SANOFI (SNW.DE) Stock Fundamental Analysis
FRA:SNW - Deutsche Boerse Ag - FR0000120578 - Common Stock - Currency: EUR
Overall SNW gets a fundamental rating of 6 out of 10. We evaluated SNW against 52 industry peers in the Pharmaceuticals industry. While SNW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SNW has a decent growth rate and is not valued too expensively. Finally SNW also has an excellent dividend rating. These ratings would make SNW suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year SNW was profitable.
SNW had a positive operating cash flow in the past year.
SNW had positive earnings in each of the past 5 years.
In the past 5 years SNW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SNW (9.00%) is better than 75.00% of its industry peers.
SNW's Return On Equity of 15.37% is fine compared to the rest of the industry. SNW outperforms 67.31% of its industry peers.
SNW has a Return On Invested Capital of 15.58%. This is amongst the best in the industry. SNW outperforms 80.77% of its industry peers.
SNW had an Average Return On Invested Capital over the past 3 years of 7.46%. This is significantly below the industry average of 13.62%.
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
SNW has a Profit Margin of 12.97%. This is in the better half of the industry: SNW outperforms 67.31% of its industry peers.
In the last couple of years the Profit Margin of SNW has grown nicely.
With a decent Operating Margin value of 22.04%, SNW is doing good in the industry, outperforming 61.54% of the companies in the same industry.
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 50.00% of its industry peers.
SNW's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for SNW has been reduced compared to 1 year ago.
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
The Debt to FCF ratio of SNW is 3.04, which is a good value as it means it would take SNW, 3.04 years of fcf income to pay off all of its debts.
SNW has a better Debt to FCF ratio (3.04) than 69.23% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SNW is not too dependend on debt financing.
SNW's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. SNW outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | N/A |
ROIC/WACC2.04
WACC7.63%
2.3 Liquidity
A Current Ratio of 1.46 indicates that SNW should not have too much problems paying its short term obligations.
SNW's Current ratio of 1.46 is in line compared to the rest of the industry. SNW outperforms 59.62% 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 has a worse Quick ratio (0.74) than 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
SNW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.30%.
SNW 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, SNW shows a very strong growth in Revenue. The Revenue has grown by 31.50%.
The Revenue has been growing slightly by 3.31% on average over the past years.
EPS 1Y (TTM)-5.3%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-21.08%
Revenue 1Y (TTM)31.5%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-3.25%
3.2 Future
Based on estimates for the next years, SNW will show a small growth in Earnings Per Share. The EPS will grow by 7.71% on average per year.
Based on estimates for the next years, SNW will show a small growth in Revenue. The Revenue will grow by 5.01% on average per year.
EPS Next Y8.15%
EPS Next 2Y8.95%
EPS Next 3Y8.14%
EPS Next 5Y7.71%
Revenue Next Year4.99%
Revenue Next 2Y5.79%
Revenue Next 3Y5.48%
Revenue Next 5Y5.01%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.32 indicates a correct valuation of SNW.
76.92% of the companies in the same industry are more expensive than SNW, based on the Price/Earnings ratio.
SNW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 13.24, which indicates a correct valuation of SNW.
Based on the Price/Forward Earnings ratio, SNW is valued a bit cheaper than the industry average as 71.15% of the companies are valued more expensively.
SNW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNW is on the same level as its industry peers.
SNW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.83 | ||
| EV/EBITDA | 11.98 |
4.3 Compensation for Growth
SNW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SNW may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)2.81
EPS Next 2Y8.95%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
SNW has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.86, SNW pays a bit more dividend than its industry peers.
SNW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
The dividend of SNW has a limited annual growth rate of 4.34%.
Dividend Growth(5Y)4.34%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
39.72% of the earnings are spent on dividend by SNW. This is a low number and sustainable payout ratio.
The dividend of SNW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.72%
EPS Next 2Y8.95%
EPS Next 3Y8.14%
FRA:SNW (3/7/2025, 7:00:00 PM)
109.94
+0.22 (+0.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners39.32%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap275.64B
Analysts81.43
Price Target118.66 (7.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend3.79
Dividend Growth(5Y)4.34%
DP39.72%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.16%
Min EPS beat(2)-2.18%
Max EPS beat(2)14.5%
EPS beat(4)3
Avg EPS beat(4)4.59%
Min EPS beat(4)-2.18%
Max EPS beat(4)14.5%
EPS beat(8)5
Avg EPS beat(8)2.9%
EPS beat(12)8
Avg EPS beat(12)3.44%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-4.57%
Max Revenue beat(2)3.66%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)3.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)7
Avg Revenue beat(12)19.67%
Revenue beat(16)11
Avg Revenue beat(16)28.47%
PT rev (1m)3.43%
PT rev (3m)3.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.76%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.9%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 13.24 | ||
| P/S | 2.99 | ||
| P/FCF | 46.83 | ||
| P/OCF | 30.35 | ||
| P/B | 3.55 | ||
| P/tB | 24.1 | ||
| EV/EBITDA | 11.98 |
EPS(TTM)7.68
EY6.99%
EPS(NY)8.31
Fwd EY7.56%
FCF(TTM)2.35
FCFY2.14%
OCF(TTM)3.62
OCFY3.29%
SpS36.72
BVpS30.99
TBVpS4.56
PEG (NY)1.76
PEG (5Y)2.81
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 | 6.39% |
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-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.04 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 89.1% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | -34.57 | ||
| Cash Conversion | 38.03% | ||
| Profit Quality | 49.3% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-Score7
WACC7.63%
ROIC/WACC2.04
Cap/Depr(3y)72.19%
Cap/Depr(5y)66.85%
Cap/Sales(3y)6.19%
Cap/Sales(5y)5.87%
Profit Quality(3y)111.96%
Profit Quality(5y)103.11%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.3%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-21.08%
EPS Next Y8.15%
EPS Next 2Y8.95%
EPS Next 3Y8.14%
EPS Next 5Y7.71%
Revenue 1Y (TTM)31.5%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-3.25%
Revenue Next Year4.99%
Revenue Next 2Y5.79%
Revenue Next 3Y5.48%
Revenue Next 5Y5.01%
EBIT growth 1Y21.75%
EBIT growth 3Y4.19%
EBIT growth 5Y6.9%
EBIT Next Year46.35%
EBIT Next 3Y16.93%
EBIT Next 5Y9.92%
FCF growth 1Y-18.63%
FCF growth 3Y-11.46%
FCF growth 5Y-0.14%
OCF growth 1Y-11.47%
OCF growth 3Y-4.79%
OCF growth 5Y3.31%