Sanofi (SNY) AI Stock Analysis

• Market Cap: $122.44B
• Dividend Yield: 4.4%
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.52
• Revenue Growth: -9.32%
• EPS Growth: 120.62%
• Country: US
• Employees: 82,878
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.91
• Shares Outstanding: 2,454,938,000
• 10 Day Avg. Volume: 2,107,758
• 30 Day Avg. Volume: 2,379,435
• PEG Ratio: 3.23
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 19.80
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 4.09
• Enterprise Value/Ebitda: 12.62
• 1Y Price Target: $61.20
• Price Target Upside: 22.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $56.00 ▲(11.71% Upside)

Sanofi's overall stock score is driven by strong earnings call performance and attractive valuation. Financial stability and profitability support the score, although cash flow challenges and mixed technical indicators present some risks. The company's strategic focus and positive guidance contribute to a favorable outlook.

Positive Factors

Earnings

Robust sales from key products and new launches propelled earnings above expectations.

Strategic Investment

Free cash flow supports ongoing strategic investments and shareholder returns.

Negative Factors

Competition

Competition from alternatives of Dupixent could risk its market share being diminished.

Safety Concerns

Qfitlia requires liver tests and monitoring for signs and symptoms of acute and recurrent gallbladder disease, indicating potential safety concerns.

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 earns significant income from its diverse portfolio of patented drugs, which includes treatments for chronic conditions like diabetes and oncology products. Additionally, Sanofi's vaccines division is a major contributor to its revenue, providing immunizations against diseases such as influenza and meningitis. The company also engages in strategic partnerships and collaborations with other pharmaceutical and biotech firms, enhancing its research capabilities and expanding its product offerings. These collaborations often involve shared development costs and potential profits from newly developed therapies. Furthermore, Sanofi benefits from its presence in emerging markets, where rising healthcare needs and increasing access to medications contribute to growth in sales.

Sanofi Financial Statement Overview

Summary

Sanofi demonstrates financial stability with strong profitability and a solid balance sheet. However, the decline in free cash flow growth indicates potential limitations for future investments, despite healthy margins and low leverage.

Income Statement

Sanofi's income statement shows moderate performance with a stable gross profit margin of 71% TTM. The net profit margin improved to 14.4% TTM, indicating efficient cost management. However, revenue growth is slightly negative compared to the previous year, reflecting potential challenges in market expansion. EBIT and EBITDA margins are healthy at 18.5% and 23.0% TTM, respectively.

Balance Sheet

Sanofi maintains a solid balance sheet with a debt-to-equity ratio of 0.28, reflecting low leverage and financial stability. The return on equity (ROE) is strong at 8.5% TTM, demonstrating effective use of shareholder funds. The equity ratio stands at 56.1% TTM, indicating a robust capital structure with sufficient equity backing.

Cash Flow

Sanofi's cash flow analysis reveals a decline in free cash flow growth, falling by 73% TTM, which could constrain future investments. However, the operating cash flow to net income ratio is robust at 0.56, showcasing healthy cash conversion from profits. The free cash flow to net income ratio is lower at 0.25, signaling room for improvement in cash retention.

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	131.89B	132.80B	126.46B	126.72B	120.24B	114.41B
Cash, Cash Equivalents and Short-Term Investments	7.99B	7.93B	8.71B	12.74B	10.10B	13.91B
Total Debt	21.05B	17.91B	18.42B	21.21B	22.41B	23.68B
Total Liabilities	57.47B	54.94B	52.11B	51.57B	51.21B	51.16B
Stockholders Equity	74.07B	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: Positive
• Last Price: 50.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNY, the sentiment is Positive. The current price of 50.13 is above the 20-day moving average (MA) of 48.70, above the 50-day MA of 48.69, and above the 200-day MA of 50.04, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 56.83 is Neutral, neither overbought nor oversold. The STOCH value of 70.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNY.

Sanofi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFE	82 Outperform	$147.14B	13.76	12.16%	6.86%	14.72%	―
MRK	81 Outperform	$213.09B	13.47	35.44%	3.75%	2.00%	20.01%
NVS	78 Outperform	$241.52B	18.27	32.82%	3.15%	12.38%	-12.67%
SNY	76 Outperform	$122.44B	12.77	8.39%	4.40%	-9.32%	120.62%
BMY	68 Neutral	$95.95B	19.34	29.31%	5.21%	2.57%	―
GILD	68 Neutral	$142.41B	22.83	33.26%	2.73%	3.69%	501.26%
Sector *	51 Neutral	$7.81B	-0.15	-40.08%	2.29%	21.29%	-1.80%