THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
264.2 EUR
-6 (-2.22%)
HO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 54 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
HO had positive earnings in the past year.
In the past year HO had a positive cash flow from operations.
HO had positive earnings in each of the past 5 years.
HO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HO has a Return On Assets (2.74%) which is in line with its industry peers.
The Return On Equity of HO (14.93%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 11.65%, HO is in the better half of the industry, outperforming 74.07% 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 9.28%.
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's Profit Margin of 4.99% is in line compared to the rest of the industry. HO outperforms 42.59% of its industry peers.
In the last couple of years the Profit Margin of HO has grown nicely.
HO has a Operating Margin (9.24%) which is in line with its industry peers.
HO's Operating Margin has improved in the last couple of years.
HO has a Gross Margin of 26.11%. This is comparable to the rest of the industry: HO outperforms 46.30% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HO is creating some value.
HO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HO has been reduced compared to 5 years ago.
HO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that HO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.78, HO is doing worse than 77.78% 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.
With a decent Debt to FCF ratio value of 3.07, HO is doing good in the industry, outperforming 77.78% of the companies in the same industry.
HO has a Debt/Equity ratio of 0.56. This is a neutral value indicating HO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, HO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.78 |
ROIC/WACC1.4
WACC8.32%
2.3 Liquidity
HO has a Current 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's Current ratio of 0.82 is on the low side compared to the rest of the industry. HO is outperformed by 94.44% 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 74.07% 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.
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
HO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.61% yearly.
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 Y10.18%
EPS Next 2Y13.31%
EPS Next 3Y12.98%
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
Based on the Price/Earnings ratio of 51.10, the valuation of HO can be described as expensive.
HO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, HO is valued quite expensively.
Based on the Price/Forward Earnings ratio of 23.36, the valuation of HO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, HO is valued a bit cheaper than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, HO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.1 | ||
| Fwd PE | 23.36 |
4.2 Price Multiples
68.52% of the companies in the same industry are more expensive than HO, based on the Enterprise Value to EBITDA ratio.
HO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HO is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.84 | ||
| EV/EBITDA | 18.96 |
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.
HO's earnings are expected to grow with 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.02
PEG (5Y)9.21
EPS Next 2Y13.31%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, HO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.77, HO pays a bit more dividend than its industry peers.
HO's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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.
The dividend of HO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.27%
EPS Next 2Y13.31%
EPS Next 3Y12.98%
EPA:HO (1/13/2026, 5:36:15 PM)
264.2
-6 (-2.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.34%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap54.41B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts75.56
Price Target282.12 (6.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend3.44
Dividend Growth(5Y)9.56%
DP71.27%
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)2.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.1 | ||
| Fwd PE | 23.36 | ||
| P/S | 2.55 | ||
| P/FCF | 22.84 | ||
| P/OCF | 17.87 | ||
| P/B | 7.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.96 |
EPS(TTM)5.17
EY1.96%
EPS(NY)11.31
Fwd EY4.28%
FCF(TTM)11.57
FCFY4.38%
OCF(TTM)14.79
OCFY5.6%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)5.02
PEG (5Y)9.21
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 | 11.16% |
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 | 58.15% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 8.81 | ||
| Cash Conversion | 97.82% | ||
| Profit Quality | 223.49% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.78 |
F-Score7
WACC8.32%
ROIC/WACC1.4
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 Y10.18%
EPS Next 2Y13.31%
EPS Next 3Y12.98%
EPS Next 5Y12.61%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year9.05%
Revenue Next 2Y8.19%
Revenue Next 3Y8.1%
Revenue Next 5Y8.07%
EBIT growth 1Y17.29%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year51.54%
EBIT Next 3Y22%
EBIT Next 5Y15.83%
FCF growth 1Y47.72%
FCF growth 3Y-7.33%
FCF growth 5Y8.4%
OCF growth 1Y36.72%
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.
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 51.1 and the Price/Book (PB) ratio is 7.62.
Can you provide the dividend sustainability for HO stock?
The dividend rating of THALES SA (HO.PA) is 4 / 10 and the dividend payout ratio is 71.27%.