THALES SA (HO.PA) Stock Fundamental Analysis
Europe - EPA:HO - FR0000121329 - Common Stock
239.4 EUR
-4.3 (-1.76%)
We assign a fundamental rating of 5 out of 10 to HO. HO was compared to 44 industry peers in the Aerospace & Defense industry. HO has a medium profitability rating, but doesn't score so well on its financial health evaluation. HO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HO had positive earnings in the past year.
In the past year HO had a positive cash flow from operations.
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
The Return On Assets of HO (2.74%) is worse than 60.87% of its industry peers.
Looking at the Return On Equity, with a value of 14.93%, HO is in line with its industry, outperforming 54.35% of the companies in the same industry.
The Return On Invested Capital of HO (11.65%) is better than 73.91% of its industry peers.
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
With a Profit Margin value of 4.99%, HO perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
In the last couple of years the Profit Margin of HO has grown nicely.
With a Operating Margin value of 9.24%, HO perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
In the last couple of years the Operating Margin of HO has grown nicely.
The Gross Margin of HO (26.11%) 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 | 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.
Compared to 1 year ago, HO has less shares outstanding
The number of shares outstanding for HO has been reduced compared to 5 years ago.
The debt/assets ratio for HO has been reduced compared to a year ago.
2.2 Solvency
HO has an Altman-Z score of 1.66. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.66, HO is doing worse than 73.91% of the companies in the same industry.
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 has a better Debt to FCF ratio (3.07) than 73.91% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that HO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, HO is in line with its industry, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.53
WACC7.61%
2.3 Liquidity
A Current Ratio of 0.82 indicates that HO may have some problems paying its short term obligations.
HO has a Current ratio of 0.82. This is amonst the worse of the industry: HO underperforms 95.65% of its industry peers.
A Quick Ratio of 0.61 indicates that HO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, HO is doing worse than 71.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for HO have decreased strongly by -22.91% in the last year.
Measured over the past 5 years, HO shows a small growth in Earnings Per Share. The EPS has been growing by 5.55% on average per year.
Looking at the last year, HO shows a quite strong growth in Revenue. The Revenue has grown by 11.16% in the last year.
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
The Earnings Per Share is expected to grow by 12.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.
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.
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
A Price/Earnings ratio of 46.31 indicates a quite expensive valuation of HO.
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 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.07, which indicates a rather expensive current valuation of HO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HO indicates a somewhat cheap valuation: HO is cheaper than 76.09% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. HO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.31 | ||
| Fwd PE | 21.07 |
4.2 Price Multiples
65.22% of the companies in the same industry are more expensive than HO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HO is valued a bit cheaper than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.71 | ||
| EV/EBITDA | 16.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HO's earnings are expected to grow with 13.10% in the coming years.
PEG (NY)4.51
PEG (5Y)8.35
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.
Compared to an average industry Dividend Yield of 1.19, HO pays a better dividend. On top of this HO pays more dividend than 80.43% of the companies listed in the same industry.
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
On average, the dividend of HO grows each year by 9.56%, which is quite nice.
Dividend Growth(5Y)9.56%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HO pays out 71.25% of its income as dividend. 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 (11/14/2025, 7:00:00 PM)
239.4
-4.3 (-1.76%)
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 Cap49.30B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts77.78
Price Target286.43 (19.64%)
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 | 46.31 | ||
| Fwd PE | 21.07 | ||
| P/S | 2.31 | ||
| P/FCF | 20.71 | ||
| P/OCF | 16.19 | ||
| P/B | 6.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.92 |
EPS(TTM)5.17
EY2.16%
EPS(NY)11.36
Fwd EY4.75%
FCF(TTM)11.56
FCFY4.83%
OCF(TTM)14.78
OCFY6.18%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)4.51
PEG (5Y)8.35
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 | 1.66 |
F-Score7
WACC7.61%
ROIC/WACC1.53
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 5 / 10 and the dividend payout ratio is 71.25%.