Operating Margin - Sanofi SA (OTC:SNYNF)

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Price: 96.23 USD

Market Cap: 120.6B USD

23.6%

Current

22%

Average

5.9%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

23.6%

Operating Profit

15.8B

Revenue

66.9B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
FR		Sanofi SA PAR:SAN	102.8B EUR	24%
US		Eli Lilly and Co NYSE:LLY	1T USD	44%
UK		Dechra Pharmaceuticals PLC LSE:DPH	440.4B GBP	3%
US		Johnson & Johnson NYSE:JNJ	491.8B USD	27%
CH		Roche Holding AG SIX:ROG	271.5B CHF	34%
UK		AstraZeneca PLC LSE:AZN	220.4B GBP	24%
US		Merck & Co Inc NYSE:MRK	274.9B USD	38%
CH		Novartis AG SIX:NOVN	218.4B CHF	33%
DK		Novo Nordisk A/S CSE:NOVO B	1.7T DKK	42%
IE	E	Endo International PLC LSE:0Y5F	213.9B USD	11%
US		Pfizer Inc NYSE:PFE	144.9B USD	29%

Sanofi SA
Glance View

Economic Moat

None

Market Cap

117.1B USD

Industry

Pharmaceuticals

Sanofi SA, a titan in the global healthcare sector, operates at the intricate crossroads of pharmaceutical innovation and patient care, driven by an unyielding commitment to improving human health. Emerging from its French roots, Sanofi has strategically positioned itself as a global leader in pharmaceuticals, vaccines, and consumer healthcare. The company’s success is essentially anchored in its capacity to consistently develop and commercialize life-saving drugs that address a myriad of health concerns, ranging from diabetes and cardiovascular diseases to rare disorders and oncology. Underlining its robust revenue engine is Sanofi's extensive R&D infrastructure that fuels its pipeline with groundbreaking therapies, reflecting a dynamic blend of scientific acumen and market-focused agility. By leveraging a hybrid model that integrates cutting-edge research with strategic alliances and acquisitions, Sanofi ensures a sustained presence in the highly competitive biopharmaceutical landscape. Enabling this network of innovation and impact is Sanofi's diverse portfolio, a balanced mix of specialty and established prescription drugs, over-the-counter products, and the critical arm of vaccines led by its Sanofi Pasteur division. This diversification offers both growth opportunities and stability, cushioning against the volatile tides of patent expirations and regulatory changes. Its vaccines segment, in particular, is a cornerstone in Sanofi's business, capturing substantial market share with products critical to global immunization efforts, further amplified by its role in responding to health emergencies like the COVID-19 pandemic. With a geographically expansive sales footprint and strategic marketing strategies, Sanofi capitalizes on emerging market opportunities while maintaining a strong presence in established regions, effectively making its bottom line a testimony to its operational excellence and strategic foresight in harmonizing science with humanity.

View SNYNF Analysis

SNYNF Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
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US	Visa Inc NYSE:V	Technology
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US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Dof ASA LSE:0HMM	0.72 NOK -10.11%
C	Captor Capital Corp CNSX:CPTR	0.24 CAD

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	Berkshire Hathaway Inc NYSE:BRK.A	748 060 USD -0.3%
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	UnitedHealth Group Inc NYSE:UNH	343.98 USD -0.83%
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	Weatherford International PLC NASDAQ:WFRD	89.24 USD 0.03%

	Johnson & Johnson NYSE:JNJ	204.39 USD -0.66%
	Bank of America Corp NYSE:BAC	55.85 USD -0.59%
	Mastercard Inc NYSE:MA	575.54 USD -0.78%
	Salesforce Inc NYSE:CRM	259.94 USD -0.23%
	Abbvie Inc NYSE:ABBV	220.08 USD -1.81%
	Home Depot Inc NYSE:HD	374.64 USD 4.19%

Sanofi SA
OTC:SNYNF