(HO) Thales S.A. - Ratings and Ratios
Air,Naval,Land,Cyber,Satellite
Description: HO Thales S.A.
Thales S.A. (HO) is a French multinational that operates across three core markets: defence & security, aerospace & space, and digital identity & security. Its product portfolio spans advanced air-defence and combat systems, C4ISR and mission-critical communications, cyber-defence, robotics, drones, naval warfare platforms, and satellite-based services, as well as banking-payment security, biometric ID, and IoT protection solutions for both civil and military customers.
In FY 2023 the group generated €19.1 billion in revenue, with an operating margin of roughly 9 % and a backlog of about €10 billion, indicating a solid order pipeline. R&D intensity remained near 7 % of sales (~€1.4 billion), reflecting ongoing investment in high-tech capabilities. The defence segment contributed roughly 55 % of total revenue, while aerospace & space and digital identity each accounted for about 25 % and 20 % respectively.
Key economic drivers include rising European defence budgets (averaging ~3 % annual growth), accelerated digital-identity adoption driven by regulatory pressure (e.g., PSD2, eIDAS), and a post-COVID recovery in commercial aviation that is boosting demand for air-traffic-management and in-flight connectivity solutions. A material risk is the concentration of sales in sovereign contracts, which can be volatile with geopolitical shifts.
For a deeper, data-driven valuation, the ValueRay platform provides granular financial models and scenario analysis that can help you assess Thales’s upside and downside risks.
HO Stock Overview
| Market Cap in USD | 65,244m |
| Sub-Industry | Aerospace & Defense |
| IPO / Inception |
HO Stock Ratings
| Growth Rating | 91.5% |
| Fundamental | 76.1% |
| Dividend Rating | 63.9% |
| Return 12m vs S&P 500 | 51.0% |
| Analyst Rating | - |
HO Dividends
| Dividend Yield 12m | 1.87% |
| Yield on Cost 5y | 7.72% |
| Annual Growth 5y | 53.87% |
| Payout Consistency | 89.5% |
| Payout Ratio | 72.8% |
HO Growth Ratios
| Growth Correlation 3m | 36.9% |
| Growth Correlation 12m | 74% |
| Growth Correlation 5y | 96.6% |
| CAGR 5y | 29.96% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.46 |
| CAGR/Mean DD 3y (Pain Ratio) | 4.35 |
| Sharpe Ratio 12m | 1.24 |
| Alpha | 70.63 |
| Beta | 0.558 |
| Volatility | 30.14% |
| Current Volume | 195.5k |
| Average Volume 20d | 256.2k |
| Stop Loss | 256.8 (-3%) |
| Signal | -0.05 |
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (2.08b TTM) > 0 and > 6% of Revenue (6% = 2.43b TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA 0.69pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -11.12% (prev 0.99%; Δ -12.11pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.11 (>3.0%) and CFO 4.47b > Net Income 2.08b (YES >=105%, WARN >=100%) |
| Net Debt (3.48b) to EBITDA (4.74b) ratio: 0.73 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.82 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (205.9m) change vs 12m ago -1.86% (target <= -2.0% for YES) |
| Gross Margin 26.07% (prev 25.98%; Δ 0.09pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 109.5% (prev 75.69%; Δ 33.79pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 6.73 (EBITDA TTM 4.74b / Interest Expense TTM 405.5m) >= 6 (WARN >= 3) |
Altman Z'' 0.22
| (A) -0.12 = (Total Current Assets 21.03b - Total Current Liabilities 25.54b) / Total Assets 38.89b |
| (B) 0.11 = Retained Earnings (Balance) 4.15b / Total Assets 38.89b |
| (C) 0.07 = EBIT TTM 2.73b / Avg Total Assets 37.04b |
| (D) 0.13 = Book Value of Equity 4.10b / Total Liabilities 31.72b |
| Total Rating: 0.22 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 76.12
| 1. Piotroski 6.50pt = 1.50 |
| 2. FCF Yield 5.25% = 2.62 |
| 3. FCF Margin 7.93% = 1.98 |
| 4. Debt/Equity 1.33 = 1.68 |
| 5. Debt/Ebitda 2.00 = 0.01 |
| 6. ROIC - WACC (= 22.94)% = 12.50 |
| 7. RoE 28.86% = 2.40 |
| 8. Rev. Trend 56.33% = 4.22 |
| 9. EPS Trend -16.05% = -0.80 |
What is the price of HO shares?
Over the past week, the price has changed by +0.30%, over one month by +17.90%, over three months by +7.55% and over the past year by +79.50%.
Is Thales S.A. a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of HO is around 332.10 EUR . This means that HO is currently undervalued and has a potential upside of +25.42% (Margin of Safety).
Is HO a buy, sell or hold?
What are the forecasts/targets for the HO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 276.2 | 4.3% |
| Analysts Target Price | - | - |
| ValueRay Target Price | 365.4 | 38% |
HO Fundamental Data Overview
Market Cap EUR = 55.71b (55.71b EUR * 1.0 EUR.EUR)
CCE Cash And Equivalents = 3.89b EUR (Cash And Short Term Investments, last quarter)
P/E Trailing = 53.3465
P/E Forward = 22.5225
P/S = 2.6096
P/B = 7.8624
P/EG = 2.1899
Beta = 0.558
Revenue TTM = 40.55b EUR
EBIT TTM = 2.73b EUR
EBITDA TTM = 4.74b EUR
Long Term Debt = 6.18b EUR (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 3.28b EUR (from shortTermDebt, last quarter)
Debt = 9.46b EUR (Calculated: Short Term 3.28b + Long Term 6.18b)
Net Debt = 3.48b EUR (from netDebt column, last quarter)
Enterprise Value = 61.28b EUR (55.71b + Debt 9.46b - CCE 3.89b)
Interest Coverage Ratio = 6.73 (Ebit TTM 2.73b / Interest Expense TTM 405.5m)
FCF Yield = 5.25% (FCF TTM 3.22b / Enterprise Value 61.28b)
FCF Margin = 7.93% (FCF TTM 3.22b / Revenue TTM 40.55b)
Net Margin = 5.12% (Net Income TTM 2.08b / Revenue TTM 40.55b)
Gross Margin = 26.07% ((Revenue TTM 40.55b - Cost of Revenue TTM 29.98b) / Revenue TTM)
Tobins Q-Ratio = 14.96 (Enterprise Value 61.28b / Book Value Of Equity 4.10b)
Interest Expense / Debt = 1.23% (Interest Expense 116.2m / Debt 9.46b)
Taxrate = 20.96% (247.3m / 1.18b)
NOPAT = 2.16b (EBIT 2.73b * (1 - 20.96%))
Current Ratio = 0.82 (Total Current Assets 21.03b / Total Current Liabilities 25.54b)
Debt / Equity = 1.33 (Debt 9.46b / last Quarter total Stockholder Equity 7.14b)
Debt / EBITDA = 2.00 (Net Debt 3.48b / EBITDA 4.74b)
Debt / FCF = 2.94 (Debt 9.46b / FCF TTM 3.22b)
Total Stockholder Equity = 7.19b (last 4 quarters mean)
RoA = 5.34% (Net Income 2.08b, Total Assets 38.89b )
RoE = 28.86% (Net Income TTM 2.08b / Total Stockholder Equity 7.19b)
RoCE = 20.40% (Ebit 2.73b / (Equity 7.19b + L.T.Debt 6.18b))
RoIC = 29.98% (NOPAT 2.16b / Invested Capital 7.19b)
WACC = 7.04% (E(55.71b)/V(65.17b) * Re(8.07%)) + (D(9.46b)/V(65.17b) * Rd(1.23%) * (1-Tc(0.21)))
Shares Correlation 3-Years: -33.33 | Cagr: -0.62%
Discount Rate = 8.07% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 78.75% ; FCFE base≈3.00b ; Y1≈3.11b ; Y5≈3.55b
Fair Price DCF = 302.5 (DCF Value 62.19b / Shares Outstanding 205.6m; 5y FCF grow 3.96% → 3.0% )
EPS Correlation: -16.05 | EPS CAGR: -69.30% | SUE: 0.0 | # QB: 0
Revenue Correlation: 56.33 | Revenue CAGR: 11.79% | SUE: 0.12 | # QB: 0