SANOFI (SAN.PA)
FR0000120578 - Common Stock
Taking everything into account, SAN scores 5 out of 10 in our fundamental rating. SAN was compared to 49 industry peers in the Pharmaceuticals industry. SAN has an excellent profitability rating, but there are some minor concerns on its financial health. SAN is not valued too expensively and it also shows a decent growth rate. SAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SAN had positive earnings in the past year.
In the past year SAN had a positive cash flow from operations.
In the past 5 years SAN has always been profitable.
In the past 5 years SAN always reported a positive cash flow from operatings.
1.2 Ratios
SAN has a better Return On Assets (6.07%) than 62.22% of its industry peers.
With a decent Return On Equity value of 10.83%, SAN is doing good in the industry, outperforming 62.22% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.36%, SAN is doing good in the industry, outperforming 75.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAN is below the industry average of 12.08%.
The last Return On Invested Capital (12.36%) for SAN is above the 3 year average (7.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 10.83% | ||
| ROIC | 12.36% |
ROA(3y)5.35%
ROA(5y)5.85%
ROE(3y)9.18%
ROE(5y)10.34%
ROIC(3y)7.23%
ROIC(5y)6.72%
1.3 Margins
The Profit Margin of SAN (11.06%) is better than 62.22% of its industry peers.
SAN's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 21.92%, SAN is doing good in the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Operating Margin of SAN has grown nicely.
SAN has a Gross Margin of 69.08%. This is comparable to the rest of the industry: SAN outperforms 48.89% of its industry peers.
In the last couple of years the Gross Margin of SAN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.92% | ||
| PM (TTM) | 11.06% | ||
| GM | 69.08% |
OM growth 3Y0.85%
OM growth 5Y2.94%
PM growth 3Y-29.3%
PM growth 5Y-0.74%
GM growth 3Y0.92%
GM growth 5Y0.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAN is creating some value.
Compared to 1 year ago, SAN has about the same amount of shares outstanding.
Compared to 5 years ago, SAN has more shares outstanding
Compared to 1 year ago, SAN has an improved debt to assets ratio.
2.2 Solvency
SAN has an Altman-Z score of 4.11. This indicates that SAN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SAN (4.11) is better than 64.44% of its industry peers.
SAN has a debt to FCF ratio of 5.74. This is a neutral value as SAN would need 5.74 years to pay back of all of its debts.
SAN has a Debt to FCF ratio of 5.74. This is comparable to the rest of the industry: SAN outperforms 55.56% of its industry peers.
SAN has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SAN (0.20) is better than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.66
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.00 indicates that SAN should not have too much problems paying its short term obligations.
The Current ratio of SAN (1.00) is worse than 77.78% of its industry peers.
SAN has a Quick Ratio of 1.00. This is a bad value and indicates that SAN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.65, SAN is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
SAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.59%.
The Earnings Per Share has been growing by 8.19% on average over the past years. This is quite good.
SAN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
SAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.42% yearly.
EPS 1Y (TTM)-1.59%
EPS 3Y10.81%
EPS 5Y8.19%
EPS Q2Q%12.16%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y7.52%
Revenue growth 5Y5.42%
Sales Q2Q%12.32%
3.2 Future
Based on estimates for the next years, SAN will show a small growth in Earnings Per Share. The EPS will grow by 6.56% on average per year.
SAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.21% yearly.
EPS Next Y-4.89%
EPS Next 2Y3.65%
EPS Next 3Y5.55%
EPS Next 5Y6.56%
Revenue Next Year5.19%
Revenue Next 2Y5.93%
Revenue Next 3Y5.96%
Revenue Next 5Y5.21%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
SAN is valuated reasonably with a Price/Earnings ratio of 11.60.
Compared to the rest of the industry, the Price/Earnings ratio of SAN indicates a rather cheap valuation: SAN is cheaper than 84.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SAN to the average of the S&P500 Index (27.35), we can say SAN is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.69, the valuation of SAN can be described as very reasonable.
80.00% of the companies in the same industry are more expensive than SAN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.86. SAN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 10.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAN.
SAN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.44 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
The decent profitability rating of SAN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y3.65%
EPS Next 3Y5.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, SAN is a good candidate for dividend investing.
SAN's Dividend Yield is rather good when compared to the industry average which is at 2.74. SAN pays more dividend than 82.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, SAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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
SAN pays out 59.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.74%
EPS Next 2Y3.65%
EPS Next 3Y5.55%
SANOFI
EPA:SAN (12/30/2024, 5:29:55 PM)
93.16
-0.12 (-0.13%)
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 Cap233.57B
Analysts79.29
Price Target114.97 (23.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Dividend Growth(5Y)3.34%
DP59.74%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.02%
Min EPS beat(2)2.32%
Max EPS beat(2)3.72%
EPS beat(4)2
Avg EPS beat(4)0.32%
Min EPS beat(4)-2.41%
Max EPS beat(4)3.72%
EPS beat(8)5
Avg EPS beat(8)2.05%
EPS beat(12)9
Avg EPS beat(12)3.25%
EPS beat(16)13
Avg EPS beat(16)3.91%
Revenue beat(2)1
Avg Revenue beat(2)0.68%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)1.71%
Revenue beat(4)1
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-5.24%
Max Revenue beat(4)1.71%
Revenue beat(8)4
Avg Revenue beat(8)15.01%
Revenue beat(12)8
Avg Revenue beat(12)28.86%
Revenue beat(16)12
Avg Revenue beat(16)34.97%
PT rev (1m)0.18%
PT rev (3m)0.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 10.69 | ||
| P/S | 3.28 | ||
| P/FCF | 56.44 | ||
| P/OCF | 28.77 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.53 |
EPS(TTM)8.03
EY8.62%
EPS(NY)8.71
Fwd EY9.35%
FCF(TTM)1.65
FCFY1.77%
OCF(TTM)3.24
OCFY3.48%
SpS28.4
BVpS28.99
TBVpS-1.61
PEG (NY)N/A
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 10.83% | ||
| ROCE | 15.65% | ||
| ROIC | 12.36% | ||
| ROICexc | 13.27% | ||
| ROICexgc | 75.28% | ||
| OM | 21.92% | ||
| PM (TTM) | 11.06% | ||
| GM | 69.08% | ||
| FCFM | 5.81% |
ROA(3y)5.35%
ROA(5y)5.85%
ROE(3y)9.18%
ROE(5y)10.34%
ROIC(3y)7.23%
ROIC(5y)6.72%
ROICexc(3y)8.13%
ROICexc(5y)7.63%
ROICexgc(3y)39.23%
ROICexgc(5y)35.01%
ROCE(3y)9.15%
ROCE(5y)8.51%
ROICexcg growth 3Y4.96%
ROICexcg growth 5Y9.87%
ROICexc growth 3Y3.21%
ROICexc growth 5Y7.01%
OM growth 3Y0.85%
OM growth 5Y2.94%
PM growth 3Y-29.3%
PM growth 5Y-0.74%
GM growth 3Y0.92%
GM growth 5Y0.41%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 5.74 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 90.48% | ||
| Cap/Sales | 5.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.58% | ||
| Profit Quality | 52.55% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 4.11 |
F-Score5
WACC7.44%
ROIC/WACC1.66
Cap/Depr(3y)62.81%
Cap/Depr(5y)53.83%
Cap/Sales(3y)5.53%
Cap/Sales(5y)5.38%
Profit Quality(3y)123.22%
Profit Quality(5y)125.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.59%
EPS 3Y10.81%
EPS 5Y8.19%
EPS Q2Q%12.16%
EPS Next Y-4.89%
EPS Next 2Y3.65%
EPS Next 3Y5.55%
EPS Next 5Y6.56%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y7.52%
Revenue growth 5Y5.42%
Sales Q2Q%12.32%
Revenue Next Year5.19%
Revenue Next 2Y5.93%
Revenue Next 3Y5.96%
Revenue Next 5Y5.21%
EBIT growth 1Y-19.82%
EBIT growth 3Y8.43%
EBIT growth 5Y8.52%
EBIT Next Year16.18%
EBIT Next 3Y11.74%
EBIT Next 5Y8.81%
FCF growth 1Y-45.51%
FCF growth 3Y10.68%
FCF growth 5Y15.17%
OCF growth 1Y-15.61%
OCF growth 3Y11.41%
OCF growth 5Y13.08%