SANOFI (SAN.PA)
FR0000120578 - Common Stock
Taking everything into account, SAN scores 5 out of 10 in our fundamental rating. SAN was compared to 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. Finally SAN also has an excellent dividend rating.
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.
SAN had positive earnings in each of the past 5 years.
Each year in the past 5 years SAN had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.07%, SAN is doing good in the industry, outperforming 61.70% of the companies in the same industry.
SAN's Return On Equity of 10.83% is fine compared to the rest of the industry. SAN outperforms 61.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.36%, SAN is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SAN is below the industry average of 11.99%.
The last Return On Invested Capital (12.36%) for SAN is above the 3 year average (7.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 10.83% | ||
| ROIC | 12.36% |
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
SAN has a better Profit Margin (11.06%) than 61.70% of its industry peers.
In the last couple of years the Profit Margin of SAN has remained more or less at the same level.
SAN has a Operating Margin of 21.92%. This is in the better half of the industry: SAN outperforms 72.34% of its industry peers.
SAN's Operating Margin has improved in the last couple of years.
SAN has a Gross Margin of 69.08%. This is comparable to the rest of the industry: SAN outperforms 51.06% 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 | 21.92% | ||
| PM (TTM) | 11.06% | ||
| GM | 69.08% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAN is still 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.
The debt/assets ratio for SAN has been reduced compared to a year ago.
2.2 Solvency
SAN has an Altman-Z score of 4.28. This indicates that SAN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.28, SAN is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
The Debt to FCF ratio of SAN is 5.74, which is a neutral value as it means it would take SAN, 5.74 years of fcf income to pay off all of its debts.
SAN has a Debt to FCF ratio of 5.74. This is comparable to the rest of the industry: SAN outperforms 55.32% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that SAN is not too dependend on debt financing.
SAN's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. SAN outperforms 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 4.28 |
ROIC/WACC1.7
WACC7.28%
2.3 Liquidity
SAN has a Current Ratio of 1.00. This is a normal value and indicates that SAN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SAN (1.00) is worse than 78.72% of its industry peers.
A Quick Ratio of 0.65 indicates that SAN may have some problems paying its short term obligations.
The Quick ratio of SAN (0.65) is worse than 85.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for SAN have decreased by -8.96% in the last year.
Measured over the past years, SAN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.19% on average per year.
SAN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.53%.
The Revenue has been growing slightly by 5.42% on average over the past years.
EPS 1Y (TTM)-8.96%
EPS 3Y10.81%
EPS 5Y8.19%
EPS Q2Q%-0.57%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y7.52%
Revenue growth 5Y5.42%
Sales Q2Q%7.83%
3.2 Future
The Earnings Per Share is expected to grow by 6.98% on average over the next years.
The Revenue is expected to grow by 5.58% on average over the next years.
EPS Next Y-4.62%
EPS Next 2Y4.3%
EPS Next 3Y5.82%
EPS Next 5Y6.98%
Revenue Next Year6.1%
Revenue Next 2Y6.49%
Revenue Next 3Y6.38%
Revenue Next 5Y5.58%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.75 indicates a correct valuation of SAN.
SAN's Price/Earnings ratio is rather cheap when compared to the industry. SAN is cheaper than 85.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 31.46. SAN is valued rather cheaply when compared to this.
SAN is valuated reasonably with a Price/Forward Earnings ratio of 11.16.
76.60% of the companies in the same industry are more expensive than SAN, based on the Price/Forward Earnings ratio.
SAN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAN.
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 | 59.63 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
SAN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y4.3%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
SAN has a Yearly Dividend Yield of 3.72%.
SAN's Dividend Yield is rather good when compared to the industry average which is at 2.53. SAN pays more dividend than 80.85% of the companies in the same industry.
SAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
5.2 History
The dividend of SAN has a limited annual growth rate of 3.31%.
Dividend Growth(5Y)3.31%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
SAN pays out 59.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
SAN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.74%
EPS Next 2Y4.3%
EPS Next 3Y5.82%
SANOFI
EPA:SAN (10/22/2024, 5:29:57 PM)
98.43
-1.4 (-1.4%)
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 Cap246.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 12.75 | ||
| 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)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 10.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.92% | ||
| PM (TTM) | 11.06% | ||
| GM | 69.08% | ||
| 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 | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1 | ||
| Quick Ratio | 0.65 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-8.96%
EPS 3Y10.81%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.53%
Revenue growth 3Y7.52%
Revenue growth 5Y
Sales 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