Don't overlook SANOFI-ADR (NASDAQ:SNY)—it's a hidden gem with strong fundamentals and an attractive price tag.

Our stock screener has spotted SANOFI-ADR (NASDAQ:SNY) as an undervalued stock with solid fundamentals. SNY shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Valuation Metrics for SNY

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. SNY was assigned a score of 7 for valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of SNY indicates a rather cheap valuation: SNY is cheaper than 87.56% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of SNY to the average of the S&P500 Index (29.07), we can say SNY is valued rather cheaply.
• Based on the Price/Forward Earnings ratio, SNY is valued cheaper than 84.97% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of SNY to the average of the S&P500 Index (22.05), we can say SNY is valued slightly cheaper.
• SNY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SNY is cheaper than 94.30% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, SNY is valued cheaply inside the industry as 84.46% of the companies are valued more expensively.
• SNY has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Analysis for SNY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, SNY has achieved a 8:

• SNY has a Return On Assets of 9.00%. This is amongst the best in the industry. SNY outperforms 92.23% of its industry peers.
• Looking at the Return On Equity, with a value of 15.37%, SNY belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
• SNY's Return On Invested Capital of 15.58% is amongst the best of the industry. SNY outperforms 92.23% of its industry peers.
• The 3 year average ROIC (7.46%) for SNY is below the current ROIC(15.58%), indicating increased profibility in the last year.
• SNY has a Profit Margin of 12.97%. This is amongst the best in the industry. SNY outperforms 88.08% of its industry peers.
• In the last couple of years the Profit Margin of SNY has grown nicely.
• The Operating Margin of SNY (22.04%) is better than 88.08% of its industry peers.
• SNY's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 70.04%, SNY is doing good in the industry, outperforming 75.13% of the companies in the same industry.

Evaluating Health: SNY

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. SNY has earned a 5 out of 10:

• SNY has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as SNY would need 3.04 years to pay back of all of its debts.
• The Debt to FCF ratio of SNY (3.04) is better than 92.23% of its industry peers.
• SNY has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.

Growth Analysis for SNY

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. SNY scores a 5 out of 10:

• Looking at the last year, SNY shows a very strong growth in Revenue. The Revenue has grown by 31.50%.
• SNY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.54% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of SNY

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.