SNYSanofi
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.9×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Margin-driven, fat margins on slower asset turns. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SNY?
Sanofi earns 6.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.9 points below what the capital costs: growth destroys value
- Operating margin
- 15%
Operating margin · Drug Manufacturers - General median 24% · fiscal year to FY2025
- Cash conversion
- 1.92×
Cash conversion · 1.52× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 39% |
| FY2021 | 22% |
| FY2022 | 27% |
| FY2023 | 18% |
| FY2024 | 18% |
| FY2025 | 15% |
Details›
- Gross marginfiscal year to FY2025
- 77%
- Operating marginfiscal year to FY2025
- 15%
- Net marginfiscal year to FY2025
- 18%
- Free cash flow margin
- 20%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $43.6B
- Free cash flow, trailing twelve months
- $8.93B
- Net income, trailing twelve months
- $7.81B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Drug Manufacturers, General
Ranks #7 of 7 by RyuScore