Stock Analysis: Best Dividend Stocks

Fundamental Rating

SAN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Pharmaceuticals industry. SAN has an excellent profitability rating, but there are some minor concerns on its financial health. SAN has a decent growth rate and is not valued too expensively. SAN also has an excellent dividend rating. With these ratings, SAN could be worth investigating further for dividend investing!.

1. Profitability

1.1 Basic Checks

In the past year SAN was profitable.

SAN had a positive operating cash flow in the past year.

In the past 5 years SAN has always been profitable.

SAN had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 9.00%, SAN is doing good in the industry, outperforming 74.51% of the companies in the same industry.

The Return On Equity of SAN (15.37%) is better than 62.75% of its industry peers.

SAN has a better Return On Invested Capital (15.58%) than 80.39% of its industry peers.

The Average Return On Invested Capital over the past 3 years for SAN is significantly below the industry average of 15.19%.

The last Return On Invested Capital (15.58%) for SAN 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

SAN has a better Profit Margin (12.97%) than 64.71% of its industry peers.

SAN's Profit Margin has improved in the last couple of years.

SAN has a better Operating Margin (22.04%) than 60.78% of its industry peers.

SAN's Operating Margin has improved in the last couple of years.

SAN 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 SAN 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SAN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.

SAN has less shares outstanding than it did 1 year ago.

Compared to 5 years ago, SAN has less shares outstanding

SAN has a better debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of SAN is 3.04, which is a good value as it means it would take SAN, 3.04 years of fcf income to pay off all of its debts.

SAN has a better Debt to FCF ratio (3.04) than 72.55% of its industry peers.

SAN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.

SAN has a Debt to Equity ratio of 0.17. This is in the better half of the industry: SAN outperforms 76.47% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.17
Debt/FCF	3.04
Altman-Z	N/A

ROIC/WACC2.07

WACC7.54%

2.3 Liquidity

A Current Ratio of 1.46 indicates that SAN should not have too much problems paying its short term obligations.

Looking at the Current ratio, with a value of 1.46, SAN is in the better half of the industry, outperforming 62.75% of the companies in the same industry.

A Quick Ratio of 0.74 indicates that SAN may have some problems paying its short term obligations.

SAN has a Quick ratio of 0.74. This is in the lower half of the industry: SAN underperforms 70.59% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.46
Quick Ratio	0.74

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

SAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.99%.

SAN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.10% yearly.

SAN shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.30%.

Measured over the past years, SAN shows a small growth in Revenue. The Revenue has been growing by 3.31% on average per year.

EPS 1Y (TTM)-12.99%

EPS 3Y5.45%

EPS 5Y5.1%

EPS Q2Q%-53.61%

Revenue 1Y (TTM)30.3%

Revenue growth 3Y4.17%

Revenue growth 5Y3.31%

Sales Q2Q%-12.62%

3.2 Future

Based on estimates for the next years, SAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.23% on average per year.

Based on estimates for the next years, SAN will show a small growth in Revenue. The Revenue will grow by 4.33% on average per year.

EPS Next Y8.37%

EPS Next 2Y9.02%

EPS Next 3Y8.18%

EPS Next 5Y8.23%

Revenue Next Year1.53%

Revenue Next 2Y4.25%

Revenue Next 3Y4.83%

Revenue Next 5Y4.33%

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.

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.

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4. Valuation

4.1 Price/Earnings Ratio

SAN is valuated correctly with a Price/Earnings ratio of 13.69.

SAN's Price/Earnings ratio is a bit cheaper when compared to the industry. SAN is cheaper than 74.51% of the companies in the same industry.

When comparing the Price/Earnings ratio of SAN to the average of the S&P500 Index (25.82), we can say SAN is valued slightly cheaper.

A Price/Forward Earnings ratio of 10.09 indicates a reasonable valuation of SAN.

SAN's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAN is cheaper than 80.39% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 21.76. SAN is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	13.69
Fwd PE	10.09

4.2 Price Multiples

SAN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAN is cheaper than 62.75% of the companies in the same industry.

The rest of the industry has a similar Price/Free Cash Flow ratio as SAN.

		Industry Rank	Sector Rank
P/FCF	38.32
EV/EBITDA	10.01

4.3 Compensation for Growth

SAN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

SAN has a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)1.64

PEG (5Y)2.69

EPS Next 2Y9.02%

EPS Next 3Y8.18%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.18%, SAN is a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 3.05, SAN pays a better dividend. On top of this SAN pays more dividend than 84.31% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.39, SAN pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.18%

5.2 History

The dividend of SAN has a limited annual growth rate of 4.34%.

Dividend Growth(5Y)4.34%

Div Incr Years5

Div Non Decr Years5

5.3 Sustainability

SAN pays out 39.72% of its income as dividend. This is a sustainable payout ratio.

SAN's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP39.72%

EPS Next 2Y9.02%

EPS Next 3Y8.18%

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Euronext Paris - Matif / Health Care / Pharmaceuticals

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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