Sanofi Fundamental Analysis (NASDAQ: SNY)
Sanofi (NASDAQ: SNY) shows weak financial fundamentals with a PE ratio of 78.63, profit margin of 8.09%, and ROE of 5.52%. The company generates $49.1B in annual revenue with moderate year-over-year growth of 5.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SNY's fundamental strength across five key dimensions:
Efficiency Score
WeakSNY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSNY shows balanced valuation metrics.
Growth Score
ExcellentSNY delivers strong and consistent growth momentum.
Financial Health Score
ModerateSNY shows balanced financial health with some risks.
Profitability Score
WeakSNY struggles to sustain strong margins.
Key Financial Metrics
Is SNY Expensive or Cheap?
P/E Ratio
SNY trades at 78.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SNY's PEG of -1.04 indicates potential undervaluation.
Price to Book
The market values Sanofi at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.91 times EBITDA. This is generally considered low.
How Well Does SNY Make Money?
Net Profit Margin
For every $100 in sales, Sanofi keeps $8.09 as profit after all expenses.
Operating Margin
Core operations generate 14.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.52 in profit for every $100 of shareholder equity.
ROA
Sanofi generates $3.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sanofi generates strong operating cash flow of $13.66B, reflecting robust business health.
Free Cash Flow
Sanofi generates strong free cash flow of $9.98B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.15 in free cash annually.
FCF Yield
SNY converts 10.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
78.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How SNY Stacks Against Its Sector Peers
| Metric | SNY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 78.63 | 31.71 | Worse (Expensive) |
| ROE | 5.52% | 440.00% | Weak |
| Net Margin | 8.09% | -23357.00% (disorted) | Weak |
| Debt/Equity | 0.34 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 0.99 | 5.39 | Weak Liquidity |
| ROA | 3.07% | 1632.00% | Weak |
SNY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sanofi's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.41%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-34.72%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
48.24%
Industry Style: Defensive, Growth, Innovation
High Growth