Sanofi SA
🇫🇷 SAN.PA · Paris · FR0000120578
Healthcare
EUR 82.58 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
12.9
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 82.58 ÷ 6.40 = 12.9
TTM period through: 2025-12-31
Forward P/E (estimated): 9.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 20.5
Yield (Fwd)
4.99%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.97%
Net Debt/EBITDA (TTM)
2.1x
Latest quarter: 11.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 11.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
64.4%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 61.1%
Cash Flow Payout (TTM): 44.4%
FCF Coverage (TTM): 1.88x
ROE
6.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
8.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Sanofi is a high-quality global pharmaceutical leader offering essential healthcare products with a highly secure and consistently growing dividend. The elevated accounting payout ratio masks exceptional free cash flow coverage (44%), ensuring the 4.97% yield remains sustainable despite recent management transitions and broader market volatility. Trading at €82.58 vs our fair value estimate of €95-110 (blended historical P/E and dividend-based valuation), the stock offers 15-33% upside to fair value. Worth considering for new positions; consider accumulating below €90 for an attractive combination of income and capital appreciation.
Sector Context
Sanofi is a leading global biopharmaceutical company that discovers, develops, and distributes medicines and vaccines, focusing on immunology, rare diseases, oncology, and neurology. In the context of dividend investing, large-cap healthcare providers offer highly defensive, non-cyclical revenue streams since medical treatments are essential services, though investors must continuously monitor patent expirations and clinical trial pipelines.
Temporary Opportunity Identified
Market uncertainty driven by a sudden management transition (CEO removal), mixed clinical trial results in early-stage pipeline assets, and an artificially high accounting payout ratio (97.27%) that belies the company's strong underlying cash flows.
📊 Strategy Analysis
- • Trading at an attractive €82.58 with a TTM P/E of 12.90 (and Forward P/E of 9.63), placing it comfortably below the target 15x threshold and indicating an undervaluation relative to its defensive characteristics.
- • Highly secure 4.97% dividend yield fully backed by robust free cash flow, indicated by a conservative cash flow payout ratio of 44.39% (FCF coverage of 1.88x).
- • Stable defensive business model in the essential healthcare sector, supported by a 10-year consistent dividend history with zero cuts and a 3.3% CAGR.
- • Strong balance sheet health with a Net Debt/EBITDA of 2.10x and Debt/Equity of 0.31, providing ample flexibility for R&D and strategic M&A.
⚠ What to Watch
- • The elevated TTM earnings payout ratio of 97.27% may trigger automated screening flags, though this is primarily an accounting artifact not reflecting the actual strong cash flow.
- • Subdued Return on Equity (ROE) of 6.66% indicates room for operational efficiency improvements.
- • Strategic uncertainty and potential short-term volatility stemming from the recent CEO removal and the cancellation of the consumer healthcare business spin-off.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.