THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
225.4 EUR
-1.1 (-0.49%)
HO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 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.
HO had a positive operating cash flow in the past year.
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
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.
HO's Return On Equity of 14.93% is in line compared to the rest of the industry. HO outperforms 54.17% of its industry peers.
HO has a better Return On Invested Capital (11.65%) than 72.92% of its industry peers.
HO had an Average Return On Invested Capital over the past 3 years of 8.24%. This is in line with the industry average of 9.29%.
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 of 4.99%. This is in the lower half of the industry: HO underperforms 60.42% of its industry peers.
HO's Profit Margin has improved in the last couple of years.
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.
HO's Operating Margin has improved in the last couple of years.
HO's Gross Margin of 26.11% is in line compared to the rest of the industry. HO outperforms 43.75% 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
HO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HO has less shares outstanding
Compared to 5 years ago, HO has less shares outstanding
The debt/assets ratio for HO has been reduced compared to a year ago.
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.
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.
HO has a Debt to FCF ratio of 3.07. This is in the better half of the industry: HO outperforms 75.00% of its industry peers.
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 47.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.55
WACC7.5%
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 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
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.
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.
The Revenue is expected to grow by 8.08% on average over the next years. This is quite good.
EPS Next Y10.26%
EPS Next 2Y13.58%
EPS Next 3Y13.1%
EPS Next 5Y12.82%
Revenue Next Year9.05%
Revenue Next 2Y8.21%
Revenue Next 3Y8.12%
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
With a Price/Earnings ratio of 43.60, HO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.31, HO is valued quite expensively.
HO is valuated rather expensively with a Price/Forward Earnings ratio of 19.84.
75.00% of the companies in the same industry are more expensive than HO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HO to the average of the S&P500 Index (36.59), we can say HO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.6 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HO is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
83.33% 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 | 19.5 | ||
| EV/EBITDA | 16 |
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 13.10% in the coming years.
PEG (NY)4.25
PEG (5Y)7.86
EPS Next 2Y13.58%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.20, HO pays a better dividend. On top of this HO pays more dividend than 85.42% of the companies listed in the same industry.
HO's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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
HO pays out 71.25% 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.
DP71.25%
EPS Next 2Y13.58%
EPS Next 3Y13.1%
EPA:HO (11/28/2025, 7:00:00 PM)
225.4
-1.1 (-0.49%)
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 Cap46.42B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts77.78
Price Target287 (27.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)4.14%
PT rev (3m)1.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.26%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.6 | ||
| Fwd PE | 19.84 | ||
| P/S | 2.17 | ||
| P/FCF | 19.5 | ||
| P/OCF | 15.25 | ||
| P/B | 6.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16 |
EPS(TTM)5.17
EY2.29%
EPS(NY)11.36
Fwd EY5.04%
FCF(TTM)11.56
FCFY5.13%
OCF(TTM)14.78
OCFY6.56%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)4.25
PEG (5Y)7.86
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
WACC7.5%
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 Y10.26%
EPS Next 2Y13.58%
EPS Next 3Y13.1%
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 2Y8.21%
Revenue Next 3Y8.12%
Revenue Next 5Y8.08%
EBIT growth 1Y17.28%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year47.96%
EBIT Next 3Y21.02%
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%.