THALES SA (HO.PA) Stock Fundamental Analysis
Europe - EPA:HO - FR0000121329 - Common Stock
261.8 EUR
+4.1 (+1.59%)
We assign a fundamental rating of 5 out of 10 to HO. HO was compared to 46 industry peers in the Aerospace & Defense industry. HO has an excellent profitability rating, but there are concerns on its financial health. HO has a decent growth rate and is not valued too expensively.
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.
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 45.65% of the companies in the same industry.
HO's Return On Equity of 14.93% is fine compared to the rest of the industry. HO outperforms 65.22% of its industry peers.
With an excellent Return On Invested Capital value of 11.65%, HO belongs to the best of the industry, outperforming 82.61% 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 9.09%.
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
The Profit Margin of HO (4.99%) is comparable to the rest of the industry.
HO's Profit Margin has improved in the last couple of years.
HO has a better Operating Margin (9.24%) than 65.22% of its industry peers.
In the last couple of years the Operating Margin of HO has grown nicely.
HO has a Gross Margin of 26.11%. This is comparable to the rest of the industry: HO outperforms 47.83% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HO is creating some value.
The number of shares outstanding for HO has been reduced compared to 1 year ago.
The number of shares outstanding for HO has been reduced compared to 5 years ago.
Compared to 1 year ago, HO has an improved debt to assets ratio.
2.2 Solvency
HO has an Altman-Z score of 1.73. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
HO has a worse Altman-Z score (1.73) than 78.26% of its industry peers.
HO has a debt to FCF ratio of 3.07. This is a good value and a sign of high solvency as HO would need 3.07 years to pay back of all of its debts.
HO's Debt to FCF ratio of 3.07 is fine compared to the rest of the industry. HO outperforms 76.09% of its industry peers.
HO has a Debt/Equity ratio of 0.56. This is a neutral value indicating HO is somewhat dependend on debt financing.
HO's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. HO outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.6
WACC7.29%
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.
Looking at the Current ratio, with a value of 0.82, HO is doing worse than 89.13% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that HO may have some problems paying its short term obligations.
HO's Quick ratio of 0.61 is on the low side compared to the rest of the industry. HO is outperformed by 60.87% 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%.
The Earnings Per Share has been growing slightly by 5.55% on average over the past years.
Looking at the last year, HO shows a quite strong growth in Revenue. The Revenue has grown by 11.16% in the last year.
HO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.26% yearly.
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
The Earnings Per Share is expected to grow by 12.45% on average over the next years. This is quite good.
Based on estimates for the next years, HO will show a quite strong growth in Revenue. The Revenue will grow by 9.00% on average per year.
EPS Next Y8.38%
EPS Next 2Y12.97%
EPS Next 3Y12.65%
EPS Next 5Y12.45%
Revenue Next Year8.88%
Revenue Next 2Y7.92%
Revenue Next 3Y7.92%
Revenue Next 5Y9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HO is valuated quite expensively with a Price/Earnings ratio of 50.64.
Compared to the rest of the industry, the Price/Earnings ratio of HO is on the same level as its industry peers.
HO is valuated expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.29 indicates a rather expensive valuation of HO.
76.09% of the companies in the same industry are more expensive than HO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, HO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.64 | ||
| Fwd PE | 23.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HO indicates a somewhat cheap valuation: HO is cheaper than 71.74% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HO is valued cheaper than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.64 | ||
| EV/EBITDA | 18.13 |
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.
The decent profitability rating of HO may justify a higher PE ratio.
A more expensive valuation may be justified as HO's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)6.04
PEG (5Y)9.13
EPS Next 2Y12.97%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.16, HO pays a bit more dividend than its industry peers.
HO's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 2Y12.97%
EPS Next 3Y12.65%
EPA:HO (9/17/2025, 9:44:13 AM)
261.8
+4.1 (+1.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners19.89%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap53.92B
Analysts78.4
Price Target279.21 (6.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)-0.87%
PT rev (3m)5.05%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.54%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.64 | ||
| Fwd PE | 23.29 | ||
| P/S | 2.53 | ||
| P/FCF | 22.64 | ||
| P/OCF | 17.71 | ||
| P/B | 7.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.13 |
EPS(TTM)5.17
EY1.97%
EPS(NY)11.24
Fwd EY4.29%
FCF(TTM)11.56
FCFY4.42%
OCF(TTM)14.78
OCFY5.65%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)6.04
PEG (5Y)9.13
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 1.73 |
F-Score7
WACC7.29%
ROIC/WACC1.6
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 Y8.38%
EPS Next 2Y12.97%
EPS Next 3Y12.65%
EPS Next 5Y12.45%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year8.88%
Revenue Next 2Y7.92%
Revenue Next 3Y7.92%
Revenue Next 5Y9%
EBIT growth 1Y17.28%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year48.13%
EBIT Next 3Y21.11%
EBIT Next 5Y15.64%
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%