Is NASDAQ:SNY a Good Fit for Dividend Investing?

SANOFI-ADR (NASDAQ:SNY) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NASDAQ:SNY demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

How do we evaluate the Dividend for NASDAQ:SNY?

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NASDAQ:SNY has received a 8 out of 10:

• SNY has a Yearly Dividend Yield of 4.20%, which is a nice return.
• Compared to an average industry Dividend Yield of 4.83, SNY pays a better dividend. On top of this SNY pays more dividend than 95.12% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.65, SNY pays a better dividend.
• SNY has been paying a dividend for at least 10 years, so it has a reliable track record.
• 35.10% of the earnings are spent on dividend by SNY. This is a low number and sustainable payout ratio.
• The dividend of SNY is growing, but earnings are growing more, so the dividend growth is sustainable.

Assessing Health Metrics for NASDAQ:SNY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:SNY, the assigned 7 reflects its health status:

• An Altman-Z score of 3.07 indicates that SNY is not in any danger for bankruptcy at the moment.
• SNY has a better Altman-Z score (3.07) than 76.10% of its industry peers.
• SNY has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as SNY would need 2.59 years to pay back of all of its debts.
• SNY has a better Debt to FCF ratio (2.59) than 91.22% of its industry peers.
• SNY has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
• SNY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Assessing Profitability for NASDAQ:SNY

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:SNY was assigned a score of 8 for profitability:

• With an excellent Return On Assets value of 10.12%, SNY belongs to the best of the industry, outperforming 92.20% of the companies in the same industry.
• The Return On Equity of SNY (17.47%) is better than 90.24% of its industry peers.
• SNY has a Return On Invested Capital of 15.53%. This is amongst the best in the industry. SNY outperforms 92.20% of its industry peers.
• The last Return On Invested Capital (15.53%) for SNY is above the 3 year average (6.95%), which is a sign of increasing profitability.
• The Profit Margin of SNY (18.09%) is better than 92.20% of its industry peers.
• The Operating Margin of SNY (27.75%) is better than 94.15% of its industry peers.
• SNY's Operating Margin has improved in the last couple of years.
• SNY has a better Gross Margin (70.31%) than 78.05% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of SNY contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.