SANOFI (SNW.DE) Stock Fundamental Analysis
FRA:SNW - Deutsche Boerse Ag - FR0000120578 - Common Stock - Currency: EUR
Taking everything into account, SNW scores 5 out of 10 in our fundamental rating. SNW was compared to 52 industry peers in the Pharmaceuticals industry. SNW scores excellent on profitability, but there are concerns on its financial health. SNW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SNW had positive earnings in the past year.
In the past 5 years SNW has always been profitable.
SNW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.00%, SNW is doing good in the industry, outperforming 75.00% of the companies in the same industry.
SNW has a better Return On Equity (15.37%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.58%, SNW belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SNW is below the industry average of 12.45%.
The last Return On Invested Capital (15.58%) for SNW is above the 3 year average (7.46%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 12.97%, SNW is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Profit Margin of SNW has grown nicely.
SNW has a better Operating Margin (22.04%) than 72.92% of its industry peers.
SNW's Operating Margin has improved in the last couple of years.
SNW's Gross Margin of 70.04% is in line compared to the rest of the industry. SNW outperforms 54.17% of its industry peers.
In the last couple of years the Gross Margin of SNW has remained more or less at the same level.
| 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 SNW is creating value.
Compared to 1 year ago, SNW has less shares outstanding
SNW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SNW has an improved debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.17 indicates that SNW is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.17, SNW is doing good in the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC2.11
WACC7.39%
2.3 Liquidity
SNW has a Current Ratio of 1.46. This is a normal value and indicates that SNW is financially healthy and should not expect problems in meeting its short term obligations.
SNW has a Current ratio of 1.46. This is comparable to the rest of the industry: SNW outperforms 58.33% of its industry peers.
SNW has a Quick Ratio of 1.46. This is a bad value and indicates that SNW is not financially healthy enough and could expect problems in meeting its short term obligations.
SNW's Quick ratio of 0.74 is on the low side compared to the rest of the industry. SNW is outperformed by 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for SNW have decreased strongly by -13.15% in the last year.
Measured over the past 5 years, SNW shows a small growth in Earnings Per Share. The EPS has been growing by 3.29% on average per year.
SNW shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.50%.
Measured over the past years, SNW 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
SNW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.59% yearly.
SNW 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
Based on the Price/Earnings ratio of 14.58, the valuation of SNW can be described as correct.
Based on the Price/Earnings ratio, SNW is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. SNW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.34, which indicates a correct valuation of SNW.
Based on the Price/Forward Earnings ratio, SNW is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, SNW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 12.34 |
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 SNW may justify a higher PE ratio.
A more expensive valuation may be justified as SNW's earnings are expected to grow with 13.28% in the coming years.
PEG (NY)0.81
PEG (5Y)4.43
EPS Next 2Y14.35%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.63%, SNW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.69, SNW pays a better dividend. On top of this SNW pays more dividend than 83.33% of the companies listed in the same industry.
SNW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
The dividend of SNW has a limited annual growth rate of 3.34%.
Dividend Growth(5Y)3.34%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
SNW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0%
EPS Next 2Y14.35%
EPS Next 3Y13.28%
SANOFI
FRA:SNW (2/4/2025, 7:00:00 PM)
102.64
-1.74 (-1.67%)
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 Cap257.34B
Analysts78.57
Price Target114.73 (11.78%)
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)-0.09%
PT rev (3m)0.05%
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 | 14.58 | ||
| Fwd PE | 12.34 | ||
| P/S | 2.8 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.31 | ||
| P/tB | 22.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.04
EY6.86%
EPS(NY)8.32
Fwd EY8.1%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS36.72
BVpS30.99
TBVpS4.56
PEG (NY)0.81
PEG (5Y)4.43
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