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Sanofi (SNY)
NASDAQ:SNY
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Sanofi
(NASDAQ:SNY)
70Outperform
Positive Factors
Financial Performance
Healthy balance sheet with strong operating cash flow.
Pipeline and Indications
Sanofi holds a diverse pipeline and is expected to launch or expand indications for over 10 drugs in FY25.
Product Approval
Qfitlia was approved by the FDA for routine prophylaxis to prevent or reduce the frequency of bleeding episodes in adult and pediatric patients with hemophilia A or B.
Negative Factors
Market Competition
There is risk of Dupixent’s market share being diminished if competitors' alternatives are successfully developed and launched.
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. S&P 500 (SPY)
Market Cap
$122.46B
Dividend Yield2.96%
Average Volume (3M)3.05M
Price to Earnings (P/E)20.8
Beta (1Y)0.49
Revenue Growth-4.57%
EPS Growth2.96%
CountryUS
Employees82,878
SectorHealthcare
Sector Strength39
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.79
Shares Outstanding2,455,511,000
10 Day Avg. Volume2,262,540
30 Day Avg. Volume3,051,905
Financial Highlights & Ratios
PEG Ratio1.76
Price to Book (P/B)1.54
Price to Sales (P/S)0.00
P/FCF Ratio71.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$64.00Price Target Upside30.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Sanofi Business Overview & Revenue Model
Company DescriptionSanofi, 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 MoneySanofi generates revenue through the sale of its pharmaceutical products, vaccines, and consumer healthcare products. The company has a diversified revenue model, with key revenue streams originating from its specialty care and vaccines divisions, which contribute significantly to its earnings. Sanofi's prescription medications, which treat a range of chronic and acute health conditions, form a substantial part of its revenue. Additionally, the company earns from its consumer healthcare division, which offers over-the-counter medications and wellness products. Strategic partnerships, collaborations in research and development, and licensing agreements also play a crucial role in enhancing Sanofi's market reach and financial performance. Revenue is further supported by Sanofi's global presence and distribution networks, allowing it to penetrate various international markets effectively.
Sanofi Financial Statement Overview
Summary
Sanofi shows financial stability with healthy profitability and a solid balance sheet. The income statement reflects strong margins, although revenue growth is slightly negative. The balance sheet is stable with low leverage, while cash flow generation indicates some weaknesses, particularly in free cash flow growth, which could impact future investments.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 | EBIT |
| 8.12B | 7.25B | 7.88B | 16.79B | 8.13B | 8.08B | EBITDA |
| 10.09B | 11.03B | 12.00B | 14.06B | 11.29B | 17.51B | Net Income Common Stockholders |
| 6.30B | 5.56B | 5.40B | 8.37B | 6.22B | 12.29B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.99B | 7.93B | 8.71B | 12.74B | 10.10B | 13.91B | Total Assets |
| 131.89B | 132.80B | 126.46B | 126.72B | 120.24B | 114.41B | Total Debt |
| 21.05B | 17.91B | 18.42B | 21.21B | 22.41B | 23.68B | Net Debt |
| 13.06B | 10.46B | 9.71B | 8.48B | 12.32B | 9.76B | 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
49.21
Price Trends
52.63
Negative
51.40
Negative
51.46
Negative
Market Momentum
-0.43
Positive
41.02
Neutral
10.17
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 49.21 is below the 20-day moving average (MA) of 51.01, below the 50-day MA of 52.63, and below the 200-day MA of 51.46, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 10.17 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 0 New Risks
Sanofi Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $209.57B | 27.01 | 19.81% | 2.24% | 15.48% | 22.70% | |
76 Outperform | $204.19B | 16.61 | 32.95% | 3.07% | 6.30% | -13.28% | |
73 Outperform | $129.14B | 21.83 | 32.51% | 3.06% | 4.63% | 1144.01% | |
70 Outperform | $122.46B | 20.79 | 7.34% | 2.96% | -4.57% | 2.96% | |
66 Neutral | $130.02B | 16.57 | 8.62% | 7.39% | 13.38% | ― | |
63 Neutral | $94.81B | 17.49 | 31.99% | 5.24% | 4.62% | ― | |
52 Neutral | $5.14B | 3.39 | -43.55% | 2.83% | 16.49% | -0.19% |
* Healthcare Sector Average
Performance Comparison
SNY
Sanofi
49.21
1.90
4.02%
AZN
AstraZeneca
66.23
-9.29
-12.30%
BMY
Bristol Myers
44.12
2.08
4.95%
GILD
Gilead Sciences
98.38
32.98
50.43%
NVS
Novartis
104.99
5.32
5.34%
PFE
Pfizer
22.02
-5.09
-18.78%
Sanofi Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -4.22%|
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.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.