Sanofi Aventis was born from the acquisition by the French group Sanofi-Synthélabo of the Franco-German group Aventis in 2004. The company, whose headquarters are located in Paris, is the 5th largest pharmaceutical group in the world and 11th largest producer of generic drugs. The title is making its debut this week in our portfolio, together with Telefonica, following our concern for diversification currencies and our resolutions from 2011.
Sanofi Aventis owns Some qualities we look for in a good dividend payer and the title is listed in EUR on Euronext, which allows to reduce the overexposure to the dollar. Nevertheless, the "youth" of the company and its dividend hardly holds up to comparison with the leading names in our portfolio, such as Procter & Gamble Or Johnson & Johnson.
Sanofi Aventis is being neglected by the market, which means thatIt is trading at very attractive prices., both from the point of view of dividends (2011 yield 5.16%) and that of profits (P/E 9.42).
The long-term dividend yield is good at 3.97%. The company has increased its distributions in recent years at a correct annual rate of 10,87%. The distribution rate stands at 51,95%, which leaves Sanofi Aventis some room for maneuver in the event of a difficult passage. Volatility is correct, with 14,50%.
Taking into account these figures, and the recent history of dividends, our analysis model considers Sanofi Aventis as "hold" position. As we do not have a position, it is therefore a title that we will follow in the future.
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Good morning,
When I calculate the distribution rate I don't get the same results as you.
For example in this case, Sanofi, I have:
yield x PER = 4.68 x 8.52 = 39.87.
I understand that there is a slight difference, but here, 12% seems like a lot to me.
Where am I wrong? In the calculation, in the data source or elsewhere?
THANKS
Hello Arnaud, there must be a small problem with the PER, how do you get 8.52?
On the other hand, your remark actually made me find an update bug for this title and I thank you for it. The payout is now 57%, and the title goes into "hold" which will delight many readers who had asked me about the short position on SAN.
I don't calculate the PER, it's the one that Boursorama gives me in the "analysts' forecast" box in the 2011 column.
I took the SAN code so it's probably the same, right?
I understood everything. Boursorama gives here the non-consolidated result of Sanofi (non-GAAP indicator – Generally Accepted Accounting Principles), which gives a profit per share of 6.65 instead of 4.29.
http://www.zonebourse.com/SANOFI-4698/fondamentaux/
http://financials.morningstar.com/ratios/r.html?t=SAN®ion=FRA&culture=en-us
http://markets.ft.com/research/Markets/Tearsheets/Summary?s=SAN:PAR
http://fr.finance.yahoo.com/q?s=SAN.PA
are based on the consolidated result, just like me
see consolidated results below:
http://www.sanofi.com/Images/29865_Doc-Ref_2011_3-3-2_Comptes_resultats.pdf
Ok,
So I start again: dividend/profit = 2.65 / 4.29 = 61%
I still have a difference of 4% but it's already more realistic 🙂