THALES SA (HO.PA) Stock Fundamental Analysis
EPA:HO - Euronext Paris - Matif - FR0000121329 - Common Stock - Currency: EUR
HO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Aerospace & Defense industry. HO has an excellent profitability rating, but there are some minor concerns on its financial health. HO is valied quite expensively at the moment, while it does show a decent 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.
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
HO's Return On Assets of 3.55% is in line compared to the rest of the industry. HO outperforms 60.00% of its industry peers.
Looking at the Return On Equity, with a value of 18.89%, HO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
HO's Return On Invested Capital of 9.99% is fine compared to the rest of the industry. HO outperforms 72.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HO is in line with the industry average of 8.80%.
The 3 year average ROIC (8.24%) for HO is below the current ROIC(9.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 18.89% | ||
| ROIC | 9.99% |
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 better Profit Margin (6.90%) than 67.50% of its industry peers.
HO's Profit Margin has improved in the last couple of years.
HO's Operating Margin of 8.83% is fine compared to the rest of the industry. HO outperforms 65.00% of its industry peers.
HO's Operating Margin has improved in the last couple of years.
HO's Gross Margin of 26.12% is in line compared to the rest of the industry. HO outperforms 55.00% of its industry peers.
HO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.83% | ||
| PM (TTM) | 6.9% | ||
| GM | 26.12% |
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.
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.
Compared to 1 year ago, HO has an improved debt to assets ratio.
2.2 Solvency
HO has an Altman-Z score of 1.59. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HO (1.59) is worse than 62.50% of its industry peers.
HO has a debt to FCF ratio of 4.13. This is a neutral value as HO would need 4.13 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.13, HO is doing good in the industry, outperforming 72.50% of the companies in the same industry.
HO has a Debt/Equity ratio of 0.61. This is a neutral value indicating HO is somewhat dependend on debt financing.
The Debt to Equity ratio of HO (0.61) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 1.59 |
ROIC/WACC1.31
WACC7.65%
2.3 Liquidity
A Current Ratio of 0.83 indicates that HO may have some problems paying its short term obligations.
HO's Current ratio of 0.83 is on the low side compared to the rest of the industry. HO is outperformed by 85.00% of its industry peers.
HO has a Quick Ratio of 0.83. This is a bad value and indicates that HO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.64, HO perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
HO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.78%, which is quite impressive.
HO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.55% yearly.
The Revenue has grown by 11.66% 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)40.78%
EPS 3Y10.55%
EPS 5Y5.55%
EPS Q2Q%8.94%
Revenue 1Y (TTM)11.66%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%14.13%
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 13.15% yearly.
The Revenue is expected to grow by 8.05% on average over the next years. This is quite good.
EPS Next Y11.21%
EPS Next 2Y12.47%
EPS Next 3Y12.89%
EPS Next 5Y13.15%
Revenue Next Year7.24%
Revenue Next 2Y6.82%
Revenue Next 3Y6.65%
Revenue Next 5Y8.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 34.16, which means the current valuation is very expensive for HO.
Compared to the rest of the industry, the Price/Earnings ratio of HO is on the same level as its industry peers.
HO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
HO is valuated rather expensively with a Price/Forward Earnings ratio of 23.95.
HO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.65. HO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.16 | ||
| Fwd PE | 23.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HO is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HO indicates a somewhat cheap valuation: HO is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.49 | ||
| EV/EBITDA | 17.74 |
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.
A more expensive valuation may be justified as HO's earnings are expected to grow with 12.89% in the coming years.
PEG (NY)3.05
PEG (5Y)6.16
EPS Next 2Y12.47%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, HO has a reasonable but not impressive dividend return.
HO's Dividend Yield is a higher than the industry average which is at 1.37.
Compared to an average S&P500 Dividend Yield of 2.51, HO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 49.90% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.9%
EPS Next 2Y12.47%
EPS Next 3Y12.89%
EPA:HO (4/25/2025, 4:09:13 PM)
234.65
-6.65 (-2.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners20.49%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap48.32B
Analysts78.46
Price Target250.1 (6.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend3.44
Dividend Growth(5Y)9.56%
DP49.9%
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)40.7%
PT rev (3m)41.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.16 | ||
| Fwd PE | 23.95 | ||
| P/S | 2.35 | ||
| P/FCF | 25.49 | ||
| P/OCF | 19.18 | ||
| P/B | 6.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.74 |
EPS(TTM)6.87
EY2.93%
EPS(NY)9.8
Fwd EY4.17%
FCF(TTM)9.21
FCFY3.92%
OCF(TTM)12.23
OCFY5.21%
SpS99.92
BVpS36.49
TBVpS-19.02
PEG (NY)3.05
PEG (5Y)6.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 18.89% | ||
| ROCE | 12.68% | ||
| ROIC | 9.99% | ||
| ROICexc | 14.99% | ||
| ROICexgc | N/A | ||
| OM | 8.83% | ||
| PM (TTM) | 6.9% | ||
| GM | 26.12% | ||
| FCFM | 9.21% |
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-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.13 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 53.93% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 6.8 | ||
| Cash Conversion | 84.75% | ||
| Profit Quality | 133.56% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.59 |
F-Score8
WACC7.65%
ROIC/WACC1.31
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)40.78%
EPS 3Y10.55%
EPS 5Y5.55%
EPS Q2Q%8.94%
EPS Next Y11.21%
EPS Next 2Y12.47%
EPS Next 3Y12.89%
EPS Next 5Y13.15%
Revenue 1Y (TTM)11.66%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%14.13%
Revenue Next Year7.24%
Revenue Next 2Y6.82%
Revenue Next 3Y6.65%
Revenue Next 5Y8.05%
EBIT growth 1Y9.87%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year52.58%
EBIT Next 3Y21.28%
EBIT Next 5Y19.22%
FCF growth 1Y106.86%
FCF growth 3Y-7.33%
FCF growth 5Y8.4%
OCF growth 1Y63.35%
OCF growth 3Y-3.84%
OCF growth 5Y7.31%