SANOFI (SAN.PA) Stock Fundamental Analysis

Europe - Euronext Paris - EPA:SAN - FR0000120578 - Common Stock

79.88 EUR

+0.57 (+0.72%)

Last: 1/26/2026, 7:00:00 PM

Fundamental Rating

Taking everything into account, SAN scores 4 out of 10 in our fundamental rating. SAN was compared to 55 industry peers in the Pharmaceuticals industry. SAN scores excellent on profitability, but there are concerns on its financial health. SAN is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

SAN had positive earnings in the past year.
Each year in the past 5 years SAN has been profitable.
Each year in the past 5 years SAN had a positive operating cash flow.

1.2 Ratios

SAN has a better Return On Assets (10.63%) than 80.00% of its industry peers.
SAN has a better Return On Equity (18.84%) than 65.45% of its industry peers.
SAN has a Return On Invested Capital of 13.40%. This is in the better half of the industry: SAN outperforms 67.27% of its industry peers.
SAN had an Average Return On Invested Capital over the past 3 years of 7.31%. This is significantly below the industry average of 14.00%.
The last Return On Invested Capital (13.40%) for SAN is above the 3 year average (7.31%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	10.63%
ROE	18.84%
ROIC	13.4%

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 (20.63%) than 81.82% of its industry peers.
In the last couple of years the Profit Margin of SAN has grown nicely.
SAN has a Operating Margin (23.61%) which is in line with its industry peers.
SAN's Operating Margin has improved in the last couple of years.
SAN has a Gross Margin of 72.29%. This is comparable to the rest of the industry: SAN outperforms 54.55% of its industry peers.
SAN's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	23.61%
PM (TTM)	20.63%
GM	72.29%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAN is still creating some value.
SAN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, SAN has about the same amount of shares outstanding.
SAN has a better debt/assets ratio than last year.

2.2 Solvency

SAN has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SAN (0.18) is better than 80.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.18
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACC1.74

WACC7.72%

2.3 Liquidity

SAN has a Current Ratio of 1.06. This is a normal value and indicates that SAN is financially healthy and should not expect problems in meeting its short term obligations.
SAN has a Current ratio of 1.06. This is in the lower half of the industry: SAN underperforms 69.09% of its industry peers.
SAN has a Quick Ratio of 1.06. This is a bad value and indicates that SAN is not financially healthy enough and could expect problems in meeting its short term obligations.
SAN's Quick ratio of 0.30 is on the low side compared to the rest of the industry. SAN is outperformed by 87.27% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.06
Quick Ratio	0.3

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

SAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.35%.
Measured over the past 5 years, SAN shows a small growth in Earnings Per Share. The EPS has been growing by 5.10% on average per year.
The Revenue has been growing slightly by 2.56% in the past year.
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)-5.35%

EPS 3Y5.45%

EPS 5Y5.1%

EPS Q2Q%1.75%

Revenue 1Y (TTM)2.56%

Revenue growth 3Y4.17%

Revenue growth 5Y3.31%

Sales Q2Q%-7.47%

3.2 Future

The Earnings Per Share is expected to grow by 7.41% on average over the next years.
SAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.47% yearly.

EPS Next Y2.24%

EPS Next 2Y4.91%

EPS Next 3Y5.19%

EPS Next 5Y7.41%

Revenue Next Year-0.09%

Revenue Next 2Y3.14%

Revenue Next 3Y4.36%

Revenue Next 5Y4.47%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

SAN is valuated reasonably with a Price/Earnings ratio of 10.51.
Compared to the rest of the industry, the Price/Earnings ratio of SAN indicates a rather cheap valuation: SAN is cheaper than 87.27% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. SAN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.45, the valuation of SAN can be described as reasonable.
SAN's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAN is cheaper than 90.91% of the companies in the same industry.
SAN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	10.51
Fwd PE	9.45

4.2 Price Multiples

SAN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAN is cheaper than 74.55% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.62

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.