SANOFI (SAN.PA) Stock Fundamental Analysis
EPA:SAN - FR0000120578 - Common Stock
84.49 EUR
-0.87 (-1.02%)
We assign a fundamental rating of 6 out of 10 to SAN. SAN was compared to 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 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.
SAN had a positive operating cash flow in the past year.
SAN had positive earnings in each of the past 5 years.
In the past 5 years SAN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.05%, SAN is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
SAN's Return On Equity of 19.73% is fine compared to the rest of the industry. SAN outperforms 68.00% of its industry peers.
With a decent Return On Invested Capital value of 13.84%, SAN is doing good in the industry, outperforming 72.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAN is significantly below the industry average of 15.89%.
The last Return On Invested Capital (13.84%) for SAN is above the 3 year average (7.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 19.73% | ||
| ROIC | 13.84% |
ROA(3y)5.02%
ROA(5y)6.2%
ROE(3y)8.55%
ROE(5y)10.84%
ROIC(3y)7.31%
ROIC(5y)7.07%
1.3 Margins
SAN's Profit Margin of 20.35% is fine compared to the rest of the industry. SAN outperforms 78.00% of its industry peers.
In the last couple of years the Profit Margin of SAN has grown nicely.
Looking at the Operating Margin, with a value of 23.59%, SAN is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SAN has grown nicely.
SAN has a Gross Margin (71.70%) which is in line with its industry peers.
SAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.59% | ||
| PM (TTM) | 20.35% | ||
| GM | 71.7% |
OM growth 3Y-2.73%
OM growth 5Y1.75%
PM growth 3Y-7.54%
PM growth 5Y11.4%
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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SAN remains at a similar level compared to 5 years ago.
Compared to 1 year ago, SAN has an improved debt to assets ratio.
2.2 Solvency
SAN has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as SAN would need 2.21 years to pay back of all of its debts.
SAN has a Debt to FCF ratio of 2.21. This is amongst the best in the industry. SAN outperforms 84.00% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that SAN is not too dependend on debt financing.
SAN has a better Debt to Equity ratio (0.21) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.86
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.27 indicates that SAN should not have too much problems paying its short term obligations.
The Current ratio of SAN (1.27) is comparable to the rest of the industry.
A Quick Ratio of 0.94 indicates that SAN may have some problems paying its short term obligations.
SAN has a Quick ratio of 0.94. This is comparable to the rest of the industry: SAN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The earnings per share for SAN have decreased by -2.20% in the last year.
The Earnings Per Share has been growing slightly by 5.10% on average over the past years.
The Revenue has been growing slightly by 6.45% in the past year.
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)-2.2%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-8.09%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-6.99%
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 6.38% on average per year.
Based on estimates for the next years, SAN will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y3.91%
EPS Next 2Y6.53%
EPS Next 3Y6.33%
EPS Next 5Y6.38%
Revenue Next Year0.18%
Revenue Next 2Y3.45%
Revenue Next 3Y4.32%
Revenue Next 5Y4.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.19, the valuation of SAN can be described as reasonable.
78.00% of the companies in the same industry are more expensive than SAN, based on the Price/Earnings ratio.
SAN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 9.69 indicates a reasonable valuation of SAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAN indicates a somewhat cheap valuation: SAN is cheaper than 78.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, SAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
SAN's Enterprise Value to EBITDA ratio is in line with the industry average.
SAN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.46 | ||
| EV/EBITDA | 10.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SAN may justify a higher PE ratio.
PEG (NY)2.86
PEG (5Y)2.2
EPS Next 2Y6.53%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
SAN has a Yearly Dividend Yield of 4.48%, which is a nice return.
Compared to an average industry Dividend Yield of 2.97, SAN pays a better dividend. On top of this SAN pays more dividend than 86.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
5.2 History
The dividend of SAN has a limited annual growth rate of 4.30%.
Dividend Growth(5Y)4.3%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
SAN pays out 34.82% of its income as dividend. This is a sustainable payout ratio.
SAN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.82%
EPS Next 2Y6.53%
EPS Next 3Y6.33%
EPA:SAN (8/29/2025, 7:00:00 PM)
84.49
-0.87 (-1.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners40.34%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap206.07B
Analysts80
Price Target109.75 (29.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
Yearly Dividend3.79
Dividend Growth(5Y)4.3%
DP34.82%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.86%
Min EPS beat(2)-2.29%
Max EPS beat(2)6.02%
EPS beat(4)2
Avg EPS beat(4)4.01%
Min EPS beat(4)-2.29%
Max EPS beat(4)14.5%
EPS beat(8)4
Avg EPS beat(8)2.17%
EPS beat(12)7
Avg EPS beat(12)2.71%
EPS beat(16)11
Avg EPS beat(16)3.44%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)-0.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)3.66%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)5
Avg Revenue beat(12)9.77%
Revenue beat(16)9
Avg Revenue beat(16)21.47%
PT rev (1m)-1.82%
PT rev (3m)-7.63%
EPS NQ rev (1m)-4.35%
EPS NQ rev (3m)-10.87%
EPS NY rev (1m)-4.12%
EPS NY rev (3m)-4.12%
Revenue NQ rev (1m)-1.22%
Revenue NQ rev (3m)-6.9%
Revenue NY rev (1m)-1.33%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.69 | ||
| P/S | 3.04 | ||
| P/FCF | 20.46 | ||
| P/OCF | 18.11 | ||
| P/B | 2.94 | ||
| P/tB | 22.17 | ||
| EV/EBITDA | 10.97 |
EPS(TTM)7.55
EY8.94%
EPS(NY)8.72
Fwd EY10.32%
FCF(TTM)4.13
FCFY4.89%
OCF(TTM)4.67
OCFY5.52%
SpS27.84
BVpS28.7
TBVpS3.81
PEG (NY)2.86
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 19.73% | ||
| ROCE | 16.7% | ||
| ROIC | 13.84% | ||
| ROICexc | 16.48% | ||
| ROICexgc | 66.95% | ||
| OM | 23.59% | ||
| PM (TTM) | 20.35% | ||
| GM | 71.7% | ||
| FCFM | 14.83% |
ROA(3y)5.02%
ROA(5y)6.2%
ROE(3y)8.55%
ROE(5y)10.84%
ROIC(3y)7.31%
ROIC(5y)7.07%
ROICexc(3y)8.13%
ROICexc(5y)7.97%
ROICexgc(3y)35.39%
ROICexgc(5y)35.54%
ROCE(3y)8.84%
ROCE(5y)8.55%
ROICexcg growth 3Y-13.63%
ROICexcg growth 5Y-1.43%
ROICexc growth 3Y-1.55%
ROICexc growth 5Y2.05%
OM growth 3Y-2.73%
OM growth 5Y1.75%
PM growth 3Y-7.54%
PM growth 5Y11.4%
GM growth 3Y0.71%
GM growth 5Y0.58%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.05% | ||
| Profit Quality | 72.91% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score7
WACC7.46%
ROIC/WACC1.86
Cap/Depr(3y)73.02%
Cap/Depr(5y)67.36%
Cap/Sales(3y)6.35%
Cap/Sales(5y)5.97%
Profit Quality(3y)113.82%
Profit Quality(5y)104.22%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.2%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-8.09%
EPS Next Y3.91%
EPS Next 2Y6.53%
EPS Next 3Y6.33%
EPS Next 5Y6.38%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-6.99%
Revenue Next Year0.18%
Revenue Next 2Y3.45%
Revenue Next 3Y4.32%
Revenue Next 5Y4.01%
EBIT growth 1Y15.64%
EBIT growth 3Y1.33%
EBIT growth 5Y5.12%
EBIT Next Year34.08%
EBIT Next 3Y14.6%
EBIT Next 5Y9.86%
FCF growth 1Y24.23%
FCF growth 3Y-11.46%
FCF growth 5Y-0.14%
OCF growth 1Y10.87%
OCF growth 3Y-4.79%
OCF growth 5Y3.31%