SANOFI (SAN.PA) Stock Fundamental Analysis
Europe - EPA:SAN - FR0000120578 - Common Stock
80.15 EUR
+0.71 (+0.89%)
We assign a fundamental rating of 6 out of 10 to SAN. 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. Finally SAN also has an excellent dividend rating. These ratings could make SAN a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year SAN was profitable.
SAN had a positive operating cash flow in the past year.
SAN had positive earnings in each of the past 5 years.
SAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAN has a Return On Assets of 11.05%. This is amongst the best in the industry. SAN outperforms 81.63% of its industry peers.
SAN has a Return On Equity of 19.73%. This is in the better half of the industry: SAN outperforms 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.84%, SAN is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAN is significantly below the industry average of 15.25%.
The 3 year average ROIC (7.31%) for SAN is below the current ROIC(13.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 19.73% | ||
| ROIC | 13.84% |
ROA(3y)5.02%
ROA(5y)6.2%
ROE(3y)8.55%
ROE(5y)10.84%
ROIC(3y)7.31%
ROIC(5y)7.07%
1.3 Margins
SAN has a better Profit Margin (20.35%) than 81.63% of its industry peers.
SAN's Profit Margin has improved in the last couple of years.
SAN's Operating Margin of 23.59% is fine compared to the rest of the industry. SAN outperforms 63.27% of its industry peers.
In the last couple of years the Operating Margin of SAN has grown nicely.
Looking at the Gross Margin, with a value of 71.70%, SAN is in line with its industry, outperforming 57.14% 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 | 23.59% | ||
| PM (TTM) | 20.35% | ||
| GM | 71.7% |
OM growth 3Y-2.73%
OM growth 5Y1.75%
PM growth 3Y-7.54%
PM growth 5Y11.4%
GM growth 3Y0.71%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
SAN 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 SAN remains at a similar level compared to 1 year ago.
SAN has about the same amout of shares outstanding than it did 5 years ago.
SAN has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SAN is 2.21, which is a good value as it means it would take SAN, 2.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.21, SAN belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
SAN has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.21, SAN is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.86
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.27 indicates that SAN should not have too much problems paying its short term obligations.
SAN's Current ratio of 1.27 is in line compared to the rest of the industry. SAN outperforms 44.90% of its industry peers.
A Quick Ratio of 0.94 indicates that SAN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, SAN is in line with its industry, outperforming 51.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
SAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.20%.
The Earnings Per Share has been growing slightly by 5.10% on average over the past years.
SAN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
The Revenue has been growing slightly by 3.31% on average over the past years.
EPS 1Y (TTM)-2.2%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-8.09%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-6.99%
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 6.41% on average per year.
Based on estimates for the next years, SAN will show a small growth in Revenue. The Revenue will grow by 4.04% on average per year.
EPS Next Y3.91%
EPS Next 2Y6.53%
EPS Next 3Y6.33%
EPS Next 5Y6.41%
Revenue Next Year-0.29%
Revenue Next 2Y3.32%
Revenue Next 3Y4.42%
Revenue Next 5Y4.04%
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.
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
With a Price/Earnings ratio of 10.62, the valuation of SAN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SAN indicates a rather cheap valuation: SAN is cheaper than 83.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SAN to the average of the S&P500 Index (27.20), we can say SAN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.20, which indicates a very decent valuation of SAN.
Based on the Price/Forward Earnings ratio, SAN is valued cheaply inside the industry as 81.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SAN to the average of the S&P500 Index (22.70), we can say SAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SAN is valued a bit cheaper than the industry average as 61.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.41 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SAN may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)2.08
EPS Next 2Y6.53%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.86%, SAN is a good candidate for dividend investing.
SAN's Dividend Yield is rather good when compared to the industry average which is at 3.04. SAN pays more dividend than 87.76% of the companies in the same industry.
SAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
5.2 History
The dividend of SAN has a limited annual growth rate of 4.30%.
Dividend Growth(5Y)4.3%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
34.82% of the earnings are spent on dividend by SAN. This is a low number and sustainable payout ratio.
The dividend of SAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.82%
EPS Next 2Y6.53%
EPS Next 3Y6.33%
EPA:SAN (9/18/2025, 5:36:15 PM)
80.15
+0.71 (+0.89%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners40.34%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap195.48B
Analysts80
Price Target109.75 (36.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
Yearly Dividend3.79
Dividend Growth(5Y)4.3%
DP34.82%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.86%
Min EPS beat(2)-2.29%
Max EPS beat(2)6.02%
EPS beat(4)2
Avg EPS beat(4)4.01%
Min EPS beat(4)-2.29%
Max EPS beat(4)14.5%
EPS beat(8)4
Avg EPS beat(8)2.17%
EPS beat(12)7
Avg EPS beat(12)2.71%
EPS beat(16)11
Avg EPS beat(16)3.44%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)-0.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)3.66%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)5
Avg Revenue beat(12)9.77%
Revenue beat(16)9
Avg Revenue beat(16)21.47%
PT rev (1m)0.57%
PT rev (3m)-5.36%
EPS NQ rev (1m)-2.88%
EPS NQ rev (3m)-10.87%
EPS NY rev (1m)-4.12%
EPS NY rev (3m)-4.12%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-6.9%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.2 | ||
| P/S | 2.88 | ||
| P/FCF | 19.41 | ||
| P/OCF | 17.18 | ||
| P/B | 2.79 | ||
| P/tB | 21.03 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)7.55
EY9.42%
EPS(NY)8.72
Fwd EY10.87%
FCF(TTM)4.13
FCFY5.15%
OCF(TTM)4.67
OCFY5.82%
SpS27.84
BVpS28.7
TBVpS3.81
PEG (NY)2.72
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 19.73% | ||
| ROCE | 16.7% | ||
| ROIC | 13.84% | ||
| ROICexc | 16.48% | ||
| ROICexgc | 66.95% | ||
| OM | 23.59% | ||
| PM (TTM) | 20.35% | ||
| GM | 71.7% | ||
| FCFM | 14.83% |
ROA(3y)5.02%
ROA(5y)6.2%
ROE(3y)8.55%
ROE(5y)10.84%
ROIC(3y)7.31%
ROIC(5y)7.07%
ROICexc(3y)8.13%
ROICexc(5y)7.97%
ROICexgc(3y)35.39%
ROICexgc(5y)35.54%
ROCE(3y)8.84%
ROCE(5y)8.55%
ROICexcg growth 3Y-13.63%
ROICexcg growth 5Y-1.43%
ROICexc growth 3Y-1.55%
ROICexc growth 5Y2.05%
OM growth 3Y-2.73%
OM growth 5Y1.75%
PM growth 3Y-7.54%
PM growth 5Y11.4%
GM growth 3Y0.71%
GM growth 5Y0.58%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.05% | ||
| Profit Quality | 72.91% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score7
WACC7.43%
ROIC/WACC1.86
Cap/Depr(3y)73.02%
Cap/Depr(5y)67.36%
Cap/Sales(3y)6.35%
Cap/Sales(5y)5.97%
Profit Quality(3y)113.82%
Profit Quality(5y)104.22%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.2%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-8.09%
EPS Next Y3.91%
EPS Next 2Y6.53%
EPS Next 3Y6.33%
EPS Next 5Y6.41%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-6.99%
Revenue Next Year-0.29%
Revenue Next 2Y3.32%
Revenue Next 3Y4.42%
Revenue Next 5Y4.04%
EBIT growth 1Y15.64%
EBIT growth 3Y1.33%
EBIT growth 5Y5.12%
EBIT Next Year34.08%
EBIT Next 3Y14.6%
EBIT Next 5Y9.88%
FCF growth 1Y24.23%
FCF growth 3Y-11.46%
FCF growth 5Y-0.14%
OCF growth 1Y10.87%
OCF growth 3Y-4.79%
OCF growth 5Y3.31%