Daily Stock Analysis: Sanofi (SNY)

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Sanofi SA has the ticker symbol SNY and is a large-cap member of the healthcare sector as a generic drug manufacturing company. This is my second report on Sanofi SA for this Vista folio. I previously discuss SNY on April 8, twenty-three days ago.

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 this large therapeutic area. 

The company offers a diverse array of drugs with its highest revenue generator, Lantus, representing just under 10% of total sales. 

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

Sanofi has a collaboration agreement with GlaxoSmithKline to develop a recombinant COVID-19 vaccine. 

The company was formerly known as Sanofi-Aventis and changed its name to Sanofi in May 2011. Sanofi was incorporated in 1994 and is headquartered in Paris, France.

Three key data points gauge dividend equities or funds like Sanofi SA:

(1) Price

(2) Dividends

(3) Returns

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

SNY Price

Sanofi's price per share closed at $51.50 yesterday. One year ago its price was $49.87. Thus, the price per share has grown over 3% since recovering from last year's COVID market slump. 

Should Sanofi SA stock trade in the range of $45.00 to $65.00 this year, its recent $51.50 price might rise by $8.50 to reach $60.00 by April 28, 2022. My estimate is over $3.08 lower than the median of seven estimates from analysts tracking SNY.

SNY Dividends

Sanofi's most recent annual dividend is payable May 26, and is $1.91 which will yield 3.7% at yesterday's $51.50 closing price. SNY has paid variable annual dividends since June 2003 or 18 years. 

SNY Returns

Adding the $1.91 annual SNY forward-looking dividend to my $8.50 price upside estimate shows a $10.41 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put a little over $1,000.00 today in Sanofi SA at $51.50 per share, we'd buy 19 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.53 per share.

Subtract that maybe $0.53 brokerage cost from my estimated $10.41 gross gain per share results in a net gain of $9.88 X 19 shares = $187.72 for a 18.8% net gain on a $978.50 investment.

Thus, Sanofi SA shows a possible 18.8% net gain including a 3.70% forward-looking dividend yield. 

Over the next year at this time, a $1000 investment in SNY could generate $37.00 in cash dividends. And a single share bought at yesterday's closing price was $51.50! So, if SNY is your kind of generic drug manufacturer investment, their single share price is $14.50 greater than the expected annual dividend income from $1,000 invested. This suggests waiting for a pullback to under $45  before adding Sanofi SA to your holdings.  

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

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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