Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sanofi as such a stock due to the following factors:
- SNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.3 million.
- SNY traded 1.3 million shares today in the pre-market hours as of 9:02 AM, representing 135.6% of its average daily volume.
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More details on SNY:
Sanofi researches, develops, manufactures, and markets healthcare products worldwide. The company operates through Pharmaceuticals, Human Vaccines, and Animal Health segments. The stock currently has a dividend yield of 2.5%. SNY has a PE ratio of 27.2. Currently there are 4 analysts that rate Sanofi a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Sanofi has been 2.1 million shares per day over the past 30 days. Sanofi has a market cap of $134.6 billion and is part of the health care sector and drugs industry. Shares are up 6.7% year to date as of the close of trading on Friday.
rates Sanofi as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- SNY's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.87 is somewhat weak and could be cause for future problems.
- The gross profit margin for SANOFI is rather high; currently it is at 57.49%. 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 5.59% is significantly lower than the industry average.
- SANOFI has experienced 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 two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, SANOFI reported lower earnings of $2.46 versus $2.81 in the prior year. This year, the market expects an improvement in earnings ($3.46 versus $2.46).
- SNY, with its decline in revenue, slightly underperformed the industry average of 2.2%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Sanofi Ratings Report.