Daily Stock Analysis: Sanofi

Healthcare Text Screenshot Near Green Fern Leaf

Image Source: Pexels

Sanofi S.A. has the ticker symbol SNY, and as a generic drug manufacturer is a member of the Healthcare sector. This is my first report on Sanofi S.A. for my Vista Portfolio. I have reviewed it previously for other portfolios in this series. 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.

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

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.

Three key data points gauge dividend equities like Sanofi S.A. (SNY):

(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.A.'s price per share closed at $49.36 last Thursday. One year ago its price was $44.83. Price per share has increased over 10% from the last of the COVID market slump. 

Should Sanofi's stock trade in the range of $40 to $65 this year, its recent $49.67 price might rise by $10.64 to reach $60.00 by April 5, 2022. My estimate is $3 below the median estimate of seven analysts tracking SNY but nearly $8 below YCharts' historic multiple price calculation.

SNY Dividends

Sanofi S.A.'s most recent declared annual dividend was $1.90, payable May 26th. Dividends are estimated yield 3.85% at Thursday's $49.36 closing price. SNY has paid annual variable dividends for eighteen years.

SNY Returns

Adding the $1.90 annual SNY anticipated dividend to my $10.64 price upside estimate shows an $11.54  potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Sanofi S.A. at $49.36 per share and we'd buy 20 shares of SNY stock. A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.50 per share. Subtract that maybe $0.50 brokerage cost from my estimated $11.54 gross gain per share results in a net gain of $11.04 X 20 shares = $220.80 for a 22% net gain on a $987.20 investment.

Sanofi S.A. shows a possible 22% net gain including a 3.85% dividend yield. 

Over the next year at this time, a $1000 investment in SNY could generate $38.50 in cash dividends. And a single share bought at yesterday's closing price was almost $50. So, if SNA is your kind of healthcare investment, their price is almost $12 above the annual dividend income from $1,000 invested. This suggests waiting for the SNY price to dip closer to $40 before you add it to your portfolio.

All of the estimates above are speculation based on the past history of Sanofi S.A. 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 solicitation, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.