SANOFI (SNW.DE) Stock Fundamental Analysis
FRA:SNW - Deutsche Boerse Ag - FR0000120578 - Common Stock - Currency: EUR
SNW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Pharmaceuticals industry. SNW scores excellent on profitability, but there are some minor concerns on its financial health. SNW has a decent growth rate and is not valued too expensively. SNW also has an excellent dividend rating. These ratings could make SNW a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
SNW had positive earnings in the past year.
In the past year SNW had a positive cash flow from operations.
In the past 5 years SNW has always been profitable.
Each year in the past 5 years SNW had a positive operating cash flow.
1.2 Ratios
SNW's Return On Assets of 9.00% is fine compared to the rest of the industry. SNW outperforms 72.55% of its industry peers.
With a decent Return On Equity value of 15.37%, SNW is doing good in the industry, outperforming 60.78% of the companies in the same industry.
SNW has a Return On Invested Capital of 15.58%. This is in the better half of the industry: SNW outperforms 78.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNW is significantly below the industry average of 15.19%.
The last Return On Invested Capital (15.58%) for SNW is above the 3 year average (7.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 15.37% | ||
| ROIC | 15.58% |
ROA(3y)5.07%
ROA(5y)6.23%
ROE(3y)8.63%
ROE(5y)10.88%
ROIC(3y)7.46%
ROIC(5y)7.05%
1.3 Margins
SNW's Profit Margin of 12.97% is fine compared to the rest of the industry. SNW outperforms 62.75% of its industry peers.
In the last couple of years the Profit Margin of SNW has grown nicely.
Looking at the Operating Margin, with a value of 22.04%, SNW is in line with its industry, outperforming 58.82% of the companies in the same industry.
SNW's Operating Margin has improved in the last couple of years.
SNW's Gross Margin of 70.04% is in line compared to the rest of the industry. SNW outperforms 50.98% of its industry peers.
SNW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.04% | ||
| PM (TTM) | 12.97% | ||
| GM | 70.04% |
OM growth 3Y0.02%
OM growth 5Y3.47%
PM growth 3Y-6.53%
PM growth 5Y12.13%
GM growth 3Y0.71%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
SNW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SNW has less shares outstanding
SNW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SNW has been reduced compared to a year ago.
2.2 Solvency
SNW has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as SNW would need 3.04 years to pay back of all of its debts.
SNW's Debt to FCF ratio of 3.04 is fine compared to the rest of the industry. SNW outperforms 70.59% of its industry peers.
SNW has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.17, SNW is doing good in the industry, outperforming 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | N/A |
ROIC/WACC2.07
WACC7.54%
2.3 Liquidity
SNW has a Current Ratio of 1.46. This is a normal value and indicates that SNW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SNW (1.46) is better than 60.78% of its industry peers.
SNW has a Quick Ratio of 1.46. This is a bad value and indicates that SNW is not financially healthy enough and could expect problems in meeting its short term obligations.
SNW has a Quick ratio of 0.74. This is in the lower half of the industry: SNW underperforms 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
SNW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.99%.
Measured over the past 5 years, SNW shows a small growth in Earnings Per Share. The EPS has been growing by 5.10% on average per year.
The Revenue has grown by 30.30% in the past year. This is a very strong growth!
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)-12.99%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-53.61%
Revenue 1Y (TTM)30.3%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-12.62%
3.2 Future
The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.33% on average over the next years.
EPS Next Y8.37%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
EPS Next 5Y8.23%
Revenue Next Year1.53%
Revenue Next 2Y4.25%
Revenue Next 3Y4.83%
Revenue Next 5Y4.33%
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 13.69 indicates a correct valuation of SNW.
72.55% of the companies in the same industry are more expensive than SNW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SNW to the average of the S&P500 Index (25.82), we can say SNW is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.09, the valuation of SNW can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SNW is valued a bit cheaper than 78.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SNW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNW indicates a somewhat cheap valuation: SNW is cheaper than 60.78% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SNW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.31 | ||
| EV/EBITDA | 10.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SNW may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)2.69
EPS Next 2Y9.02%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
SNW has a Yearly Dividend Yield of 4.36%, which is a nice return.
Compared to an average industry Dividend Yield of 3.09, SNW pays a better dividend. On top of this SNW pays more dividend than 82.35% of the companies listed in the same industry.
SNW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
5.2 History
The dividend of SNW has a limited annual growth rate of 4.34%.
Dividend Growth(5Y)4.34%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
SNW pays out 39.72% of its income as dividend. This is a sustainable payout ratio.
SNW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.72%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
FRA:SNW (5/23/2025, 7:00:00 PM)
92.12
-1.31 (-1.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners39.32%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap225.52B
Analysts80
Price Target119.33 (29.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
Yearly Dividend3.79
Dividend Growth(5Y)4.34%
DP39.72%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.16%
Min EPS beat(2)-2.18%
Max EPS beat(2)14.5%
EPS beat(4)3
Avg EPS beat(4)4.59%
Min EPS beat(4)-2.18%
Max EPS beat(4)14.5%
EPS beat(8)5
Avg EPS beat(8)2.9%
EPS beat(12)8
Avg EPS beat(12)3.44%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-4.57%
Max Revenue beat(2)3.66%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)3.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)7
Avg Revenue beat(12)19.67%
Revenue beat(16)11
Avg Revenue beat(16)28.47%
PT rev (1m)1.51%
PT rev (3m)4.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-3.29%
Revenue NY rev (3m)-5.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 10.09 | ||
| P/S | 2.45 | ||
| P/FCF | 38.31 | ||
| P/OCF | 24.83 | ||
| P/B | 2.9 | ||
| P/tB | 19.72 | ||
| EV/EBITDA | 10.02 |
EPS(TTM)6.73
EY7.31%
EPS(NY)9.13
Fwd EY9.91%
FCF(TTM)2.4
FCFY2.61%
OCF(TTM)3.71
OCFY4.03%
SpS37.6
BVpS31.74
TBVpS4.67
PEG (NY)1.63
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 15.37% | ||
| ROCE | 19.55% | ||
| ROIC | 15.58% | ||
| ROICexc | 16.79% | ||
| ROICexgc | 53.71% | ||
| OM | 22.04% | ||
| PM (TTM) | 12.97% | ||
| GM | 70.04% | ||
| FCFM | 6.39% |
ROA(3y)5.07%
ROA(5y)6.23%
ROE(3y)8.63%
ROE(5y)10.88%
ROIC(3y)7.46%
ROIC(5y)7.05%
ROICexc(3y)8.27%
ROICexc(5y)7.94%
ROICexgc(3y)35.84%
ROICexgc(5y)35.27%
ROCE(3y)9.37%
ROCE(5y)8.86%
ROICexcg growth 3Y-11.4%
ROICexcg growth 5Y0.08%
ROICexc growth 3Y1.08%
ROICexc growth 5Y3.67%
OM growth 3Y0.02%
OM growth 5Y3.47%
PM growth 3Y-6.53%
PM growth 5Y12.13%
GM growth 3Y0.71%
GM growth 5Y0.58%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.04 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 89.1% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | -34.57 | ||
| Cash Conversion | 38.03% | ||
| Profit Quality | 49.3% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-Score7
WACC7.54%
ROIC/WACC2.07
Cap/Depr(3y)72.19%
Cap/Depr(5y)66.85%
Cap/Sales(3y)6.19%
Cap/Sales(5y)5.87%
Profit Quality(3y)111.96%
Profit Quality(5y)103.11%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.99%
EPS 3Y5.45%
EPS 5Y5.1%
EPS Q2Q%-53.61%
EPS Next Y8.37%
EPS Next 2Y9.02%
EPS Next 3Y8.18%
EPS Next 5Y8.23%
Revenue 1Y (TTM)30.3%
Revenue growth 3Y4.17%
Revenue growth 5Y3.31%
Sales Q2Q%-12.62%
Revenue Next Year1.53%
Revenue Next 2Y4.25%
Revenue Next 3Y4.83%
Revenue Next 5Y4.33%
EBIT growth 1Y21.75%
EBIT growth 3Y4.19%
EBIT growth 5Y6.9%
EBIT Next Year37.04%
EBIT Next 3Y15.5%
EBIT Next 5Y10.86%
FCF growth 1Y-18.63%
FCF growth 3Y-11.46%
FCF growth 5Y-0.14%
OCF growth 1Y-11.47%
OCF growth 3Y-4.79%
OCF growth 5Y3.31%