Sanofi SA
Find Ratings ReportsSANOFI's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SANOFI has average liquidity. Currently, the Quick Ratio is 1.04 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.
During the same period, stockholders' equity ("net worth") has increased by 10.00% 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.
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| Income Statement | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Net Sales ($mil) | 10827.8 | 8881.56 |
| EBITDA ($mil) | 0.0 | 0.0 |
| EBIT ($mil) | 1995.61 | 1792.04 |
| Net Income ($mil) | 1589.8 | 1238.59 |
| Balance Sheet | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 12411.75 | 6703.04 |
| Total Assets ($mil) | 116243.86 | 109341.46 |
| Total Debt ($mil) | 21027.05 | 19059.99 |
| Equity ($mil) | 65762.73 | 59782.41 |
| Profitability | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Gross Profit Margin | 62.3 | 64.45 |
| EBITDA Margin | 0.0 | 0.0 |
| Operating Margin | 18.43 | 20.18 |
| Sales Turnover | 0.34 | 0.34 |
| Return on Assets | 8.75 | 4.15 |
| Return on Equity | 7.78 | 7.49 |
| Debt | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Current Ratio | 1.59 | 1.47 |
| Debt/Capital | 0.24 | 0.24 |
| Interest Expense | 130.01 | 118.94 |
| Interest Coverage | 15.35 | 15.07 |
| Share Data | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Shares outstanding (mil) | 2521.51 | 2574.01 |
| Div / share | 1.64 | 1.66 |
| EPS | 0.51 | 0.4 |
| Book value / share | 26.08 | 23.23 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1223966.0 | 1831690.0 |
BUY. SANOFI's P/E ratio indicates a discount compared to an average of 29.23 for the Pharmaceuticals industry and a value on par with the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 16.15. 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 24.36 | Peers 29.23 | SNY 14.80 | Peers 25.41 | |||||||||||||||||||||
|
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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| SNY 13.92 | Peers 15.70 | SNY 0.28 | Peers 0.63 | |||||||||||||||||||||
|
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 |
|
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| SNY 1.87 | Peers 16.15 | SNY 16.95 | Peers 28.39 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
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| SNY 3.15 | Peers 9.82 | SNY 6.06 | Peers 7.05 | |||||||||||||||||||||
|
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 trails its peers on the basis of sales growth |
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