0.29 | 0.54%
SANOFI's gross profit margin for the fourth quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SANOFI has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.66% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
| Income Statement | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Net Sales ($mil) | 12323.73 | 10331.78 |
| EBITDA ($mil) | 0.0 | 0.0 |
| EBIT ($mil) | 1899.73 | 2073.47 |
| Net Income ($mil) | 691.01 | 1664.32 |
| Balance Sheet | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 8487.83 | 5395.47 |
| Total Assets ($mil) | 132396.67 | 129944.06 |
| Total Debt ($mil) | 19160.58 | 20029.02 |
| Equity ($mil) | 75605.89 | 72932.91 |
| Profitability | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Gross Profit Margin | 57.85 | 59.66 |
| EBITDA Margin | 0.0 | 0.0 |
| Operating Margin | 15.42 | 20.07 |
| Sales Turnover | 0.36 | 0.35 |
| Return on Assets | 4.94 | 5.68 |
| Return on Equity | 8.66 | 10.12 |
| Debt | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Current Ratio | 1.65 | 1.53 |
| Debt/Capital | 0.2 | 0.22 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Shares outstanding (mil) | 2646.39 | 2647.44 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.26 | 0.64 |
| Book value / share | 28.57 | 27.55 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2840751.0 | 1347941.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 23.36 for the Pharmaceuticals industry and a premium compared to the S&P 500 average of 18.32. To use another comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 2.34 and a significant discount versus the industry average of 6.43. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, SANOFI proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SNY 21.49 | Peers 23.36 | SNY 13.09 | Peers 14.83 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. SNY is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. SNY is trading at a discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| SNY 12.29 | Peers 15.22 | SNY 0.40 | Peers 0.68 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. SNY is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. SNY trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| SNY 1.87 | Peers 6.43 | SNY -11.75 | Peers -3.47 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. SNY is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, SNY is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| SNY 2.97 | Peers 4.39 | SNY 4.24 | Peers 7.26 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. SNY is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. SNY significantly trails its peers on the basis of sales growth |
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