SANOFI (SAN.PA) Stock Fundamental Analysis
EPA:SAN - Euronext Paris - Matif - FR0000120578 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to SAN. SAN was compared to 52 industry peers in the Pharmaceuticals industry. While SAN is still in line with the averages on profitability rating, there are concerns on its financial health. SAN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAN was profitable.
In the past 5 years SAN has always been profitable.
Of the past 5 years SAN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SAN (9.00%) is better than 72.92% of its industry peers.
The Return On Equity of SAN (15.37%) is better than 64.58% of its industry peers.
SAN has a Return On Invested Capital of 15.58%. This is in the better half of the industry: SAN outperforms 79.17% of its industry peers.
SAN 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 3 year average ROIC (7.46%) for SAN 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
The Profit Margin of SAN (12.97%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of SAN has grown nicely.
Looking at the Operating Margin, with a value of 22.04%, SAN is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Operating Margin of SAN has grown nicely.
With a Gross Margin value of 70.04%, SAN perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
SAN'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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SAN is creating value.
The number of shares outstanding for SAN has been reduced compared to 1 year ago.
SAN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SAN has been reduced compared to a year ago.
2.2 Solvency
SAN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
SAN's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. SAN outperforms 68.75% 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 SAN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, SAN is in line with its industry, outperforming 56.25% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that SAN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, SAN is doing worse than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
SAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.15%.
Measured over the past 5 years, SAN shows a small growth in Earnings Per Share. The EPS has been growing by 3.29% on average per year.
Looking at the last year, SAN shows a very strong growth in Revenue. The Revenue has grown by 31.50%.
Measured over the past years, SAN shows a small growth in Revenue. The Revenue has been growing by 3.31% on average per year.
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
Based on estimates for the next years, SAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.59% on average per year.
SAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.90% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.67, which indicates a correct valuation of SAN.
Based on the Price/Earnings ratio, SAN is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SAN to the average of the S&P500 Index (28.47), we can say SAN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.42, SAN is valued correctly.
Based on the Price/Forward Earnings ratio, SAN is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 92.74. SAN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 12.42 |
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 SAN may justify a higher PE ratio.
A more expensive valuation may be justified as SAN's earnings are expected to grow with 13.28% in the coming years.
PEG (NY)0.81
PEG (5Y)4.45
EPS Next 2Y14.35%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
SAN has a Yearly Dividend Yield of 3.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.69, SAN pays a better dividend. On top of this SAN pays more dividend than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
The dividend of SAN has a limited annual growth rate of 3.34%.
Dividend Growth(5Y)3.34%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
The dividend of SAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0%
EPS Next 2Y14.35%
EPS Next 3Y13.28%
SANOFI
EPA:SAN (2/5/2025, 3:31:17 PM)
103.26
+0.58 (+0.56%)
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 Cap258.89B
Analysts78.57
Price Target114.97 (11.34%)
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 Years5
Div Non Decr Years5
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%
PT rev (3m)0.03%
EPS NQ rev (1m)-12.84%
EPS NQ rev (3m)-13.29%
EPS NY rev (1m)-4.54%
EPS NY rev (3m)-5.72%
Revenue NQ rev (1m)-6.98%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-4.71%
Revenue NY rev (3m)-5.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 12.42 | ||
| P/S | 2.81 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.33 | ||
| P/tB | 22.64 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.04
EY6.82%
EPS(NY)8.32
Fwd EY8.05%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS36.72
BVpS30.99
TBVpS4.56
PEG (NY)0.81
PEG (5Y)4.45
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