THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
256.5 EUR
-2 (-0.77%)
Overall HO gets a fundamental rating of 5 out of 10. We evaluated HO against 53 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 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.
- Each year in the past 5 years HO had a positive operating cash flow.
1.2 Ratios
- HO has a Return On Assets (2.74%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of 14.93%, HO is in line with its industry, outperforming 56.60% of the companies in the same industry.
- HO has a Return On Invested Capital of 11.65%. This is in the better half of the industry: HO outperforms 75.47% 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 9.24%.
- 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
- HO has a Profit Margin (4.99%) which is in line with its industry peers.
- 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 58.49% of the companies in the same industry.
- HO's Operating Margin has improved in the last couple of years.
- The Gross Margin of HO (26.11%) is comparable to the rest of the 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
- 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
- Compared to 5 years ago, HO has less shares outstanding
- 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.
- HO has a Altman-Z score of 1.73. This is in the lower half of the industry: HO underperforms 77.36% 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 77.36% of its industry peers.
- HO has a Debt/Equity ratio of 0.56. This is a neutral value indicating 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 49.06% of the companies in the same 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.
- HO has a worse Current ratio (0.82) 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.
- 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.
- 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
- 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.
- The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
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
- 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
- The Price/Earnings ratio is 49.61, which means the current valuation is very expensive for HO.
- 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 (27.25), we can say HO is valued expensively.
- HO is valuated rather expensively with a Price/Forward Earnings ratio of 22.62.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HO indicates a rather cheap valuation: HO is cheaper than 81.13% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. HO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.61 | ||
| Fwd PE | 22.62 |
4.2 Price Multiples
- 75.47% of the companies in the same industry are more expensive than HO, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HO indicates a rather cheap valuation: HO is cheaper than 90.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 18.19 |
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.
- 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)4.66
PEG (5Y)8.94
EPS Next 2Y13.45%
EPS Next 3Y13.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.51%, HO has a reasonable but not impressive dividend return.
- HO's Dividend Yield is rather good when compared to the industry average which is at 0.74. HO pays more dividend than 92.45% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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 2Y13.45%
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 49.61 and the Price/Book (PB) ratio is 7.4.
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%.