SANOFI (SNW.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:SNW • FR0000120578

79.22 EUR

+2.11 (+2.74%)

Last: Jan 30, 2026, 07:00 PM

Fundamental Rating

SNW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. While SNW is still in line with the averages on profitability rating, there are concerns on its financial health. SNW has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

SNW had positive earnings in the past year.
Each year in the past 5 years SNW has been profitable.
Each year in the past 5 years SNW had a positive operating cash flow.

1.2 Ratios

SNW has a Return On Assets of 10.63%. This is in the better half of the industry: SNW outperforms 76.36% of its industry peers.
SNW has a Return On Equity of 18.84%. This is in the better half of the industry: SNW outperforms 61.82% of its industry peers.
SNW has a better Return On Invested Capital (13.40%) than 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNW is significantly below the industry average of 14.00%.
The 3 year average ROIC (7.31%) for SNW is below the current ROIC(13.40%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	10.63%
ROE	18.84%
ROIC	13.4%

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

SNW's Profit Margin of 20.63% is fine compared to the rest of the industry. SNW outperforms 78.18% of its industry peers.
SNW's Profit Margin has improved in the last couple of years.
SNW has a Operating Margin of 23.61%. This is comparable to the rest of the industry: SNW outperforms 54.55% of its industry peers.
SNW's Operating Margin has improved in the last couple of years.
SNW has a Gross Margin of 72.29%. This is comparable to the rest of the industry: SNW outperforms 50.91% of its industry peers.
In the last couple of years the Gross Margin of SNW has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	23.61%
PM (TTM)	20.63%
GM	72.29%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SNW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SNW has about the same amount of shares outstanding.
Compared to 5 years ago, SNW has about the same amount of shares outstanding.
The debt/assets ratio for SNW has been reduced compared to a year ago.

2.2 Solvency

A Debt/Equity ratio of 0.18 indicates that SNW is not too dependend on debt financing.
SNW has a better Debt to Equity ratio (0.18) than 76.36% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.18
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACC1.74

WACC7.72%

2.3 Liquidity

SNW has a Current Ratio of 1.06. This is a normal value and indicates that SNW is financially healthy and should not expect problems in meeting its short term obligations.
SNW's Current ratio of 1.06 is on the low side compared to the rest of the industry. SNW is outperformed by 72.73% of its industry peers.
A Quick Ratio of 0.30 indicates that SNW may have some problems paying its short term obligations.
SNW has a worse Quick ratio (0.30) than 90.91% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.06
Quick Ratio	0.3

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

SNW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.35%.
SNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.10% yearly.
The Revenue has been growing slightly by 2.56% in the past year.
Measured over the past years, SNW shows a small growth in Revenue. The Revenue has been growing by 3.31% on average per year.

EPS 1Y (TTM)-5.35%

EPS 3Y5.45%

EPS 5Y5.1%

EPS Q2Q%1.75%

Revenue 1Y (TTM)2.56%

Revenue growth 3Y4.17%

Revenue growth 5Y3.31%

Sales Q2Q%-7.47%

3.2 Future

Based on estimates for the next years, SNW will show a small growth in Earnings Per Share. The EPS will grow by 7.41% on average per year.
SNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.47% yearly.

EPS Next Y2.24%

EPS Next 2Y4.91%

EPS Next 3Y5.19%

EPS Next 5Y7.41%

Revenue Next Year-0.09%

Revenue Next 2Y3.14%

Revenue Next 3Y4.36%

Revenue Next 5Y4.47%

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.

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4. Valuation

4.1 Price/Earnings Ratio

SNW is valuated reasonably with a Price/Earnings ratio of 10.42.
85.45% of the companies in the same industry are more expensive than SNW, based on the Price/Earnings ratio.
SNW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
The Price/Forward Earnings ratio is 9.37, which indicates a very decent valuation of SNW.
Based on the Price/Forward Earnings ratio, SNW is valued cheaply inside the industry as 85.45% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SNW to the average of the S&P500 Index (25.57), we can say SNW is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.42
Fwd PE	9.37

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SNW is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.27

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SNW does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SNW may justify a higher PE ratio.