Summary

We reckon Sanofi(SNY) is worth €115 billion or $125.3 billion.

Introduction

Sanofi(SNY) is a leading global healthcare company, focused on patient needs and engaged in the research, development, manufacture and marketing of therapeutic solutions.

Sanofi(SNY) has three principal activities: Pharmaceuticals, Consumer Healthcare, and Vaccines. Pharmaceuticals segment have €30.69 billion, consumer healthcare segment have €5.08 billion and vaccines segment have €7.22 billion in the fiscal 2022.

Assets structure

Total assets were €126.7 billion ,€120.2 billion and €114.4 billion in the fiscal 2022,2021 and 2020.

Goodwill was €49.8 billion in 2022, accounting for 39.3% of total assets.

Other intangible assets were €21.6 billion in 2022,consisting of 17% of total assets.

Goodwill as a percentage of total assets plus other intangible assets as a percentage equals 56.3%.

We think that the greater the debt pressure, the larger the amount of goodwill and intangible assets. We need to review its profitability and cash flows.

Liquidity and solvency analysis

Current assets were €34 billion in 2022 and current liabilities were €23.9 billon in 2022. The current ratio is 1.42 times.

The debt ratio for Sanofi(SNY) was 40% in 2022. That ratio is underestimated as the combined amount of goodwill and intangible assets has 56.3% of total assets.

Net cash provided by operating activities was€10.5 billion in 2022, which could service debt.

Asset management efficiency

The accounts receivable turnover was 5.37 times in 2022 and the average collection period was 68 days in 2022.

The inventory turnover was 1.55 times in 2022 and the days inventory held was 235.48 days in 2022.

The accounts payable turnover was 2.1 times in 2022 and the days payable outstanding was 173.8 days in 2022.

The cash conversion cycle was 129.68 days in 2022.

Profitability analysis

Sanofi(SNY) reported net sales of €42.99 billion ,€37.7 billion and €36 billion in 2022,in 2021 and in 2020,respectively.

Net sales for 2022 is up 14% year on year.

Operating income was €10.6 billion, €8.1 billion and €14.1 billion in 2022,in 2021 and 2020,respectively.

The operating profit margin was 24.6%,21,48% and 39% in 2022,in 2021 and in 2020,respectively. Why was the profit highest in 2020? Because gain on regeneron investment arising from transaction of May 29,2020 was€7.38 billion.

Net income was €8.48 billion, €6.27 billion and €12.33 billion in 2022,in 2021 and in 2020,respectively.

The return on assets in 2022 was 6.7%.

The return on equity in 2022 was 11.3%, which is not surprising at all.

Cash flow analysis

Sanofi(SNY) reported net cash provided by operating activities of €10.5 billion, €10.5 billion and €7.4 billion in 2022,in 2021 and in 2020, respectively.

free cash flow was €8.3 billion, €8.5 billion and €5.4 billion in 2022,in 2021 and in 2020,respectively.

Dividends paid to shareholder of Sanofi was €4.17 billion, €4 billion and €3.9 billion in 2022,in 2021 and in 2020,respectively.

2023 third quarter and first 9 months performance results

Sanofi(SNY) reported €32.1 billion , €32.2 billion in the first nine months of 2023 and in the first nine months of 2022.

Net income was €5.99 billion and €5.31 billion in the first nine months of 2023 and in the first nine months of 2022.