THALES SA (HO.PA) Stock Fundamental Analysis
Europe - EPA:HO - FR0000121329 - Common Stock
240.1 EUR
-6.9 (-2.79%)
Taking everything into account, HO scores 5 out of 10 in our fundamental rating. HO was compared to 46 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.
In the past 5 years HO always reported a positive cash flow from operatings.
1.2 Ratios
HO has a Return On Assets (2.74%) which is in line with its industry peers.
HO's Return On Equity of 14.93% is in line compared to the rest of the industry. HO outperforms 56.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.65%, HO is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HO is in line with the industry average of 9.55%.
The last Return On Invested Capital (11.65%) for HO is above the 3 year average (8.24%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of HO has grown nicely.
HO's Operating Margin of 9.24% is fine compared to the rest of the industry. HO outperforms 63.04% of its industry peers.
HO's Operating Margin has improved in the last couple of years.
HO's Gross Margin of 26.11% is in line compared to the rest of the industry. HO outperforms 43.48% of its industry peers.
In the last couple of years the Gross Margin of HO has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HO is still creating some value.
HO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HO has less shares outstanding
Compared to 1 year ago, HO has an improved debt to assets ratio.
2.2 Solvency
HO has an Altman-Z score of 1.69. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
HO has a Altman-Z score of 1.69. This is in the lower half of the industry: HO underperforms 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.
The Debt to FCF ratio of HO (3.07) is better than 78.26% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that HO is somewhat dependend on debt financing.
HO has a Debt to Equity ratio (0.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.47
WACC7.92%
2.3 Liquidity
A Current Ratio of 0.82 indicates that HO may have some problems paying its short term obligations.
HO's Current ratio of 0.82 is on the low side compared to the rest of the industry. HO is outperformed by 91.30% of its industry peers.
HO has a Quick 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.
The Quick ratio of HO (0.61) is worse than 67.39% of its industry peers.
| 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.
HO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.55% yearly.
The Revenue has grown by 11.16% in the past year. This is quite good.
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
Based on estimates for the next years, HO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.36% on average per year.
The Revenue is expected to grow by 8.90% on average over the next years. This is quite good.
EPS Next Y8.88%
EPS Next 2Y13.16%
EPS Next 3Y12.77%
EPS Next 5Y12.36%
Revenue Next Year8.87%
Revenue Next 2Y7.91%
Revenue Next 3Y7.88%
Revenue Next 5Y8.9%
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
Based on the Price/Earnings ratio of 46.44, the valuation of HO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as HO.
When comparing the Price/Earnings ratio of HO to the average of the S&P500 Index (26.03), we can say HO is valued expensively.
A Price/Forward Earnings ratio of 21.28 indicates a rather expensive valuation of HO.
HO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HO is cheaper than 84.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HO to the average of the S&P500 Index (22.27), we can say HO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.44 | ||
| Fwd PE | 21.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HO is valued a bit cheaper than the industry average as 71.74% of the companies are valued more expensively.
HO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HO is cheaper than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.77 | ||
| EV/EBITDA | 17.42 |
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 12.77% in the coming years.
PEG (NY)5.23
PEG (5Y)8.37
EPS Next 2Y13.16%
EPS Next 3Y12.77%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.07, HO pays a better dividend. On top of this HO pays more dividend than 82.61% of the companies listed in the same industry.
HO's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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.
HO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.25%
EPS Next 2Y13.16%
EPS Next 3Y12.77%
EPA:HO (11/5/2025, 5:36:15 PM)
240.1
-6.9 (-2.79%)
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 Cap49.45B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts76.3
Price Target286.43 (19.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)2.59%
PT rev (3m)2.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.09%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.44 | ||
| Fwd PE | 21.28 | ||
| P/S | 2.32 | ||
| P/FCF | 20.77 | ||
| P/OCF | 16.24 | ||
| P/B | 6.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.42 |
EPS(TTM)5.17
EY2.15%
EPS(NY)11.28
Fwd EY4.7%
FCF(TTM)11.56
FCFY4.82%
OCF(TTM)14.78
OCFY6.16%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)5.23
PEG (5Y)8.37
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 | 1.69 |
F-Score7
WACC7.92%
ROIC/WACC1.47
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 Y8.88%
EPS Next 2Y13.16%
EPS Next 3Y12.77%
EPS Next 5Y12.36%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year8.87%
Revenue Next 2Y7.91%
Revenue Next 3Y7.88%
Revenue Next 5Y8.9%
EBIT growth 1Y17.28%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year47.96%
EBIT Next 3Y21.02%
EBIT Next 5Y15.54%
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%.