THALES SA (HO.PA) Stock Fundamental Analysis
EPA:HO - Euronext Paris - Matif - FR0000121329 - Common Stock - Currency: EUR
HO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Aerospace & Defense industry. HO has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, HO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
HO had positive earnings in the past year.
HO had a positive operating cash flow in the past year.
Each year in the past 5 years HO has been profitable.
In the past 5 years HO always reported a positive cash flow from operatings.
1.2 Ratios
HO has a Return On Assets (3.55%) which is comparable to the rest of the industry.
The Return On Equity of HO (18.89%) is better than 76.74% of its industry peers.
HO has a Return On Invested Capital of 9.99%. This is in the better half of the industry: HO outperforms 72.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HO is in line with the industry average of 9.16%.
The 3 year average ROIC (8.24%) for HO is below the current ROIC(9.99%), indicating increased profibility in the last year.
| 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
The Profit Margin of HO (6.90%) is better than 60.47% of its industry peers.
In the last couple of years the Profit Margin of HO has grown nicely.
HO has a Operating Margin of 8.83%. This is comparable to the rest of the industry: HO outperforms 58.14% of its industry peers.
In the last couple of years the Operating Margin of HO has grown nicely.
HO has a Gross Margin (26.12%) which is in line with its industry peers.
HO's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, HO has less shares outstanding
Compared to 5 years ago, HO has less shares outstanding
HO has a better debt/assets ratio than last year.
2.2 Solvency
HO has an Altman-Z score of 1.65. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HO (1.65) is worse than 67.44% of its industry peers.
The Debt to FCF ratio of HO is 4.13, which is a neutral value as it means it would take HO, 4.13 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.13, HO is doing good in the industry, outperforming 62.79% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that HO is somewhat dependend on debt financing.
HO has a better Debt to Equity ratio (0.61) than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.28
WACC7.82%
2.3 Liquidity
A Current Ratio of 0.83 indicates that HO may have some problems paying its short term obligations.
With a Current ratio value of 0.83, HO is not doing good in the industry: 88.37% of the companies in the same industry are doing better.
HO has a Quick 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.
HO has a Quick ratio (0.64) which is comparable to the rest of the industry.
| 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%.
Measured over the past years, HO shows a small growth in Revenue. The Revenue has been growing by 2.26% on average per year.
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 13.15% 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 8.05% on average per year.
EPS Next Y11.21%
EPS Next 2Y12.47%
EPS Next 3Y12.89%
EPS Next 5Y13.15%
Revenue Next Year8.48%
Revenue Next 2Y7.9%
Revenue Next 3Y7.89%
Revenue Next 5Y8.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 37.41.
HO's Price/Earnings is on the same level as the industry average.
HO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.82.
A Price/Forward Earnings ratio of 26.24 indicates a quite expensive valuation of HO.
HO's Price/Forward Earnings is on the same level as the industry average.
HO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.41 | ||
| Fwd PE | 26.24 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HO indicates a somewhat cheap valuation: HO is cheaper than 69.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.92 | ||
| EV/EBITDA | 18.83 |
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)3.34
PEG (5Y)6.74
EPS Next 2Y12.47%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.45%.
HO's Dividend Yield is a higher than the industry average which is at 1.30.
HO's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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
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 (5/23/2025, 7:00:00 PM)
257
-2.5 (-0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners20.49%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap52.93B
Analysts78.46
Price Target257.65 (0.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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)3.02%
PT rev (3m)45.06%
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)-1.04%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.41 | ||
| Fwd PE | 26.24 | ||
| P/S | 2.57 | ||
| P/FCF | 27.92 | ||
| P/OCF | 21.01 | ||
| P/B | 7.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.83 |
EPS(TTM)6.87
EY2.67%
EPS(NY)9.8
Fwd EY3.81%
FCF(TTM)9.21
FCFY3.58%
OCF(TTM)12.23
OCFY4.76%
SpS99.92
BVpS36.49
TBVpS-19.02
PEG (NY)3.34
PEG (5Y)6.74
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 | 1.65 |
F-Score8
WACC7.82%
ROIC/WACC1.28
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 5Y13.15%
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 5Y8.05%
EBIT growth 1Y9.87%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year48.13%
EBIT Next 3Y21.11%
EBIT Next 5Y19.22%
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%