SANOFI (SAN.PA) Stock Fundamental Analysis
EPA:SAN - Euronext Paris - Matif - FR0000120578 - Common Stock - Currency: EUR
SAN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Pharmaceuticals industry. SAN scores excellent on profitability, but there are some minor concerns on its financial health. SAN has a correct valuation and a medium growth rate. Finally 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.
SAN had a positive operating cash flow in the past year.
Each year in the past 5 years SAN has been profitable.
Each year in the past 5 years SAN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.00%, SAN is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
SAN's Return On Equity of 15.37% is fine compared to the rest of the industry. SAN outperforms 64.00% of its industry peers.
SAN has a Return On Invested Capital of 15.58%. This is in the better half of the industry: SAN outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAN is significantly below the industry average of 15.13%.
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 66.00% of its industry peers.
SAN's Profit Margin has improved in the last couple of years.
SAN has a Operating Margin of 22.04%. This is in the better half of the industry: SAN outperforms 62.00% of its industry peers.
In the last couple of years the Operating Margin of SAN has grown nicely.
SAN has a Gross Margin (70.04%) which is in line with 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SAN is creating value.
SAN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SAN has less shares outstanding
Compared to 1 year ago, SAN has an improved debt to assets ratio.
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.
SAN has a Debt to FCF ratio of 3.04. This is in the better half of the industry: SAN outperforms 72.00% 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's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. SAN outperforms 70.00% 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
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.
Looking at the Current ratio, with a value of 1.46, SAN is in line with its industry, outperforming 58.00% 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.
The Quick ratio of SAN (0.74) is worse than 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for SAN have decreased strongly by -12.99% in the last year.
SAN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.10% yearly.
The Revenue has grown by 30.30% in the past year. This is a very strong growth!
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
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 Year3.46%
Revenue Next 2Y5.06%
Revenue Next 3Y5.29%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.26, the valuation of SAN can be described as correct.
Based on the Price/Earnings ratio, SAN is valued a bit cheaper than 70.00% of the companies in the same industry.
SAN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.52, which indicates a very decent valuation of SAN.
SAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SAN is cheaper than 74.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.74. SAN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
62.00% 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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.93 | ||
| EV/EBITDA | 10.48 |
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)1.7
PEG (5Y)2.8
EPS Next 2Y9.02%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
SAN has a Yearly Dividend Yield of 4.09%, which is a nice return.
Compared to an average industry Dividend Yield of 3.06, SAN pays a bit more dividend than its industry peers.
SAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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.
The dividend of SAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.72%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
EPA:SAN (5/5/2025, 7:00:00 PM)
96
-1.92 (-1.96%)
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 Cap235.01B
Analysts80
Price Target120.47 (25.49%)
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 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)0.25%
PT rev (3m)4.78%
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 | 14.26 | ||
| Fwd PE | 10.52 | ||
| P/S | 2.55 | ||
| P/FCF | 39.93 | ||
| P/OCF | 25.88 | ||
| P/B | 3.02 | ||
| P/tB | 20.55 | ||
| EV/EBITDA | 10.48 |
EPS(TTM)6.73
EY7.01%
EPS(NY)9.13
Fwd EY9.51%
FCF(TTM)2.4
FCFY2.5%
OCF(TTM)3.71
OCFY3.86%
SpS37.6
BVpS31.74
TBVpS4.67
PEG (NY)1.7
PEG (5Y)2.8
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%