THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
227.9 EUR
-0.1 (-0.04%)
Taking everything into account, HO scores 5 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HO was profitable.
In the past year HO had a positive cash flow from operations.
Each year in the past 5 years HO has been profitable.
HO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HO has a Return On Assets of 2.74%. This is comparable to the rest of the industry: HO outperforms 40.82% of its industry peers.
With a Return On Equity value of 14.93%, HO perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
HO has a better Return On Invested Capital (11.65%) than 73.47% of its industry peers.
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 has a Profit Margin of 4.99%. This is comparable to the rest of the industry: HO outperforms 44.90% of its industry peers.
HO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.24%, HO is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
In the last couple of years the Operating Margin of HO has grown nicely.
The Gross Margin of HO (26.11%) 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
HO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 1.61, we must say that HO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HO (1.61) is worse than 75.51% 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.
Looking at the Debt to FCF ratio, with a value of 3.07, HO is in the better half of the industry, outperforming 77.55% 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 of 0.56. This is comparable to the rest of the industry: HO outperforms 46.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.61 |
ROIC/WACC1.47
WACC7.94%
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 has a Current ratio of 0.82. This is amonst the worse of the industry: HO underperforms 95.92% 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 71.43% 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%.
The Earnings Per Share has been growing slightly by 5.55% on average over the past years.
HO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.16%.
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
Based on estimates for the next years, HO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.82% on average per year.
HO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.08% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 44.08, the valuation of HO can be described as expensive.
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 (26.59), we can say HO is valued expensively.
A Price/Forward Earnings ratio of 20.14 indicates a rather expensive valuation of HO.
HO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HO is cheaper than 77.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.80. HO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.08 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
HO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HO is cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HO is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.71 | ||
| EV/EBITDA | 16.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)4.35
PEG (5Y)7.95
EPS Next 2Y13.34%
EPS Next 3Y13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, 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 1.18. HO pays more dividend than 85.71% 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.
HO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.25%
EPS Next 2Y13.34%
EPS Next 3Y13%
EPA:HO (12/11/2025, 12:23:01 PM)
227.9
-0.1 (-0.04%)
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 Cap46.93B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts76.43
Price Target282.12 (23.79%)
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 | 44.08 | ||
| Fwd PE | 20.14 | ||
| P/S | 2.2 | ||
| P/FCF | 19.71 | ||
| P/OCF | 15.42 | ||
| P/B | 6.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.17 |
EPS(TTM)5.17
EY2.27%
EPS(NY)11.31
Fwd EY4.96%
FCF(TTM)11.56
FCFY5.07%
OCF(TTM)14.78
OCFY6.49%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)4.35
PEG (5Y)7.95
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 | 1.61 |
F-Score7
WACC7.94%
ROIC/WACC1.47
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%.