THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
227 EUR
+2.8 (+1.25%)
Taking everything into account, HO scores 5 out of 10 in our fundamental rating. HO was compared to 49 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.
HO had a positive operating cash flow in the past year.
HO had positive earnings in each of the past 5 years.
Each year in the past 5 years HO had a positive operating cash flow.
1.2 Ratios
HO has a Return On Assets of 2.74%. This is comparable to the rest of the industry: HO outperforms 40.82% of its industry peers.
The Return On Equity of HO (14.93%) is comparable to the rest of the industry.
The Return On Invested Capital of HO (11.65%) is better than 73.47% 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 9.30%.
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's Profit Margin of 4.99% is in line compared to the rest of the industry. HO outperforms 44.90% of its industry peers.
In the last couple of years the Profit Margin of HO has grown nicely.
With a decent Operating Margin value of 9.24%, HO is doing good in the industry, outperforming 61.22% of the companies in the same industry.
HO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 26.11%, HO is in line with its industry, outperforming 44.90% of the companies in the same industry.
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
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.
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
Based on the Altman-Z score of 1.60, we must say that HO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HO (1.60) is worse than 75.51% 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 has a Debt to FCF ratio of 3.07. This is in the better half of the industry: HO outperforms 77.55% 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 46.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.47
WACC7.94%
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 95.92% of its industry peers.
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 71.43% 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.
The Earnings Per Share has been growing slightly by 5.55% on average over the past years.
The Revenue has grown by 11.16% in the past year. This is quite good.
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 12.82% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.08% on average over the next years. This is quite good.
EPS Next Y10.13%
EPS Next 2Y13.34%
EPS Next 3Y13%
EPS Next 5Y12.82%
Revenue Next Year9.05%
Revenue Next 2Y8.2%
Revenue Next 3Y8.1%
Revenue Next 5Y8.08%
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.
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 43.91, HO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HO to the average of the S&P500 Index (26.34), we can say HO is valued expensively.
Based on the Price/Forward Earnings ratio of 20.06, the valuation of HO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HO indicates a somewhat cheap valuation: HO is cheaper than 77.55% of the companies listed in the same industry.
HO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.91 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
69.39% of the companies in the same industry are more expensive than HO, based on the Enterprise Value to EBITDA ratio.
85.71% of the companies in the same industry are more expensive than HO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.63 | ||
| EV/EBITDA | 15.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 13.00% in the coming years.
PEG (NY)4.33
PEG (5Y)7.92
EPS Next 2Y13.34%
EPS Next 3Y13%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.69%.
Compared to an average industry Dividend Yield of 1.18, HO pays a better dividend. On top of this HO pays more dividend than 85.71% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, HO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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.
HO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.25%
EPS Next 2Y13.34%
EPS Next 3Y13%
EPA:HO (12/8/2025, 7:00:00 PM)
227
+2.8 (+1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.44%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap46.75B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts76.43
Price Target282.12 (24.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)-1.5%
PT rev (3m)0.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.11%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.91 | ||
| Fwd PE | 20.06 | ||
| P/S | 2.19 | ||
| P/FCF | 19.63 | ||
| P/OCF | 15.35 | ||
| P/B | 6.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.92 |
EPS(TTM)5.17
EY2.28%
EPS(NY)11.31
Fwd EY4.98%
FCF(TTM)11.56
FCFY5.09%
OCF(TTM)14.78
OCFY6.51%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)4.33
PEG (5Y)7.92
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 | 1.6 |
F-Score7
WACC7.94%
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 Y10.13%
EPS Next 2Y13.34%
EPS Next 3Y13%
EPS Next 5Y12.82%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year9.05%
Revenue Next 2Y8.2%
Revenue Next 3Y8.1%
Revenue Next 5Y8.08%
EBIT growth 1Y17.28%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year51.54%
EBIT Next 3Y22%
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%.