One-glance verdict
Undervalued
$104.19 our estimate vs market $41.89
Wall Street consensus: $53.61 (-48.5% lower than our fair-value estimate)
60% below our estimate, below the bear case
Fundamentals snapshot
Sanofi
SNY · NMS · Healthcare · Drug Manufacturers - General
Current price
$41.89
52-week range
$39.07 - $52.68
Market cap
$100.37B
Balance sheet
Healthy
15.33x Strong cushion
Net debt $19.16B. 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 14.1% above its 5-year average P/E.
What this company does
Sanofi
Sanofi is a company that makes medicines and vaccines for serious illnesses like cancer and autoimmune diseases, and also for preventing common infections. Their money mainly comes from selling these important health products worldwide, which matters because it funds their ongoing research to discover even more life-saving treatments for the future.
How the company got here
Sanofi has a long history, formed through a series of mergers and acquisitions, most notably the 2004 merger of Sanofi-Synthélabo and Aventis, which created Sanofi-Aventis. The company officially shortened its name to Sanofi in 2011. This evolution has shaped Sanofi into a global pharmaceutical giant focused on developing and delivering innovative treatments across various health areas. Its journey reflects the broader trends in the pharmaceutical industry, emphasizing research and development to bring new medicines to patients worldwide.
What it actually does
Sanofi is a healthcare company that researches, develops, manufactures, and sells medicines and vaccines. Think of them as a company that creates the treatments you might get from a doctor or a pharmacy to help you feel better when you're sick or to prevent illnesses. They work on a wide range of health issues, from common conditions to rare diseases, and also produce vaccines that protect people from infectious diseases like the flu and polio.
Specialty Care
This part of Sanofi focuses on treatments for more complex and often long-term health conditions. It includes medicines for immunology and inflammation, which help manage conditions like arthritis or severe allergies, and neurology, targeting brain and nerve disorders. They also develop treatments for oncology, which means cancer. These are often specialized drugs that require significant research and development, representing a significant portion of Sanofi's business.
General Medicines
This segment deals with more established and widely used medications. It includes treatments for conditions like diabetes and cardiovascular diseases, as well as established vaccines. While perhaps not as cutting-edge as specialty care, these medicines are crucial for public health and represent a stable revenue stream for the company. This area ensures access to essential treatments for a broad patient population.
Vaccines
Sanofi is a major player in the vaccine market, producing a variety of vaccines to prevent infectious diseases. This includes common childhood vaccines like those for polio and pertussis (whooping cough), as well as vaccines for adults, such as the flu shot (Fluzone) and protection against respiratory syncytial virus (RSV). The development and manufacturing of vaccines are critical for global public health, and this segment is a significant part of Sanofi's operations.
What management is betting on now
Sanofi's current strategy heavily emphasizes innovation in specialty care, particularly in areas like immunology, rare diseases, and oncology. They are investing in cutting-edge research, including collaborations using artificial intelligence (AI) and advanced gene-editing technologies, to discover and develop new medicines. The company is also focused on expanding its vaccine portfolio to address emerging health needs. This strategic focus aims to drive future growth by bringing novel therapies and preventative solutions to patients.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $104.19 vs current price $41.89
Wall Street consensus is the average analyst price target: $53.61 (-48.5% lower than our fair-value estimate).
Our most-likely fair value is $104.19 a share — about 148.7% above today's price of $41.89, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $19.2B. Interest coverage 15.3x.
Net debt
$19.16B
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 $26.23B 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 $24.31B 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 14.1% 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)
22.05x
Forward P/E
8.02x
P/B
1.29x
P/S
2.05x
EV/EBITDA
8.71x
PEG ratio
29.50x
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
$26.23B
Total cash
$7.06B
Growth
How the business has been compounding
Revenue TTM
$54.42B
Revenue 5Y CAGR
4.8%
EPS TTM
1.90
EPS 5Y CAGR
6.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$11.96B
Free CF TTM
$8.02B
FCF margin
14.7%
Dividend
Shareholder payout
Yield
5.8%
Payout ratio
127.5%
Last ex-div date
2026-05-04