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Sanofi (NYSE:SNY)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Sanofi has an F-score of 5 indicating the company's financial situation is typical for a stable company.

SNY' s 10-Year Piotroski F-Score Range
Min: 3   Max: 7
Current: 5

3
7

During the past 13 years, the highest Piotroski F-Score of Sanofi was 7. The lowest was 3. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 1051.42083897 + 1497.23756906 + 1438.69209809 + 1654.8431105 = $5,642 Mil.
Cash Flow from Operations was 3428.95805142 + 0 + 6715.25885559 + 0 = $10,144 Mil.
Revenue was 11023.0040595 + 10946.1325967 + 11641.6893733 + 11620.7366985 = $45,232 Mil.
Gross Profit was 7493.91069012 + 7470.99447514 + 7688.01089918 + 7699.86357435 = $30,353 Mil.
Total Assets at the begining of this year (Jun13) was $126,946 Mil.
Total Assets was $122,760 Mil.
Long-Term Debt was $13,685 Mil.
Total Current Assets was $27,563 Mil.
Total Current Liabilities was $19,215 Mil.
Net Income was 586.387434555 + 1289.43937419 + 515.957446809 + 1996.10894942 = $4,388 Mil.

Revenue was 10583.7696335 + 10634.9413299 + 11519.9468085 + 11984.4357977 = $44,723 Mil.
Gross Profit was 7085.07853403 + 7312.90743155 + 7706.11702128 + 8249.02723735 = $30,353 Mil.
Total Assets at the begining of last year (Jun12) was $124,991 Mil.
Total Assets was $126,946 Mil.
Long-Term Debt was $13,991 Mil.
Total Current Assets was $27,234 Mil.
Total Current Liabilities was $17,839 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Sanofi's current net income was 5,642. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Sanofi's current cash flow from operations was 10,144. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income/Total Assets at the beginning of this year (Jun13)
=5642.19361663/126946.335079
=0.0444455

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=4387.89320496/124991.400491
=0.03510556

Sanofi's return on assets of this year was 0.0444455. Sanofi's return on assets of last year was 0.03510556. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Sanofi's current net income was 5,642. Sanofi's current cash flow from operations was 10,144. ==> 10,144 > 5,642 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=13684.7090663/122760.487145
=0.11147487

Gearing (Last Year)=Long-Term Debt/Total Assets
=13990.8376963/126946.335079
=0.11021065

Sanofi's gearing of this year was 0.11147487. Sanofi's gearing of last year was 0.11021065. ==> Last year is lower than this year ==> Score 0.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year)=Total Current Assets/Total Current Liabilities
=27562.9228687/19215.1556157
=1.43443662

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=27234.2931937/17839.0052356
=1.52667107

Sanofi's current ratio of this year was 1.43443662. Sanofi's current ratio of last year was 1.52667107. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Sanofi's number of shares in issue this year was 2695.4. Sanofi's number of shares in issue last year was 2717.6. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year)=Gross Profit/Revenue
=30352.7796388/45231.562728
=0.67105308

Gross Margin (Last Year)=Gross Profit/Revenue
=30353.1302242/44723.0935695
=0.67869031

Sanofi's gross margin of this year was 0.67105308. Sanofi's gross margin of last year was 0.67869031. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue/Total Assets at the beginning of this year (Jun13)
=45231.562728/126946.335079
=0.3563046

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=44723.0935695/124991.400491
=0.35780936

Sanofi's asset turnover of this year was 0.3563046. Sanofi's asset turnover of last year was 0.35780936. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+0+0+1+0+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Sanofi has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Sanofi Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0111111111
Q2 1111111111
Q3 0111010100
Q4 1111111111
Q5 0101000010
Q6 0011101011
Q7 0001110000
Q8 0010100010
Q9 1011010100
F-score 3578664564

Sanofi Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 11111
Q2 11111
Q3 10001
Q4 11111
Q5 11000
Q6 01110
Q7 01001
Q8 01000
Q9 00100
F-score 0507040405
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