DB:CSF

Stock Analysis Report

Executive Summary

Thales S.A. provides various solutions for customers in the aeronautics, space, defense, security, and ground transportation markets worldwide.


Snowflake Analysis

Outstanding track record, good value and pays a dividend.


Similar Companies

Share Price & News

How has Thales's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CSF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

CSF

-5.0%

DE Aerospace & Defense

-5.7%

DE Market


1 Year Return

-11.8%

CSF

7.6%

DE Aerospace & Defense

6.1%

DE Market

Return vs Industry: CSF underperformed the German Aerospace & Defense industry which returned 7.6% over the past year.

Return vs Market: CSF underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

CSFIndustryMarket
7 Day-1.5%-5.0%-5.7%
30 Day-5.3%-8.7%-5.7%
90 Day4.1%-5.4%-3.6%
1 Year-9.8%-11.8%9.6%7.6%9.3%6.1%
3 Year6.9%1.0%50.0%40.5%8.9%-0.7%
5 Year101.2%83.3%86.1%63.7%13.6%-2.0%

Price Volatility Vs. Market

How volatile is Thales's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Thales undervalued compared to its fair value and its price relative to the market?

30.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSF (€93.5) is trading below our estimate of fair value (€133.92)

Significantly Below Fair Value: CSF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CSF is good value based on its PE Ratio (17.9x) compared to the Aerospace & Defense industry average (22.9x).

PE vs Market: CSF is good value based on its PE Ratio (17.9x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: CSF is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CSF is overvalued based on its PB Ratio (3.8x) compared to the XE Aerospace & Defense industry average (2.1x).


Next Steps

Future Growth

How is Thales forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSF's forecast earnings growth (9% per year) is above the savings rate (-0.4%).

Earnings vs Market: CSF's earnings (9% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: CSF's earnings are forecast to grow, but not significantly.

Revenue vs Market: CSF's revenue (4.4% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: CSF's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSF's Return on Equity is forecast to be high in 3 years time (20.1%)


Next Steps

Past Performance

How has Thales performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSF has high quality earnings.

Growing Profit Margin: CSF's current net profit margins (6.5%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: CSF's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: CSF's earnings growth over the past year (29.1%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: CSF earnings growth over the past year (29.1%) exceeded the Aerospace & Defense industry 12.4%.


Return on Equity

High ROE: CSF's Return on Equity (20.6%) is considered high.


Next Steps

Financial Health

How is Thales's financial position?


Financial Position Analysis

Short Term Liabilities: CSF's short term assets (€15.7B) do not cover its short term liabilities (€17.5B).

Long Term Liabilities: CSF's short term assets (€15.7B) exceed its long term liabilities (€7.9B).


Debt to Equity History and Analysis

Debt Level: CSF's debt to equity ratio (98.8%) is considered high.

Reducing Debt: CSF's debt to equity ratio has increased from 37.9% to 98.8% over the past 5 years.

Debt Coverage: CSF's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: CSF's interest payments on its debt are well covered by EBIT (67.7x coverage).


Balance Sheet

Inventory Level: CSF has a high level of physical assets or inventory.

Debt Coverage by Assets: CSF's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Thales's current dividend yield, its reliability and sustainability?

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSF's dividend (2.28%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: CSF's dividend (2.28%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: CSF's dividend payments have been volatile in the past 10 years.

Growing Dividend: CSF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.1%), CSF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSF's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Patrice Caine (49yo)

5.2yrs

Tenure

€1,925,700

Compensation

Mr. Patrice Caine has been the Chairman and Chief Executive Officer of Thales SA since December 23, 2014. In 2002, Mr. Caine joined the Thales Group's Strategy department before being appointed to manage t ...


CEO Compensation Analysis

Compensation vs Market: Patrice's total compensation ($USD2.09M) is below average for companies of similar size in the German market ($USD4.53M).

Compensation vs Earnings: Patrice's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrice Caine
Chairman & CEO5.2yrs€1.93m0.0044% 854.7k
Pascal Bouchiat
CFO and Senior Executive VP of Finance & Information Systems0yrsno datano data
Jean-Loïc Galle
Senior Executive VP0yrsno datano data
Jean-Claude Climeau
Head of Group Treasury & Corporate Finance and Vice President4yrsno datano data
Philippe Keryer
Executive Vice President of Strategy4.1yrsno datano data
Bertrand Delcaire
Head of Investor Relations & VP4yrsno datano data
Isabelle Simon
Executive VP4.8yrsno datano data
Pierre Schaeffer
Chief Marketing Officer & Senior VP5.4yrsno datano data
David Tournadre
Senior Executive Vice President of Human Resources6.7yrsno datano data
Pascale Sourisse
Senior Executive Vice President of International Development13.1yrsno datano data

5.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CSF's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrice Caine
Chairman & CEO5.2yrs€1.93m0.0044% 854.7k
Charles Edelstenne
Director10.8yrs€39.74k0.00024% 46.5k
Loïk Segalen
Director10.8yrs€40.99k0.00024% 46.5k
Yannick d'Escatha
Independent Director10.8yrs€45.49k0.00024% 46.5k
Marie-Françoise Walbaum
Director6.4yrs€35.99k0.00024% 46.5k
Éric Trappier
Director10.8yrs€40.99k0.00024% 46.5k
Philippe Lépinay
Director12.8yrs€39.74k0.00059% 114.3k
Ann Taylor
Independent Director7.8yrs€30.99k0.00024% 46.5k
Anne-Claire Taittinger
Independent Director7.8yrs€45.49k0.00029% 56.2k
Laurence Broseta
Non-Executive Director5.8yrs€28.23k0.00054% 104.7k

9.3yrs

Average Tenure

67.5yo

Average Age

Experienced Board: CSF's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Thales S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Thales S.A.
  • Ticker: CSF
  • Exchange: DB
  • Founded: 1893
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: €19.381b
  • Shares outstanding: 212.65m
  • Website: https://www.thalesgroup.com/en

Number of Employees


Location

  • Thales S.A.
  • Tour Carpe Diem
  • 31 Place des Corolles
  • Paris
  • Ile-de-France
  • 92098
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THLE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
HOENXTPA (Euronext Paris)YesCommon StockFREURJan 1992
CSFDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
0IW5LSE (London Stock Exchange)YesCommon StockGBEURJan 1992
HOPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
CSFETLX (Eurotlx)YesCommon StockITEURJan 1992
THLL.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2018

Biography

Thales S.A. provides various solutions for customers in the aeronautics, space, defense, security, and ground transportation markets worldwide. The company operates through Aerospace, Transport, and Defence and Security segments. It offers communications, command, and control systems; mission services and support; protection and mission/combat systems; surveillance, and intelligence systems; and training and simulation solutions for air, land, naval, and joint forces, as well as digital security solutions. The company also provides air traffic management solutions; flight decks and avionics equipment and functions; flight avionics; IFE and connectivity systems and services; electrical systems; aerospace training solutions; navigation solutions; and support and services for avionics equipment. In addition, it designs, operates, and delivers satellite-based systems for telecommunications, earth observation, science and space exploration, navigation, and orbital infrastructure and space transport; and signaling systems, supervision and communications systems, revenue collection systems, and related services for ground transportation. Further, the company provides solutions for various markets and applications, including radiology, radio frequency, microwave sources, training and simulation solutions, lasers, and microelectronics solutions for science, industry, space, defense, automotive, railways, and energy conversion platforms. The company was formerly known as Thomson-CSF and changed its name to Thales S.A. in 2000. Thales S.A. was founded in 1893 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 20:46
End of Day Share Price2020/02/25 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.