ENXTPA:SAN

Stock Analysis Report

Executive Summary

Sanofi provides therapeutic solutions worldwide.

Rewards

Trading at 51.4% below its fair value

Earnings are forecast to grow 17.34% per year

Pays a reliable dividend of 3.42%

Risk Analysis

Has a high level of debt

Dividend of 3.42% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (7.7%) are lower than last year (12.1%)



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Sanofi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SAN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

SAN

-1.3%

FR Pharmaceuticals

1.0%

FR Market


1 Year Return

22.6%

SAN

16.2%

FR Pharmaceuticals

17.2%

FR Market

Return vs Industry: SAN exceeded the French Pharmaceuticals industry which returned 16.2% over the past year.

Return vs Market: SAN exceeded the French Market which returned 17.2% over the past year.


Shareholder returns

SANIndustryMarket
7 Day-1.4%-1.3%1.0%
30 Day0.05%-0.8%-0.3%
90 Day9.3%6.6%3.3%
1 Year27.7%22.6%20.6%16.2%21.3%17.2%
3 Year27.7%13.2%24.3%11.2%43.9%30.3%
5 Year28.1%5.6%28.0%6.5%56.4%34.4%

Price Volatility Vs. Market

How volatile is Sanofi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sanofi undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAN (€92.24) is trading below our estimate of fair value (€189.81)

Significantly Below Fair Value: SAN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAN is poor value based on its PE Ratio (39.7x) compared to the Pharmaceuticals industry average (25.7x).

PE vs Market: SAN is poor value based on its PE Ratio (39.7x) compared to the French market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: SAN is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: SAN is good value based on its PB Ratio (2x) compared to the FR Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

How is Sanofi forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAN's forecast earnings growth (17.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: SAN's earnings (17.3% per year) are forecast to grow faster than the French market (13.4% per year).

High Growth Earnings: SAN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAN's revenue (2.8% per year) is forecast to grow slower than the French market (4.5% per year).

High Growth Revenue: SAN's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAN's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Sanofi performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAN has a large one-off loss of €4.1B impacting its December 31 2019 financial results.

Growing Profit Margin: SAN's current net profit margins (7.7%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: SAN's earnings have declined by -6% per year over the past 5 years.

Accelerating Growth: SAN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SAN had negative earnings growth (-32.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-5%).


Return on Equity

High ROE: SAN's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sanofi's financial position?


Financial Position Analysis

Short Term Liabilities: SAN's short term assets (€28.9B) exceed its short term liabilities (€20.4B).

Long Term Liabilities: SAN's short term assets (€28.9B) do not cover its long term liabilities (€33.2B).


Debt to Equity History and Analysis

Debt Level: SAN's debt to equity ratio (41.8%) is considered high.

Reducing Debt: SAN's debt to equity ratio has increased from 26.2% to 41.8% over the past 5 years.

Debt Coverage: SAN's debt is well covered by operating cash flow (28.2%).

Interest Coverage: SAN's interest payments on its debt are well covered by EBIT (23.8x coverage).


Balance Sheet

Inventory Level: SAN has a low level of unsold assets or inventory.

Debt Coverage by Assets: SAN's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Sanofi's current dividend yield, its reliability and sustainability?

3.42%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.5%markettop25%4.5%industryaverage2.9%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: SAN's dividend (3.42%) is higher than the bottom 25% of dividend payers in the French market (1.53%).

High Dividend: SAN's dividend (3.42%) is low compared to the top 25% of dividend payers in the French market (4.5%).


Stability and Growth of Payments

Stable Dividend: SAN's dividends per share have been stable in the past 10 years.

Growing Dividend: SAN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (135.4%), SAN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAN's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Paul Hudson (52yo)

0.4yrs

Tenure

0

Mr. Paul Hudson serves as Chief Executive Officer and Director at Sanofi since September 1, 2019. Mr. Hudson was Chief Executive Officer of Novartis Pharmaceuticals at Novartis AG since July 1, 2016 until  ...


Leadership Team

NamePositionTenureCompensationOwnership
Paul Hudson
CEO & Director0.4yrsno datano data
Jean-Baptiste de Chatillon
Executive VP & CFO1.3yrsno datano data
Laurent Gilhodes
Principal Accounting Officer and Vice President of Corporate Accounting0yrsno datano data
Bruno Ménard
Chief Information officer8.5yrsno datano data
George Grofik
Head of Investor Relations0yrsno datano data
Karen Linehan
Executive VP of Legal Affairs & General Counsel12.9yrsno datano data
Dante Beccaria
Global Compliance Officer & VP7.8yrsno datano data
Josep Catlla
Head of Communications0yrsno datano data
Pierre Chancel
Senior Vice President of Global Diabetes and Senior Vice President of Global Marketing15.5yrsno datano data
Caroline Luscombe
Executive Vice President of Human Resources1.3yrsno datano data

7.8yrs

Average Tenure

59yo

Average Age

Experienced Management: SAN's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Hudson
CEO & Director0.4yrsno datano data
Carole Piwnica
Independent Director9.2yrs€100.00k0.000080% 92.5k
Jean-François Dehecq
Honorary Chairman9.8yrs€4.71mno data
Serge Weinberg
Independent Chairman9.8yrs€708.36k0.00013% 150.3k
Suet-Fern Lee
Independent Director8.8yrs€117.50k0.000080% 92.5k
Patrick Kron
Independent Director5.8yrs€132.50k0.000080% 92.5k
Fabienne Lecorvaisier
Independent Director6.8yrs€127.50k0.000080% 92.5k
Claudie Haignere
Independent Director11.8yrs€107.50k0.000080% 92.5k
Diane Souza
Independent Director3.8yrs€182.50k0.000090% 104.1k
Laurent Attal
Director7.8yrs€107.50k0.000080% 92.5k

8.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: SAN's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sanofi's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sanofi
  • Ticker: SAN
  • Exchange: ENXTPA
  • Founded: 1973
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €115.653b
  • Shares outstanding: 1.25b
  • Website: https://www.sanofi.com

Number of Employees


Location

  • Sanofi
  • 54, Rue La Boétie
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNYN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1999
SANENXTPA (Euronext Paris)YesOrdinary SharesFREURMay 1999
SNWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1999
SANSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMay 1999
0O59LSE (London Stock Exchange)YesOrdinary SharesGBEURMay 1999
SANFBIT (Borsa Italiana)YesOrdinary SharesITEURMay 1999
SNWXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURMay 1999
SANPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 1999
SANOWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMay 1999
SNYNasdaqGS (Nasdaq Global Select)SPON ADR ECH REP 1/2 ORD EUR2 LEVEL IIUSUSDJul 2002
SNW2DB (Deutsche Boerse AG)SPON ADR ECH REP 1/2 ORD EUR2 LEVEL IIDEEURJul 2002
SNY NBMV (Bolsa Mexicana de Valores)SPON ADR ECH REP 1/2 ORD EUR2 LEVEL IIMXMXNJul 2002
0A2VLSE (London Stock Exchange)SPON ADR ECH REP 1/2 ORD EUR2 LEVEL IIGBUSDJul 2002
SANNVENXTPA (Euronext Paris)EUR2 (RFD 01/01/2020)FREURJan 2020

Biography

Sanofi provides therapeutic solutions worldwide. It offers Cerezyme and Cerdelga for Gaucher, Myozyme and Lumizyme for Pompe, Fabrazyme for Fabry, and Aldurazyme for mucopolysaccharidosis Type 1; and Aubagio, an immunomodulatory and Lemtrada, a monoclonal antibody for multiple sclerosis. It also provides Dupixent for atopic dermatitis; Kevzara for rheumatoid arthritis; Eloctate and Alprolix to treat hemophilia; and Cablivi to treat acquired thrombotic thrombocytopenic purpura. In addition, it offers Libtayo for metastatic cutaneous squamous cell carcinoma; Jevtana and Taxotere taxane for cancers; Eloxatin for colon cancer; Thymoglobulin, an immunosuppressive and immunomodulating agent; Mozobil, for hematologic malignancies; and Zaltrap, for metastatic colorectal cancer. Further, it provides Lantus, Toujeo, Apidra, and Insuman insulins; Amaryl sulfonylurea; Adlyxin/Lyxumia, a GLP-1 receptor agonist; Soliqua 100/33/Suliqua, an insulin glargine and lixisenatide combination to treat diabetes; Admelog/Insulin lispro insulin; Praluent, a cholesterol-lowering drug; and Multaq, an anti-arrhythmic drug for atrial fibrillation. Additionally, it offers Plavix for atherothrombotic conditions; Lovenox for the prophylaxis, venous thromboembolism, and acute coronary syndrome; Aprovel and CoAprovel anti-hypertensives; Renagel and Renvela for patients undergoing dialysis; Synvisc and Synvisc-One viscosupplements for osteoarthritis; Stilnox for insomnia; Allegra for seasonal allergic rhinitis and uncomplicated hives; and Depakine for epilepsy. It also provides generic products; and products for allergy, cough, cold, pain, nutrition, digestion, pediatrics, influenza, meningitis, travel, and endemic vaccines; and adult and adolescent boosters. Sanofi has an alliance with Verily Life Sciences LLC; and agreement with Happify Health. Sanofi was formerly known as Sanofi-Aventis and changed its name to Sanofi in May 2011. Sanofi was founded in 1973 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 20:58
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.