Sanofi (NASDAQ: SNY)

Sector: Healthcare Industry: Drug Manufacturers - General CIK: 0001121404
Market Cap 113.36 Bn
P/B 1.35
P/E 12.33
P/S 2.06
ROIC (Qtr) 0.00
Div Yield % 4.76
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 23.92 Bn
Debt/Equity (Qtr) 0.28
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About

Sanofi, a prominent player in the pharmaceutical industry, is a multinational corporation that specializes in the discovery, development, and distribution of innovative healthcare solutions to enhance patient lives worldwide. The company's operations are heavily regulated and subject to significant government oversight, reflecting the sensitive nature of the industry. Sanofi's primary business activities revolve around the pharmaceutical sector, where it develops and markets both prescription medications and vaccines. The company's product portfolio...

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Investment thesis

Bull case

  • Strong operating cash flow of 12.65B provides robust 0.53x coverage of total debt 23.92B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 12.65B provides exceptional 282.89x coverage of minority interest expenses 44.71M, showing strong core operations.
  • Operating cash flow of 12.65B provides strong 34.35x coverage of stock compensation 368.24M, indicating sustainable incentive practices.
  • Operating cash flow of 12.65B provides exceptional 19.09x coverage of interest expenses 662.35M, showing strong debt service capability.
  • Strong tangible asset base of 69.70B provides 2.91x coverage of total debt 23.92B, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 12.65B barely covers its investment activities of (2.88B), with a coverage ratio of -4.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 12.65B provides thin coverage of dividend payments of (5.61B) with a -2.25 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (2.88B) provide weak support for R&D spending of 9.23B, which is -0.31x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 11.08B show weak coverage of depreciation charges of 6.68B, with a 1.66 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 6.68B relative to operating cash flow of 12.65B, which is 0.53x suggests significant maintenance capital requirements affecting free cash flow.

Geographical areas [axis] Breakdown of Revenue (2025)

Segments [axis] Breakdown of Revenue (2025)

Peer comparison

Companies in the Drug Manufacturers - General
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LLY ELI LILLY & Co 1,096.48 Bn 444.66 53.21 42.50 Bn
2 JNJ Johnson & Johnson 586.00 Bn 21.86 6.22 47.93 Bn
3 MRK Merck & Co., Inc. 351.73 Bn 29.51 8.33 41.37 Bn
4 ABBV AbbVie Inc. 346.46 Bn 41.07 10.17 68.74 Bn
5 AZN Astrazeneca Plc 324.54 Bn 31.74 5.53 29.62 Bn
6 NVS Novartis Ag 322.29 Bn 23.05 5.69 35.46 Bn
7 GILD Gilead Sciences, Inc. 237.69 Bn 78.03 22.28 24.94 Bn
8 AMGN Amgen Inc 233.95 Bn 29.40 9.93 54.60 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.97 2.46
EV to Cash from Ops. EV/CFO 11.43 38.77
EV to Debt EV to Debt 6.04 6.68
EV to EBIT EV/EBIT 13.04 37.43
EV to EBITDA EV/EBITDA 10.22 30.58
EV to Free Cash Flow [EV/FCF] EV/FCF 15.25 50.59
EV to Market Cap EV to Market Cap 1.28 1.31
EV to Revenue EV/Rev 2.63 8.62
Price to Book Value [P/B] P/B 1.35 5.91
Price to Earnings [P/E] P/E 12.33 44.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 1.93 0.95
Dividend Payout Ratio % Dividend Payout Ratio % 58.80 65.78
Dividend per Basic Share Div per Share (Qtr) 2.21 2.89
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 66.99 40.65
Interest Coverage Interest Coverage 16.73 20.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % -75.27 -17.39
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 16.22 74.29
Dividend Growth (1y) % Div 1y % (Qtr) 8.59 3.76
EBIAT Growth (1y) % EBIAT Growth (1y) % 45.69 71.80
EBITDA Growth (1y) % EBITDA Growth (1y) % 25.28 65.77
EBIT Growth (1y) % EBIT Growth (1y) % 35.74 63.01
EBT Growth (1y) % EBT Growth (1y) % 47.87 306.04
EPS Growth (1y) % EPS Growth (1y) % 62.80 348.81
FCF Growth (1y) % FCF Growth (1y) % 23.89 11.69
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 22.34 7.99
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.43 0.39
Cash Payout Ratio Cash Payout Ratio 0.36 0.28
Cash Ratio Cash Ratio (Qtr) 0.27 2.08
Current Ratio Curr Ratio (Qtr) 1.09 6.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.28 -0.39
Interest Cover Ratio Interest Cover Ratio 16.73 20.38
Times Interest Earned Times Interest Earned 16.73 20.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 32.30 -13.64
EBIT Margin % EBIT Margin % 17.14 -10.45
EBT Margin % EBT Margin % 18.96 -25.59
Gross Margin % Gross Margin % 72.10 65.04
Net Profit Margin % Net Profit Margin % 16.70 -34.87