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Sanofi (SNY)
NASDAQ:SNY
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Sanofi
(NASDAQ:SNY)
Rating:71Outperform
Price Target:
$57.00
▲(8.80%Upside)
Positive Factors
Partnerships
Sanofi has partnered with Labcorp to make the INNOVANCE AT assay available at no cost.
Product Line
Sanofi holds a diverse pipeline and is expected to launch or expand indications for over 10 drugs in FY25.
Regulatory 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
Competition
There is a risk of Dupixent’s market share being diminished due to competition from alternatives such as JAK inhibitors.
Regulatory Warnings
The label includes a Black Box warning for 'Thrombotic Events' and 'Acute/Recurrent Gallbladder Disease' as well as a Warning for hepatotoxicity.
Sanofi (SNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$128.08B
Dividend Yield2.84%
Average Volume (3M)2.68M
Price to Earnings (P/E)21.8
Beta (1Y)0.49
Revenue Growth-4.57%
EPS Growth2.96%
CountryUS
Employees82,878
SectorHealthcare
Sector Strength40
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.79
Shares Outstanding2,455,511,000
10 Day Avg. Volume2,145,002
30 Day Avg. Volume2,679,858
Financial Highlights & Ratios
PEG Ratio2.89
Price to Book (P/B)3.08
Price to Sales (P/S)0.00
P/FCF Ratio74.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$66.33Price Target Upside26.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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: 1.97%|
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 shows strong profitability with a healthy balance sheet, evidenced by a stable gross profit margin and low debt-to-equity ratio. However, negative revenue growth and declining cash flow pose challenges.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 |
| 31.12B | 31.08B | 31.80B | 31.70B | 26.92B | 25.21B | EBIT |
| 8.09B | 7.25B | 7.88B | 16.79B | 8.13B | 8.08B | EBITDA |
| 9.61B | 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 | ||||
| 1.54B | 5.89B | 7.35B | 8.32B | 8.48B | 5.33B | Operating Cash Flow |
| 3.43B | 9.08B | 10.26B | 10.53B | 10.52B | 7.45B | Investing Cash Flow |
| -3.82B | -4.41B | -6.20B | -2.08B | -7.30B | 3.59B | Financing Cash Flow |
| -1.26B | -5.76B | -8.05B | -5.82B | -7.06B | -6.49B |
Sanofi Technical Analysis
Positive
52.39
Price Trends
51.89
Positive
51.85
Positive
51.54
Positive
Market Momentum
0.22
Negative
53.79
Neutral
77.50
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 52.39 is above the 20-day moving average (MA) of 51.73, above the 50-day MA of 51.89, and above the 200-day MA of 51.54, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 77.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $215.37B | 17.60 | 32.95% | 2.91% | 6.30% | -13.28% | |
77 Outperform | $219.66B | 28.08 | 19.81% | 2.16% | 15.48% | 22.70% | |
71 Outperform | $128.08B | 21.80 | 7.34% | 2.84% | -4.57% | 2.96% | |
71 Outperform | $133.56B | 22.58 | 32.51% | 2.89% | 4.63% | 1144.01% | |
66 Neutral | $132.58B | 16.90 | 8.62% | 7.25% | 13.38% | ― | |
63 Neutral | $95.42B | 17.60 | 31.99% | 5.21% | 4.62% | ― | |
53 Neutral | $5.14B | 3.23 | -45.01% | 2.85% | 17.55% | -0.69% |
* Healthcare Sector Average
Performance Comparison
SNY
Sanofi
52.39
6.29
13.64%
AZN
AstraZeneca
70.96
-3.62
-4.85%
BMY
Bristol Myers
46.89
8.53
22.24%
GILD
Gilead Sciences
109.09
47.89
78.25%
NVS
Novartis
113.21
16.77
17.39%
PFE
Pfizer
23.61
-2.47
-9.47%
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.