One-glance verdict
Undervalued
$73.61 our estimate vs market $42.77
Wall Street consensus: $53.72 (-27.0% lower than our fair-value estimate)
42% below our estimate, below the bear case
Fundamentals snapshot
Sanofi
SNY · NMS · Healthcare · Drug Manufacturers - General
Current price
$42.77
52-week range
$40.89 - $52.68
Market cap
$102.48B
Balance sheet
Healthy
15.33x Strong cushion
Net debt $19.98B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 5.5% last year.
- Reward Returns 5.7% on equity, ahead of 33% of its peers.
- Risk Net debt grew 51.8% over 3 years.
- Risk Stock trades 17.1% above its 5-year average P/E.
What this company does
Sanofi
Sanofi is a global healthcare company that develops and sells a wide range of medicines and vaccines, with its biggest products treating immune system-related diseases like eczema and asthma. A key part of its strategy is to partner with many smaller, innovative firms to help discover its next blockbuster drugs. This teamwork is how Sanofi fills its pipeline (its collection of drugs currently in development) to ensure it has new products to sell in the future.
How the company got here
Sanofi, a major player in the global drug market, was formed through a series of mergers of smaller companies over many years. It was officially created in 1973 as a part of a French oil company. Two key moments in its history were the 2004 merger with Aventis, which significantly increased its size, and the 2011 acquisition of Genzyme, which strengthened its focus on treatments for rare diseases. This history of combining different companies has given Sanofi a wide range of medicines and a global presence.
What it actually does
Sanofi is a healthcare company that discovers, creates, and sells a wide variety of medicines and vaccines for people. Think of them as a company that makes everything from flu shots to complex treatments for long-term illnesses like diabetes and rare genetic conditions. Their products are generally prescribed by doctors and sold through pharmacies and hospitals worldwide. They also have a line of consumer health products that you can buy without a prescription.
Specialty Care
This is Sanofi's largest and fastest-growing business, focused on creating advanced treatments for complex conditions. This includes medicines for immunology (diseases where the body's own defense system attacks itself), cancer, rare diseases, and neurological conditions like multiple sclerosis. A major product here is Dupixent, a successful drug used to treat conditions like eczema and asthma. This division is a key part of Sanofi's income and represents their focus on highly innovative medicines.
Vaccines
This part of the company, known as Sanofi Pasteur, is one of the world's largest producers of vaccines. They make vaccines to protect against many diseases, including the flu, polio, and meningitis. Governments and healthcare organizations around the world are major customers for these products, which are crucial for public health programs. This business provides a steady and significant source of revenue for the company.
General Medicines
This segment includes many of Sanofi's well-established and older medicines for common conditions. This can include treatments for diabetes, like the well-known insulin product Lantus, and various cardiovascular (heart-related) drugs. While not growing as fast as their specialty drugs, these medicines are still widely used and provide a reliable source of income for the company, especially in emerging markets.
Consumer Healthcare
This is the part of Sanofi that makes over-the-counter products you can buy at a pharmacy without a doctor's prescription. While Sanofi has announced plans to separate this business to focus more on innovative medicines, it has historically been a part of their operations. This division includes products for pain relief, digestive health, and allergy medications. This business is smaller than their prescription drug segments.
What management is betting on now
The company's leadership is heavily focused on developing new, innovative drugs, particularly in the area of immunology. They are investing significantly in research and development (the process of creating and testing new medicines) to create the next generation of blockbuster drugs. A key part of their strategy is to expand the uses for their successful drug, Dupixent, and to launch new vaccines. They are also using artificial intelligence (AI) to speed up the drug discovery process and are separating from their consumer healthcare business to concentrate on their core biopharma operations.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $73.61 vs current price $42.77
Wall Street consensus is the average analyst price target: $53.72 (-27.0% lower than our fair-value estimate).
Our most-likely fair value is $73.61 a share — about 72.1% above today's price of $42.77, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $20.0B. Interest coverage 15.3x.
Net debt
$19.98B
Interest coverage
15.33x
Sanofi's profit covers its interest bill about 15.3 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
SNY
BASELINE
Sanofi
Total debt $27.35B Interest coverage 15.33x This is the baseline the peer rows are being compared against.
Total debt $63.48B Interest coverage 6.52x -57% vs SNY Carries about 2.4x less debt cushion than SNY.
Total debt $24.75B Interest coverage 12.14x -21% vs SNY Carries about 1.3x less debt cushion than SNY.
Total debt $45.05B Interest coverage 7.26x -53% vs SNY Carries about 2.1x less debt cushion than SNY.
Total debt $26.25B Interest coverage 11.43x -25% vs SNY Carries about 1.3x less debt cushion than SNY.
Total debt $2.71B Interest coverage 84.52x +451% vs SNY Carries about 5.5x more debt cushion than SNY.
What you should know
The case for and against SNY
3 Rewards
3 Risks
Rewards
-
Revenue grew 5.5% last year.
-
Returns 5.7% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 51.8% over 3 years.
-
Stock trades 17.1% above its 5-year average P/E.
-
Operating margin compressed from 26.9% to 21.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.63x
Forward P/E
7.89x
P/B
1.27x
P/S
2.09x
EV/EBITDA
8.87x
PEG ratio
28.49x
Profitability
How much profit each dollar creates
Gross margin
73.5%
Operating margin
21.0%
Net margin
8.1%
ROE
5.7%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.34x
Current ratio
0.99x
Quick ratio
0.49x
Total debt
$27.35B
Total cash
$7.37B
Growth
How the business has been compounding
Revenue TTM
$56.75B
Revenue 5Y CAGR
4.8%
EPS TTM
1.89
EPS 5Y CAGR
6.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$12.47B
Free CF TTM
$8.37B
FCF margin
14.7%
Dividend
Shareholder payout
Yield
5.7%
Payout ratio
127.8%
Last ex-div date
2026-05-04