SanofiMIL:1SAN -0.35%72 Return-on-Tangible-Equity is 61.06% as of Dec. 2025, which is 52% below its 10-year median of 126.78. GuruFocus rates MIL:1SAN with a GF Score™ of 72/100 and a GF Value™ of €106.93 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 897 Drug Manufacturers companies, Sanofi ranks better than 92.42% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sanofi's annualized net income for the quarter that ended in Dec. 2025 was €4,002 Mil. Sanofi's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €6,555 Mil. Therefore, Sanofi's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 61.06%.
The historical rank and industry rank for Sanofi's Return-on-Tangible-Equity or its related term are showing as below:
MIL:1SAN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 73.28 Med: 126.78 Max: 677.81
Current: 95.27
During the past 13 years, Sanofi's highest Return-on-Tangible-Equity was 677.81%. The lowest was 73.28%. And the median was 126.78%.
MIL:1SAN's Return-on-Tangible-Equity is ranked better than 92.42% of 897
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs MIL:1SAN: 95.27
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sanofi Return-on-Tangible-Equity Related Terms
Sanofi Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sanofi's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MIL:1SAN vs LLY, JNJ, ABBV: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - General subindustry, Sanofi's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sanofi Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sanofi's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sanofi's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 61.06% mean?
Sanofi (MIL:1SAN) has a Return-on-Tangible-Equity of 61.06% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sanofi and its competitors. This is 52% below median its historical median of 126.78. Over the past decade, Sanofi's Return-on-Tangible-Equity has ranged from 73.28 to 677.81. According to the industry distribution chart, Sanofi ranks #68 out of 897 companies in the Drug Manufacturers industry, placing it in the top 7.6%.
Is Sanofi's Return-on-Tangible-Equity too high?
Sanofi's current Return-on-Tangible-Equity of 61.06% is 52% below median its 10-year median of 126.78. Over the past 10 years, this metric has ranged from a low of 73.28 to a high of 677.81. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Sanofi's value of 61.06% is 672.9% above this industry median. Based on the distribution chart, Sanofi ranks #68 out of 897 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Sanofi has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sanofi's Return-on-Tangible-Equity compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Sanofi ranks #68 out of 897 companies for Return-on-Tangible-Equity. This places Sanofi in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.90. Sanofi's value of 61.06% is 672.9% above this benchmark. Historically, Sanofi's own Return-on-Tangible-Equity has ranged from 73.28 to 677.81 over the past decade. While the company's 10-year median is 126.78 vs. the industry median of 7.90, Sanofi has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.90, based on 897 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sanofi's current Return-on-Tangible-Equity of 61.06% is 672.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sanofi and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanofi's current Return-on-Tangible-Equity is 61.06%, which is 52% below median its own 10-year median of 126.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanofi stock overvalued right now?
Based on GuruFocus' analysis, Sanofi (MIL:1SAN) is currently considered Modestly Undervalued. The stock's GF Value™ is €106.93, compared to a current price of €76.09 — trading 28.8% below its estimated fair value. The current Return-on-Tangible-Equity is 61.06%, which is 52% below median its 10-year median of 126.78 and 672.9% above the Drug Manufacturers industry median of 7.90. Sanofi's overall GF Score™ is 72/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sanofi (MIL:1SAN), the current Return-on-Tangible-Equity is 61.06% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sanofi (MIL:1SAN) Overvalued in 2026?
Based on GuruFocus' analysis, Sanofi stock appears to be undervalued.
The current stock price of €76.09 is trading 28.8% below its estimated GF Value™ of €106.93.
GuruFocus considers Sanofi to be Modestly Undervalued.
Key valuation signals for MIL:1SAN:
Return-on-Tangible-Equity: 61.06% (52% below median its 10-year median of 126.78)
GF Value™: €106.93 vs. price of €76.09 (28.8% below fair value)
Industry Position: 672.9% above the Drug Manufacturers median (#68 of 897)
No single metric tells the full story. See the MIL:1SAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sanofi develops and markets drugs with a concentration in immunology, vaccines, and rare diseases. Although the company offers a diverse array of drugs, its highest revenue generator, Dupixent, accounts for over 30% of total sales. Profits for this immunology blockbuster drug are shared with Regeneron. About 45% of total revenue comes from the United States, 20% from Europe, and 6% from China.
72GF Score
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