SANOFI (SNW.DE) Stock Fundamental Analysis
FRA:SNW - Deutsche Boerse Ag - FR0000120578 - Common Stock - Currency: EUR
Overall SNW gets a fundamental rating of 5 out of 10. We evaluated SNW against 50 industry peers in the Pharmaceuticals industry. SNW scores excellent on profitability, but there are some minor concerns on its financial health. SNW is not valued too expensively and it also shows a decent growth rate. SNW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SNW was profitable.
In the past year SNW had a positive cash flow from operations.
In the past 5 years SNW has always been profitable.
SNW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SNW has a better Return On Assets (7.77%) than 66.00% of its industry peers.
SNW's Return On Equity of 13.83% is fine compared to the rest of the industry. SNW outperforms 62.00% of its industry peers.
SNW has a Return On Invested Capital of 13.31%. This is in the better half of the industry: SNW outperforms 72.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNW is significantly below the industry average of 14.77%.
The last Return On Invested Capital (13.31%) for SNW is above the 3 year average (7.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 13.83% | ||
| ROIC | 13.31% |
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
SNW has a better Profit Margin (14.84%) than 70.00% of its industry peers.
SNW's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 23.19%, SNW is doing good in the industry, outperforming 62.00% of the companies in the same industry.
SNW's Operating Margin has improved in the last couple of years.
The Gross Margin of SNW (70.78%) is comparable to the rest of the industry.
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 | 23.19% | ||
| PM (TTM) | 14.84% | ||
| GM | 70.78% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SNW is still creating some value.
The number of shares outstanding for SNW remains at a similar level compared to 1 year ago.
SNW has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SNW has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of SNW is 2.72, which is a good value as it means it would take SNW, 2.72 years of fcf income to pay off all of its debts.
SNW has a Debt to FCF ratio of 2.72. This is in the better half of the industry: SNW outperforms 76.00% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that SNW is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, SNW is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | N/A |
ROIC/WACC1.78
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.37 indicates that SNW should not have too much problems paying its short term obligations.
The Current ratio of SNW (1.37) is comparable to the rest of the industry.
SNW has a Quick Ratio of 1.37. 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 has a worse Quick ratio (0.69) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
SNW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.52%.
Measured over the past 5 years, SNW shows a small growth in Earnings Per Share. The EPS has been growing by 5.10% on average per year.
SNW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.52%.
The Revenue has been growing slightly by 3.31% on average over the past years.
EPS 1Y (TTM)-0.52%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%0.56%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-5.44%
3.2 Future
The Earnings Per Share is expected to grow by 7.73% on average over the next years.
SNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
EPS Next Y8.37%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
EPS Next 5Y7.73%
Revenue Next Year1.53%
Revenue Next 2Y4.25%
Revenue Next 3Y4.83%
Revenue Next 5Y4.59%
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 10.81, the valuation of SNW can be described as reasonable.
Based on the Price/Earnings ratio, SNW is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SNW to the average of the S&P500 Index (27.41), we can say SNW is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.11, the valuation of SNW can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SNW is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
SNW is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
SNW's Enterprise Value to EBITDA is on the same level as the industry average.
SNW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.17 | ||
| EV/EBITDA | 11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SNW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)2.12
EPS Next 2Y9.02%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
SNW has a Yearly Dividend Yield of 4.66%, which is a nice return.
Compared to an average industry Dividend Yield of 3.00, SNW pays a better dividend. On top of this SNW pays more dividend than 84.00% 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
5.2 History
The dividend of SNW has a limited annual growth rate of 4.30%.
Dividend Growth(5Y)4.3%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
SNW pays out 46.28% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SNW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.28%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
FRA:SNW (7/11/2025, 7:00:00 PM)
83.13
-1.17 (-1.39%)
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 Cap202.43B
Analysts79.33
Price Target115.91 (39.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
Yearly Dividend3.79
Dividend Growth(5Y)4.3%
DP46.28%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.92%
Min EPS beat(2)-2.18%
Max EPS beat(2)6.02%
EPS beat(4)3
Avg EPS beat(4)5.51%
Min EPS beat(4)-2.18%
Max EPS beat(4)14.5%
EPS beat(8)5
Avg EPS beat(8)2.86%
EPS beat(12)8
Avg EPS beat(12)3.25%
EPS beat(16)12
Avg EPS beat(16)3.85%
Revenue beat(2)0
Avg Revenue beat(2)-2.93%
Min Revenue beat(2)-4.57%
Max Revenue beat(2)-1.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)3.66%
Revenue beat(8)2
Avg Revenue beat(8)-1.47%
Revenue beat(12)6
Avg Revenue beat(12)19.07%
Revenue beat(16)10
Avg Revenue beat(16)28.26%
PT rev (1m)0%
PT rev (3m)-1.4%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-5.58%
EPS NY rev (1m)0%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-4.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 9.11 | ||
| P/S | 2.93 | ||
| P/FCF | 26.17 | ||
| P/OCF | 18.52 | ||
| P/B | 2.73 | ||
| P/tB | 19.72 | ||
| EV/EBITDA | 11 |
EPS(TTM)7.69
EY9.25%
EPS(NY)9.13
Fwd EY10.98%
FCF(TTM)3.18
FCFY3.82%
OCF(TTM)4.49
OCFY5.4%
SpS28.36
BVpS30.42
TBVpS4.22
PEG (NY)1.29
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 13.83% | ||
| ROCE | 16.06% | ||
| ROIC | 13.31% | ||
| ROICexc | 14.47% | ||
| ROICexgc | 47.61% | ||
| OM | 23.19% | ||
| PM (TTM) | 14.84% | ||
| GM | 70.78% | ||
| FCFM | 11.2% |
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-ScoreN/A
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.78% | ||
| Profit Quality | 75.5% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | N/A |
F-ScoreN/A
WACC7.47%
ROIC/WACC1.78
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)-0.52%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%0.56%
EPS Next Y8.37%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
EPS Next 5Y7.73%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-5.44%
Revenue Next Year1.53%
Revenue Next 2Y4.25%
Revenue Next 3Y4.83%
Revenue Next 5Y4.59%
EBIT growth 1Y7.75%
EBIT growth 3Y1.33%
EBIT growth 5Y5.12%
EBIT Next Year34.08%
EBIT Next 3Y14.6%
EBIT Next 5Y10.46%
FCF growth 1Y-19.94%
FCF growth 3Y-11.46%
FCF growth 5Y-0.14%
OCF growth 1Y-11.47%
OCF growth 3Y-4.79%
OCF growth 5Y3.31%