SANOFI (SAN.PA) Stock Fundamental Analysis

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

79.76 EUR

+1.36 (+1.73%)

Last: 1/22/2026, 7:00:00 PM

Fundamental Rating

SAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 54 industry peers in the Pharmaceuticals industry. SAN has a medium profitability rating, but doesn't score so well on its financial health evaluation. SAN is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year SAN was profitable.
In the past 5 years SAN has always 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 77.78% of its industry peers.
SAN's Return On Equity of 18.84% is fine compared to the rest of the industry. SAN outperforms 64.81% of its industry peers.
The Return On Invested Capital of SAN (13.40%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAN is significantly below the industry average of 13.93%.
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's Profit Margin of 20.63% is fine compared to the rest of the industry. SAN outperforms 79.63% of its industry peers.
In the last couple of years the Profit Margin of SAN has grown nicely.
With a Operating Margin value of 23.61%, SAN perfoms like the industry average, outperforming 57.41% of the companies in the same industry.
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 53.70% 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	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.
Compared to 1 year ago, SAN has about the same amount of shares outstanding.
SAN has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SAN has an improved debt to assets ratio.

2.2 Solvency

A Debt/Equity ratio of 0.18 indicates that SAN is not too dependend on debt financing.
SAN has a Debt to Equity ratio of 0.18. This is in the better half of the industry: SAN outperforms 77.78% of its industry peers.

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

ROIC/WACC1.73

WACC7.73%

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.
With a Current ratio value of 1.06, SAN is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
A Quick Ratio of 0.30 indicates that SAN may have some problems paying its short term obligations.
The Quick ratio of SAN (0.30) is worse than 88.89% 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

The earnings per share for SAN have decreased by -5.35% in the last year.
SAN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.10% yearly.
Looking at the last year, SAN shows a small growth in Revenue. The Revenue has grown by 2.56% in the last 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 Y2.37%

EPS Next 2Y5.23%

EPS Next 3Y5.91%

EPS Next 5Y7.41%

Revenue Next Year-0.09%

Revenue Next 2Y3.14%

Revenue Next 3Y4.36%

Revenue Next 5Y4.47%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.49, which indicates a very decent valuation of SAN.
Compared to the rest of the industry, the Price/Earnings ratio of SAN indicates a rather cheap valuation: SAN is cheaper than 87.04% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SAN to the average of the S&P500 Index (27.32), we can say SAN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.38, the valuation of SAN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SAN is valued cheaper than 85.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, SAN is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.49
Fwd PE	9.38

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAN indicates a somewhat cheap valuation: SAN is cheaper than 72.22% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.49

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SAN has a very decent profitability rating, which may justify a higher PE ratio.