THALES SA (HO.PA) Stock Fundamental Analysis
EPA:HO - Euronext Paris - Matif - FR0000121329 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to HO. HO was compared to 45 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 is quite expensive at the moment. 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.
HO had positive earnings in each of the past 5 years.
HO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HO has a Return On Assets (3.55%) which is comparable to the rest of the industry.
HO's Return On Equity of 18.89% is fine compared to the rest of the industry. HO outperforms 75.56% of its industry peers.
HO has a better Return On Invested Capital (9.99%) than 73.33% 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 8.61%.
The last Return On Invested Capital (9.99%) for HO is above the 3 year average (8.24%), which is a sign of increasing profitability.
| 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's Profit Margin of 6.90% is in line compared to the rest of the industry. HO outperforms 57.78% of its industry peers.
HO's Profit Margin has improved in the last couple of years.
HO has a Operating Margin (8.83%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HO has grown nicely.
The Gross Margin of HO (26.12%) is comparable to the rest of the 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HO is creating some value.
HO has less shares outstanding than it did 1 year ago.
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 1.61. 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 1.61 is on the low side compared to the rest of the industry. HO is outperformed by 80.00% 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.
HO's Debt to FCF ratio of 4.13 is fine compared to the rest of the industry. HO outperforms 62.22% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that HO is somewhat dependend on debt financing.
HO has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 1.61 |
ROIC/WACC1.29
WACC7.73%
2.3 Liquidity
HO has a Current 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.
Looking at the Current ratio, with a value of 0.83, HO is doing worse than 91.11% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that HO may have some problems paying its short term obligations.
The Quick ratio of HO (0.64) is worse than 64.44% of its industry peers.
| 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.
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 11.66%.
The Revenue has been growing slightly by 2.26% on average over the past years.
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
The Earnings Per Share is expected to grow by 13.74% on average over the next years. This is quite good.
HO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.61% yearly.
EPS Next Y11.21%
EPS Next 2Y12.47%
EPS Next 3Y12.89%
EPS Next 5Y13.74%
Revenue Next Year8.48%
Revenue Next 2Y7.9%
Revenue Next 3Y7.89%
Revenue Next 5Y8.61%
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
The Price/Earnings ratio is 36.33, which means the current valuation is very expensive for HO.
HO's Price/Earnings ratio is in line with the industry average.
HO is valuated rather expensively when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.48, HO can be considered very expensive at the moment.
HO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, HO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.33 | ||
| Fwd PE | 25.48 |
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.
73.33% 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 | 27.11 | ||
| EV/EBITDA | 18.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 12.89% in the coming years.
PEG (NY)3.24
PEG (5Y)6.55
EPS Next 2Y12.47%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
HO's Dividend Yield is a higher than the industry average which is at 1.20.
HO's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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
49.90% of the earnings are spent on dividend by HO. 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 (6/30/2025, 7:00:00 PM)
249.6
+3.8 (+1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners19.89%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap51.40B
Analysts78.4
Price Target268.99 (7.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)4.4%
PT rev (3m)51.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.33 | ||
| Fwd PE | 25.48 | ||
| P/S | 2.5 | ||
| P/FCF | 27.11 | ||
| P/OCF | 20.41 | ||
| P/B | 6.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.05 |
EPS(TTM)6.87
EY2.75%
EPS(NY)9.8
Fwd EY3.92%
FCF(TTM)9.21
FCFY3.69%
OCF(TTM)12.23
OCFY4.9%
SpS99.92
BVpS36.49
TBVpS-19.02
PEG (NY)3.24
PEG (5Y)6.55
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 | 1.61 |
F-Score8
WACC7.73%
ROIC/WACC1.29
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 5Y13.74%
Revenue 1Y (TTM)11.66%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%14.13%
Revenue Next Year8.48%
Revenue Next 2Y7.9%
Revenue Next 3Y7.89%
Revenue Next 5Y8.61%
EBIT growth 1Y9.87%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year48.13%
EBIT Next 3Y21.11%
EBIT Next 5Y19.84%
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%