THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
231.2 EUR
+2.8 (+1.23%)
Overall HO gets a fundamental rating of 5 out of 10. We evaluated HO against 49 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
HO had positive earnings in the past year.
HO had a positive operating cash flow in the past year.
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
The Return On Assets of HO (2.74%) 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 55.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.65%, HO is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
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 9.30%.
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
With a Profit Margin value of 4.99%, HO perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
HO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.24%, HO is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
HO's Operating Margin has improved in the last couple of years.
HO has a Gross Margin (26.11%) which 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
Compared to 5 years ago, HO has less shares outstanding
HO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that HO is in the distress zone and has some risk of bankruptcy.
HO has a Altman-Z score of 1.62. This is in the lower half of the industry: HO underperforms 75.51% of its industry peers.
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 77.55% 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.
With a Debt to Equity ratio value of 0.56, HO perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.47
WACC7.93%
2.3 Liquidity
A Current Ratio of 0.82 indicates that HO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, HO is doing worse than 95.92% of the companies in the same industry.
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's Quick ratio of 0.61 is on the low side compared to the rest of the industry. HO is outperformed by 71.43% 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.
Looking at the last year, HO shows a quite strong growth in Revenue. The Revenue has grown by 11.16% in the last year.
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
Based on estimates for the next years, HO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.82% on average per year.
The Revenue is expected to grow by 8.08% on average over the next years. This is quite good.
EPS Next Y10.13%
EPS Next 2Y13.34%
EPS Next 3Y13%
EPS Next 5Y12.82%
Revenue Next Year9.05%
Revenue Next 2Y8.2%
Revenue Next 3Y8.1%
Revenue Next 5Y8.08%
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
The Price/Earnings ratio is 44.72, which means the current valuation is very expensive for HO.
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 26.76.
With a Price/Forward Earnings ratio of 20.43, HO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HO is valued a bit cheaper than 77.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, HO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.72 | ||
| Fwd PE | 20.43 |
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 71.43% of the companies listed in the same industry.
HO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HO is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 16.19 |
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.
HO's earnings are expected to grow with 13.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.41
PEG (5Y)8.06
EPS Next 2Y13.34%
EPS Next 3Y13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, HO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.18, HO pays a better dividend. On top of this HO pays more dividend than 85.71% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, HO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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 2Y13.34%
EPS Next 3Y13%
EPA:HO (12/12/2025, 5:29:10 PM)
231.2
+2.8 (+1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.44%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap47.61B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts76.43
Price Target282.12 (22.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)-1.5%
PT rev (3m)0.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.11%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.72 | ||
| Fwd PE | 20.43 | ||
| P/S | 2.23 | ||
| P/FCF | 20 | ||
| P/OCF | 15.64 | ||
| P/B | 6.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.19 |
EPS(TTM)5.17
EY2.24%
EPS(NY)11.31
Fwd EY4.89%
FCF(TTM)11.56
FCFY5%
OCF(TTM)14.78
OCFY6.39%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)4.41
PEG (5Y)8.06
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 | 1.62 |
F-Score7
WACC7.93%
ROIC/WACC1.47
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 Y10.13%
EPS Next 2Y13.34%
EPS Next 3Y13%
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 2Y8.2%
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.
What is the valuation status for HO stock?
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.
How financially healthy is THALES SA?
The financial health rating of THALES SA (HO.PA) is 3 / 10.
Is the dividend of THALES SA sustainable?
The dividend rating of THALES SA (HO.PA) is 5 / 10 and the dividend payout ratio is 71.25%.