THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
266 EUR
+0.2 (+0.08%)
We assign a fundamental rating of 5 out of 10 to HO. HO was compared to 48 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
In the past year HO was profitable.
In the past year HO had a positive cash flow from operations.
In the past 5 years HO has always been profitable.
Each year in the past 5 years HO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.74%, HO perfoms like the industry average, outperforming 42.55% of the companies in the same industry.
With a Return On Equity value of 14.93%, HO perfoms like the industry average, outperforming 59.57% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.65%, HO is doing good in the industry, outperforming 76.60% 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 9.17%.
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
With a Profit Margin value of 4.99%, HO perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
In the last couple of years the Profit Margin of HO has grown nicely.
Looking at the Operating Margin, with a value of 9.24%, HO is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
HO's Operating Margin has improved in the last couple of years.
HO has a Gross Margin of 26.11%. This is comparable to the rest of the industry: HO outperforms 48.94% of its industry peers.
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
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 1.76. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.76, HO is not doing good in the industry: 76.60% of the companies in the same industry are doing better.
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 better Debt to FCF ratio (3.07) than 78.72% of its industry peers.
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 | 1.76 |
ROIC/WACC1.4
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.82 indicates that HO may have some problems paying its short term obligations.
With a Current ratio value of 0.82, HO is not doing good in the industry: 91.49% of the companies in the same industry are doing better.
A Quick Ratio of 0.61 indicates that HO may have some problems paying its short term obligations.
HO has a Quick ratio of 0.61. This is in the lower half of the industry: HO underperforms 65.96% 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.
HO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.55% yearly.
HO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.16%.
HO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.26% yearly.
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.
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 Y10.18%
EPS Next 2Y13.31%
EPS Next 3Y12.98%
EPS Next 5Y12.82%
Revenue Next Year9.05%
Revenue Next 2Y8.19%
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
A Price/Earnings ratio of 51.45 indicates a quite expensive valuation of HO.
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 (27.19), we can say HO is valued expensively.
HO is valuated rather expensively with a Price/Forward Earnings ratio of 23.52.
Based on the Price/Forward Earnings ratio, HO is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, HO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.45 | ||
| Fwd PE | 23.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HO is valued a bit cheaper than the industry average as 70.21% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HO is valued cheaply inside the industry as 87.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.01 | ||
| EV/EBITDA | 18.67 |
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.
HO's earnings are expected to grow with 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.06
PEG (5Y)9.28
EPS Next 2Y13.31%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.78, HO pays a better dividend. On top of this HO pays more dividend than 85.11% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.90, HO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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 2Y13.31%
EPS Next 3Y12.98%
EPA:HO (1/9/2026, 7:00:00 PM)
266
+0.2 (+0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.34%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap54.78B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts75.56
Price Target282.12 (6.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)-1.7%
PT rev (3m)2.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.45 | ||
| Fwd PE | 23.52 | ||
| P/S | 2.57 | ||
| P/FCF | 23.01 | ||
| P/OCF | 17.99 | ||
| P/B | 7.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.67 |
EPS(TTM)5.17
EY1.94%
EPS(NY)11.31
Fwd EY4.25%
FCF(TTM)11.56
FCFY4.35%
OCF(TTM)14.78
OCFY5.56%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)5.06
PEG (5Y)9.28
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 | 1.76 |
F-Score7
WACC8.31%
ROIC/WACC1.4
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 Y10.18%
EPS Next 2Y13.31%
EPS Next 3Y12.98%
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 2Y8.19%
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.
Can you provide the valuation status for THALES SA?
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.
Can you provide the PE and PB ratios for HO stock?
The Price/Earnings (PE) ratio for THALES SA (HO.PA) is 51.45 and the Price/Book (PB) ratio is 7.67.
Can you provide the dividend sustainability for HO stock?
The dividend rating of THALES SA (HO.PA) is 6 / 10 and the dividend payout ratio is 71.25%.