THALES SA (HO.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:HO • FR0000121329
256 EUR
+0.1 (+0.04%)
Last: Jan 30, 2026, 05:36 PM
Overall HO gets a fundamental rating of 5 out of 10. We evaluated HO against 53 industry peers in the Aerospace & Defense industry. HO has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- 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
- HO has a Return On Assets (2.74%) which is comparable to the rest of the industry.
- HO's Return On Equity of 14.93% is in line compared to the rest of the industry. HO outperforms 56.60% of its industry peers.
- HO's Return On Invested Capital of 11.65% is fine compared to the rest of the industry. HO outperforms 75.47% 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 9.24%.
- 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 (4.99%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of HO has grown nicely.
- With a Operating Margin value of 9.24%, HO perfoms like the industry average, outperforming 58.49% of the companies in the same industry.
- In the last couple of years the Operating Margin of HO has grown nicely.
- HO's Gross Margin of 26.11% is in line compared to the rest of the industry. HO outperforms 47.17% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HO is still 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
- Based on the Altman-Z score of 1.72, we must say that HO is in the distress zone and has some risk of bankruptcy.
- HO's Altman-Z score of 1.72 is on the low side compared to the rest of the industry. HO is outperformed by 75.47% 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.
- The Debt to FCF ratio of HO (3.07) is better than 77.36% 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's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. HO outperforms 49.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.72 |
ROIC/WACC1.29
WACC9.01%
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's Current ratio of 0.82 is on the low side compared to the rest of the industry. HO is outperformed by 94.34% of its industry peers.
- A Quick Ratio of 0.61 indicates that HO may have some problems paying its short term obligations.
- The Quick ratio of HO (0.61) is worse than 73.58% 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.
- The Revenue has grown by 11.16% in the past year. This is quite good.
- 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 12.61% on average over the next years. This is quite good.
- Based on estimates for the next years, HO will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
EPS Next Y10.64%
EPS Next 2Y13.45%
EPS Next 3Y13.18%
EPS Next 5Y12.61%
Revenue Next Year9.05%
Revenue Next 2Y8.19%
Revenue Next 3Y8.1%
Revenue Next 5Y8.07%
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
- HO is valuated quite expensively with a Price/Earnings ratio of 49.52.
- HO's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, HO is valued quite expensively.
- With a Price/Forward Earnings ratio of 22.58, HO is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HO indicates a rather cheap valuation: HO is cheaper than 81.13% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of HO to the average of the S&P500 Index (25.72), we can say HO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.52 | ||
| Fwd PE | 22.58 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HO indicates a somewhat cheap valuation: HO is cheaper than 69.81% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HO is valued cheaper than 90.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.14 | ||
| EV/EBITDA | 18.01 |
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 13.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.66
PEG (5Y)8.93
EPS Next 2Y13.45%
EPS Next 3Y13.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.51%, 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 0.74. HO pays more dividend than 92.45% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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
- HO pays out 71.27% 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.
DP71.27%
EPS Next 2Y13.45%
EPS Next 3Y13.18%
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 49.52 and the Price/Book (PB) ratio is 7.39.
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 71.27%.