Are Investors Undervaluing Thales S.A. (EPA:HO) By 25%?
Feb 21
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French (CAC) Industrials Sector Analysis
UpdatedFeb 21, 2025
DataAggregated Company Financials
Companies118
- 7D1.0%
- 3M11.1%
- 1Y15.7%
- YTD8.7%
In the last week, the Industrials industry is up 3.9%, with Thales leading the way, up 15%. This takes the industry's 12 month performance to a gain of 19%. Looking forward, earnings are forecast to grow by 18% annually.
Sector Valuation and Performance
Has the French Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 21 Feb 2025 | €710.2b | €566.1b | €22.8b | 18.1x | 31.1x | 1.3x |
| Sun, 19 Jan 2025 | €675.3b | €561.4b | €25.0b | 16.1x | 27x | 1.2x |
| Tue, 17 Dec 2024 | €653.0b | €562.1b | €25.0b | 17.1x | 26.1x | 1.2x |
| Thu, 14 Nov 2024 | €645.5b | €562.5b | €25.1b | 16.3x | 25.7x | 1.1x |
| Sat, 12 Oct 2024 | €635.5b | €528.0b | €24.7b | 16.5x | 25.7x | 1.2x |
| Mon, 09 Sep 2024 | €604.8b | €523.4b | €26.2b | 16.7x | 23.1x | 1.2x |
| Wed, 07 Aug 2024 | €589.0b | €522.2b | €26.2b | 16.5x | 22.5x | 1.1x |
| Fri, 05 Jul 2024 | €621.3b | €514.1b | €28.8b | 18.2x | 21.6x | 1.2x |
| Sun, 02 Jun 2024 | €660.1b | €513.9b | €28.8b | 17.6x | 22.9x | 1.3x |
| Tue, 30 Apr 2024 | €635.6b | €509.7b | €29.3b | 15x | 21.7x | 1.2x |
| Thu, 28 Mar 2024 | €651.5b | €508.9b | €29.2b | 14x | 22.3x | 1.3x |
| Sat, 24 Feb 2024 | €613.7b | €517.2b | €28.3b | 13.3x | 21.7x | 1.2x |
| Mon, 22 Jan 2024 | €591.8b | €527.3b | €28.8b | 15.4x | 20.6x | 1.1x |
| Wed, 20 Dec 2023 | €584.2b | €527.3b | €28.8b | 14.8x | 20.3x | 1.1x |
| Fri, 17 Nov 2023 | €555.1b | €528.9b | €28.8b | 13.8x | 19.3x | 1x |
| Sun, 15 Oct 2023 | €524.9b | €520.8b | €28.7b | 12.8x | 18.3x | 1x |
| Tue, 12 Sep 2023 | €553.8b | €520.3b | €28.8b | 15.3x | 19.2x | 1.1x |
| Thu, 10 Aug 2023 | €558.3b | €519.3b | €28.8b | 15.9x | 19.4x | 1.1x |
| Sat, 08 Jul 2023 | €543.2b | €500.4b | €21.9b | 16.7x | 24.8x | 1.1x |
| Mon, 05 Jun 2023 | €551.5b | €500.4b | €21.9b | 17.5x | 25.2x | 1.1x |
| Wed, 03 May 2023 | €546.7b | €496.1b | €22.1b | 16.2x | 24.7x | 1.1x |
| Fri, 31 Mar 2023 | €541.2b | €495.3b | €22.1b | 18.2x | 24.4x | 1.1x |
| Sun, 26 Feb 2023 | €544.9b | €492.0b | €6.6b | 19.7x | 82x | 1.1x |
| Tue, 24 Jan 2023 | €529.2b | €461.8b | €2.8b | 19x | 189.8x | 1.1x |
| Thu, 22 Dec 2022 | €492.0b | €462.1b | €2.8b | 17.1x | 177.8x | 1.1x |
| Sat, 19 Nov 2022 | €493.1b | €460.8b | €2.7b | 17.4x | 181.6x | 1.1x |
| Mon, 17 Oct 2022 | €437.9b | €455.2b | €2.3b | 15.7x | 186.4x | 1x |
| Wed, 14 Sep 2022 | €470.4b | €454.6b | €2.3b | 16.6x | 208.6x | 1x |
| Fri, 12 Aug 2022 | €491.7b | €452.6b | €2.1b | 16.6x | 233x | 1.1x |
| Sun, 10 Jul 2022 | €451.7b | €428.7b | €4.3b | 16.9x | 104.4x | 1.1x |
| Tue, 07 Jun 2022 | €494.3b | €435.6b | €21.7b | 18x | 22.8x | 1.1x |
| Thu, 05 May 2022 | €486.0b | €428.9b | €21.4b | 19.2x | 22.7x | 1.1x |
| Sat, 02 Apr 2022 | €511.3b | €428.1b | €21.4b | 20.7x | 23.9x | 1.2x |
| Mon, 28 Feb 2022 | €506.2b | €424.7b | €20.2b | 21.2x | 25x | 1.2x |
Price to Earnings Ratio
25x
Current Industry PE
- Investors are pessimistic on the French Industrials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 31.5x which is lower than its 3-year average PE of 54.5x.
- The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.3x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 10% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the French Industrials sector?
| FR Market | -0.71% | |
| Industrials | 1.03% | |
| Electrical | 4.21% | |
| Industrials | 1.53% | |
| Aerospace & Defense | 0.89% | |
| Logistics | 0.23% | |
| Construction | 0.22% | |
| Machinery | 0.19% | |
| Airlines | 0% | 0 |
| Marine and Shipping | 0% | 0 |
| Professional Services | -0.037% | |
| Commercial Services | -0.50% | |
| Transportation | -1.58% | |
| Building | -2.15% | |
| Trade Distributors | -2.38% | |
| Infrastructure | -5.42% | |
Industry PE
- Investors are most optimistic about the Aerospace & Defense industry which is trading above its 3-year average PE ratio of 53.2x.
- Analysts are expecting annual earnings growth of 25.9%, which is higher than its past year's earnings growth of 0.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Industrials industry, expecting annual earnings growth of 63% over the next 5 years.
- However this is lower than its past earnings growth rate of 115% per year.
- In contrast, the Infrastructure industry is expected to see its earnings grow by 3.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SU Schneider Electric | €257.40 | 4.4% +€6.1b | 22.7% | PE37.4x | |
| HO Thales | €182.25 | 10.2% +€3.5b | 34.4% | PE39.3x | |
| AM Dassault Aviation société anonyme | €234.00 | 6.9% +€1.2b | 28.4% | PE22.6x | |
| LR Legrand | €110.30 | 2.3% +€655.3m | 22.3% | PE24.8x | |
| NEX Nexans | €106.30 | 12.2% +€489.5m | 11.5% | PE16.6x |
