SANOFI (SAN.PA) Stock Fundamental Analysis
EPA:SAN - Euronext Paris - Matif - FR0000120578 - Common Stock - Currency: EUR
Overall SAN gets a fundamental rating of 6 out of 10. We evaluated SAN against 53 industry peers in the Pharmaceuticals industry. SAN has an average financial health and profitability rating. SAN has a decent growth rate and is not valued too expensively. SAN also has an excellent dividend rating. These ratings would make SAN suitable for dividend investing!
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.
SAN had positive earnings in each of the past 5 years.
SAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAN's Return On Assets of 9.00% is fine compared to the rest of the industry. SAN outperforms 71.70% of its industry peers.
SAN has a Return On Equity (15.37%) which is comparable to the rest of the industry.
SAN has a better Return On Invested Capital (15.58%) than 77.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAN is significantly below the industry average of 15.44%.
The 3 year average ROIC (7.46%) for SAN is below the current ROIC(15.58%), indicating increased profibility in the last year.
| 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 62.26% of its industry peers.
SAN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 22.04%, SAN perfoms like the industry average, outperforming 56.60% of the companies in the same industry.
SAN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 70.04%, SAN is in line with its industry, outperforming 49.06% of the companies in the same industry.
SAN'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
SAN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SAN has less shares outstanding
Compared to 5 years ago, SAN has less shares outstanding
The debt/assets ratio for SAN has been reduced compared to a year ago.
2.2 Solvency
SAN has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as SAN would need 3.04 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.04, SAN is doing good in the industry, outperforming 69.81% of the companies in the same industry.
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 better Debt to Equity ratio (0.17) than 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | N/A |
ROIC/WACC2.07
WACC7.53%
2.3 Liquidity
SAN has a Current Ratio of 1.46. 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 1.46. This is in the better half of the industry: SAN outperforms 60.38% of its industry peers.
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 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
SAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.52%.
Measured over the past 5 years, SAN shows a small growth in Earnings Per Share. The EPS has been growing by 5.10% on average per year.
The Revenue has grown by 30.30% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 3.31% on average over the past years.
EPS 1Y (TTM)-0.52%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%0.56%
Revenue 1Y (TTM)30.3%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-5.44%
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 Year1.53%
Revenue Next 2Y4.25%
Revenue Next 3Y4.83%
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
The Price/Earnings ratio is 11.96, which indicates a very decent valuation of SAN.
Compared to the rest of the industry, the Price/Earnings ratio of SAN indicates a somewhat cheap valuation: SAN is cheaper than 73.58% of the companies listed in the same industry.
SAN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.20.
Based on the Price/Forward Earnings ratio of 10.08, the valuation of SAN can be described as reasonable.
Based on the Price/Forward Earnings ratio, SAN is valued a bit cheaper than the industry average as 77.36% of the companies are valued more expensively.
SAN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAN is valued a bit cheaper than 62.26% of the companies in the same industry.
SAN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.03 | ||
| EV/EBITDA | 9.88 |
4.3 Compensation for Growth
SAN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SAN may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)2.35
EPS Next 2Y9.02%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
SAN has a Yearly Dividend Yield of 4.18%, which is a nice return.
SAN's Dividend Yield is a higher than the industry average which is at 3.05.
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 | 4.18% |
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
39.72% of the earnings are spent on dividend by SAN. This is a low number and 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%
EPA:SAN (5/29/2025, 7:00:00 PM)
91.97
-0.65 (-0.7%)
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 Cap223.83B
Analysts80
Price Target118.82 (29.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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)0.83%
PT rev (3m)0.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-1.86%
Revenue NY rev (3m)-3.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 10.08 | ||
| P/S | 2.43 | ||
| P/FCF | 38.03 | ||
| P/OCF | 24.65 | ||
| P/B | 2.88 | ||
| P/tB | 19.57 | ||
| EV/EBITDA | 9.88 |
EPS(TTM)7.69
EY8.36%
EPS(NY)9.13
Fwd EY9.92%
FCF(TTM)2.42
FCFY2.63%
OCF(TTM)3.73
OCFY4.06%
SpS37.83
BVpS31.92
TBVpS4.7
PEG (NY)1.43
PEG (5Y)2.35
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
WACC7.53%
ROIC/WACC2.07
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)-0.52%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%0.56%
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%-5.44%
Revenue Next Year1.53%
Revenue Next 2Y4.25%
Revenue Next 3Y4.83%
Revenue Next 5Y4.33%
EBIT growth 1Y21.75%
EBIT growth 3Y4.19%
EBIT growth 5Y6.9%
EBIT Next Year34.08%
EBIT Next 3Y14.6%
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%