Healthcare giant Sanofi reported a mixed set of fourth quarter results, causing a 3% dip in early trading on Friday. While revenue increased 7.3% YoY to €10.7 billion, it fell short of analyst expectations of €10.96. The growth was primarily due to higher demand for the company’s Dupixent drug. On the other hand, earnings per share of €1.71 exceeded estimates by a penny and showed a 24% increase from the same quarter last year.
The company has predicted low single digit EPS growth for 2023 and projects Dupixent sales to reach €10 billion by the end of the year. Additionally, the board has proposed an annual dividend of €3.56, a 6.9% increase.
With a Moderate Buy consensus based on two Buys, SNY stock has an average price target of $65, reflecting 37.6% upside potential. The stock has seen a 10.3% increase in the past three months.
Sanofi ADR Stock Analysis:
The average analyst target price for Sanofi ADR (NSD:SNY) over the next 12 months is USD 78.33, with an average analyst rating of Buy. Stock Target Advisor’s own rating of Sanofi ADR is Slightly Bullish, based on 9 positive signals and 5 negative signals. As of the last closing, Sanofi ADR’s stock price was USD 47.24 and has seen a change of -1.65% over the past week, -1.19% over the past month, and -9.95% over the last year.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Superior risk adjusted returns
This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.
Low volatility
The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.
Superior return on equity
The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
What we don’t like:
Below median total returns
The company has under performed its peers on annual average total returns in the past 5 years.
Below median dividend returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
Overpriced on cashflow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Poor capital utilization
The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.
Poor return on assets
The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Low Earnings Growth
This stock has shown below median earnings growth in the previous 5 years compared to its sector
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