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Sanofi (FR:SAN)
:SAN

Sanofi (SAN) AI Stock Analysis

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Sanofi

(OTC:SAN)

Rating:76Outperform
Price Target:
€104.00
▲(17.63%Upside)
Sanofi's strong financial performance and positive earnings call insights are the primary drivers of its robust stock score. While the technical analysis shows mild positive momentum, valuation metrics are reasonable and support the stock's potential. Challenges in specific markets and exchange rates are noted but do not significantly detract from the overall positive outlook.
Positive Factors
Acquisition Benefits
Sanofi's acquisition of BPMC boosts its rare disease franchise, providing a growth opportunity with Ayvakit, the only approved medicine for systemic mastocytosis.
Financial Performance
The acquisition of Blueprint Medicines is expected to enhance Sanofi's financial performance, being accretive to business operating income and EPS post-2026.
Product Exclusivity
Ayvakit benefits from Orphan Drug Exclusivity until 2030, extending its market potential and protecting it from price negotiation.
Negative Factors
Competitive Pressure
Phase II competitor data indicates higher symptom reduction for a rival drug compared to Ayvakit, though with more significant safety concerns.
Regulatory Challenges
Mixed data across trials raises debate over the regulatory path forward for itepekimab, complicating its potential approval.
Trial Results
The product failed to show a benefit in moderate to severe exacerbations in the second trial, suggesting potential delays in submission due to a lack of required positive trials.

Sanofi (SAN) vs. iShares MSCI France ETF (EWQ)

Sanofi Business Overview & Revenue Model

Company DescriptionSanofi is a global healthcare leader focused on discovering, developing, and distributing therapeutic solutions. Headquartered in Paris, France, the company operates in several sectors, including pharmaceuticals, vaccines, and consumer healthcare. Sanofi's core products encompass a broad range of medicines and vaccines that address a wide array of health challenges, from diabetes and cardiovascular diseases to oncology and immunology.
How the Company Makes MoneySanofi 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 Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: -1.00%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong sales growth, especially in Dupixent and the Vaccine business, supported by new product launches and improved financial metrics. However, challenges were noted in exchange rates, potential tariffs, and specific segments like respiratory development and the U.S. flu vaccine market.
Q1-2025 Updates
Positive Updates
Strong Start to 2025 with Sales Growth
Sanofi reported a 7% sales growth in Q1 2025, driven by pharma launches and vaccines, with new launches generating EUR 1.1 billion in sales, contributing 11% of the total.
Dupixent Growth and U.S. Market Performance
Dupixent delivered a 20% growth in Q1, reaching EUR 3.5 billion in sales, with EUR 2.5 billion from the U.S., up 18%. Dupixent leads total prescription share across all approved indications.
Vaccine Business Double-Digit Growth
Sanofi's Vaccine business delivered double-digit growth in Q1, driven by favorable Fortis phasing and new country launches. Manufacturing for flu vaccines is progressing as planned.
Improved Financial Metrics
Gross margin improved to 78%, up 2.3 percentage points from the previous year. Business EPS was EUR 1.79, up 15.7%, reflecting strong sales performance and improved operating leverage.
Innovative Pipeline Progress
Sanofi obtained 6 approvals in Q1, including Sarclisa and Dupixent in new indications, and announced the acquisition of DR 0201 from Dren Bio to strengthen its pipeline in immunology.
Negative Updates
Impact of Exchange Rates and Tariff Uncertainties
Sanofi expects a negative foreign exchange impact of around minus 1.5% on sales and around minus 2% on EPS for the full year 2025. There are also uncertainties regarding potential U.S. tariffs.
Challenges in Respiratory Segment Development
Amlitelimab missed its primary endpoint in asthma trials. The company remains committed to developing its respiratory franchise but acknowledges challenges in trial results.
Pressure in U.S. Flu Vaccine Market
Sanofi mentioned observing softer demand and intense pricing pressure in the U.S. flu vaccine market, which may impact pre-booking and sales growth.
Company Guidance
During the Q1 2025 Sanofi conference call, CEO Paul Hudson announced a strong start to the year with a 7% sales growth driven by new pharma launches. Dupixent achieved a 20% sales increase, reaching €3.5 billion, while new product launches contributed €1.1 billion in sales. The company obtained FDA approval for QFIPIA in hemophilia and aims for continued growth with upcoming regulatory decisions. François-Xavier Roger, CFO, reported a 9.7% increase in net sales to €9.9 billion, with a gross margin improvement to 78%. Business EPS rose 15.7% to €1.79. Sanofi plans a €5 billion share buyback, with 76% completed. The company maintains a focus on organic growth, evaluating bolt-on acquisitions, and expects a stable tax rate around 20% for 2025.

Sanofi Financial Statement Overview

Summary
Sanofi exhibits a commendable financial position with strong profitability and a solid balance sheet. While there is a slight dip in revenue and cash flow, the company maintains operational efficiency and prudent leverage, positioning itself well for future growth in the competitive pharmaceutical industry.
Income Statement
78
Positive
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
82
Very Positive
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
75
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
43.77B44.29B46.03B45.39B39.17B37.37B
Gross Profit
31.14B31.08B31.80B31.70B26.92B25.21B
EBIT
8.12B7.25B7.88B16.79B8.13B8.08B
EBITDA
10.09B11.03B12.00B14.06B11.29B17.51B
Net Income Common Stockholders
6.30B5.56B5.40B8.37B6.22B12.29B
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.99B7.93B8.71B12.74B10.10B13.91B
Total Assets
131.89B132.80B126.46B126.72B120.24B114.41B
Total Debt
21.05B17.91B18.42B21.21B22.41B23.68B
Net Debt
13.06B10.46B9.71B8.48B12.32B9.76B
Total Liabilities
57.47B54.94B52.11B51.57B51.21B51.16B
Stockholders Equity
74.07B77.51B74.04B74.78B68.68B63.11B
Cash FlowFree Cash Flow
1.59B5.89B7.35B8.32B8.48B5.33B
Operating Cash Flow
3.52B9.08B10.26B10.53B10.52B7.45B
Investing Cash Flow
-4.19B-4.41B-6.20B-2.08B-7.30B3.59B
Financing Cash Flow
-503.00M-5.76B-8.05B-5.82B-7.06B-6.49B

Sanofi Technical Analysis

Technical Analysis Sentiment
Negative
Last Price88.41
Price Trends
50DMA
90.62
Negative
100DMA
95.15
Negative
200DMA
94.25
Negative
Market Momentum
MACD
-1.00
Positive
RSI
43.86
Neutral
STOCH
27.35
Neutral
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 88.41 is below the 20-day moving average (MA) of 90.49, below the 50-day MA of 90.62, and below the 200-day MA of 94.25, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 27.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SAN.

Sanofi Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRSAN
76
Outperform
$106.69B19.697.34%4.12%-4.62%2.88%
75
Outperform
€2.73B18.7614.95%0.40%12.07%20.48%
FRERF
74
Outperform
€10.38B26.719.66%1.05%6.70%32.29%
FRBIM
70
Outperform
€14.24B32.8810.86%0.70%8.31%21.00%
FRIPN
68
Neutral
€8.61B24.918.89%1.15%8.73%-46.34%
FRDIM
64
Neutral
€18.87B92.335.24%0.36%5.21%-23.23%
54
Neutral
$5.31B3.29-45.39%2.79%16.77%-0.07%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:SAN
Sanofi
88.41
1.95
2.25%
FR:VIRP
Virbac SA
325.50
-34.14
-9.49%
FR:IPN
Ipsen
104.50
-16.66
-13.75%
FR:DIM
Sartorius Stedim Biotech
193.65
8.90
4.82%
FR:BIM
bioMerieux
122.00
30.05
32.68%
FR:ERF
Eurofins Scientific
58.36
5.44
10.28%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.