SANOFI (1SAN.MI) Stock Fundamental Analysis
BIT:1SAN - Euronext Milan - FR0000120578 - Common Stock - Currency: EUR
Overall 1SAN gets a fundamental rating of 6 out of 10. We evaluated 1SAN against 52 industry peers in the Pharmaceuticals industry. While 1SAN has a great profitability rating, there are some minor concerns on its financial health. 1SAN has a correct valuation and a medium growth rate. 1SAN also has an excellent dividend rating. With these ratings, 1SAN could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year 1SAN was profitable.
1SAN had a positive operating cash flow in the past year.
In the past 5 years 1SAN has always been profitable.
Each year in the past 5 years 1SAN had a positive operating cash flow.
1.2 Ratios
1SAN has a better Return On Assets (9.00%) than 78.85% of its industry peers.
1SAN's Return On Equity of 15.37% is fine compared to the rest of the industry. 1SAN outperforms 71.15% of its industry peers.
1SAN's Return On Invested Capital of 15.58% is amongst the best of the industry. 1SAN outperforms 84.62% of its industry peers.
1SAN had an Average Return On Invested Capital over the past 3 years of 7.46%. This is significantly below the industry average of 13.62%.
The 3 year average ROIC (7.46%) for 1SAN is below the current ROIC(15.58%), indicating increased profibility in the last year.
| 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's Profit Margin of 12.97% is fine compared to the rest of the industry. 1SAN outperforms 71.15% of its industry peers.
1SAN's Profit Margin has improved in the last couple of years.
1SAN has a better Operating Margin (22.04%) than 65.38% of its industry peers.
In the last couple of years the Operating Margin of 1SAN has grown nicely.
1SAN's Gross Margin of 70.04% is in line compared to the rest of the industry. 1SAN outperforms 53.85% of its industry peers.
1SAN's Gross Margin has been stable in the last couple of years.
| 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
1SAN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
The debt/assets ratio for 1SAN has been reduced compared to a year ago.
2.2 Solvency
1SAN has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as 1SAN would need 3.04 years to pay back of all of its debts.
1SAN's Debt to FCF ratio of 3.04 is fine compared to the rest of the industry. 1SAN outperforms 73.08% of its industry peers.
1SAN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, 1SAN is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | N/A |
ROIC/WACC2.05
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.46 indicates that 1SAN should not have too much problems paying its short term obligations.
The Current ratio of 1SAN (1.46) is better than 63.46% of its industry peers.
A Quick Ratio of 0.74 indicates that 1SAN may have some problems paying its short term obligations.
1SAN's Quick ratio of 0.74 is on the low side compared to the rest of the industry. 1SAN is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
1SAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.30%.
The Earnings Per Share has been growing slightly by 5.10% on average over the past years.
Looking at the last year, 1SAN shows a very strong growth in Revenue. The Revenue has grown by 31.50%.
Measured over the past years, 1SAN shows a small growth in Revenue. The Revenue has been growing by 3.31% on average per year.
EPS 1Y (TTM)-5.3%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-21.08%
Revenue 1Y (TTM)31.5%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-3.25%
3.2 Future
The Earnings Per Share is expected to grow by 7.71% on average over the next years.
The Revenue is expected to grow by 5.01% on average over the next years.
EPS Next Y8.15%
EPS Next 2Y8.95%
EPS Next 3Y8.14%
EPS Next 5Y7.71%
Revenue Next Year4.99%
Revenue Next 2Y5.79%
Revenue Next 3Y5.48%
Revenue Next 5Y5.01%
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
1SAN is valuated correctly with a Price/Earnings ratio of 14.19.
Based on the Price/Earnings ratio, 1SAN is valued cheaper than 80.77% of the companies in the same industry.
1SAN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 13.12, 1SAN is valued correctly.
Based on the Price/Forward Earnings ratio, 1SAN is valued a bit cheaper than 75.00% of the companies in the same industry.
1SAN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
1SAN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1SAN is cheaper than 61.54% of the companies in the same industry.
1SAN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.41 | ||
| EV/EBITDA | 11.88 |
4.3 Compensation for Growth
1SAN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1SAN may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)2.78
EPS Next 2Y8.95%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
1SAN has a Yearly Dividend Yield of 3.58%.
Compared to an average industry Dividend Yield of 2.86, 1SAN pays a better dividend. On top of this 1SAN pays more dividend than 80.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 1SAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
The dividend of 1SAN has a limited annual growth rate of 4.34%.
Dividend Growth(5Y)4.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
39.72% of the earnings are spent on dividend by 1SAN. This is a low number and sustainable payout ratio.
The dividend of 1SAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.72%
EPS Next 2Y8.95%
EPS Next 3Y8.14%
BIT:1SAN (3/5/2025, 7:00:00 PM)
108.96
+5.76 (+5.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners39.32%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap273.18B
Analysts81.43
Price Target118.43 (8.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend3.79
Dividend Growth(5Y)4.34%
DP39.72%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.16%
Min EPS beat(2)-2.18%
Max EPS beat(2)14.5%
EPS beat(4)3
Avg EPS beat(4)4.59%
Min EPS beat(4)-2.18%
Max EPS beat(4)14.5%
EPS beat(8)5
Avg EPS beat(8)2.9%
EPS beat(12)8
Avg EPS beat(12)3.44%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-4.57%
Max Revenue beat(2)3.66%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)3.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)7
Avg Revenue beat(12)19.67%
Revenue beat(16)11
Avg Revenue beat(16)28.47%
PT rev (1m)2.78%
PT rev (3m)3.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.76%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.9%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 13.12 | ||
| P/S | 2.97 | ||
| P/FCF | 46.41 | ||
| P/OCF | 30.08 | ||
| P/B | 3.52 | ||
| P/tB | 23.89 | ||
| EV/EBITDA | 11.88 |
EPS(TTM)7.68
EY7.05%
EPS(NY)8.31
Fwd EY7.62%
FCF(TTM)2.35
FCFY2.15%
OCF(TTM)3.62
OCFY3.32%
SpS36.72
BVpS30.99
TBVpS4.56
PEG (NY)1.74
PEG (5Y)2.78
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 | 6.39% |
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-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.04 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 89.1% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | -34.57 | ||
| Cash Conversion | 38.03% | ||
| Profit Quality | 49.3% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-Score7
WACC7.62%
ROIC/WACC2.05
Cap/Depr(3y)72.19%
Cap/Depr(5y)66.85%
Cap/Sales(3y)6.19%
Cap/Sales(5y)5.87%
Profit Quality(3y)111.96%
Profit Quality(5y)103.11%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.3%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-21.08%
EPS Next Y8.15%
EPS Next 2Y8.95%
EPS Next 3Y8.14%
EPS Next 5Y7.71%
Revenue 1Y (TTM)31.5%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-3.25%
Revenue Next Year4.99%
Revenue Next 2Y5.79%
Revenue Next 3Y5.48%
Revenue Next 5Y5.01%
EBIT growth 1Y21.75%
EBIT growth 3Y4.19%
EBIT growth 5Y6.9%
EBIT Next Year46.35%
EBIT Next 3Y16.93%
EBIT Next 5Y9.92%
FCF growth 1Y-18.63%
FCF growth 3Y-11.46%
FCF growth 5Y-0.14%
OCF growth 1Y-11.47%
OCF growth 3Y-4.79%
OCF growth 5Y3.31%