THALES SA (HO.PA)
FR0000121329 - Common Stock
Taking everything into account, HO scores 4 out of 10 in our fundamental rating. HO was compared to 41 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.
Each year in the past 5 years HO had a positive operating cash flow.
1.2 Ratios
HO's Return On Assets of 2.64% is in line compared to the rest of the industry. HO outperforms 44.74% of its industry peers.
With a decent Return On Equity value of 14.98%, HO is doing good in the industry, outperforming 65.79% of the companies in the same industry.
With a Return On Invested Capital value of 8.12%, HO perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HO is in line with the industry average of 9.21%.
The 3 year average ROIC (7.66%) for HO is below the current ROIC(8.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 14.98% | ||
| ROIC | 8.12% |
ROA(3y)3.07%
ROA(5y)2.86%
ROE(3y)15.8%
ROE(5y)15.48%
ROIC(3y)7.66%
ROIC(5y)7.05%
1.3 Margins
With a Profit Margin value of 5.55%, HO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of HO has declined.
With a decent Operating Margin value of 8.97%, HO is doing good in the industry, outperforming 60.53% of the companies in the same industry.
In the last couple of years the Operating Margin of HO has remained more or less at the same level.
With a Gross Margin value of 25.86%, HO perfoms like the industry average, outperforming 47.37% 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 | 8.97% | ||
| PM (TTM) | 5.55% | ||
| GM | 25.86% |
OM growth 3Y15.32%
OM growth 5Y-0.39%
PM growth 3Y20.87%
PM growth 5Y-2.16%
GM growth 3Y3.56%
GM growth 5Y0.07%
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.
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.
Compared to 1 year ago, HO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that HO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.22, HO is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
HO has a debt to FCF ratio of 9.15. This is a negative value and a sign of low solvency as HO would need 9.15 years to pay back of all of its debts.
HO's Debt to FCF ratio of 9.15 is in line compared to the rest of the industry. HO outperforms 44.74% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that HO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.12, HO is doing worse than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 9.15 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.23
WACC6.6%
2.3 Liquidity
HO has a Current Ratio of 0.89. 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 Current ratio of HO (0.89) is worse than 84.21% of its industry peers.
A Quick Ratio of 0.72 indicates that HO may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, HO is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
HO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.37%, which is quite good.
Measured over the past years, HO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.89% on average per year.
HO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.53%.
HO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.05% yearly.
EPS 1Y (TTM)15.37%
EPS 3Y24.45%
EPS 5Y8.89%
EPS Q2Q%59.22%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y6.23%
Revenue growth 5Y3.05%
Sales Q2Q%8.91%
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 9.54% on average per year.
Based on estimates for the next years, HO will show a small growth in Revenue. The Revenue will grow by 7.82% on average per year.
EPS Next Y2.8%
EPS Next 2Y7.39%
EPS Next 3Y8.94%
EPS Next 5Y9.54%
Revenue Next Year10.62%
Revenue Next 2Y8.74%
Revenue Next 3Y7.99%
Revenue Next 5Y7.82%
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 stable.
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
Based on the Price/Earnings ratio of 17.13, the valuation of HO can be described as rather expensive.
94.74% of the companies in the same industry are more expensive than HO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.28. HO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.85, the valuation of HO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HO indicates a rather cheap valuation: HO is cheaper than 81.58% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.53. HO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 14.85 |
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 71.05% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.64 | ||
| EV/EBITDA | 12.07 |
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.
PEG (NY)6.12
PEG (5Y)1.93
EPS Next 2Y7.39%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, HO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.47, HO pays a better dividend. On top of this HO pays more dividend than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, HO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of HO is nicely growing with an annual growth rate of 11.06%!
Dividend Growth(5Y)11.06%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HO pays out 61.92% of its income as dividend. This is not a sustainable payout ratio.
HO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.92%
EPS Next 2Y7.39%
EPS Next 3Y8.94%
THALES SA
EPA:HO (1/14/2025, 7:00:00 PM)
145.25
+1.15 (+0.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners21.33%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap29.91B
Analysts77.04
Price Target176.65 (21.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Dividend Growth(5Y)11.06%
DP61.92%
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%
PT rev (3m)0.54%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 14.85 | ||
| P/S | 1.62 | ||
| P/FCF | 32.64 | ||
| P/OCF | 19.4 | ||
| P/B | 4.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.07 |
EPS(TTM)8.48
EY5.84%
EPS(NY)9.78
Fwd EY6.73%
FCF(TTM)4.45
FCFY3.06%
OCF(TTM)7.49
OCFY5.16%
SpS89.48
BVpS33.16
TBVpS-16.5
PEG (NY)6.12
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 14.98% | ||
| ROCE | 11.36% | ||
| ROIC | 8.12% | ||
| ROICexc | 10.26% | ||
| ROICexgc | 47.44% | ||
| OM | 8.97% | ||
| PM (TTM) | 5.55% | ||
| GM | 25.86% | ||
| FCFM | 4.97% |
ROA(3y)3.07%
ROA(5y)2.86%
ROE(3y)15.8%
ROE(5y)15.48%
ROIC(3y)7.66%
ROIC(5y)7.05%
ROICexc(3y)11.3%
ROICexc(5y)10.03%
ROICexgc(3y)52.39%
ROICexgc(5y)44.38%
ROCE(3y)10.19%
ROCE(5y)9.39%
ROICexcg growth 3Y30.27%
ROICexcg growth 5Y-14.41%
ROICexc growth 3Y17.49%
ROICexc growth 5Y-14.1%
OM growth 3Y15.32%
OM growth 5Y-0.39%
PM growth 3Y20.87%
PM growth 5Y-2.16%
GM growth 3Y3.56%
GM growth 5Y0.07%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 9.15 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 59.86% | ||
| Cap/Sales | 3.39% | ||
| Interest Coverage | 11.21 | ||
| Cash Conversion | 57.14% | ||
| Profit Quality | 89.55% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.22 |
F-Score5
WACC6.6%
ROIC/WACC1.23
Cap/Depr(3y)50.93%
Cap/Depr(5y)46.34%
Cap/Sales(3y)3.07%
Cap/Sales(5y)2.89%
Profit Quality(3y)171.98%
Profit Quality(5y)178.65%
High Growth Momentum
Growth
EPS 1Y (TTM)15.37%
EPS 3Y24.45%
EPS 5Y8.89%
EPS Q2Q%59.22%
EPS Next Y2.8%
EPS Next 2Y7.39%
EPS Next 3Y8.94%
EPS Next 5Y9.54%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y6.23%
Revenue growth 5Y3.05%
Sales Q2Q%8.91%
Revenue Next Year10.62%
Revenue Next 2Y8.74%
Revenue Next 3Y7.99%
Revenue Next 5Y7.82%
EBIT growth 1Y14.61%
EBIT growth 3Y22.51%
EBIT growth 5Y2.65%
EBIT Next Year50.33%
EBIT Next 3Y21.64%
EBIT Next 5Y15.63%
FCF growth 1Y-60.6%
FCF growth 3Y-10.49%
FCF growth 5Y5.55%
OCF growth 1Y-46.1%
OCF growth 3Y-2.37%
OCF growth 5Y7.13%