Sanofi Stock Buy Recommendation Reiterated (SNY)
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- The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues rose by 19.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- SNY's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
- Compared to its closing price of one year ago, SNY's share price has jumped by 36.19%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SNY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SANOFI has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SANOFI reported lower earnings of $2.48 versus $2.81 in the prior year. This year, the market expects an improvement in earnings ($7.64 versus $2.48).
- The gross profit margin for SANOFI is rather high; currently it is at 57.90%. Regardless of SNY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SNY's net profit margin of 5.60% is significantly lower than the industry average.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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