THALES SA (HO.PA) Stock Fundamental Analysis
Europe - EPA:HO - FR0000121329 - Common Stock
245.4 EUR
-8.4 (-3.31%)
We assign a fundamental rating of 5 out of 10 to HO. HO was compared to 49 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.
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 worse Return On Assets (2.74%) than 61.22% of its industry peers.
HO has a Return On Equity (14.93%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 11.65%, HO is doing good in the industry, outperforming 79.59% 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 9.33%.
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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of HO has grown nicely.
HO's Operating Margin of 9.24% is in line compared to the rest of the industry. HO outperforms 59.18% of its industry peers.
In the last couple of years the Operating Margin of HO has grown nicely.
HO has a Gross Margin (26.11%) which is comparable to the rest of the 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.
Compared to 1 year ago, HO has less shares outstanding
HO has less shares outstanding than it did 5 years ago.
HO has a better debt/assets ratio than last year.
2.2 Solvency
HO has an Altman-Z score of 1.71. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
HO's Altman-Z score of 1.71 is on the low side compared to the rest of the industry. HO is outperformed by 79.59% of its industry peers.
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 75.51% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that HO is somewhat dependend on debt financing.
HO's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. HO outperforms 53.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.55
WACC7.54%
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.
The Current ratio of HO (0.82) is worse than 91.84% of its industry peers.
A Quick Ratio of 0.61 indicates that HO may have some problems paying its short term obligations.
The Quick ratio of HO (0.61) is worse than 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
HO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.91%.
HO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.55% yearly.
Looking at the last year, HO shows a quite strong growth in Revenue. The Revenue has grown by 11.16% in the last year.
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 12.36% yearly.
Based on estimates for the next years, HO will show a quite strong growth in Revenue. The Revenue will grow by 8.90% on average per year.
EPS Next Y8.88%
EPS Next 2Y13.16%
EPS Next 3Y12.77%
EPS Next 5Y12.36%
Revenue Next Year8.87%
Revenue Next 2Y7.91%
Revenue Next 3Y7.88%
Revenue Next 5Y8.9%
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 47.47, the valuation of HO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as HO.
When comparing the Price/Earnings ratio of HO to the average of the S&P500 Index (27.29), we can say HO is valued expensively.
With a Price/Forward Earnings ratio of 21.75, HO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HO indicates a rather cheap valuation: HO is cheaper than 83.67% 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 22.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.47 | ||
| Fwd PE | 21.75 |
4.2 Price Multiples
75.51% of the companies in the same industry are more expensive than HO, based on the Enterprise Value to EBITDA ratio.
87.76% 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 | 21.23 | ||
| EV/EBITDA | 17.87 |
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.
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 12.77% in the coming years.
PEG (NY)5.34
PEG (5Y)8.56
EPS Next 2Y13.16%
EPS Next 3Y12.77%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.08, HO pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, HO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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
71.25% of the earnings are spent on dividend by HO. This is not a sustainable payout ratio.
The dividend of HO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.25%
EPS Next 2Y13.16%
EPS Next 3Y12.77%
EPA:HO (10/17/2025, 5:36:15 PM)
245.4
-8.4 (-3.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners22.57%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap50.54B
Analysts76.3
Price Target275.59 (12.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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)-2.16%
PT rev (3m)2.45%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.46%
EPS NY rev (3m)-2.09%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.47 | ||
| Fwd PE | 21.75 | ||
| P/S | 2.37 | ||
| P/FCF | 21.23 | ||
| P/OCF | 16.6 | ||
| P/B | 7.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.87 |
EPS(TTM)5.17
EY2.11%
EPS(NY)11.28
Fwd EY4.6%
FCF(TTM)11.56
FCFY4.71%
OCF(TTM)14.78
OCFY6.02%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)5.34
PEG (5Y)8.56
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 1.71 |
F-Score7
WACC7.54%
ROIC/WACC1.55
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 Y8.88%
EPS Next 2Y13.16%
EPS Next 3Y12.77%
EPS Next 5Y12.36%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year8.87%
Revenue Next 2Y7.91%
Revenue Next 3Y7.88%
Revenue Next 5Y8.9%
EBIT growth 1Y17.28%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year47.96%
EBIT Next 3Y21.02%
EBIT Next 5Y15.54%
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%