SANOFI (SAN.PA)
FR0000120578 - Common Stock
We assign a fundamental rating of 5 out of 10 to SAN. SAN was compared to 50 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of SAN get a neutral evaluation. Nothing too spectacular is happening here. SAN has a correct valuation and a medium growth rate. 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.
Each year in the past 5 years SAN has been profitable.
SAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.07%, SAN is in line with its industry, outperforming 58.70% of the companies in the same industry.
SAN has a Return On Equity (10.83%) which is comparable to the rest of the industry.
SAN has a better Return On Invested Capital (12.36%) than 71.74% of its industry peers.
SAN had an Average Return On Invested Capital over the past 3 years of 7.23%. This is below the industry average of 12.13%.
The last Return On Invested Capital (12.36%) for SAN is above the 3 year average (7.23%), 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)7.23%
ROIC(5y)6.72%
1.3 Margins
Looking at the Profit Margin, with a value of 11.06%, SAN is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
SAN's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 21.92%, SAN is doing good in the industry, outperforming 71.74% of the companies in the same industry.
In the last couple of years the Operating Margin of SAN has grown nicely.
SAN has a Gross Margin (69.08%) which is comparable to the rest of the industry.
SAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.92% | ||
| PM (TTM) | 11.06% | ||
| GM | 69.08% |
OM growth 3Y0.85%
OM growth 5Y2.94%
PM growth 3Y-29.3%
PM growth 5Y-0.74%
GM growth 3Y0.92%
GM growth 5Y0.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAN 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.
SAN has a better debt/assets ratio than last year.
2.2 Solvency
SAN has an Altman-Z score of 4.07. 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 4.07, SAN is in the better half of the industry, outperforming 60.87% 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.
With a Debt to FCF ratio value of 5.74, SAN perfoms like the industry average, outperforming 54.35% of the companies in the same industry.
SAN has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SAN (0.20) is better than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.68
WACC7.34%
2.3 Liquidity
A Current Ratio of 1.00 indicates that SAN should not have too much problems paying its short term obligations.
SAN's Current ratio of 1.00 is on the low side compared to the rest of the industry. SAN is outperformed by 80.43% of its industry peers.
SAN has a Quick Ratio of 1.00. This is a bad value and indicates that SAN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.65, SAN is doing worse than 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
SAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.59%.
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.
The Revenue has been growing slightly by 4.26% in the past year.
SAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.42% yearly.
EPS 1Y (TTM)-1.59%
EPS 3Y10.81%
EPS 5Y8.19%
EPS Q2Q%12.16%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y7.52%
Revenue growth 5Y5.42%
Sales Q2Q%12.32%
3.2 Future
The Earnings Per Share is expected to grow by 6.98% on average over the next years.
Based on estimates for the next years, SAN will show a small growth in Revenue. The Revenue will grow by 5.58% on average per year.
EPS Next Y-4.89%
EPS Next 2Y3.65%
EPS Next 3Y5.55%
EPS Next 5Y6.98%
Revenue Next Year5.19%
Revenue Next 2Y5.93%
Revenue Next 3Y5.96%
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.
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
SAN is valuated reasonably with a Price/Earnings ratio of 11.48.
80.43% of the companies in the same industry are more expensive than SAN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.48, SAN is valued rather cheaply.
SAN is valuated reasonably with a Price/Forward Earnings ratio of 10.58.
SAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SAN is cheaper than 78.26% of the companies in the same industry.
SAN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAN is on the same level as its industry peers.
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 | 55.84 | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
The decent profitability rating of SAN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.4
EPS Next 2Y3.65%
EPS Next 3Y5.55%
5. Dividend
5.1 Amount
SAN has a Yearly Dividend Yield of 4.08%, which is a nice return.
SAN's Dividend Yield is rather good when compared to the industry average which is at 2.69. SAN pays more dividend than 86.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.16, SAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
The dividend of SAN has a limited annual growth rate of 3.34%.
Dividend Growth(5Y)3.34%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
59.74% of the earnings are spent on dividend by SAN. 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 2Y3.65%
EPS Next 3Y5.55%
SANOFI
EPA:SAN (12/6/2024, 7:00:00 PM)
92.18
+0.38 (+0.41%)
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 Cap231.08B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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(4)
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Revenue beat(8)
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Revenue beat(12)
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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 | 11.48 | ||
| Fwd PE | 10.58 | ||
| 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)1.4
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)-1.59%
EPS 3Y10.81%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.26%
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