Sanofi (SAN) AI Stock Analysis

• Market Cap: €100.60B
• Dividend Yield: 4.75%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.63
• Revenue Growth: -4.62%
• EPS Growth: 2.88%
• Country: FR
• Employees: 82,878
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.38
• Shares Outstanding: 1,227,755,500
• 10 Day Avg. Volume: 2,125,850
• 30 Day Avg. Volume: 2,106,640
• PEG Ratio: -1.23
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €114.27
• Price Target Upside: 38.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 71 Outperform
• Price Target: €92.00 ▲(11.53%Upside)

Sanofi's overall score reflects strong financial performance and positive earnings call outcomes, highlighting growth in sales and improved margins. However, technical indicators suggest caution with current stock momentum, and valuation metrics are moderate, balancing the score.

Positive Factors

Product Potential

A positive outcome in amlitelimab PIII trials could lead to significant peak sales in atopic dermatitis.

Stock Valuation

Analyst maintains a Buy rating given the stock is considered undervalued with growth potential.

Negative Factors

Approval Challenges

Approval unlikely as two positive trials are usually required, leading to potential delays in submission.

Trial Risks

Safety concerns or worse efficacy are identified as key risks into the PIII trials for amlitelimab.

Sanofi Business Overview & Revenue Model

Company Description

Sanofi, together with its subsidiaries, engages in the research, development, manufacture, and marketing of therapeutic solutions in the United States, Europe, and internationally. It operates through three segments: Pharmaceuticals, Vaccines, and Consumer Healthcare. The company provides specialty care products, including human monoclonal antibodies; products for multiple sclerosis, neurology, other inflammatory diseases, immunology, rare diseases, oncology, and rare blood disorders; medicines for diabetes; and cardiovascular and established prescription products. It also supplies poliomyelitis, pertussis, and hib pediatric vaccines; and influenza, adult booster, meningitis, and travel and endemic vaccines. In addition, the company offers allergy, cough and cold, pain, liver care, physical and mental wellness, probiotics, digestive, and nutritional products; and other products, such as daily body lotions, anti-itch products, moisturizing and soothing lotions, and body and foot creams, as well as powders for eczema. Further, it has various pharmaceutical products and vaccines in development stage. Sanofi has collaboration agreement with GlaxoSmithKline to develop a recombinant Covid-19 vaccine; and a research collaboration with Stanford University School of Medicine to advance the understanding of immunology and inflammation through open scientific exchange. It also has a collaboration and license option agreement with Prellis Biologics, Inc. The company 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.

How the Company Makes Money

Sanofi generates revenue through a diversified portfolio of products and services in the healthcare sector. The company's primary revenue streams include the sale of prescription medicines, vaccines, and consumer healthcare products. Sanofi's pharmaceutical segment covers a variety of therapeutic areas such as diabetes, oncology, rare diseases, multiple sclerosis, and cardiovascular conditions. The vaccines division, Sanofi Pasteur, is a leading producer of vaccines for both children and adults, including those for influenza, polio, and meningitis. Additionally, the consumer healthcare segment offers over-the-counter products for allergy, pain, and digestive health. Sanofi's earnings are also bolstered by strategic partnerships and collaborations with other pharmaceutical companies, research institutions, and healthcare providers, which enhance its research capabilities and market reach.

Sanofi Financial Statement Overview

Summary

Sanofi exhibits strong profitability and a solid balance sheet. Despite a slight dip in revenue and cash flow, the company maintains operational efficiency and prudent leverage, positioning itself well for future growth.

Income Statement

Sanofi's income statement demonstrates stable profitability with a consistent gross profit margin around 70% and a net profit margin above 14% for TTM (Trailing-Twelve-Months). However, revenue has seen a slight decrease from 2023 to 2024, indicating a need for growth acceleration. The EBIT and EBITDA margins remain strong, suggesting efficient operational management.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.28 for TTM, indicating conservative leverage. The company maintains a healthy equity ratio around 56%, showcasing strong asset backing. Despite a slight increase in total debt, the overall financial health appears robust.

Cash Flow

Sanofi's cash flow statement shows a strong free cash flow to net income ratio, evidencing effective cash management. However, the free cash flow has decreased significantly from 2023 to TTM, highlighting potential challenges in sustaining cash flow. The operating cash flow remains positive, supporting operational needs efficiently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.77B	44.29B	46.03B	45.39B	39.17B	37.37B
Gross Profit	31.14B	31.08B	31.80B	31.70B	26.92B	25.21B
EBITDA	10.09B	11.03B	12.00B	14.06B	11.29B	17.51B
Net Income	6.30B	5.56B	5.40B	8.37B	6.22B	12.29B
Balance Sheet
Total Assets	0.00	132.80B	126.46B	126.72B	120.24B	114.41B
Cash, Cash Equivalents and Short-Term Investments	6.96B	7.93B	8.71B	12.74B	10.10B	13.91B
Total Debt	0.00	17.91B	18.42B	21.21B	22.41B	23.68B
Total Liabilities	0.00	54.94B	52.11B	51.57B	51.21B	51.16B
Stockholders Equity	59.03B	77.51B	74.04B	74.78B	68.68B	63.11B
Cash Flow
Free Cash Flow	1.59B	5.89B	7.35B	8.32B	8.48B	5.33B
Operating Cash Flow	3.52B	9.08B	10.26B	10.53B	10.52B	7.45B
Investing Cash Flow	-4.19B	-4.41B	-6.20B	-2.08B	-7.30B	3.59B
Financing Cash Flow	-503.00M	-5.76B	-8.05B	-5.82B	-7.06B	-6.49B

Sanofi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 82.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SAN, the sentiment is Negative. The current price of 82.49 is below the 20-day moving average (MA) of 85.28, below the 50-day MA of 88.42, and below the 200-day MA of 93.19, indicating a bearish trend. The MACD of -2.01 indicates Positive momentum. The RSI at 32.69 is Neutral, neither overbought nor oversold. The STOCH value of 5.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SAN.

Sanofi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERF	74 Outperform	€11.09B	28.54	9.66%	0.85%	6.70%	32.29%
VIRP	72 Outperform	€2.63B	18.10	14.95%	0.46%	12.07%	20.48%
SAN	71 Outperform	€100.60B	18.57	7.34%	4.75%	-4.62%	2.88%
BIM	70 Outperform	€14.07B	32.47	10.86%	0.76%	8.31%	21.00%
IPN	69 Neutral	€8.48B	24.53	8.89%	1.18%	8.73%	-46.34%
DIM	66 Neutral	€19.91B	97.45	5.24%	0.34%	5.21%	-23.23%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.34%	16.99%	1.69%