SANOFI (SAN.PA)

FR0000120578 - Common Stock

92.815  -0.69 (-0.73%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to SAN. SAN was compared to 47 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.



7

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

SAN has a better Return On Assets (7.85%) than 65.12% of its industry peers.
Looking at the Return On Equity, with a value of 13.40%, SAN is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
SAN has a Return On Invested Capital of 12.90%. This is in the better half of the industry: SAN outperforms 69.77% of its industry peers.
SAN had an Average Return On Invested Capital over the past 3 years of 7.48%. This is below the industry average of 11.44%.
The last Return On Invested Capital (12.90%) for SAN is above the 3 year average (7.48%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.85%
ROE 13.4%
ROIC 12.9%
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's Profit Margin of 14.17% is fine compared to the rest of the industry. SAN outperforms 69.77% of its industry peers.
SAN's Profit Margin has been stable in the last couple of years.
SAN's Operating Margin of 23.81% is fine compared to the rest of the industry. SAN outperforms 76.74% of its industry peers.
In the last couple of years the Operating Margin of SAN has grown nicely.
SAN has a Gross Margin (69.78%) which is comparable to the rest of the industry.
SAN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 23.81%
PM (TTM) 14.17%
GM 69.78%
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%

4

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.
The debt/assets ratio for SAN has been reduced compared to a year ago.

2.2 Solvency

The Debt to FCF ratio of SAN is 2.55, which is a good value as it means it would take SAN, 2.55 years of fcf income to pay off all of its debts.
SAN's Debt to FCF ratio of 2.55 is fine compared to the rest of the industry. SAN outperforms 69.77% of its industry peers.
SAN has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
SAN has a Debt to Equity ratio of 0.22. This is in the better half of the industry: SAN outperforms 67.44% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 2.55
Altman-Z N/A
ROIC/WACC1.72
WACC7.48%

2.3 Liquidity

SAN has a Current Ratio of 1.28. 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 worse Current ratio (1.28) than 60.47% of its industry peers.
SAN has a Quick Ratio of 1.28. 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 worse Quick ratio (0.38) than 93.02% of its industry peers.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 0.38

4

3. Growth

3.1 Past

The earnings per share for SAN have decreased by -8.74% 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.
The Revenue has been growing slightly by 1.25% in the past year.
Measured over the past years, SAN shows a small growth in Revenue. The Revenue has been growing by 5.42% on average per year.
EPS 1Y (TTM)-8.74%
EPS 3Y10.81%
EPS 5Y8.19%
EPS Q2Q%-17.59%
Revenue 1Y (TTM)1.25%
Revenue growth 3Y7.52%
Revenue growth 5Y5.42%
Sales Q2Q%-3.67%

3.2 Future

SAN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.98% yearly.
SAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.58% yearly.
EPS Next Y-5.41%
EPS Next 2Y4.07%
EPS Next 3Y5.48%
EPS Next 5Y6.98%
Revenue Next Year4.75%
Revenue Next 2Y5.85%
Revenue Next 3Y5.86%
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.

5

4. Valuation

4.1 Price/Earnings Ratio

SAN is valuated correctly with a Price/Earnings ratio of 12.01.
Based on the Price/Earnings ratio, SAN is valued cheaper than 81.40% of the companies in the same industry.
SAN is valuated cheaply when we compare the Price/Earnings ratio to 29.08, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.57, which indicates a very decent valuation of SAN.
Based on the Price/Forward Earnings ratio, SAN is valued cheaper than 81.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, SAN is valued a bit cheaper.
Industry RankSector Rank
PE 12.01
Fwd PE 10.57

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.
SAN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 32.1
EV/EBITDA 11.35

4.3 Compensation for Growth

The decent profitability rating of SAN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y4.07%
EPS Next 3Y5.48%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.08%, SAN is a good candidate for dividend investing.
SAN's Dividend Yield is a higher than the industry average which is at 2.80.
SAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 4.08%

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

44.90% of the earnings are spent on dividend by SAN. This is a bit on the high side, but may be sustainable.
The dividend of SAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.9%
EPS Next 2Y4.07%
EPS Next 3Y5.48%

SANOFI

EPA:SAN (7/23/2024, 5:29:58 PM)

92.815

-0.69 (-0.73%)

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 Cap232.23B
Analysts
Price Target
Dividend
Industry RankSector 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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
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 RankSector Rank
PE 12.01
Fwd PE 10.57
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)1.47
Profitability
Industry RankSector Rank
ROA 7.85%
ROE 13.4%
ROCE
ROIC
ROICexc
ROICexgc
OM 23.81%
PM (TTM) 14.17%
GM 69.78%
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 RankSector Rank
Debt/Equity 0.22
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.28
Quick Ratio 0.38
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)-8.74%
EPS 3Y10.81%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.25%
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