SANOFI (1SAN.MI) Stock Fundamental Analysis
BIT:1SAN - Euronext Milan - FR0000120578 - Common Stock - Currency: EUR
1SAN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Pharmaceuticals industry. 1SAN scores excellent on profitability, but there are some minor concerns on its financial health. 1SAN has a correct valuation and a medium growth rate. Finally 1SAN also has an excellent dividend rating. This makes 1SAN very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
1SAN had positive earnings in the past year.
In the past year 1SAN had a positive cash flow from operations.
1SAN had positive earnings in each of the past 5 years.
1SAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1SAN's Return On Assets of 9.00% is fine compared to the rest of the industry. 1SAN outperforms 72.00% of its industry peers.
Looking at the Return On Equity, with a value of 15.37%, 1SAN is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
1SAN has a Return On Invested Capital of 15.58%. This is in the better half of the industry: 1SAN outperforms 78.00% of its industry peers.
1SAN had an Average Return On Invested Capital over the past 3 years of 7.46%. This is significantly below the industry average of 15.13%.
The last Return On Invested Capital (15.58%) for 1SAN 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
1SAN has a Profit Margin of 12.97%. This is in the better half of the industry: 1SAN outperforms 64.00% of its industry peers.
1SAN's Profit Margin has improved in the last couple of years.
The Operating Margin of 1SAN (22.04%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of 1SAN has grown nicely.
1SAN's Gross Margin of 70.04% is in line compared to the rest of the industry. 1SAN outperforms 50.00% of its industry peers.
1SAN'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 1SAN is creating value.
1SAN has less shares outstanding than it did 1 year ago.
1SAN has less shares outstanding than it did 5 years ago.
1SAN has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1SAN is 3.04, which is a good value as it means it would take 1SAN, 3.04 years of fcf income to pay off all of its debts.
1SAN has a Debt to FCF ratio of 3.04. This is in the better half of the industry: 1SAN outperforms 70.00% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that 1SAN is not too dependend on debt financing.
1SAN has a better Debt to Equity ratio (0.17) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | N/A |
ROIC/WACC2.03
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.46 indicates that 1SAN should not have too much problems paying its short term obligations.
The Current ratio of 1SAN (1.46) is comparable to the rest of the industry.
1SAN has a Quick Ratio of 1.46. This is a bad value and indicates that 1SAN is not financially healthy enough and could expect problems in meeting its short term obligations.
1SAN has a Quick ratio of 0.74. This is in the lower half of the industry: 1SAN underperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
1SAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.99%.
The Earnings Per Share has been growing slightly by 5.10% on average over the past years.
1SAN shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.30%.
The Revenue has been growing slightly by 3.31% on average over the past years.
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, 1SAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.23% on average per year.
1SAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.
EPS Next Y8.37%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
EPS Next 5Y8.23%
Revenue Next Year3.46%
Revenue Next 2Y5.06%
Revenue Next 3Y5.29%
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.
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
Based on the Price/Earnings ratio of 14.56, the valuation of 1SAN can be described as correct.
Based on the Price/Earnings ratio, 1SAN is valued a bit cheaper than 68.00% of the companies in the same industry.
1SAN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
With a Price/Forward Earnings ratio of 10.74, the valuation of 1SAN can be described as very reasonable.
72.00% of the companies in the same industry are more expensive than 1SAN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, 1SAN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1SAN is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1SAN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.76 | ||
| EV/EBITDA | 10.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1SAN may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)2.86
EPS Next 2Y9.02%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
1SAN has a Yearly Dividend Yield of 4.09%, which is a nice return.
1SAN's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.43, 1SAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
5.2 History
The dividend of 1SAN has a limited annual growth rate of 4.34%.
Dividend Growth(5Y)4.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1SAN pays out 39.72% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1SAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.72%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
BIT:1SAN (5/5/2025, 7:00:00 PM)
98
+0.03 (+0.03%)
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 Cap239.91B
Analysts80
Price Target119.71 (22.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
Yearly Dividend3.79
Dividend Growth(5Y)4.34%
DP39.72%
Div Incr Years0
Div Non Decr Years0
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)-0.29%
PT rev (3m)3.89%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-2.64%
Revenue NY rev (1m)-1.46%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 10.74 | ||
| P/S | 2.61 | ||
| P/FCF | 40.76 | ||
| P/OCF | 26.42 | ||
| P/B | 3.09 | ||
| P/tB | 20.98 | ||
| EV/EBITDA | 10.48 |
EPS(TTM)6.73
EY6.87%
EPS(NY)9.13
Fwd EY9.31%
FCF(TTM)2.4
FCFY2.45%
OCF(TTM)3.71
OCFY3.79%
SpS37.6
BVpS31.74
TBVpS4.67
PEG (NY)1.74
PEG (5Y)2.86
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
WACC7.68%
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)-12.99%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-53.61%
EPS Next Y8.37%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
EPS Next 5Y8.23%
Revenue 1Y (TTM)30.3%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-12.62%
Revenue Next Year3.46%
Revenue Next 2Y5.06%
Revenue Next 3Y5.29%
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%