THALES SA (HO.PA) Stock Fundamental Analysis
EPA:HO - Euronext Paris - Matif - FR0000121329 - Common Stock - Currency: EUR
Taking everything into account, HO scores 4 out of 10 in our fundamental rating. HO was compared to 38 industry peers in the Aerospace & Defense industry. While HO belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, HO is valued expensive at the moment.
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.
Each year in the past 5 years HO has been profitable.
Each year in the past 5 years HO had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.65%, HO is doing good in the industry, outperforming 63.16% of the companies in the same industry.
HO has a Return On Equity of 19.11%. This is amongst the best in the industry. HO outperforms 86.84% of its industry peers.
The Return On Invested Capital of HO (9.31%) is better than 71.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HO is in line with the industry average of 8.78%.
The 3 year average ROIC (7.66%) for HO is below the current ROIC(9.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 19.11% | ||
| ROIC | 9.31% |
ROA(3y)3.07%
ROA(5y)2.86%
ROE(3y)15.8%
ROE(5y)15.48%
ROIC(3y)7.66%
ROIC(5y)7.05%
1.3 Margins
With a decent Profit Margin value of 7.25%, HO is doing good in the industry, outperforming 76.32% of the companies in the same industry.
HO's Profit Margin has declined in the last couple of years.
HO has a Operating Margin of 8.76%. This is in the better half of the industry: HO outperforms 63.16% of its industry peers.
In the last couple of years the Operating Margin of HO has remained more or less at the same level.
HO has a Gross Margin (26.01%) which is comparable to the rest of the industry.
HO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.76% | ||
| PM (TTM) | 7.25% | ||
| GM | 26.01% |
OM growth 3Y15.32%
OM growth 5Y-0.39%
PM growth 3Y20.87%
PM growth 5Y-2.16%
GM growth 3Y3.56%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HO is still creating some value.
HO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that HO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.66, HO is doing worse than 71.05% of the companies in the same industry.
The Debt to FCF ratio of HO is 10.32, which is on the high side as it means it would take HO, 10.32 years of fcf income to pay off all of its debts.
HO has a Debt to FCF ratio of 10.32. This is comparable to the rest of the industry: HO outperforms 42.11% of its industry peers.
HO has a Debt/Equity ratio of 0.71. This is a neutral value indicating HO is somewhat dependend on debt financing.
HO has a Debt to Equity ratio of 0.71. This is comparable to the rest of the industry: HO outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.32 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.21
WACC7.71%
2.3 Liquidity
HO has a Current Ratio of 0.84. This is a bad value and indicates that HO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HO (0.84) is worse than 81.58% of its industry peers.
A Quick Ratio of 0.63 indicates that HO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, HO is in line with its industry, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
HO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.37%, which is quite good.
The Earnings Per Share has been growing by 8.89% on average over the past years. This is quite good.
Looking at the last year, HO shows a small growth in Revenue. The Revenue has grown by 6.53% in the last year.
The Revenue has been growing slightly by 3.05% on average over the past years.
EPS 1Y (TTM)15.37%
EPS 3Y24.45%
EPS 5Y8.89%
EPS Q2Q%59.22%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y6.23%
Revenue growth 5Y3.05%
Sales Q2Q%8.91%
3.2 Future
Based on estimates for the next years, HO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.32% on average per year.
Based on estimates for the next years, HO will show a small growth in Revenue. The Revenue will grow by 7.12% on average per year.
EPS Next Y3.87%
EPS Next 2Y7.04%
EPS Next 3Y8.65%
EPS Next 5Y8.32%
Revenue Next Year10.98%
Revenue Next 2Y9.09%
Revenue Next 3Y8.18%
Revenue Next 5Y7.12%
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 stable.
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
With a Price/Earnings ratio of 27.91, HO can be considered very expensive at the moment.
HO's Price/Earnings ratio is a bit cheaper when compared to the industry. HO is cheaper than 65.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. HO is around the same levels.
The Price/Forward Earnings ratio is 24.36, which indicates a rather expensive current valuation of HO.
HO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, HO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.91 | ||
| Fwd PE | 24.36 |
4.2 Price Multiples
HO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HO is cheaper than 60.53% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.8 | ||
| EV/EBITDA | 19.92 |
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.
PEG (NY)7.21
PEG (5Y)3.14
EPS Next 2Y7.04%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.50%.
Compared to an average industry Dividend Yield of 1.22, HO pays a better dividend. On top of this HO pays more dividend than 84.21% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.33, HO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of HO is nicely growing with an annual growth rate of 11.06%!
Dividend Growth(5Y)11.06%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HO pays out 50.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
HO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.3%
EPS Next 2Y7.04%
EPS Next 3Y8.65%
EPA:HO (3/7/2025, 7:00:00 PM)
236.7
-10.5 (-4.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners20.49%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap48.75B
Analysts77.69
Price Target177.75 (-24.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend3.04
Dividend Growth(5Y)11.06%
DP50.3%
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)0.38%
PT rev (3m)-0.35%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.3%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.91 | ||
| Fwd PE | 24.36 | ||
| P/S | 2.54 | ||
| P/FCF | 59.8 | ||
| P/OCF | 33.86 | ||
| P/B | 6.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.92 |
EPS(TTM)8.48
EY3.58%
EPS(NY)9.72
Fwd EY4.1%
FCF(TTM)3.96
FCFY1.67%
OCF(TTM)6.99
OCFY2.95%
SpS93.26
BVpS35.37
TBVpS-19.85
PEG (NY)7.21
PEG (5Y)3.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 19.11% | ||
| ROCE | 11.5% | ||
| ROIC | 9.31% | ||
| ROICexc | 12.6% | ||
| ROICexgc | N/A | ||
| OM | 8.76% | ||
| PM (TTM) | 7.25% | ||
| GM | 26.01% | ||
| FCFM | 4.24% |
ROA(3y)3.07%
ROA(5y)2.86%
ROE(3y)15.8%
ROE(5y)15.48%
ROIC(3y)7.66%
ROIC(5y)7.05%
ROICexc(3y)11.3%
ROICexc(5y)10.03%
ROICexgc(3y)52.39%
ROICexgc(5y)44.38%
ROCE(3y)10.19%
ROCE(5y)9.39%
ROICexcg growth 3Y30.27%
ROICexcg growth 5Y-14.41%
ROICexc growth 3Y17.49%
ROICexc growth 5Y-14.1%
OM growth 3Y15.32%
OM growth 5Y-0.39%
PM growth 3Y20.87%
PM growth 5Y-2.16%
GM growth 3Y3.56%
GM growth 5Y0.07%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.32 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 56.56% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 8 | ||
| Cash Conversion | 51.68% | ||
| Profit Quality | 58.57% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.66 |
F-Score5
WACC7.71%
ROIC/WACC1.21
Cap/Depr(3y)50.93%
Cap/Depr(5y)46.34%
Cap/Sales(3y)3.07%
Cap/Sales(5y)2.89%
Profit Quality(3y)171.98%
Profit Quality(5y)178.65%
High Growth Momentum
Growth
EPS 1Y (TTM)15.37%
EPS 3Y24.45%
EPS 5Y8.89%
EPS Q2Q%59.22%
EPS Next Y3.87%
EPS Next 2Y7.04%
EPS Next 3Y8.65%
EPS Next 5Y8.32%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y6.23%
Revenue growth 5Y3.05%
Sales Q2Q%8.91%
Revenue Next Year10.98%
Revenue Next 2Y9.09%
Revenue Next 3Y8.18%
Revenue Next 5Y7.12%
EBIT growth 1Y5.45%
EBIT growth 3Y22.51%
EBIT growth 5Y2.65%
EBIT Next Year50.33%
EBIT Next 3Y21.64%
EBIT Next 5Y14.56%
FCF growth 1Y-69.47%
FCF growth 3Y-10.49%
FCF growth 5Y5.55%
OCF growth 1Y-53.99%
OCF growth 3Y-2.37%
OCF growth 5Y7.13%