Sanofi (SAN) AI Stock Analysis

• Market Cap: $105.23B
• Dividend Yield: 4.61%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.78
• Revenue Growth: -9.82%
• EPS Growth: 119.10%
• Country: FR
• Employees: 82,878
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.91
• Shares Outstanding: 1,227,469,000
• 10 Day Avg. Volume: 1,590,247
• 30 Day Avg. Volume: 1,950,864
• PEG Ratio: 6.99
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 19.93
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 8.38
• 1Y Price Target: $103.89
• Price Target Upside: 22.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €96.00 ▲(12.94% Upside)

Sanofi's overall stock score is driven by its strong financial performance and attractive valuation, despite some technical indicators suggesting caution. The company's solid profitability and prudent financial management provide a strong foundation, while the low P/E ratio and high dividend yield enhance its appeal. Technical analysis indicates potential short-term challenges, but the stock's fundamentals remain robust.

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 primarily through the sale of prescription pharmaceuticals, vaccines, and consumer healthcare products. The company's revenue model is driven by its proprietary drug portfolio, which includes well-known medications and therapies that cater to chronic and acute health conditions. Key revenue streams include sales from diabetes care products, oncology treatments, and vaccines, particularly those targeting influenza and other infectious diseases. Sanofi also engages in strategic partnerships and collaborations with other pharmaceutical companies, academic institutions, and research organizations to enhance its R&D capabilities and expand its product offerings. Additionally, the company benefits from licensing agreements and royalties from its innovative therapies, contributing significantly to its overall earnings.

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

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	46.92B	44.29B	41.11B	40.30B	39.17B	37.37B
Gross Profit	33.38B	31.09B	28.49B	28.43B	26.92B	25.26B
EBITDA	12.93B	11.66B	11.08B	13.09B	11.25B	10.47B
Net Income	9.31B	5.56B	5.40B	8.37B	6.22B	12.29B
Balance Sheet
Total Assets	124.96B	132.80B	126.46B	126.72B	120.24B	114.41B
Cash, Cash Equivalents and Short-Term Investments	15.36B	7.93B	8.98B	13.40B	11.15B	11.15B
Total Debt	22.29B	17.91B	18.42B	21.21B	22.41B	23.68B
Total Liabilities	54.68B	54.94B	52.11B	51.57B	51.21B	51.16B
Stockholders Equity	70.01B	77.51B	74.04B	74.78B	68.68B	63.11B
Cash Flow
Free Cash Flow	12.04B	5.89B	8.64B	8.32B	8.48B	5.33B
Operating Cash Flow	13.31B	9.08B	10.26B	10.53B	10.52B	7.45B
Investing Cash Flow	6.96B	-4.41B	-6.20B	-2.08B	-7.30B	3.59B
Financing Cash Flow	-10.93B	-5.76B	-8.05B	-5.82B	-7.06B	-6.49B

Sanofi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 85.00
• 50DMA: Negative
• 100DMA: Positive
• 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 85 is below the 20-day moving average (MA) of 86.96, below the 50-day MA of 86.10, and below the 200-day MA of 87.64, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 43.29 is Neutral, neither overbought nor oversold. The STOCH value of 15.80 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
SAN	75 Outperform	$105.23B	11.68	8.39%	4.61%	-9.82%	119.10%
VIRP	75 Outperform	€2.90B	21.78	12.92%	0.41%	6.97%	-5.59%
IPN	70 Outperform	€10.27B	22.92	10.82%	1.15%	9.57%	-34.30%
DIM	67 Neutral	€19.50B	73.89	6.65%	0.30%	7.72%	53.84%
BIM	66 Neutral	€12.90B	34.12	9.69%	0.86%	8.28%	-8.08%
ERF	64 Neutral	€10.90B	25.53	11.27%	1.02%	6.25%	18.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%