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Sanofi (SNY)
NASDAQ:SNY
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Sanofi
(NASDAQ:SNY)
Rating:67Neutral
Price Target:
$54.00
▲(12.97%Upside)
Positive Factors
Earnings
Robust sales from key products and new launches propelled earnings above expectations.
Innovation and Strategy
Continued innovation and strategic focus underpin a confident earnings outlook for 2025.
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 (SNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$117.80B
Dividend Yield4.57%
Average Volume (3M)2.24M
Price to Earnings (P/E)20.0
Beta (1Y)0.49
Revenue Growth-4.57%
EPS Growth2.96%
CountryUS
Employees82,878
SectorHealthcare
Sector Strength49
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.79
Shares Outstanding2,455,511,000
10 Day Avg. Volume2,271,078
30 Day Avg. Volume2,239,254
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)0.80
Price to Sales (P/S)0.00
P/FCF Ratio73.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$61.50Price Target Upside28.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Sanofi Business Overview & Revenue Model
Company DescriptionSanofi (SNY) is a global healthcare leader engaged in the research, development, manufacturing, and marketing of therapeutic solutions. The company operates across various sectors, including pharmaceuticals, vaccines, and consumer healthcare. Sanofi's core products and services include prescription medicines, vaccines for adults and children, and over-the-counter healthcare products. With a robust pipeline and a strategic focus on emerging markets, Sanofi aims to address a wide range of healthcare needs worldwide.
How the Company Makes MoneySanofi makes money primarily through the sale of its pharmaceutical products, vaccines, and consumer healthcare products. The company's revenue streams are largely driven by its pharmaceuticals segment, which includes specialty care and general medicines. Specialty care focuses on rare diseases, oncology, immunology, multiple sclerosis, and more, while general medicines cover diabetes, cardiovascular, and established prescription products. The vaccines segment, operated through Sanofi Pasteur, is a significant contributor to Sanofi's earnings, offering vaccines for diseases like influenza, meningitis, and polio. Additionally, the consumer healthcare division provides over-the-counter products that cater to wellness and self-care needs. Strategic partnerships, research and development collaborations, and expansion into high-growth markets further bolster Sanofi's revenue potential.
Sanofi Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -6.97%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Sanofi's Q1 2025 earnings call presented a strong financial and strategic performance, highlighted by significant growth in Dupixent sales and successful new product launches. However, challenges such as foreign exchange impacts and uncertainties in the U.S. flu vaccine market and potential tariffs present some headwinds.Q1-2025 Updates
Positive Updates
Strong Start to 2025
Sanofi reported a 7% sales growth in Q1 2025 driven by pharma launches, Dupixent, and Befortis in the vaccines portfolio. New launches contributed EUR 1.1 billion in sales, 11% of the total.
Dupixent Growth
Dupixent sales grew by 20% in Q1, reaching EUR 3.5 billion. U.S. sales were EUR 2.5 billion, up 18%. Dupixent leads in total prescription share across all approved indications.
Vaccines Segment Performance
Vaccines business delivered double-digit growth in Q1, driven by favorable Fortis phasing and new country launches.
Financial Performance
Net sales increased by 9.7% at constant exchange rates to EUR 9.9 billion. Gross margin improved to 78%, up 2.3 percentage points. Business EPS was EUR 1.79, up 15.7%.
Pipeline and Approvals
Sanofi obtained 6 approvals in Q1, including for Dupixent in COPD in Japan and CSU in the U.S. and Sarclisa in several countries.
Negative Updates
Foreign Exchange Impact
The foreign exchange impact is estimated to be around minus 1.5% on sales and around minus 2% on EPS for 2025.
Challenges in U.S. Flu Vaccine Market
Sanofi faces soft demand and intense pricing pressure in the U.S. flu vaccine market, which could impact sales growth.
Uncertainty with U.S. Tariffs
Potential U.S. tariffs could impact Sanofi's operations, but specific scenarios are speculative and not fully disclosed.
Company Guidance
During the Q1 2025 conference call, Sanofi reported a robust 7% sales growth, driven by strong performances of Dupixent and new launches such as Befortis, which generated EUR 1.1 billion in sales, contributing 11% to total sales. Dupixent alone saw a 20% growth, reaching EUR 3.5 billion, with EUR 2.5 billion from the U.S. market. The vaccine business also showed double-digit growth, bolstered by favorable phasing and new market entries. Sanofi's gross margin improved significantly to 78%, up 2.3 percentage points from the previous year. The company maintained its effective tax rate at 22.3% for Q1, with a full-year expectation of around 20%. Business EPS increased by 15.7% to EUR 1.79, supported by strong sales and operational efficiencies. Additionally, Sanofi announced progress in its sustainability strategy and outlined plans for continued investment in R&D and strategic acquisitions, alongside a EUR 5 billion share buyback program, 76% of which was completed by the date of the call.Sanofi Financial Statement Overview
Summary
Sanofi demonstrates financial stability with strong profitability and a solid balance sheet. The income statement shows efficient cost management and healthy margins, but revenue growth is slightly negative. The balance sheet reflects low leverage and strong equity backing, although cash flow generation shows some weakness.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.78
Positive
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.75
Positive
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.65
Positive
| 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
Negative
47.80
Price Trends
50.52
Negative
51.95
Negative
51.14
Negative
Market Momentum
-0.83
Positive
38.14
Neutral
19.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNY, the sentiment is Negative. The current price of 47.8 is below the 20-day moving average (MA) of 49.46, below the 50-day MA of 50.52, and below the 200-day MA of 51.14, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 38.14 is Neutral, neither overbought nor oversold. The STOCH value of 19.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNY.
Sanofi Risk Analysis
Sanofi disclosed 29 risk factors in its most recent earnings report. Sanofi reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Climate change or legal, regulatory or market measures to address climate change may negatively affect our business and results of operations Q4, 2023
2.
Failure to comply with data ethics and privacy regulations could adversely affect our business and reputation Q4, 2023
3.
A failure in our crisis and business continuity management processes in case of unpredictable events could have negative consequences for our business, operations and reputation Q4, 2023
Sanofi Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $224.87B | 18.27 | 32.95% | 3.36% | 6.30% | -13.28% | |
73 Outperform | $217.59B | 28.14 | 19.81% | 2.98% | 15.48% | 22.70% | |
72 Outperform | $136.62B | 17.42 | 8.62% | 7.08% | 13.38% | ― | |
71 Outperform | $132.09B | 22.33 | 32.51% | 2.95% | 4.63% | 1144.01% | |
67 Neutral | $117.80B | 20.05 | 7.34% | 4.57% | -4.57% | 2.96% | |
63 Neutral | $95.49B | 17.62 | 31.99% | 6.25% | 4.62% | ― | |
51 Neutral | $7.39B | 0.31 | -61.07% | 2.34% | 17.46% | 1.71% |
* Healthcare Sector Average
Performance Comparison
SNY
Sanofi
47.80
1.20
2.58%
AZN
AstraZeneca
69.68
-6.96
-9.08%
BMY
Bristol-Myers Squibb
46.68
7.12
18.00%
GILD
Gilead Sciences
105.93
39.25
58.86%
NVS
Novartis
118.00
14.59
14.11%
PFE
Pfizer
24.26
-1.80
-6.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.