THALES SA (HO.PA) Stock Fundamental Analysis
Europe - EPA:HO - FR0000121329 - Common Stock
237.6 EUR
+4.7 (+2.02%)
Overall HO gets a fundamental rating of 5 out of 10. We evaluated HO against 44 industry peers in the Aerospace & Defense industry. While HO is still in line with the averages on profitability rating, there are concerns on its financial health. HO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HO had positive earnings in the past year.
HO had a positive operating cash flow in the past year.
HO had positive earnings in each of the past 5 years.
HO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.74%, HO is in line with its industry, outperforming 40.91% of the companies in the same industry.
HO has a Return On Equity (14.93%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 11.65%, HO is doing good in the industry, outperforming 75.00% of the companies in the same industry.
HO had an Average Return On Invested Capital over the past 3 years of 8.24%. This is in line with the industry average of 9.16%.
The 3 year average ROIC (8.24%) for HO is below the current ROIC(11.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.74% | ||
| ROE | 14.93% | ||
| ROIC | 11.65% |
ROA(3y)3.15%
ROA(5y)2.86%
ROE(3y)16.5%
ROE(5y)15.14%
ROIC(3y)8.24%
ROIC(5y)7.14%
1.3 Margins
HO has a Profit Margin (4.99%) which is comparable to the rest of the industry.
HO's Profit Margin has improved in the last couple of years.
HO's Operating Margin of 9.24% is in line compared to the rest of the industry. HO outperforms 59.09% of its industry peers.
HO's Operating Margin has improved in the last couple of years.
HO has a Gross Margin of 26.11%. This is comparable to the rest of the industry: HO outperforms 43.18% of its industry peers.
HO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.24% | ||
| PM (TTM) | 4.99% | ||
| GM | 26.11% |
OM growth 3Y5%
OM growth 5Y2.94%
PM growth 3Y0.86%
PM growth 5Y2.5%
GM growth 3Y1.59%
GM growth 5Y1.22%
2. Health
2.1 Basic Checks
HO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HO has been reduced compared to 1 year ago.
Compared to 5 years ago, HO has less shares outstanding
The debt/assets ratio for HO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that HO is in the distress zone and has some risk of bankruptcy.
HO has a worse Altman-Z score (1.63) than 75.00% of its industry peers.
The Debt to FCF ratio of HO is 3.07, which is a good value as it means it would take HO, 3.07 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.07, HO is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
HO has a Debt/Equity ratio of 0.56. This is a neutral value indicating HO is somewhat dependend on debt financing.
HO has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: HO outperforms 47.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.5
WACC7.78%
2.3 Liquidity
HO has a Current Ratio of 0.82. This is a bad value and indicates that HO is not financially healthy enough and could expect problems in meeting its short term obligations.
HO has a Current ratio of 0.82. This is amonst the worse of the industry: HO underperforms 95.45% of its industry peers.
A Quick Ratio of 0.61 indicates that HO may have some problems paying its short term obligations.
HO has a worse Quick ratio (0.61) than 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
HO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.91%.
HO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.55% yearly.
HO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.16%.
The Revenue has been growing slightly by 2.26% on average over the past years.
EPS 1Y (TTM)-22.91%
EPS 3Y10.55%
EPS 5Y5.55%
EPS Q2Q%-34.49%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
3.2 Future
HO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.81% yearly.
HO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.10% yearly.
EPS Next Y10.26%
EPS Next 2Y13.58%
EPS Next 3Y13.1%
EPS Next 5Y12.81%
Revenue Next Year9.05%
Revenue Next 2Y8.21%
Revenue Next 3Y8.12%
Revenue Next 5Y9.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 45.96, the valuation of HO can be described as expensive.
HO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.47. HO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 20.91, the valuation of HO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, HO is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HO to the average of the S&P500 Index (35.42), we can say HO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.96 | ||
| Fwd PE | 20.91 |
4.2 Price Multiples
HO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HO is cheaper than 70.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HO is valued a bit cheaper than 79.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.55 | ||
| EV/EBITDA | 16.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HO does not grow enough to justify the current Price/Earnings ratio.
HO has a very decent profitability rating, which may justify a higher PE ratio.
HO's earnings are expected to grow with 13.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.48
PEG (5Y)8.28
EPS Next 2Y13.58%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, HO has a reasonable but not impressive dividend return.
HO's Dividend Yield is a higher than the industry average which is at 1.19.
Compared to the average S&P500 Dividend Yield of 2.44, HO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of HO is nicely growing with an annual growth rate of 9.56%!
Dividend Growth(5Y)9.56%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
71.25% of the earnings are spent on dividend by HO. This is not a sustainable payout ratio.
The dividend of HO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.25%
EPS Next 2Y13.58%
EPS Next 3Y13.1%
EPA:HO (11/20/2025, 11:55:02 AM)
237.6
+4.7 (+2.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners22.57%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap48.93B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts77.78
Price Target286.43 (20.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend3.44
Dividend Growth(5Y)9.56%
DP71.25%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.93%
PT rev (3m)1.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.26%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.96 | ||
| Fwd PE | 20.91 | ||
| P/S | 2.29 | ||
| P/FCF | 20.55 | ||
| P/OCF | 16.07 | ||
| P/B | 6.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.49 |
EPS(TTM)5.17
EY2.18%
EPS(NY)11.36
Fwd EY4.78%
FCF(TTM)11.56
FCFY4.87%
OCF(TTM)14.78
OCFY6.22%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)4.48
PEG (5Y)8.28
Graham Number63.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.74% | ||
| ROE | 14.93% | ||
| ROCE | 14.78% | ||
| ROIC | 11.65% | ||
| ROICexc | 16.44% | ||
| ROICexgc | N/A | ||
| OM | 9.24% | ||
| PM (TTM) | 4.99% | ||
| GM | 26.11% | ||
| FCFM | 11.15% |
ROA(3y)3.15%
ROA(5y)2.86%
ROE(3y)16.5%
ROE(5y)15.14%
ROIC(3y)8.24%
ROIC(5y)7.14%
ROICexc(3y)11.9%
ROICexc(5y)10.42%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.53%
ROCE(5y)9.88%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y8.29%
ROICexc growth 5Y6.18%
OM growth 3Y5%
OM growth 5Y2.94%
PM growth 3Y0.86%
PM growth 5Y2.5%
GM growth 3Y1.59%
GM growth 5Y1.22%
F-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 58.17% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 8.8 | ||
| Cash Conversion | 97.8% | ||
| Profit Quality | 223.37% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.63 |
F-Score7
WACC7.78%
ROIC/WACC1.5
Cap/Depr(3y)54.76%
Cap/Depr(5y)48.08%
Cap/Sales(3y)3.16%
Cap/Sales(5y)2.94%
Profit Quality(3y)143.57%
Profit Quality(5y)182.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.91%
EPS 3Y10.55%
EPS 5Y5.55%
EPS Q2Q%-34.49%
EPS Next Y10.26%
EPS Next 2Y13.58%
EPS Next 3Y13.1%
EPS Next 5Y12.81%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year9.05%
Revenue Next 2Y8.21%
Revenue Next 3Y8.12%
Revenue Next 5Y9.1%
EBIT growth 1Y17.28%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year47.96%
EBIT Next 3Y21.02%
EBIT Next 5Y16.04%
FCF growth 1Y47.67%
FCF growth 3Y-7.33%
FCF growth 5Y8.4%
OCF growth 1Y36.71%
OCF growth 3Y-3.84%
OCF growth 5Y7.31%
THALES SA / HO.PA FAQ
Can you provide the ChartMill fundamental rating for THALES SA?
ChartMill assigns a fundamental rating of 5 / 10 to HO.PA.
What is the valuation status for HO stock?
ChartMill assigns a valuation rating of 4 / 10 to THALES SA (HO.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for THALES SA?
THALES SA (HO.PA) has a profitability rating of 6 / 10.
How financially healthy is THALES SA?
The financial health rating of THALES SA (HO.PA) is 3 / 10.
Is the dividend of THALES SA sustainable?
The dividend rating of THALES SA (HO.PA) is 4 / 10 and the dividend payout ratio is 71.25%.