Sanofi (SNY) AI Stock Analysis

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Sanofi

(NASDAQ:SNY)

79Outperform

Sanofi's stock is bolstered by strong financial performance, positive technical indicators, and optimistic earnings call insights. The company's robust balance sheet and operational efficiency support its stability, while strategic product developments and growth projections enhance future prospects. However, valuation concerns and increased expenses require attention.

Positive Factors

Financial Health

Sanofi has a healthy balance sheet with strong operating cash flow.

Product Pipeline

Sanofi holds a diverse pipeline and is expected to launch or expand indications for over 10 drugs in FY25.

Regulatory Approval

Qfitlia was approved by the FDA for routine prophylaxis to prevent or reduce the frequency of bleeding episodes in adult and pediatric patients with hemophilia A or B.

Negative Factors

Competition

There is a risk of Dupixent’s market share being diminished due to competition from alternatives such as JAK inhibitors.

Financial Performance

Both 3Q23 revenue and earnings missed expectations.

Safety Concerns

Qfitlia requires liver tests and monitoring for signs and symptoms of acute and recurrent gallbladder disease, indicating potential safety concerns.

Sanofi (SNY) vs. S&P 500 (SPY)

Market Cap

$123.95B

Dividend Yield2.98%

Average Volume (3M)3.02M

Price to Earnings (P/E)20.7

Beta (1Y)0.42

Revenue Growth-4.57%

EPS Growth2.96%

CountryUS

Employees82,878

SectorHealthcare

Sector Strength70

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)2.40

Shares Outstanding2,467,132,000

10 Day Avg. Volume3,107,890

30 Day Avg. Volume3,022,314

Financial Highlights & Ratios

PEG Ratio6.97

Price to Book (P/B)N/A

Price to Sales (P/S)2.97

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$64.75

Price Target Upside25.73% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

Sanofi Business Overview & Revenue Model

Company DescriptionSanofi (SNY) is a global healthcare company headquartered in Paris, France, engaged in the research, development, manufacturing, and marketing of pharmaceutical products. The company operates in several sectors, including specialty care, vaccines, and general medicines, with a focus on therapeutic areas such as oncology, immunology, rare diseases, multiple sclerosis, cardiovascular, diabetes, and consumer healthcare. Sanofi's core offerings include prescription medications, over-the-counter drugs, and vaccines aimed at improving the quality of life for patients worldwide.

How the Company Makes MoneySanofi generates revenue through the sale of its pharmaceutical products, vaccines, and consumer healthcare products. The company has a diversified revenue model, with key revenue streams originating from its specialty care and vaccines divisions, which contribute significantly to its earnings. Sanofi's prescription medications, which treat a range of chronic and acute health conditions, form a substantial part of its revenue. Additionally, the company earns from its consumer healthcare division, which offers over-the-counter medications and wellness products. Strategic partnerships, collaborations in research and development, and licensing agreements also play a crucial role in enhancing Sanofi's market reach and financial performance. Revenue is further supported by Sanofi's global presence and distribution networks, allowing it to penetrate various international markets effectively.

Sanofi Financial Statement Overview

Summary

Sanofi presents a stable financial position with strong operational efficiency and a solid capital structure. However, the decline in revenue and free cash flow growth presents potential risks. The company's financial performance is supported by a robust balance sheet and good profitability margins.

Income Statement

Positive

Sanofi's income statement reflects a stable financial performance. The gross profit margin for 2024 was approximately 70.2%, indicating efficient cost management. The net profit margin stood at 12.6%, showing moderate profitability. Revenue growth was negative at -3.8% from 2023 to 2024, suggesting a potential decline in sales. The EBIT margin was 16.4%, and EBITDA margin was 24.9%, both indicating strong operational efficiency.

Balance Sheet

Positive

Sanofi's balance sheet is robust with a debt-to-equity ratio of 0.23, reflecting low financial leverage and a strong equity base. The return on equity for 2024 was 7.2%, which shows a reasonable return to shareholders. The equity ratio was 58.4%, indicating a solid capital structure with a significant proportion of assets financed by equity.

Cash Flow

Positive

Sanofi's cash flow statement reveals a mixed picture. The free cash flow growth rate was negative at -19.9%, which may point to challenges in maintaining cash flow levels. However, the operating cash flow to net income ratio was 1.63, demonstrating strong cash generation from operations relative to net income. The free cash flow to net income ratio was 1.06, suggesting adequate cash flow generation relative to earnings.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
58.08B	44.29B	46.03B	45.39B	39.17B	37.37B
	Gross Profit
39.21B	31.08B	31.80B	31.70B	26.92B	25.21B
	EBIT
12.51B	7.25B	7.88B	16.79B	8.13B	8.08B
	EBITDA
10.93B	11.03B	12.00B	14.06B	11.29B	17.51B
	Net Income Common Stockholders
4.22B	5.56B	5.40B	8.37B	6.22B	12.29B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.44B	7.93B	8.71B	12.74B	10.10B	13.91B
	Total Assets
100.40B	132.80B	126.46B	126.72B	120.24B	114.41B
	Total Debt
14.53B	17.91B	18.42B	21.21B	22.41B	23.68B
	Net Debt
8.15B	10.46B	9.71B	8.48B	12.32B	9.76B
	Total Liabilities
42.91B	54.94B	52.11B	51.57B	51.21B	51.16B
	Stockholders Equity
57.35B	77.51B	74.04B	74.78B	68.68B	63.11B
Cash Flow		Free Cash Flow
4.08B	5.89B	7.35B	8.32B	8.48B	5.33B
	Operating Cash Flow
8.12B	9.08B	10.26B	10.53B	10.52B	7.45B
	Investing Cash Flow
-6.54B	-4.41B	-6.20B	-2.08B	-7.30B	3.59B
	Financing Cash Flow
-2.75B	-5.76B	-8.05B	-5.82B	-7.06B	-6.49B

Sanofi Technical Analysis

Technical Analysis Sentiment

Negative

Last Price51.50

Price Trends

50DMA

55.08

Negative

100DMA

52.05

Negative

200DMA

52.85

Negative

Market Momentum

MACD

-0.11

Positive

RSI

40.22

Neutral

STOCH

24.28

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNY, the sentiment is Negative. The current price of 51.5 is below the 20-day moving average (MA) of 54.56, below the 50-day MA of 55.08, and below the 200-day MA of 52.85, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 24.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNY.

Sanofi Risk Analysis

Sanofi disclosed 29 risk factors in its most recent earnings report. Sanofi reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Sanofi Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVS	80 Outperform	$197.70B	17.48	26.33%	3.17%	1.08%	-17.73%
SNY	79 Outperform	$123.95B	20.67	7.34%	2.98%	-4.57%	2.96%
GILD	75 Outperform	$126.41B	265.10	2.28%	3.06%	6.16%	-91.54%
AZN	73 Outperform	$203.22B	28.58	17.60%	2.34%	18.03%	18.11%
PFE	68 Neutral	$122.45B	15.32	9.05%	7.83%	8.77%	272.80%
BMY	60 Neutral	$102.67B	―	-39.10%	4.79%	7.32%	-214.24%
Sector *	48 Neutral	$6.25B	1.14	-46.26%	2.69%	19.24%	1.75%

* Healthcare Sector Average

Performance Comparison

SNY

Sanofi

51.50

6.92

15.52%

AZN

AstraZeneca

66.29

-1.28

-1.89%

BMY

Bristol-Myers Squibb

50.71

4.69

10.19%

GILD

Gilead Sciences

103.63

38.02

57.95%

NVS

Novartis

107.52

16.75

18.45%

PFE

Pfizer

21.91

-2.42

-9.95%

Sanofi Earnings Call Summary

Earnings Call Date: Jan 30, 2025 | % Change Since: -1.25% | Next Earnings Date: Apr 24, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong performance in sales and strategic growth, especially in new product launches and the vaccines segment. However, there are concerns about increased expenses, slight gross margin decline, and impacts from healthcare policy changes. Despite these challenges, the company's growth outlook and pipeline advancements contribute to a generally positive sentiment.

Highlights

Double-Digit Sales Growth

Sanofi reported double-digit sales growth for the third consecutive quarter, with strong contributions from new product launches and existing products like Dupixent.

Beyfortus Achieves Blockbuster Status

Beyfortus achieved blockbuster status in its first full year of sales, with significant sales growth and expanded RSV protection to more than 6 million babies globally.

Dupixent Sales Exceed €13 Billion

Dupixent exceeded the sales target of €13 billion, driven by strong demand from over 1 million patients globally. The drug grew by 16% in Q4 alone.

Record Vaccine Sales

Sanofi's vaccines business crossed the €8 billion sales milestone, driven by Beyfortus and strong performance of the flu franchise.

Improved Access to Medicine Ranking

Sanofi improved its ranking in the 2024 access to medicine index from eighth to third place, highlighting its commitment to global health.

R&D Pipeline Progress

Sanofi's R&D efforts resulted in positive Phase 3 results for several drugs, potential launches, and regulatory progress with 21 acceptances of regulatory submissions.

Lowlights

Slight Decline in Gross Margin

Gross margin decreased slightly due to the absence of COVID revenues in 2024, despite an increase in operating expenses driven by R&D.

Increased R&D and SG&A Expenses

R&D expenses increased by 14.6%, and SG&A expenses increased by 4.5%, reflecting high activity levels and preparation for upcoming launches.

Impact of Medicare Part D Changes

Sanofi anticipates modest headwinds from changes to Medicare Part D under the IRA, which could affect sales and profit margins.

Free Cash Flow Impacted by One-Offs

Free cash flow was impacted by price cuts of Lantus, elimination of factoring of receivables, and unfavorable exchange rate impacts, resulting in a closing free cash flow of €6 billion.

Company Guidance

The call provided extensive guidance for Sanofi's performance in 2024 and set expectations for 2025. The company reported a 10.3% increase in Q4 net sales at constant exchange rates, reaching €10.6 billion, with full-year sales up 11.3% to €41.1 billion. Key drivers included new product launches like Beyfortus, which achieved blockbuster status, and Dupixent, which surpassed €13 billion in sales. The gross margin was slightly down at 74.3% due to the lack of COVID revenues, despite a 0.8% increase when excluding COVID impact. R&D expenses rose by 14.6% to €7.4 billion, in line with plans to bolster the pipeline. Business EPS rose by 4.1% to €7.12, exceeding initial guidance. Looking ahead, Sanofi expects sales growth in mid-to-high single digits and business EPS growth in low double digits for 2025, with an anticipated positive foreign exchange impact of 2% to 3%. The company also plans a €5 billion share buyback and predicts sales reductions from portfolio simplifications by €250 million. The call highlighted several pipeline advancements, including positive Phase 3 results for drugs like fitusiran and ongoing development in key areas such as RSV vaccines and immunology, underscoring Sanofi's commitment to R&D and strategic focus areas.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.