Daily Stock Analysis: Sanofi - November 2022 Snapshot

Sanofi AG, bears the ticker symbol (SNY). This is my first report on SNY plc for my Viking portfolio. However, I have selected it as a candidate for two of my previous seven Dog of the Week portfolios.

Sanofi develops and markets drugs with a concentration in oncology, immunology, cardiovascular disease, diabetes, and vaccines. However, the company's decision in late 2019 to pull back from the cardio-metabolic area will likely reduce the firm's footprint in that large therapeutic area.

The company offers a diverse array of drugs with its highest revenue generator, Dupixent, representing just over 10% of total sales, but profits are shared with Regeneron (REGN).

About 30% of total revenue comes from the United States and 25% from Europe. Emerging markets represent the majority of the remainder of revenue.

The company was formerly known as Sanofi-Aventis and changed its name to Sanofi in May 2011.

Sanofi was founded in 1973 and is headquartered in Paris, France.

Three key data points gauge

Sanofi AG:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

SNY Price

SNY plc’s price per share was $43.52 at Tuesday’s market close. However, in the past year, SNY’s share price fell by $7.25 or about 14.28%.

If SNY’s stock trades in the range of $32.00 to $56.00 this next year, its recent $43.52 share price might reach $50.00 by next year. My upside increase estimate of $7.48 is $8.50 below the median of annual price targets for SNY calculated by six analysts.

SNY Dividends

Sanofi’s most recently declared annual dividend of $1.75 per share casts  a yield of 4.02%.

SNY Returns

Adding the $1.75 annual

SNY dividend to my one-year price upside estimate of $7.48 shows a $9.23 potential gross gain per share.

At Tuesday’s $43.52 closing price, a little over $1000 would buy 23 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.43 per share.

Subtract that maybe $0.43 brokerage cost from my estimated $9.23 gross gain per share results in a net gain of $8.80 X 23 shares = $202.40 for a 20.% net gain including a 4.02% annual dividend yield.

In a year our $1K investment in shares of SNY would generate $40.20 in cash dividends. Of course, a single share of SNY stock at Tuesday's $43.52 price is over $3.32 greater than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this not the time to buy Sanofi AG shares based on their dividends for the coming year 2022-23. The current dividend from $1K invested is $3.32 less than SNY’s single share price. Consider yourself alerted. Wait for SNY’s price to drop below $41.80.

All of the estimates above are speculation based on the past history of Sanofi AG. Only time and money invested in this stock will determine its market value.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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