(HO) Thales S.A. - Overview

Sector: Industrials | Industry: Aerospace & Defense | Exchange: PA (France) | Market Cap: 46.603m EUR | Total Return: -9.8% in 12m

Avionics, Defense Systems, Satellites, Cybersecurity, Biometrics
Total Rating 46
Safety 55
Buy Signal -0.65
Aerospace & Defense
Industry Rotation: +12.9
Market Cap: 54.3B
Avg Turnover: 56.5M
Risk 3d forecast
Volatility31.1%
VaR 5th Pctl5.37%
VaR vs Median4.92%
Reward TTM
Sharpe Ratio-0.44
Rel. Str. IBD24.4
Rel. Str. Peer Group34.8
Character TTM
Beta-0.152
Beta Downside-0.297
Hurst Exponent0.501
Drawdowns 3y
Max DD20.55%
CAGR/Max DD1.13
CAGR/Mean DD2.94

Warnings

Altman Z'' 0.53 < 1.0 - financial distress zone

Choppy

Tailwinds

No distinct edge detected

Description: HO Thales S.A.

Thales S.A. is a French technology conglomerate operating across the defense, security, aerospace, space, and digital identity sectors. Its portfolio includes advanced air defense, naval combat systems, avionics, and satellite technologies. The company also maintains a significant presence in digital security, providing biometric authentication, data protection, and software monetization services to global clients.

The company operates within the Aerospace & Defense industry, which is characterized by long-term government contracts and high barriers to entry due to intensive research and development requirements. Thales utilizes a diversified business model where civil aviation and digital identity revenues help balance the cyclical nature of national defense procurement cycles. Investors looking for deeper insights into these revenue streams may find ValueRay’s detailed metrics useful for further study.

Founded in 1893 and formerly known as Thomson-CSF, Thales has evolved from a traditional electronics manufacturer into a provider of mission-critical digital transformation and IoT solutions. Headquartered in Meudon, France, it remains a central player in European sovereign defense capabilities and global air traffic management infrastructure.

Headlines to Watch Out For
  • Rising European defense budgets drive long-term military equipment and security revenue
  • Commercial aerospace recovery accelerates demand for avionics and in-flight entertainment systems
  • Expansion of digital identity and cybersecurity services improves recurring software margins
  • Geopolitical tensions increase global demand for advanced air defense and satellite systems
  • High exposure to French government spending creates concentrated sovereign regulatory and budget risk
Piotroski VR-10 (Strict) 8.0
Net Income: 2.71b TTM > 0 and > 6% of Revenue
FCF/TA: 0.12 > 0.02 and ΔFCF/TA 4.78 > 1.0
NWC/Revenue: -9.67% < 20% (prev -9.54%; Δ -0.14% < -1%)
CFO/TA 0.15 > 3% & CFO 5.86b > Net Income 2.71b
Net Debt (3.28b) to EBITDA (5.58b): 0.59 < 3
Current Ratio: 0.84 > 1.5 & < 3
Outstanding Shares: last quarter (206.0m) vs 12m ago -1.20% < -2%
Gross Margin: 26.28% > 18% (prev 0.26%; Δ 2.60k% > 0.5%)
Asset Turnover: 109.6% > 50% (prev 81.96%; Δ 27.64% > 0%)
Interest Coverage Ratio: 6.84 > 6 (EBITDA TTM 5.58b / Interest Expense TTM 522.0m)
Altman Z'' 0.53
A: -0.11 (Total Current Assets 21.1b - Total Current Liabilities 25.2b) / Total Assets 39.2b
B: 0.13 (Retained Earnings 5.25b / Total Assets 39.2b)
C: 0.09 (EBIT TTM 3.57b / Avg Total Assets 39.0b)
D: 0.16 (Book Value of Equity 4.93b / Total Liabilities 31.2b)
Altman-Z'' = 0.53 = B
Beneish M -2.97
DSRI: 0.89 (Receivables 10.6b/8.91b, Revenue 42.7b/31.8b)
GMI: 0.98 (GM 26.28% / 25.78%)
AQI: 1.00 (AQ_t 0.36 / AQ_t-1 0.36)
SGI: 1.34 (Revenue 42.7b / 31.8b)
TATA: -0.08 (NI 2.71b - CFO 5.86b) / TA 39.2b)
Beneish M = -2.97 (Cap -4..+1) = A
What is the price of HO shares?

As of May 26, 2026, the stock is trading at EUR 232.10 with a total of 123,964 shares traded.
Over the past week, the price has changed by +5.60%, over one month by +1.76%, over three months by -7.16% and over the past year by -9.81%.

Is HO a buy, sell or hold?

Thales S.A. has no consensus analysts rating.

Thales S.A. (HO) - Fundamental Data Overview as of 22 May 2026
Market Cap USD = 54.3b (46.6b EUR * 1.1641 EUR.USD)
P/E Trailing = 27.931
P/E Forward = 19.685
P/S = 2.1053
P/B = 5.9181
P/EG = 1.8223
Revenue TTM = 42.7b EUR
EBIT TTM = 3.57b EUR
EBITDA TTM = 5.58b EUR
Long Term Debt = 4.00b EUR (estimated: total debt 6.13b - short term 2.13b)
Short Term Debt = 2.13b EUR (from shortTermDebt, last quarter)
Debt = 7.77b EUR (from shortLongTermDebtTotal, last quarter) + Leases 1.64b
Net Debt = 3.28b EUR (calculated: Debt 7.77b - CCE 4.49b)
Enterprise Value = 49.9b EUR (46.6b + Debt 7.77b - CCE 4.49b)
Interest Coverage Ratio = 6.84 (Ebit TTM 3.57b / Interest Expense TTM 522.0m)
EV/FCF = 10.96x (Enterprise Value 49.9b / FCF TTM 4.55b)
FCF Yield = 9.12% (FCF TTM 4.55b / Enterprise Value 49.9b)
FCF Margin = 10.65% (FCF TTM 4.55b / Revenue TTM 42.7b)
Net Margin = 6.35% (Net Income TTM 2.71b / Revenue TTM 42.7b)
Gross Margin = 26.28% ((Revenue TTM 42.7b - Cost of Revenue TTM 31.5b) / Revenue TTM)
Gross Margin QoQ = 26.49% (prev 26.39%)
Tobins Q-Ratio = 1.27 (Enterprise Value 49.9b / Total Assets 39.2b)
Interest Expense / Debt = 6.72% (Interest Expense 522.0m / Debt 7.77b)
Taxrate = 16.10% (191.6m / 1.19b)
NOPAT = 3.00b (EBIT 3.57b * (1 - 16.10%))
Current Ratio = 0.84 (Total Current Assets 21.1b / Total Current Liabilities 25.2b)
Debt / Equity = 0.97 (Debt 7.77b / totalStockholderEquity, last quarter 7.97b)
Debt / EBITDA = 0.59 (Net Debt 3.28b / EBITDA 5.58b)
Debt / FCF = 0.72 (Net Debt 3.28b / FCF TTM 4.55b)
Total Stockholder Equity = 7.48b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.96% (Net Income 2.71b / Total Assets 39.2b)
RoE = 36.26% (Net Income TTM 2.71b / Total Stockholder Equity 7.48b)
RoCE = 31.12% (EBIT 3.57b / Capital Employed (Equity 7.48b + L.T.Debt 4.00b))
RoIC = 18.69% (NOPAT 3.00b / Invested Capital 16.0b)
WACC = 5.48% (E(46.6b)/V(54.4b) * Re(5.45%) + D(7.77b)/V(54.4b) * Rd(6.72%) * (1-Tc(0.16)))
Discount Rate = 5.45% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -73.33 | Cagr: -1.47%
[DCF] Terminal Value 77.97% ; FCFF base≈3.79b ; Y1≈4.35b ; Y5≈6.40b
[DCF] Fair Price = 452.6 (EV 96.3b - Net Debt 3.28b = Equity 93.0b / Shares 205.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -15.18 | EPS CAGR: -0.86% | SUE: N/A | # QB: 0
Revenue Correlation: 86.83 | Revenue CAGR: 20.50% | SUE: 0.05 | # QB: 0
EPS current Year (2026-12-31): EPS=10.74 | Chg30d=+0.45% | Revisions=-38% | GrowthEPS=+10.0% | GrowthRev=+7.3%
EPS next Year (2027-12-31): EPS=12.28 | Chg30d=+0.33% | Revisions=-54% | GrowthEPS=+14.4% | GrowthRev=+8.1%
[Analyst] Revisions Ratio: -54%