Sanofi (SNY) AI Stock Analysis

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Sanofi

(NASDAQ:SNY)

Rating:68Neutral

Price Target:

$54.00

▲(9.09%Upside)

Sanofi's overall stock score reflects strong earnings performance and a stable financial foundation, despite technical challenges and valuation concerns. The earnings call was particularly impactful, highlighting strategic growth areas and effective management. Technical indicators suggest a cautious approach, while the valuation is slightly stretched.

Positive Factors

Earnings

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

Innovation

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

$119.29B

Dividend Yield3.27%

Average Volume (3M)2.47M

Price to Earnings (P/E)20.5

Beta (1Y)0.47

Revenue Growth-4.57%

EPS Growth2.96%

CountryUS

Employees82,878

SectorHealthcare

Sector Strength41

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)0.79

Shares Outstanding2,455,511,000

10 Day Avg. Volume2,065,014

30 Day Avg. Volume2,465,062

Financial Highlights & Ratios

PEG Ratio0.73

Price to Book (P/B)0.82

Price to Sales (P/S)0.00

P/FCF Ratio75.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$62.20

Price Target Upside25.66% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

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: -3.66%|

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 solid financial stability with strong profitability and a robust balance sheet. Despite challenges in revenue growth and cash flow generation, the company maintains healthy margins and leverage ratios, positioning it well for future growth.

Income Statement

Positive

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

Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
8.71B	7.93B	8.71B	12.74B	10.10B	13.91B
	Total Assets
0.00	132.80B	126.46B	126.72B	120.24B	114.41B
	Total Debt
0.00	17.91B	18.42B	21.21B	22.41B	23.68B
	Net Debt
8.71B	10.46B	9.71B	8.48B	12.32B	9.76B
	Total Liabilities
0.00	54.94B	52.11B	51.57B	51.21B	51.16B
	Stockholders Equity
74.35B	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

Negative

Last Price49.50

Price Trends

50DMA

51.19

Negative

100DMA

52.02

Negative

200DMA

51.51

Negative

Market Momentum

MACD

-0.42

Positive

RSI

41.25

Neutral

STOCH

15.31

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 49.5 is below the 20-day moving average (MA) of 51.02, below the 50-day MA of 51.19, and below the 200-day MA of 51.51, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 41.25 is Neutral, neither overbought nor oversold. The STOCH value of 15.31 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

Climate change or legal, regulatory or market measures to address climate change may negatively affect our business and results of operations Q4, 2023

Failure to comply with data ethics and privacy regulations could adversely affect our business and reputation Q4, 2023

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 (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVS	78 Outperform	$219.86B	18.14	32.95%	2.83%	6.30%	-13.28%
AZN	77 Outperform	$221.93B	28.69	19.81%	2.11%	15.48%	22.70%
GILD	71 Outperform	$136.00B	22.99	32.51%	2.83%	4.63%	1144.01%
SNY	68 Neutral	$119.29B	20.47	7.34%	3.27%	-4.57%	2.96%
PFE	66 Neutral	$133.38B	17.00	8.62%	7.28%	13.38%	―
BMY	63 Neutral	$99.29B	18.32	31.99%	5.07%	4.62%	―
Sector *	53 Neutral	$5.23B	3.23	-44.27%	2.82%	16.82%	0.11%

* Healthcare Sector Average

Performance Comparison

SNY

Sanofi

49.50

1.89

3.97%

AZN

AstraZeneca

73.00

-5.74

-7.29%

BMY

Bristol Myers

47.95

8.64

21.98%

GILD

Gilead Sciences

109.02

47.45

77.07%

NVS

Novartis

116.94

14.68

14.36%

PFE

Pfizer

23.39

-4.31

-15.56%

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.