SNY : NYSE : Health Care
$38.35 | %
Today's Range: 38.28 - 38.54
Avg. Daily Volume: 2,477,900
09/23/16 - 4:02 PM ET

Financial Analysis


SANOFI's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. SANOFI has weak liquidity. Currently, the Quick Ratio is 0.88 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.33% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)8881.5610112.62
EBITDA ($mil)0.00.0
EBIT ($mil)1792.042214.79
Net Income ($mil)1238.591494.5


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)6703.045243.5
Total Assets ($mil)109341.46109223.31
Total Debt ($mil)19059.9916432.07
Equity ($mil)59782.4163151.72


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin64.4563.55
EBITDA Margin0.00.0
Operating Margin20.1821.9
Sales Turnover0.320.35
Return on Assets4.154.9
Return on Equity7.288.29
Debt Q2 FY16 Q2 FY15
Current Ratio1.471.35
Debt/Capital0.240.21
Interest Expense118.94151.53
Interest Coverage15.0714.62


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)2574.012612.25
Div / share1.661.61
EPS0.40.54
Book value / share23.2324.18
Institutional Own % n/a n/a
Avg Daily Volume2536496.02072267.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 29.47 for the Pharmaceuticals industry and a discount compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 1.66 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 19.66. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SNY 23.10 Peers 29.47   SNY 11.40 Peers 20.98

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SNY is trading at a discount to 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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SNY 13.05 Peers 15.05   SNY 0.34 Peers 0.54

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SNY is trading at a discount to 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SNY 1.66 Peers 19.66   SNY -16.09 Peers -20.56

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
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SNY 2.81 Peers 12.73   SNY -7.64 Peers 5.56

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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