SANOFI (SAN.PA)
FR0000120578 - Common Stock
Overall SAN gets a fundamental rating of 5 out of 10. We evaluated SAN against 54 industry peers in the Pharmaceuticals industry. SAN has an excellent profitability rating, but there are some minor concerns on its financial health. SAN is not valued too expensively and it also shows a decent growth rate. Finally SAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SAN had positive earnings in the past year.
In the past year SAN had a positive cash flow from operations.
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
The Return On Assets of SAN (7.85%) is better than 66.00% of its industry peers.
SAN has a better Return On Equity (13.40%) than 68.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.90%, SAN is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAN is below the industry average of 10.96%.
The last Return On Invested Capital (12.90%) for SAN is above the 3 year average (7.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 13.4% | ||
| ROIC | 12.9% |
ROA(3y)5.35%
ROA(5y)5.85%
ROE(3y)9.18%
ROE(5y)10.34%
ROIC(3y)7.48%
ROIC(5y)6.88%
1.3 Margins
The Profit Margin of SAN (14.17%) is better than 72.00% of its industry peers.
SAN's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 23.81%, SAN is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SAN has grown nicely.
SAN has a better Gross Margin (69.78%) than 62.00% of its industry peers.
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 | 23.81% | ||
| PM (TTM) | 14.17% | ||
| GM | 69.78% |
OM growth 3Y4.23%
OM growth 5Y5%
PM growth 3Y-29.3%
PM growth 5Y-0.74%
GM growth 3Y0.92%
GM growth 5Y0.41%
2. Health
2.1 Basic Checks
SAN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SAN has about the same amount of shares outstanding.
The number of shares outstanding for SAN has been increased compared to 5 years ago.
Compared to 1 year ago, SAN has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SAN is 2.55, which is a good value as it means it would take SAN, 2.55 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.55, SAN is doing good in the industry, outperforming 76.00% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that SAN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, SAN is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | N/A |
ROIC/WACC1.8
WACC7.17%
2.3 Liquidity
SAN has a Current Ratio of 1.28. This is a normal value and indicates that SAN is financially healthy and should not expect problems in meeting its short term obligations.
SAN has a Current ratio of 1.28. This is comparable to the rest of the industry: SAN outperforms 42.00% of its industry peers.
A Quick Ratio of 0.38 indicates that SAN may have some problems paying its short term obligations.
SAN has a Quick ratio of 0.38. This is amonst the worse of the industry: SAN underperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
SAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.70%.
The Earnings Per Share has been growing by 8.19% on average over the past years. This is quite good.
SAN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.08%.
Measured over the past years, SAN shows a small growth in Revenue. The Revenue has been growing by 5.42% on average per year.
EPS 1Y (TTM)-1.7%
EPS 3Y10.81%
EPS 5Y8.19%
EPS growth Q2Q-2.92%
Revenue 1Y (TTM)2.08%
Revenue growth 3Y7.52%
Revenue growth 5Y5.42%
Revenue growth Q2Q1.24%
3.2 Future
Based on estimates for the next years, SAN will show a small growth in Earnings Per Share. The EPS will grow by 6.56% on average per year.
Based on estimates for the next years, SAN will show a small growth in Revenue. The Revenue will grow by 4.62% on average per year.
EPS Next Y-4.03%
EPS Next 2Y4.37%
EPS Next 3Y5.4%
EPS Next 5Y6.56%
Revenue Next Year5.23%
Revenue Next 2Y6.13%
Revenue Next 3Y5.66%
Revenue Next 5Y4.62%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.71, which indicates a very decent valuation of SAN.
Based on the Price/Earnings ratio, SAN is valued cheaper than 82.00% of the companies in the same industry.
SAN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.76.
Based on the Price/Forward Earnings ratio of 11.16, the valuation of SAN can be described as reasonable.
82.00% of the companies in the same industry are more expensive than SAN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SAN to the average of the S&P500 Index (21.26), we can say SAN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
66.00% of the companies in the same industry are more expensive than SAN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAN indicates a somewhat cheap valuation: SAN is cheaper than 66.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.99 | ||
| EV/EBITDA | 10.37 |
4.3 Compensation for Growth
The decent profitability rating of SAN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y4.37%
EPS Next 3Y5.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, SAN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.51, SAN pays a better dividend. On top of this SAN pays more dividend than 90.00% of the companies listed in the same industry.
SAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
The dividend of SAN has a limited annual growth rate of 3.31%.
Dividend Growth(5Y)3.31%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
SAN pays out 44.90% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.9%
EPS Next 2Y4.37%
EPS Next 3Y5.4%
SANOFI
EPA:SAN (4/19/2024, 7:00:00 PM)
86.89
+1.66 (+1.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap216.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 11.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 13.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.81% | ||
| PM (TTM) | 14.17% | ||
| GM | 69.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.7%
EPS 3Y10.81%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.08%
Revenue growth 3Y7.52%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y