THALES SA (HO.PA)
FR0000121329 - Common Stock
Overall HO gets a fundamental rating of 4 out of 10. We evaluated HO against 38 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.
In the past year HO had a positive cash flow from operations.
HO had positive earnings in each of the past 5 years.
Each year in the past 5 years HO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.64%, HO perfoms like the industry average, outperforming 43.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.98%, HO is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
HO has a better Return On Invested Capital (9.20%) than 70.27% 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 8.54%.
The 3 year average ROIC (7.66%) for HO is below the current ROIC(9.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 14.98% | ||
| ROIC | 9.2% |
ROA(3y)3.07%
ROA(5y)2.86%
ROE(3y)15.8%
ROE(5y)15.48%
ROIC(3y)7.66%
ROIC(5y)7.05%
1.3 Margins
HO has a Profit Margin (5.55%) which is in line with its industry peers.
In the last couple of years the Profit Margin of HO has declined.
HO has a better Operating Margin (8.97%) than 62.16% of its industry peers.
In the last couple of years the Operating Margin of HO has remained more or less at the same level.
Looking at the Gross Margin, with a value of 25.86%, HO is in line with its industry, outperforming 43.24% of the companies in the same industry.
HO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.97% | ||
| PM (TTM) | 5.55% | ||
| GM | 25.86% |
OM growth 3Y15.32%
OM growth 5Y-0.39%
PM growth 3Y20.87%
PM growth 5Y-2.16%
GM growth 3Y3.56%
GM growth 5Y0.07%
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.
The number of shares outstanding for HO has been reduced compared to 5 years ago.
Compared to 1 year ago, HO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that HO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.27, HO is not doing good in the industry: 78.38% of the companies in the same industry are doing better.
HO has a debt to FCF ratio of 9.20. This is a negative value and a sign of low solvency as HO would need 9.20 years to pay back of all of its debts.
The Debt to FCF ratio of HO (9.20) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.84 indicates that HO is somewhat dependend on debt financing.
HO's Debt to Equity ratio of 0.84 is on the low side compared to the rest of the industry. HO is outperformed by 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 9.2 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.42
WACC6.49%
2.3 Liquidity
HO has a Current Ratio of 0.89. 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 0.89 is on the low side compared to the rest of the industry. HO is outperformed by 94.59% of its industry peers.
HO has a Quick Ratio of 0.89. 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 has a worse Quick ratio (0.72) than 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.37% over the past year.
Measured over the past years, HO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.89% on average per year.
HO shows a small growth in Revenue. In the last year, the Revenue has grown by 4.89%.
The Revenue has been growing slightly by 3.05% on average over the past years.
EPS 1Y (TTM)15.37%
EPS 3Y24.45%
EPS 5Y8.89%
EPS growth Q2Q15.99%
Revenue 1Y (TTM)4.89%
Revenue growth 3Y6.23%
Revenue growth 5Y3.05%
Revenue growth Q2Q4.3%
3.2 Future
HO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.24% yearly.
The Revenue is expected to grow by 6.29% on average over the next years.
EPS Next Y3.95%
EPS Next 2Y7.47%
EPS Next 3Y9.08%
EPS Next 5Y7.24%
Revenue Next Year10.26%
Revenue Next 2Y8.53%
Revenue Next 3Y7.87%
Revenue Next 5Y6.29%
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 stable.
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 18.87, which indicates a rather expensive current valuation of HO.
Based on the Price/Earnings ratio, HO is valued cheaply inside the industry as 91.89% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HO to the average of the S&P500 Index (25.25), we can say HO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.15, HO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HO indicates a somewhat cheap valuation: HO is cheaper than 70.27% of the companies listed in the same industry.
HO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 18.15 |
4.2 Price Multiples
62.16% of the companies in the same industry are more expensive than HO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.08 | ||
| EV/EBITDA | 13.72 |
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.
PEG (NY)4.78
PEG (5Y)2.12
EPS Next 2Y7.47%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
HO's Dividend Yield is rather good when compared to the industry average which is at 1.61. HO pays more dividend than 83.78% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, HO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
On average, the dividend of HO grows each year by 11.06%, which is quite nice.
Dividend Growth(5Y)11.06%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HO pays out 61.92% of its income as dividend. This is not a sustainable payout ratio.
HO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.92%
EPS Next 2Y7.47%
EPS Next 3Y9.08%
THALES SA
EPA:HO (4/24/2024, 7:00:00 PM)
160
+1.25 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap33.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 18.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.78
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 14.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.97% | ||
| PM (TTM) | 5.55% | ||
| GM | 25.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.37%
EPS 3Y24.45%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.89%
Revenue growth 3Y6.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y