SANOFI (SAN.PA) Stock Fundamental Analysis
Europe - EPA:SAN - FR0000120578 - Common Stock
80.23 EUR
-0.23 (-0.29%)
We assign a fundamental rating of 6 out of 10 to SAN. SAN was compared to 50 industry peers in the Pharmaceuticals industry. While SAN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SAN is not valued too expensively and it also shows a decent growth rate. Finally SAN also has an excellent dividend rating. This makes SAN very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year SAN was profitable.
SAN had a positive operating cash flow in the past year.
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 has a Return On Assets of 11.05%. This is in the better half of the industry: SAN outperforms 76.00% of its industry peers.
The Return On Equity of SAN (19.73%) is better than 68.00% of its industry peers.
SAN has a Return On Invested Capital of 13.84%. This is in the better half of the industry: SAN outperforms 72.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAN is significantly below the industry average of 15.33%.
The 3 year average ROIC (7.31%) for SAN is below the current ROIC(13.84%), indicating increased profibility in the last year.
| 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 76.00% of its industry peers.
In the last couple of years the Profit Margin of SAN has grown nicely.
The Operating Margin of SAN (23.59%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SAN has grown nicely.
SAN has a Gross Margin (71.70%) 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SAN is creating value.
The number of shares outstanding for SAN remains at a similar level compared to 1 year ago.
The number of shares outstanding for SAN remains at a similar level compared to 5 years ago.
SAN has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SAN is 2.21, which is a good value as it means it would take SAN, 2.21 years of fcf income to pay off 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.
SAN has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
SAN's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. SAN outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.82
WACC7.6%
2.3 Liquidity
SAN has a Current Ratio of 1.27. 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 1.27. This is comparable to the rest of the industry: SAN outperforms 42.00% of its industry peers.
SAN has a Quick Ratio of 1.27. This is a bad value and indicates that SAN is not financially healthy enough and could expect problems in meeting its short term obligations.
SAN has a Quick ratio of 0.94. This is comparable to the rest of the industry: SAN outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
SAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.20%.
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.
SAN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
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
The Earnings Per Share is expected to grow by 6.41% on average over the next years.
SAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.04% yearly.
EPS Next Y3.91%
EPS Next 2Y6.53%
EPS Next 3Y6.33%
EPS Next 5Y6.41%
Revenue Next Year-0.29%
Revenue Next 2Y3.32%
Revenue Next 3Y4.42%
Revenue Next 5Y4.04%
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
SAN is valuated reasonably with a Price/Earnings ratio of 10.63.
Compared to the rest of the industry, the Price/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/Earnings ratio of 27.38, SAN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.21, which indicates a very decent valuation of SAN.
Based on the Price/Forward Earnings ratio, SAN is valued a bit cheaper than 78.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. SAN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.21 |
4.2 Price Multiples
SAN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SAN is valued a bit cheaper than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.43 | ||
| EV/EBITDA | 10.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SAN may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)2.09
EPS Next 2Y6.53%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, SAN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.07, SAN pays a better dividend. On top of this SAN pays more dividend than 86.00% of the companies listed in the same industry.
SAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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 (9/22/2025, 5:36:15 PM)
80.23
-0.23 (-0.29%)
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 Cap195.68B
Analysts80
Price Target109.75 (36.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)0.57%
PT rev (3m)-5.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.9%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.21 | ||
| P/S | 2.88 | ||
| P/FCF | 19.43 | ||
| P/OCF | 17.19 | ||
| P/B | 2.8 | ||
| P/tB | 21.05 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)7.55
EY9.41%
EPS(NY)8.72
Fwd EY10.86%
FCF(TTM)4.13
FCFY5.15%
OCF(TTM)4.67
OCFY5.82%
SpS27.84
BVpS28.7
TBVpS3.81
PEG (NY)2.72
PEG (5Y)2.09
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
WACC7.6%
ROIC/WACC1.82
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 5Y6.41%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-6.99%
Revenue Next Year-0.29%
Revenue Next 2Y3.32%
Revenue Next 3Y4.42%
Revenue Next 5Y4.04%
EBIT growth 1Y15.64%
EBIT growth 3Y1.33%
EBIT growth 5Y5.12%
EBIT Next Year34.08%
EBIT Next 3Y14.6%
EBIT Next 5Y9.88%
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%