THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
224.2 EUR
-0.5 (-0.22%)
HO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 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 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.
In the past 5 years HO has always been profitable.
In the past 5 years HO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.74%, HO is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
The Return On Equity of HO (14.93%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 11.65%, HO is doing good in the industry, outperforming 72.92% 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 9.30%.
The last Return On Invested Capital (11.65%) for HO is above the 3 year average (8.24%), which is a sign of increasing profitability.
| 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 on the low side compared to the rest of the industry. HO is outperformed by 60.42% of its industry peers.
In the last couple of years the Profit Margin of HO has grown nicely.
HO has a Operating Margin of 9.24%. This is comparable to the rest of the industry: HO outperforms 56.25% of its industry peers.
In the last couple of years the Operating Margin of HO has grown nicely.
With a Gross Margin value of 26.11%, HO perfoms like the industry average, outperforming 43.75% of the companies in the same 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
HO has a better debt/assets ratio than last year.
2.2 Solvency
HO has an Altman-Z score of 1.60. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
HO has a worse Altman-Z score (1.60) than 77.08% 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.
With a decent Debt to FCF ratio value of 3.07, HO is doing good in the industry, outperforming 75.00% 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.
HO has a Debt to Equity ratio (0.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.51
WACC7.71%
2.3 Liquidity
A Current Ratio of 0.82 indicates that HO may have some problems paying 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 95.83% of its industry peers.
A Quick Ratio of 0.61 indicates that HO may have some problems paying its short term obligations.
HO's Quick ratio of 0.61 is on the low side compared to the rest of the industry. HO is outperformed by 70.83% 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%.
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.
HO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.16%.
The Revenue has been growing slightly by 2.26% on average over the past years.
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
The Earnings Per Share is expected to grow by 12.82% on average over the next years. This is quite good.
Based on estimates for the next years, HO will show a quite strong growth in Revenue. The Revenue will grow by 8.08% on average per year.
EPS Next Y10.13%
EPS Next 2Y13.34%
EPS Next 3Y13%
EPS Next 5Y12.82%
Revenue Next Year9.05%
Revenue Next 2Y8.2%
Revenue Next 3Y8.1%
Revenue Next 5Y8.08%
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.
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
Based on the Price/Earnings ratio of 43.37, the valuation of HO can be described as expensive.
HO's Price/Earnings is on the same level as the industry average.
HO is valuated expensively when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.81, the valuation of HO can be described as rather expensive.
HO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HO is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HO to the average of the S&P500 Index (23.69), we can say HO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.37 | ||
| Fwd PE | 19.81 |
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 68.75% 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 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.39 | ||
| EV/EBITDA | 15.92 |
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.
HO's earnings are expected to grow with 13.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.28
PEG (5Y)7.82
EPS Next 2Y13.34%
EPS Next 3Y13%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
HO's Dividend Yield is rather good when compared to the industry average which is at 1.18. HO pays more dividend than 85.42% of the companies in the same industry.
HO's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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
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 2Y13.34%
EPS Next 3Y13%
EPA:HO (12/5/2025, 7:00:00 PM)
224.2
-0.5 (-0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.44%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap46.17B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts76.43
Price Target282.12 (25.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)-1.5%
PT rev (3m)0.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.11%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.37 | ||
| Fwd PE | 19.81 | ||
| P/S | 2.16 | ||
| P/FCF | 19.39 | ||
| P/OCF | 15.17 | ||
| P/B | 6.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.92 |
EPS(TTM)5.17
EY2.31%
EPS(NY)11.31
Fwd EY5.05%
FCF(TTM)11.56
FCFY5.16%
OCF(TTM)14.78
OCFY6.59%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)4.28
PEG (5Y)7.82
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 | 11.15% |
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%
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 | 58.17% | ||
| 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 | 1.6 |
F-Score7
WACC7.71%
ROIC/WACC1.51
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 Y10.13%
EPS Next 2Y13.34%
EPS Next 3Y13%
EPS Next 5Y12.82%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year9.05%
Revenue Next 2Y8.2%
Revenue Next 3Y8.1%
Revenue Next 5Y8.08%
EBIT growth 1Y17.28%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year51.54%
EBIT Next 3Y22%
EBIT Next 5Y16.04%
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%
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.
What is the valuation status for HO stock?
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.
How financially healthy is THALES SA?
The financial health rating of THALES SA (HO.PA) is 3 / 10.
Is the dividend of THALES SA sustainable?
The dividend rating of THALES SA (HO.PA) is 5 / 10 and the dividend payout ratio is 71.25%.