Sanofi SA
Find Ratings ReportsSANOFI'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 ($mil) | 8881.56 | 10112.62 |
| EBITDA ($mil) | 0.0 | 0.0 |
| EBIT ($mil) | 1792.04 | 2214.79 |
| Net Income ($mil) | 1238.59 | 1494.5 |
| Balance Sheet | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Cash & Equiv. ($mil) | 6703.04 | 5243.5 |
| Total Assets ($mil) | 109341.46 | 109223.31 |
| Total Debt ($mil) | 19059.99 | 16432.07 |
| Equity ($mil) | 59782.41 | 63151.72 |
| Profitability | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Gross Profit Margin | 64.45 | 63.55 |
| EBITDA Margin | 0.0 | 0.0 |
| Operating Margin | 20.18 | 21.9 |
| Sales Turnover | 0.32 | 0.35 |
| Return on Assets | 4.15 | 4.9 |
| Return on Equity | 7.28 | 8.29 |
| Debt | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Current Ratio | 1.47 | 1.35 |
| Debt/Capital | 0.24 | 0.21 |
| Interest Expense | 118.94 | 151.53 |
| Interest Coverage | 15.07 | 14.62 |
| Share Data | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Shares outstanding (mil) | 2574.01 | 2612.25 |
| Div / share | 1.66 | 1.61 |
| EPS | 0.4 | 0.54 |
| Book value / share | 23.23 | 24.18 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2536496.0 | 2072267.0 |
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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Book |
|
Earnings Growth |
|
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| 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. |
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| Price/Sales |
|
Sales Growth |
|
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| SNY 2.81 | Peers 12.73 | SNY -7.64 | Peers 5.56 | |||||||||||||||||||||
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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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