SANOFI (SNW.DE) Stock Fundamental Analysis
FRA:SNW - Deutsche Boerse Ag - FR0000120578 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to SNW. SNW was compared to 50 industry peers in the Pharmaceuticals industry. SNW has an excellent profitability rating, but there are some minor concerns on its financial health. SNW has a correct valuation and a medium growth rate. SNW also has an excellent dividend rating. This makes SNW very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
SNW had positive earnings in the past year.
In the past year SNW had a positive cash flow from operations.
SNW had positive earnings in each of the past 5 years.
Each year in the past 5 years SNW had a positive operating cash flow.
1.2 Ratios
SNW has a better Return On Assets (9.00%) than 78.00% of its industry peers.
SNW has a better Return On Equity (15.37%) than 68.00% 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 82.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SNW is significantly below the industry average of 14.89%.
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 better Profit Margin (12.97%) than 66.00% of its industry peers.
In the last couple of years the Profit Margin of SNW has grown nicely.
SNW's Operating Margin of 22.04% is fine compared to the rest of the industry. SNW outperforms 64.00% of its industry peers.
SNW's Operating Margin has improved in the last couple of years.
SNW has a Gross Margin (70.04%) which 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 | 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
SNW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
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 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's Debt to FCF ratio of 3.04 is fine compared to the rest of the industry. SNW outperforms 74.00% of its industry peers.
SNW has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
SNW has a better Debt to Equity ratio (0.17) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | N/A |
ROIC/WACC2.03
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.46 indicates that SNW should not have too much problems paying its short term obligations.
SNW has a Current ratio (1.46) which is in line with its industry peers.
A Quick Ratio of 0.74 indicates that SNW may have some problems paying its short term obligations.
The Quick ratio of SNW (0.74) is worse than 74.00% 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%.
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.
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
The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.33% on average over the next years.
EPS Next Y8.37%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
EPS Next 5Y8.23%
Revenue Next Year4.99%
Revenue Next 2Y5.79%
Revenue Next 3Y5.48%
Revenue Next 5Y4.33%
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
With a Price/Earnings ratio of 12.15, SNW is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SNW indicates a somewhat cheap valuation: SNW is cheaper than 76.00% of the companies listed in the same industry.
SNW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
The Price/Forward Earnings ratio is 11.21, which indicates a very decent valuation of SNW.
74.00% of the companies in the same industry are more expensive than SNW, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.38. SNW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNW indicates a somewhat cheap valuation: SNW is cheaper than 62.00% of the companies listed in the same industry.
SNW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.82 | ||
| EV/EBITDA | 10.01 |
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)1.45
PEG (5Y)2.38
EPS Next 2Y9.02%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
SNW has a Yearly Dividend Yield of 4.32%, which is a nice return.
SNW's Dividend Yield is rather good when compared to the industry average which is at 3.15. SNW pays more dividend than 82.00% of the companies in the same industry.
SNW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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.
SNW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.72%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
FRA:SNW (4/24/2025, 7:00:00 PM)
93.33
-0.07 (-0.07%)
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 Cap228.48B
Analysts80.69
Price Target117.56 (25.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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)-0.93%
PT rev (3m)2.38%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-11.55%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-9.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 11.21 | ||
| P/S | 2.48 | ||
| P/FCF | 38.82 | ||
| P/OCF | 25.16 | ||
| P/B | 2.94 | ||
| P/tB | 19.98 | ||
| EV/EBITDA | 10.01 |
EPS(TTM)7.68
EY8.23%
EPS(NY)8.32
Fwd EY8.92%
FCF(TTM)2.4
FCFY2.58%
OCF(TTM)3.71
OCFY3.97%
SpS37.6
BVpS31.74
TBVpS4.67
PEG (NY)1.45
PEG (5Y)2.38
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
WACC7.67%
ROIC/WACC2.03
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 Y8.37%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
EPS Next 5Y8.23%
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 5Y4.33%
EBIT growth 1Y21.75%
EBIT growth 3Y4.19%
EBIT growth 5Y6.9%
EBIT Next Year37.04%
EBIT Next 3Y15.5%
EBIT Next 5Y10.86%
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%