THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
257.65 EUR
-0.85 (-0.33%)
HO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of HO while its profitability can be described as average. 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.
- Each year in the past 5 years HO has been profitable.
- In the past 5 years HO always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.74%, HO is in line with its industry, outperforming 41.51% of the companies in the same industry.
- The Return On Equity of HO (14.93%) is comparable to the rest of the industry.
- HO has a better Return On Invested Capital (11.65%) than 75.47% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HO is in line with the industry average of 9.24%.
- 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 43.40% of the companies in the same industry.
- In the last couple of years the Profit Margin of HO has grown nicely.
- Looking at the Operating Margin, with a value of 9.24%, HO is in line with its industry, outperforming 58.49% 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 47.17% of the companies in the same 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HO is still creating some value.
- The number of shares outstanding for HO has been reduced compared to 1 year ago.
- HO has less shares outstanding than it did 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 1.73. 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 1.73, HO is doing worse than 77.36% of the companies in the same industry.
- 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.
- HO's Debt to FCF ratio of 3.07 is fine compared to the rest of the industry. HO outperforms 77.36% of its industry peers.
- A Debt/Equity ratio of 0.56 indicates that HO is somewhat dependend on debt financing.
- The Debt to Equity ratio of HO (0.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.29
WACC9.01%
2.3 Liquidity
- A Current Ratio of 0.82 indicates that HO may have some problems paying its short term obligations.
- The Current ratio of HO (0.82) is worse than 94.34% 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.
- HO has a worse Quick ratio (0.61) than 73.58% 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.
- HO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.16%.
- 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
- Based on estimates for the next years, HO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.61% on average per year.
- Based on estimates for the next years, HO will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
EPS Next Y10.64%
EPS Next 2Y13.45%
EPS Next 3Y13.18%
EPS Next 5Y12.61%
Revenue Next Year9.05%
Revenue Next 2Y8.19%
Revenue Next 3Y8.1%
Revenue Next 5Y8.07%
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 49.84.
- The rest of the industry has a similar Price/Earnings ratio as HO.
- HO is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 22.72, which indicates a rather expensive current valuation of HO.
- Based on the Price/Forward Earnings ratio, HO is valued cheaper than 81.13% of the companies in the same industry.
- HO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.84 | ||
| Fwd PE | 22.72 |
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 75.47% 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 90.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.28 | ||
| EV/EBITDA | 18.19 |
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 13.18% in the coming years.
PEG (NY)4.69
PEG (5Y)8.98
EPS Next 2Y13.45%
EPS Next 3Y13.18%
5. Dividend
5.1 Amount
- HO has a Yearly Dividend Yield of 1.51%.
- Compared to an average industry Dividend Yield of 0.74, HO pays a better dividend. On top of this HO pays more dividend than 92.45% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, HO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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 71.27% 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 2Y13.45%
EPS Next 3Y13.18%
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 49.84 and the Price/Book (PB) ratio is 7.43.
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%.