What moves the needle: The pipeline against the patent cliff, and pricing. What decides it: whether new drugs replace those losing exclusivity, the odds in the clinical pipeline, and how durable pricing stays against payers and generics.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

1.2Bpeak FY2016

ROIC

7%low FY2019

Net debt ÷ owner earnings

0.8×peak FY2019

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

€7.2Bowner earningsvs.€7.8Bnet incomelow FY2020

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported €7.8B of profit but €7.2B of owner earnings: €601M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income€7.8B

Owner earnings€7.2B

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	€7.8B	€5.6B	€5.4B	€8.4B	€6.2B
Working capital & othertiming of cash in and out, other non-cash items	+€2.9B	+€3.5B	+€4.9B	+€2.2B	+€4.3B
Cash from operations	€10.8B	€9.1B	€10.3B	€10.5B	€10.5B
Capital expenditurecash put back in to keep running and to grow	−€3.5B	−€3.2B	−€2.9B	−€2.1B	−€2.0B
Owner earnings	€7.2B	€5.9B	€7.4B	€8.4B	€8.5B
Owner-earnings marginowner earnings ÷ revenue	—	—	—	—	—

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 11.3×

Comfortable

Operating income €6.3B ÷ interest expense €563M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? €5.8B · 0.9× operating profit

Modest net debt

Cash €7.7B + ST investments €793M − debt €14.2B

What this means
Netting €8.4B of cash and short-term investments against €14.2B of debt leaves €5.8B owed, about 0.9× a year's operating profit (2.2× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 7%

Below average through the cycle

10-yr median, range 4%–18%; 7% latest = NOPAT €5.6B ÷ invested capital €78.0B

Industry peers: median 17%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 7% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 92%

High

Owner earnings €7.2B = operating cash €10.8B − maintenance capex €3.5B

Industry peers: median 13%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 92% of revenue this year.
Are earnings backed by cash? 1.38×

Cash-backed

Cash from ops €10.8B ÷ net income €7.8B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 136%

Returned more than it generated

Dividends + buybacks €9.8B ÷ Owner Earnings €7.2B

What this means
The company returned more than it generated: against €7.2B of Owner Earnings, €9.8B (136%) went back to shareholders, €4.8B dividends, €5.0B buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size —

Revenue ≥ $2B (a dollar floor) · €7.8B

What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
Strong liquidity Miss

Current ratio ≥ 2× · 1.09×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · €14.2B vs €2.6B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (10)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Near

Earnings +33% over the record · +8%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are €5.13/share (latest year €6.41), the averaged base the calculator's gate runs on, and book value is €58.53/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2025

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets€31.0B

Cash & short-term investments€8.4B
Receivables€8.4B
Inventory€10.2B
Other current assets€3.9B

Current liabilities€28.3B

Other current liabilities€28.3B

Current ratio1.09×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.73×stricter: inventory excluded

Cash ratio0.30×strictest: cash alone against what's due

Working capital€2.6Bthe cushion left after near-term bills

Deeper floors

Tangible book value€3.8Bequity stripped of goodwill & intangibles

Debt incl. operating leases€16.0B€1.7B of it operating leases

From the company's latest filing.

How the cash was used, 2019–2025

Over the record, the business generated €66.3B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested€17.7B · 27%
Dividends€29.9B · 45%
Buybacks€7.6B · 12%
Retained (debt / cash)€11.1B · 17%

Returned to owners€37.5B
77% of the owner earnings the business produced over the span, €29.9B as dividends and €7.6B as buybacks.
Average price paid for buybacks—
Buybacks ran €7.6B over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−2.4%
The diluted count fell from 1250M to 1220M, so the buybacks outran the stock issued to staff.
Dividend record€3.91/sh
Paid in 7 of the years on record, the per-share dividend growing about 4% a year. It was never cut over the span.
Return on what it retained2%
Of the earnings it kept rather than paid out (€10.9B over the span), annual owner earnings (first three years vs last three) grew €236M, so each retained €1 added about 0.02 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles€67.6B53% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity58%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring€0over 10 years buying other businesses, against €17.7B of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Inverting the record

Invert: instead of why Sanofi ADS is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

None of the 3 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Pharmaceuticals

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
REGNRegeneron Pharmaceuticals Inc.	$14.3B	—	34.6%	21%	31%
VRTXVertex Pharmaceuticals Incorporated	$12.0B	87%	31.8%	36%	34%
BHCBausch Health Companies Inc.	$10.3B	76%	5.5%	2%	13%
ZTSZoetis Inc.	$9.5B	69%	34.2%	26%	22%
SNYSanofi ADS	€7.8B	—	81.2%	8%	92%
OGNOrganon	$6.2B	62%	25.0%	17%	12%
ONCBeOne Medicines Ltd.	$5.3B	86%	-124.4%	-46%	-112%
ELANElanco Animal Health Incorporated	$4.7B	54%	-3.2%	-1%	4%
Group median	—	—	28.4%	12%	18%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American Depositary Shares, each representing one half of one ordinary”; Sanofi ADS reports in EUR, so every figure in this tool is stated per ADS and translated at EUR 1 = $1.145 (2026-07-17, reference rate) so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed, in EUR.

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Sanofi ADS has delivered.

Today’s price $

Base Normalize · through-cycle ($7.8B) Net of stock comp

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $8.3B on 2439M shares outstanding, per the 20-F cover, as of 2025-12-31; net debt $6.6B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh SNY against another business →

Cite: Owner Scorecard, "Sanofi ADS (SNY), the owner's record," https://ownerscorecard.com/c/SNY, data as of 2026-07-09.

Manual order: ← SNT its page in the Manual SOBO →

Industry order: ← SNDX the Pharmaceuticals chapter SPRY →