SANOFI (SAN.PA) Stock Fundamental Analysis
Europe - EPA:SAN - FR0000120578 - Common Stock
86.43 EUR
+0.1 (+0.12%)
Taking everything into account, SAN scores 6 out of 10 in our fundamental rating. SAN was compared to 54 industry peers in the Pharmaceuticals industry. SAN scores excellent on profitability, but there are some minor concerns on its financial health. SAN is not valued too expensively and it also shows a decent growth rate. SAN also has an excellent dividend rating. This makes SAN very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
SAN had positive earnings in the past year.
In the past year SAN had a positive cash flow from operations.
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
SAN has a Return On Assets of 11.05%. This is in the better half of the industry: SAN outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 19.73%, SAN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SAN has a Return On Invested Capital of 13.84%. This is in the better half of the industry: SAN outperforms 72.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAN is significantly below the industry average of 14.71%.
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
Looking at the Profit Margin, with a value of 20.35%, SAN is in the better half of the industry, outperforming 79.63% of the companies in the same industry.
SAN's Profit Margin has improved in the last couple of years.
SAN has a Operating Margin of 23.59%. This is comparable to the rest of the industry: SAN outperforms 59.26% of its industry peers.
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.
Compared to 1 year ago, SAN has about the same amount of shares outstanding.
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.
The Debt to FCF ratio of SAN (2.21) is better than 83.33% 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 75.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.81
WACC7.63%
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 (0.94) which is in line with 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.
Looking at the last year, SAN shows a small growth in Revenue. The Revenue has grown by 6.45% in the last 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 6.84% on average per year.
Based on estimates for the next years, SAN will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y4.12%
EPS Next 2Y6.3%
EPS Next 3Y6.57%
EPS Next 5Y6.84%
Revenue Next Year-0.42%
Revenue Next 2Y3.06%
Revenue Next 3Y4.26%
Revenue Next 5Y4.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.45 indicates a reasonable valuation of SAN.
SAN's Price/Earnings ratio is a bit cheaper when compared to the industry. SAN is cheaper than 77.78% of the companies in the same industry.
SAN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.40.
Based on the Price/Forward Earnings ratio of 9.96, the valuation of SAN can be described as reasonable.
Based on the Price/Forward Earnings ratio, SAN is valued a bit cheaper than 79.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, SAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 9.96 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as SAN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.92 | ||
| EV/EBITDA | 11.09 |
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.
SAN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.78
PEG (5Y)2.25
EPS Next 2Y6.3%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.62%, SAN is a good candidate for dividend investing.
SAN's Dividend Yield is rather good when compared to the industry average which is at 3.04. SAN pays more dividend than 83.33% of the companies in the same industry.
SAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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.
The dividend of SAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.82%
EPS Next 2Y6.3%
EPS Next 3Y6.57%
EPA:SAN (10/17/2025, 7:00:00 PM)
86.43
+0.1 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners47.5%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap210.63B
Analysts81.38
Price Target109.66 (26.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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)-0.08%
PT rev (3m)-5.41%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-5.89%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-3.92%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 9.96 | ||
| P/S | 3.1 | ||
| P/FCF | 20.92 | ||
| P/OCF | 18.51 | ||
| P/B | 3.01 | ||
| P/tB | 22.66 | ||
| EV/EBITDA | 11.09 |
EPS(TTM)7.55
EY8.74%
EPS(NY)8.68
Fwd EY10.04%
FCF(TTM)4.13
FCFY4.78%
OCF(TTM)4.67
OCFY5.4%
SpS27.86
BVpS28.73
TBVpS3.81
PEG (NY)2.78
PEG (5Y)2.25
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
WACC7.63%
ROIC/WACC1.81
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 Y4.12%
EPS Next 2Y6.3%
EPS Next 3Y6.57%
EPS Next 5Y6.84%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-6.99%
Revenue Next Year-0.42%
Revenue Next 2Y3.06%
Revenue Next 3Y4.26%
Revenue Next 5Y4.46%
EBIT growth 1Y15.64%
EBIT growth 3Y1.33%
EBIT growth 5Y5.12%
EBIT Next Year30.73%
EBIT Next 3Y13.89%
EBIT Next 5Y9.93%
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%