THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
261.6 EUR
+6.5 (+2.55%)
Overall HO gets a fundamental rating of 5 out of 10. We evaluated HO against 54 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year HO was profitable.
- In the past year HO had a positive cash flow from operations.
- 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 40.74% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.93%, HO is in line with its industry, outperforming 57.41% of the companies in the same industry.
- HO's Return On Invested Capital of 11.65% is fine compared to the rest of the industry. HO outperforms 74.07% 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 9.17%.
- 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's Profit Margin of 4.99% is in line compared to the rest of the industry. HO outperforms 42.59% of its industry peers.
- In the last couple of years the Profit Margin of HO has grown nicely.
- HO has a Operating Margin of 9.24%. This is comparable to the rest of the industry: HO outperforms 57.41% of its industry peers.
- In the last couple of years the Operating Margin of HO has grown nicely.
- HO has a Gross Margin (26.11%) which is in line with 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.
- The number of shares outstanding for HO has been reduced compared to 5 years ago.
- HO has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.74, we must say that HO is in the distress zone and has some risk of bankruptcy.
- HO has a Altman-Z score of 1.74. This is in the lower half of the industry: HO underperforms 77.78% 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.
- With a decent Debt to FCF ratio value of 3.07, HO is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- 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 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.31
WACC8.9%
2.3 Liquidity
- A Current Ratio of 0.82 indicates that HO may have some problems paying its short term obligations.
- HO has a worse Current ratio (0.82) than 94.44% 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 74.07% of the companies in the same industry.
| 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%.
- Measured over the past years, HO shows a small growth in Revenue. The Revenue has been growing by 2.26% on average per year.
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 12.61% on average over the next years. This is quite good.
- HO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
EPS Next Y10.18%
EPS Next 2Y13.31%
EPS Next 3Y12.98%
EPS Next 5Y12.61%
Revenue Next Year9.05%
Revenue Next 2Y8.19%
Revenue Next 3Y8.1%
Revenue Next 5Y8.07%
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
- The Price/Earnings ratio is 50.60, which means the current valuation is very expensive for HO.
- HO's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.38. HO is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 23.13 indicates a rather expensive valuation of HO.
- Based on the Price/Forward Earnings ratio, HO is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. HO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.6 | ||
| Fwd PE | 23.13 |
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 74.07% of the companies listed in the same industry.
- HO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HO is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.62 | ||
| EV/EBITDA | 18.39 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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 12.98% in the coming years.
PEG (NY)4.97
PEG (5Y)9.12
EPS Next 2Y13.31%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
- HO has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.75, HO pays a better dividend. On top of this HO pays more dividend than 90.74% of the companies listed in the same industry.
- HO's Dividend Yield is comparable with the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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
- HO pays out 71.27% of its income as dividend. This is not a sustainable payout ratio.
- HO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.27%
EPS Next 2Y13.31%
EPS Next 3Y12.98%
EPA:HO (1/16/2026, 7:00:00 PM)
261.6
+6.5 (+2.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-23 2025-10-23
Earnings (Next)03-03 2026-03-03/amc
Inst Owners23.34%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap53.87B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts75.56
Price Target283.98 (8.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend3.44
Dividend Growth(5Y)9.56%
DP71.27%
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)0.66%
PT rev (3m)3.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.6 | ||
| Fwd PE | 23.13 | ||
| P/S | 2.52 | ||
| P/FCF | 22.62 | ||
| P/OCF | 17.69 | ||
| P/B | 7.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.39 |
EPS(TTM)5.17
EY1.98%
EPS(NY)11.31
Fwd EY4.32%
FCF(TTM)11.57
FCFY4.42%
OCF(TTM)14.79
OCFY5.65%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)4.97
PEG (5Y)9.12
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 | 11.16% |
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 | 58.15% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 8.81 | ||
| Cash Conversion | 97.82% | ||
| Profit Quality | 223.49% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.74 |
F-Score7
WACC8.9%
ROIC/WACC1.31
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 Y10.18%
EPS Next 2Y13.31%
EPS Next 3Y12.98%
EPS Next 5Y12.61%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year9.05%
Revenue Next 2Y8.19%
Revenue Next 3Y8.1%
Revenue Next 5Y8.07%
EBIT growth 1Y17.29%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year51.54%
EBIT Next 3Y22%
EBIT Next 5Y15.83%
FCF growth 1Y47.72%
FCF growth 3Y-7.33%
FCF growth 5Y8.4%
OCF growth 1Y36.72%
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.
Can you provide the valuation status for THALES SA?
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.
Can you provide the PE and PB ratios for HO stock?
The Price/Earnings (PE) ratio for THALES SA (HO.PA) is 50.6 and the Price/Book (PB) ratio is 7.55.
Can you provide the dividend sustainability for HO stock?
The dividend rating of THALES SA (HO.PA) is 6 / 10 and the dividend payout ratio is 71.27%.