THALES SA (HO.PA) Stock Fundamental Analysis
EPA:HO - FR0000121329 - Common Stock
224.2 EUR
-1 (-0.44%)
We assign a fundamental rating of 5 out of 10 to HO. HO was compared to 43 industry peers in the Aerospace & Defense industry. HO has an excellent profitability rating, but 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.
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
With a Return On Assets value of 2.74%, HO perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
HO has a better Return On Equity (14.93%) than 60.47% of its industry peers.
HO has a better Return On Invested Capital (11.65%) than 79.07% of its industry peers.
HO had an Average Return On Invested Capital over the past 3 years of 8.24%. This is in line with the industry average of 9.49%.
The last Return On Invested Capital (11.65%) for HO is above the 3 year average (8.24%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 4.99%, HO is in line with its industry, outperforming 51.16% of the companies in the same industry.
HO's Profit Margin has improved in the last couple of years.
HO has a Operating Margin of 9.24%. This is in the better half of the industry: HO outperforms 67.44% of its industry peers.
HO's Operating Margin has improved in the last couple of years.
The Gross Margin of HO (26.11%) 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 | 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
HO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HO has been reduced compared to a year ago.
2.2 Solvency
HO has an Altman-Z score of 1.60. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
HO has a worse Altman-Z score (1.60) than 76.74% 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.
HO has a Debt to FCF ratio of 3.07. This is in the better half of the industry: HO outperforms 74.42% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that HO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, HO perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.58
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.82 indicates that HO may have some problems paying its short term obligations.
HO has a worse Current ratio (0.82) than 90.70% of its industry peers.
HO has a Quick 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 has a Quick ratio of 0.61. This is in the lower half of the industry: HO underperforms 62.79% 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.
Measured over the past 5 years, HO shows a small growth in Earnings Per Share. The EPS has been growing by 5.55% on average per year.
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
HO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.30% yearly.
HO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.84% yearly.
EPS Next Y8.38%
EPS Next 2Y12.97%
EPS Next 3Y12.65%
EPS Next 5Y12.3%
Revenue Next Year9.02%
Revenue Next 2Y8.11%
Revenue Next 3Y8.05%
Revenue Next 5Y8.84%
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
Based on the Price/Earnings ratio of 43.37, the valuation of HO can be described as expensive.
HO's Price/Earnings is on the same level as the industry average.
HO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.13.
Based on the Price/Forward Earnings ratio of 19.94, the valuation of HO can be described as rather expensive.
81.40% of the companies in the same industry are more expensive than HO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, HO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.37 | ||
| Fwd PE | 19.94 |
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 76.74% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HO is valued cheaper than 86.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.39 | ||
| EV/EBITDA | 15.98 |
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 12.65% in the coming years.
PEG (NY)5.17
PEG (5Y)7.82
EPS Next 2Y12.97%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.64%.
HO's Dividend Yield is a higher than the industry average which is at 1.25.
HO's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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 71.25% 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.
DP71.25%
EPS Next 2Y12.97%
EPS Next 3Y12.65%
EPA:HO (9/1/2025, 7:00:00 PM)
224.2
-1 (-0.44%)
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 Cap46.17B
Analysts78.4
Price Target281.67 (25.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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)1.02%
PT rev (3m)9.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.54%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.37 | ||
| Fwd PE | 19.94 | ||
| P/S | 2.16 | ||
| P/FCF | 19.39 | ||
| P/OCF | 15.17 | ||
| P/B | 6.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.98 |
EPS(TTM)5.17
EY2.31%
EPS(NY)11.24
Fwd EY5.01%
FCF(TTM)11.56
FCFY5.16%
OCF(TTM)14.78
OCFY6.59%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)5.17
PEG (5Y)7.82
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%
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-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 | 1.6 |
F-Score7
WACC7.37%
ROIC/WACC1.58
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 Y8.38%
EPS Next 2Y12.97%
EPS Next 3Y12.65%
EPS Next 5Y12.3%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year9.02%
Revenue Next 2Y8.11%
Revenue Next 3Y8.05%
Revenue Next 5Y8.84%
EBIT growth 1Y17.28%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year48.13%
EBIT Next 3Y21.11%
EBIT Next 5Y15.48%
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%