ENXTPA:HO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record and fair value.


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: HO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.9%

HO

4.7%

FR Aerospace & Defense

2.3%

FR Market


1 Year Return

-27.8%

HO

-39.4%

FR Aerospace & Defense

-8.7%

FR Market

Return vs Industry: HO exceeded the French Aerospace & Defense industry which returned -39.4% over the past year.

Return vs Market: HO underperformed the French Market which returned -8.7% over the past year.


Shareholder returns

HOIndustryMarket
7 Day4.9%4.7%2.3%
30 Day-3.4%-14.1%-3.1%
90 Day1.6%20.9%16.3%
1 Year-27.3%-27.8%-39.3%-39.4%-7.1%-8.7%
3 Year-16.9%-20.5%-7.3%-10.2%11.2%2.1%
5 Year43.9%32.9%24.4%15.3%28.6%11.4%

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

Valuation

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

23.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HO (€75.38) is trading below our estimate of fair value (€98.28)

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


Price To Earnings Ratio

PE vs Industry: HO is poor value based on its PE Ratio (14.3x) compared to the Aerospace & Defense industry average (13.8x).

PE vs Market: HO is good value based on its PE Ratio (14.3x) compared to the French market (15x).


Price to Earnings Growth Ratio

PEG Ratio: HO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: HO is overvalued based on its PB Ratio (2.9x) compared to the FR Aerospace & Defense industry average (1.2x).


Next Steps

Future Growth

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

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HO's forecast earnings growth (9.9% per year) is above the savings rate (0.6%).

Earnings vs Market: HO's earnings (9.9% per year) are forecast to grow slower than the French market (13.3% per year).

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

Revenue vs Market: HO's revenue (2.8% per year) is forecast to grow slower than the French market (3.9% per year).

High Growth Revenue: HO's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HO's Return on Equity is forecast to be high in 3 years time (21.5%)


Next Steps

Past Performance

How has Thales performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HO has high quality earnings.

Growing Profit Margin: HO's current net profit margins (6.1%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: HO's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: HO's earnings growth over the past year (14.3%) exceeds its 5-year average (9.5% per year).

Earnings vs Industry: HO earnings growth over the past year (14.3%) underperformed the Aerospace & Defense industry 19.4%.


Return on Equity

High ROE: HO's Return on Equity (20.2%) is considered high.


Next Steps

Financial Health

How is Thales's financial position?


Financial Position Analysis

Short Term Liabilities: HO's short term assets (€15.9B) do not cover its short term liabilities (€17.5B).

Long Term Liabilities: HO's short term assets (€15.9B) exceed its long term liabilities (€8.0B).


Debt to Equity History and Analysis

Debt Level: HO's debt to equity ratio (80.3%) is considered high.

Reducing Debt: HO's debt to equity ratio has increased from 37.7% to 80.3% over the past 5 years.

Debt Coverage: HO's debt is well covered by operating cash flow (38.8%).

Interest Coverage: HO's interest payments on its debt are well covered by EBIT (31x coverage).


Balance Sheet


Next Steps

Dividend

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

3.05%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HO is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HO's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Patrice Caine (50yo)

5.58yrs

Tenure

€2,430,500

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 ($USD2.73M) is about average for companies of similar size in the French market ($USD3.89M).

Compensation vs Earnings: Patrice's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrice Caine
Chairman & CEO5.58yrs€2.43m0.0044% 700.4k
Pascal Bouchiat
CFO and Senior Executive VP of Finance & Information Systemsno datano datano data
Jean-Loïc Galle
Senior Executive VP0.42yrno datano data
Jean-Claude Climeau
Head of Group Treasury & Corporate Finance and Vice President4.42yrsno datano data
Philippe Keryer
Executive Vice President of Strategy4.5yrsno datano data
Bertrand Delcaire
Head of Investor Relations & VP4.42yrsno datano data
Isabelle Simon
Executive VP5.25yrsno datano data
Pierre Schaeffer
Chief Marketing Officer & Senior VP5.83yrsno datano data
David Tournadre
Senior Executive Vice President of Human Resources7.08yrsno datano data
Pascale Sourisse
Senior Executive Vice President of International Development13.5yrsno datano data

5.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: HO's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrice Caine
Chairman & CEO5.58yrs€2.43m0.0044% 700.4k
Charles Edelstenne
Director11.17yrs€36.95k0.00024% 37.8k
Loïk Segalen
Director11.17yrs€41.95k0.00024% 37.8k
Marie-Françoise Walbaum
Director6.83yrs€30.70k0.00024% 37.8k
Éric Trappier
Director11.17yrs€39.45k0.00024% 37.8k
Philippe Lépinay
Director13.25yrs€38.20k0.0012% 190.4k
Ann Taylor
Independent Director8.17yrs€25.70k0.00024% 37.8k
Anne-Claire Taittinger
Independent Director8.17yrs€43.95k0.00029% 45.6k
Laurence Broseta
Non-Executive Director6.17yrs€26.10k0.00056% 88.1k
Frédérique Sainct
Employee Representative Director3.58yrs€48.20k0.000010% 1.6k

8.2yrs

Average Tenure

64.5yo

Average Age

Experienced Board: HO's board of directors are considered experienced (8.2 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: HO
  • Exchange: ENXTPA
  • Founded: 1893
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: €15.739b
  • Shares outstanding: 212.75m
  • Website: https://www.thalesgroup.com/en

Number of Employees


Location

  • Thales S.A.
  • Tour Carpe Diem
  • Place des Corolles
  • Courbevoie
  • Ile-de-France
  • 92400
  • 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 civilian and military customers in the aeronautics, space, defense, security, and ground transportation markets worldwide. It operates through Aerospace, Transport, Defence & Security, and Digital Identity & Security segments. The company offers communications, command, and control systems; mission services and support; protection and mission/combat systems; surveillance, detection, and intelligence systems; and training and simulation solutions for air, land, naval, and joint forces, as well as digital security solutions. It also provides air traffic management solutions; flight decks and avionics equipment and functions; flight avionics; in-flight entertainment and connectivity systems and services; electrical systems; aerospace training solutions; navigation solutions; support and services for avionics equipment; and vision systems. In addition, the company designs, operates, and delivers satellite-based systems for telecommunications, navigation, earth observation, environmental management, exploration, and science and orbital infrastructures; and signaling systems, communications and supervision systems, fare collection management systems, and related services, cybersecurity and railway digitalization systems, and main line rail and urban mobility solutions. Further, it 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 based in Courbevoie, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 20:47
End of Day Share Price2020/07/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.