI (1SAN.MI) Stock Fundamental Analysis
BIT:1SAN - Borsa Italiana Milan - FR0000120578 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1SAN. 1SAN was compared to 52 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of 1SAN while its profitability can be described as average. 1SAN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1SAN was profitable.
1SAN had positive earnings in each of the past 5 years.
1SAN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.00%, 1SAN is doing good in the industry, outperforming 70.83% of the companies in the same industry.
1SAN's Return On Equity of 15.37% is fine compared to the rest of the industry. 1SAN outperforms 62.50% of its industry peers.
The Return On Invested Capital of 1SAN (15.58%) is better than 77.08% of its industry peers.
1SAN had an Average Return On Invested Capital over the past 3 years of 7.46%. This is below the industry average of 12.45%.
The last Return On Invested Capital (15.58%) for 1SAN is above the 3 year average (7.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 15.37% | ||
| ROIC | 15.58% |
ROA(3y)5.07%
ROA(5y)6.23%
ROE(3y)8.63%
ROE(5y)10.88%
ROIC(3y)7.46%
ROIC(5y)7.05%
1.3 Margins
1SAN has a better Profit Margin (12.97%) than 64.58% of its industry peers.
1SAN's Profit Margin has improved in the last couple of years.
The Operating Margin of 1SAN (22.04%) is better than 68.75% of its industry peers.
1SAN's Operating Margin has improved in the last couple of years.
1SAN has a Gross Margin (70.04%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1SAN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.04% | ||
| PM (TTM) | 12.97% | ||
| GM | 70.04% |
OM growth 3Y0.02%
OM growth 5Y3.47%
PM growth 3Y-6.53%
PM growth 5Y12.13%
GM growth 3Y0.71%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1SAN is creating value.
The number of shares outstanding for 1SAN has been reduced compared to 1 year ago.
Compared to 5 years ago, 1SAN has less shares outstanding
Compared to 1 year ago, 1SAN has an improved debt to assets ratio.
2.2 Solvency
1SAN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
1SAN has a better Debt to Equity ratio (0.17) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC2.11
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.46 indicates that 1SAN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.46, 1SAN perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
1SAN has a Quick Ratio of 1.46. This is a bad value and indicates that 1SAN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.74, 1SAN is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for 1SAN have decreased strongly by -13.15% in the last year.
The Earnings Per Share has been growing slightly by 3.29% on average over the past years.
The Revenue has grown by 31.50% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 3.31% on average over the past years.
EPS 1Y (TTM)-13.15%
EPS 3Y2.45%
EPS 5Y3.29%
EPS Q2Q%-59.44%
Revenue 1Y (TTM)31.5%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-0.73%
3.2 Future
1SAN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.59% yearly.
The Revenue is expected to grow by 4.90% on average over the next years.
EPS Next Y18.08%
EPS Next 2Y14.35%
EPS Next 3Y13.28%
EPS Next 5Y9.59%
Revenue Next Year6.46%
Revenue Next 2Y6.39%
Revenue Next 3Y6.87%
Revenue Next 5Y4.9%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.78 indicates a correct valuation of 1SAN.
79.17% of the companies in the same industry are more expensive than 1SAN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.47. 1SAN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.51, the valuation of 1SAN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SAN indicates a somewhat cheap valuation: 1SAN is cheaper than 70.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. 1SAN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 1SAN may justify a higher PE ratio.
1SAN's earnings are expected to grow with 13.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)4.49
EPS Next 2Y14.35%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.63%, 1SAN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.69, 1SAN pays a bit more dividend than its industry peers.
1SAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
The dividend of 1SAN has a limited annual growth rate of 3.34%.
Dividend Growth(5Y)3.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1SAN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0%
EPS Next 2Y14.35%
EPS Next 3Y13.28%
SANOFI
BIT:1SAN (1/31/2025, 7:00:00 PM)
104.08
+2.06 (+2.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners45.52%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap260.95B
Analysts78.57
Price Target115.22 (10.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend3.56
Dividend Growth(5Y)3.34%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.7%
Min EPS beat(2)-51.91%
Max EPS beat(2)14.5%
EPS beat(4)3
Avg EPS beat(4)-7.84%
Min EPS beat(4)-51.91%
Max EPS beat(4)14.5%
EPS beat(8)5
Avg EPS beat(8)-3.31%
EPS beat(12)8
Avg EPS beat(12)-0.7%
EPS beat(16)12
Avg EPS beat(16)1.27%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)3.66%
Revenue beat(4)2
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)3.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.5%
Revenue beat(12)7
Avg Revenue beat(12)19.83%
Revenue beat(16)11
Avg Revenue beat(16)28.58%
PT rev (1m)0.61%
PT rev (3m)0.54%
EPS NQ rev (1m)-12.84%
EPS NQ rev (3m)-13.29%
EPS NY rev (1m)-4.54%
EPS NY rev (3m)-4.54%
Revenue NQ rev (1m)-6.98%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-4.71%
Revenue NY rev (3m)-4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 12.51 | ||
| P/S | 2.83 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.36 | ||
| P/tB | 22.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.04
EY6.76%
EPS(NY)8.32
Fwd EY7.99%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS36.72
BVpS30.99
TBVpS4.56
PEG (NY)0.82
PEG (5Y)4.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 15.37% | ||
| ROCE | 19.55% | ||
| ROIC | 15.58% | ||
| ROICexc | 16.79% | ||
| ROICexgc | 53.71% | ||
| OM | 22.04% | ||
| PM (TTM) | 12.97% | ||
| GM | 70.04% | ||
| FCFM | N/A |
ROA(3y)5.07%
ROA(5y)6.23%
ROE(3y)8.63%
ROE(5y)10.88%
ROIC(3y)7.46%
ROIC(5y)7.05%
ROICexc(3y)8.27%
ROICexc(5y)7.94%
ROICexgc(3y)35.84%
ROICexgc(5y)35.27%
ROCE(3y)9.37%
ROCE(5y)8.86%
ROICexcg growth 3Y-11.4%
ROICexcg growth 5Y0.08%
ROICexc growth 3Y1.08%
ROICexc growth 5Y3.67%
OM growth 3Y0.02%
OM growth 5Y3.47%
PM growth 3Y-6.53%
PM growth 5Y12.13%
GM growth 3Y0.71%
GM growth 5Y0.58%
F-ScoreN/A
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-ScoreN/A
WACC7.39%
ROIC/WACC2.11
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.15%
EPS 3Y2.45%
EPS 5Y3.29%
EPS Q2Q%-59.44%
EPS Next Y18.08%
EPS Next 2Y14.35%
EPS Next 3Y13.28%
EPS Next 5Y9.59%
Revenue 1Y (TTM)31.5%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-0.73%
Revenue Next Year6.46%
Revenue Next 2Y6.39%
Revenue Next 3Y6.87%
Revenue Next 5Y4.9%
EBIT growth 1Y21.75%
EBIT growth 3Y4.19%
EBIT growth 5Y6.9%
EBIT Next Year36.67%
EBIT Next 3Y14.29%
EBIT Next 5Y8.43%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A