THALES SA (HO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:HO - FR0000121329 - Common Stock
226.9 EUR
-8.9 (-3.77%)
Overall HO gets a fundamental rating of 5 out of 10. We evaluated HO against 44 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 is not valued too expensively and it also shows a decent 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.
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 of 2.74%. This is comparable to the rest of the industry: HO outperforms 43.18% of its industry peers.
HO has a Return On Equity (14.93%) which is in line with its industry peers.
The Return On Invested Capital of HO (11.65%) is better than 77.27% 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 9.16%.
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 comparable to the rest of the industry.
HO's Profit Margin has improved in the last couple of years.
HO has a better Operating Margin (9.24%) than 61.36% of its industry peers.
In the last couple of years the Operating Margin of HO has grown nicely.
HO has a Gross Margin (26.11%) which is in line with 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
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.
Compared to 5 years ago, HO has less shares outstanding
Compared to 1 year ago, HO has an improved debt to assets ratio.
2.2 Solvency
HO has an Altman-Z score of 1.64. This is a bad value and indicates that HO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.64, HO is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
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 75.00% 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 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.64 |
ROIC/WACC1.5
WACC7.77%
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 has a worse Current ratio (0.82) than 93.18% of its industry peers.
A Quick Ratio of 0.61 indicates that HO may have some problems paying its short term obligations.
HO has a worse Quick ratio (0.61) than 68.18% 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.
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 11.16%.
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 12.81% on average per year.
HO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.10% yearly.
EPS Next Y10.26%
EPS Next 2Y13.58%
EPS Next 3Y13.1%
EPS Next 5Y12.81%
Revenue Next Year9.05%
Revenue Next 2Y8.21%
Revenue Next 3Y8.12%
Revenue Next 5Y9.1%
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
Based on the Price/Earnings ratio of 43.89, the valuation of HO can be described as expensive.
HO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of HO to the average of the S&P500 Index (25.45), we can say HO is valued expensively.
With a Price/Forward Earnings ratio of 19.97, HO is valued on the expensive side.
HO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HO is cheaper than 79.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HO to the average of the S&P500 Index (34.46), we can say HO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.89 | ||
| Fwd PE | 19.97 |
4.2 Price Multiples
65.91% of the companies in the same industry are more expensive than HO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HO is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.63 | ||
| EV/EBITDA | 16.68 |
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.
A more expensive valuation may be justified as HO's earnings are expected to grow with 13.10% in the coming years.
PEG (NY)4.28
PEG (5Y)7.91
EPS Next 2Y13.58%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
HO has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.19, HO pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.45, HO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
On average, the dividend of HO grows each year by 9.56%, which is quite nice.
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 2Y13.58%
EPS Next 3Y13.1%
EPA:HO (11/21/2025, 7:00:00 PM)
226.9
-8.9 (-3.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners22.57%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap46.73B
Revenue(TTM)21.35B
Net Income(TTM)1.07B
Analysts77.78
Price Target286.43 (26.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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)3.93%
PT rev (3m)1.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.26%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.89 | ||
| Fwd PE | 19.97 | ||
| P/S | 2.19 | ||
| P/FCF | 19.63 | ||
| P/OCF | 15.35 | ||
| P/B | 6.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.68 |
EPS(TTM)5.17
EY2.28%
EPS(NY)11.36
Fwd EY5.01%
FCF(TTM)11.56
FCFY5.1%
OCF(TTM)14.78
OCFY6.52%
SpS103.67
BVpS34.66
TBVpS-17.3
PEG (NY)4.28
PEG (5Y)7.91
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 | 1.64 |
F-Score7
WACC7.77%
ROIC/WACC1.5
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 Y10.26%
EPS Next 2Y13.58%
EPS Next 3Y13.1%
EPS Next 5Y12.81%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y8.32%
Revenue growth 5Y2.26%
Sales Q2Q%8.14%
Revenue Next Year9.05%
Revenue Next 2Y8.21%
Revenue Next 3Y8.12%
Revenue Next 5Y9.1%
EBIT growth 1Y17.28%
EBIT growth 3Y13.73%
EBIT growth 5Y5.27%
EBIT Next Year47.96%
EBIT Next 3Y21.02%
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 4 / 10 and the dividend payout ratio is 71.25%.