Sanofi (SNY) AI Stock Analysis

• Market Cap: $116.96B
• Dividend Yield: 4.62%
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.49
• Revenue Growth: -4.57%
• EPS Growth: 2.96%
• Country: US
• Employees: 82,878
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.79
• Shares Outstanding: 2,455,511,000
• 10 Day Avg. Volume: 2,303,268
• 30 Day Avg. Volume: 2,263,965
• PEG Ratio: 0.71
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 73.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $61.50
• Price Target Upside: 28.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $54.00 ▲(12.83%Upside)

Sanofi's overall stock score reflects strong financial performance and positive earnings call highlights, including robust sales growth and strategic initiatives. However, technical analysis indicates bearish momentum, and cash flow weaknesses along with market uncertainties slightly temper the outlook.

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 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 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 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.

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
	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

• Technical Analysis Sentiment: Negative
• Last Price: 47.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 47.86 is below the 20-day moving average (MA) of 50.08, below the 50-day MA of 50.59, and below the 200-day MA of 51.26, indicating a bearish trend. The MACD of -0.78 indicates Positive momentum. The RSI at 37.16 is Neutral, neither overbought nor oversold. The STOCH value of 6.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNY.

Sanofi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVS	80 Outperform	$220.80B	18.00	32.95%	3.45%	6.30%	-13.28%
AZN	73 Outperform	$216.33B	27.90	19.81%	3.00%	15.48%	22.70%
GILD	71 Outperform	$134.97B	22.81	32.51%	2.91%	4.63%	1144.01%
PFE	70 Neutral	$136.28B	17.37	8.62%	7.17%	13.38%	―
SNY	67 Neutral	$116.96B	19.92	7.34%	4.62%	-4.57%	2.96%
BMY	63 Neutral	$95.36B	17.59	31.99%	6.27%	4.62%	―
Sector *	46 Neutral	C$186.84M	-4.25	-8.56%	2.73%	13.68%	-1.94%