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Thales

BATS-CHIXE:HOP
Snowflake Description

Proven track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HOP
BATS-CHIXE
€16B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Thales S.A. provides various solutions for civilian and military customers in the aeronautics, space, defense, security, and ground transportation markets worldwide. The last earnings update was 41 days ago. More info.


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  • Thales has significant price volatility in the past 3 months.
HOP Share Price and Events
7 Day Returns
-3.4%
BATS-CHIXE:HOP
0.6%
GB Aerospace & Defense
0.1%
GB Market
1 Year Returns
-29.9%
BATS-CHIXE:HOP
-0.8%
GB Aerospace & Defense
-23.6%
GB Market
HOP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Thales (HOP) -3.4% -16.4% -22.7% -29.9% -19.2% 36.7%
GB Aerospace & Defense 0.6% -15.8% -19.2% -0.8% -15.2% -21.8%
GB Market 0.1% -15.5% -27% -23.6% -24.3% -23.5%
1 Year Return vs Industry and Market
  • HOP underperformed the Aerospace & Defense industry which returned -0.8% over the past year.
  • HOP underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -23.6% over the past year.
Price Volatility
HOP
Industry
5yr Volatility vs Market

Value

 Is Thales undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Thales to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Thales.

BATS-CHIXE:HOP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BATS-CHIXE:HOP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.846 (1 + (1- 33%) (39.83%))
1.048
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.048 * 6.07%)
6.89%

Discounted Cash Flow Calculation for BATS-CHIXE:HOP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Thales is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BATS-CHIXE:HOP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 6.89%)
2020 848.98 Analyst x9 794.25
2021 1,310.09 Analyst x10 1,146.62
2022 1,459.72 Analyst x7 1,195.22
2023 1,627.33 Analyst x3 1,246.56
2024 1,702.00 Analyst x1 1,219.70
2025 1,753.76 Est @ 3.04% 1,175.77
2026 1,793.89 Est @ 2.29% 1,125.14
2027 1,825.47 Est @ 1.76% 1,071.14
2028 1,850.87 Est @ 1.39% 1,016.03
2029 1,871.84 Est @ 1.13% 961.30
Present value of next 10 years cash flows €10,951.00
BATS-CHIXE:HOP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €1,871.84 × (1 + 0.53%) ÷ (6.89% – 0.53%)
€29,582.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €29,582.75 ÷ (1 + 6.89%)10
€15,192.40
BATS-CHIXE:HOP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €10,951.00 + €15,192.40
€26,143.40
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €26,143.40 / 212.76
€122.88
BATS-CHIXE:HOP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:HOP represents 1.00081x of ENXTPA:HO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00081x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 122.88 x 1.00081
€122.98
Value per share (EUR) From above. €122.98
Current discount Discount to share price of €74.28
= -1 x (€74.28 - €122.98) / €122.98
39.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Thales is available for.
Intrinsic value
40%
Share price is €74.28 vs Future cash flow value of €122.98
Current Discount Checks
For Thales to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Thales's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Thales's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Thales's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Thales's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:HOP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €5.28
ENXTPA:HO Share Price ** ENXTPA (2020-04-07) in EUR €74.22
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PE Ratio Median Figure of 9 Publicly-Listed Aerospace & Defense Companies 17.96x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Thales.

BATS-CHIXE:HOP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTPA:HO Share Price ÷ EPS (both in EUR)

= 74.22 ÷ 5.28

14.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thales is good value based on earnings compared to the GB Aerospace & Defense industry average.
  • Thales is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Thales's expected growth come at a high price?
Raw Data
BATS-CHIXE:HOP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
10%per year
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PEG Ratio Median Figure of 8 Publicly-Listed Aerospace & Defense Companies 2.01x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 517 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:HOP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.06x ÷ 10%

1.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thales is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Thales's assets?
Raw Data
BATS-CHIXE:HOP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €25.61
ENXTPA:HO Share Price * ENXTPA (2020-04-07) in EUR €74.22
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PB Ratio Median Figure of 13 Publicly-Listed Aerospace & Defense Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.11x
BATS-CHIXE:HOP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTPA:HO Share Price ÷ Book Value per Share (both in EUR)

= 74.22 ÷ 25.61

2.9x

* Primary Listing of Thales.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thales is overvalued based on assets compared to the GB Aerospace & Defense industry average.
X
Value checks
We assess Thales's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Thales has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Thales expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Thales expected to grow at an attractive rate?
  • Thales's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Thales's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Thales's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:HOP Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:HOP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 10%
BATS-CHIXE:HOP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 3.8%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BATS-CHIXE:HOP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:HOP Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 21,918 1,994 1,861 2
2023-12-31 20,854 2,136 1,686 4
2022-12-31 21,093 2,100 1,591 12
2021-12-31 20,077 1,959 1,468 14
2020-12-31 19,066 1,553 1,291 15
2020-04-07
BATS-CHIXE:HOP Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 18,401 1,770 1,122
2019-09-30 17,497 1,412 1,102
2019-06-30 16,592 1,053 1,082
2019-03-31 16,224 1,073 1,032
2018-12-31 15,855 1,093 982
2018-09-30 15,708 1,137 910
2018-06-30 15,561 1,182 838
2018-03-31 15,394 1,448 759
2017-12-31 15,228 1,713 680
2017-09-30 15,415 1,596 824
2017-06-30 15,158 1,478 862
2017-03-31 15,021 1,408 904

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Thales's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
  • Thales's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BATS-CHIXE:HOP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Thales Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:HOP Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 8.69 8.69 8.69 1.00
2023-12-31 8.29 8.29 8.29 1.00
2022-12-31 7.50 8.10 6.58 3.00
2021-12-31 7.01 7.74 5.84 5.00
2020-12-31 6.23 7.11 4.90 6.00
2020-04-07
BATS-CHIXE:HOP Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31 5.28
2019-09-30 5.18
2019-06-30 5.09
2019-03-31 4.85
2018-12-31 4.62
2018-09-30 4.29
2018-06-30 3.95
2018-03-31 3.58
2017-12-31 3.21
2017-09-30 3.89
2017-06-30 4.08
2017-03-31 4.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Thales is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Thales's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Thales has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Thales performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Thales's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Thales's year on year earnings growth rate has been positive over the past 5 years.
  • Thales's 1-year earnings growth exceeds its 5-year average (14.3% vs 9.5%)
  • Thales's earnings growth has exceeded the GB Aerospace & Defense industry average in the past year (14.3% vs 12.4%).
Earnings and Revenue History
Thales's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Thales Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:HOP Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 18,401.00 1,121.90 2,083.50 1,097.50
2019-09-30 17,496.65 1,101.70 1,959.90 1,023.25
2019-06-30 16,592.30 1,081.50 1,836.30 949.00
2019-03-31 16,223.50 1,031.65 1,765.20 914.20
2018-12-31 15,854.70 981.80 1,694.10 879.40
2018-09-30 15,708.00 909.70 1,685.10 860.45
2018-06-30 15,561.30 837.60 1,676.10 841.50
2018-03-31 15,394.40 758.70 1,674.30 819.35
2017-12-31 15,227.50 679.80 1,672.50 797.20
2017-09-30 15,415.05 823.60 1,643.15 781.65
2017-06-30 15,157.60 862.00 1,633.40 766.10
2017-03-31 15,021.20 904.20 1,632.35 748.10
2016-12-31 14,884.80 946.40 1,631.30 730.10
2016-09-30 14,723.50 914.65 1,630.55 719.20
2016-06-30 14,562.20 882.90 1,629.80 708.30
2016-03-31 14,312.70 824.00 1,601.30 700.15
2015-12-31 14,063.20 765.10 1,572.80 692.00
2015-09-30 13,844.35 656.35 1,560.20 678.95
2015-06-30 13,625.50 547.60 1,547.60 665.90
2015-03-31 13,299.55 630.90 1,535.70 653.65
2014-12-31 12,973.60 714.20 1,523.80 641.40
2014-09-30 12,817.20 765.35 1,501.25 634.00
2014-06-30 12,660.80 816.50 1,478.70 626.60
2014-03-31 12,679.20 694.95 1,474.20 619.40
2013-12-31 12,697.60 573.40 1,469.70 612.20
2013-09-30 14,206.40 556.20 1,677.75 681.40
2013-06-30 13,476.90 562.80 1,625.30 654.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Thales has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Thales used its assets less efficiently than the GB Aerospace & Defense industry average last year based on Return on Assets.
  • Thales's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Thales's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Thales has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Thales's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Thales's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Thales's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Thales's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Thales's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Thales Company Filings, last reported 3 months ago.

BATS-CHIXE:HOP Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 5,682.10 4,564.50 2,932.80
2019-09-30 5,682.10 4,564.50 2,932.80
2019-06-30 5,420.70 5,355.50 2,537.60
2019-03-31 5,420.70 5,355.50 2,537.60
2018-12-31 5,924.50 2,743.00 5,888.90
2018-09-30 5,924.50 2,743.00 5,888.90
2018-06-30 5,383.50 2,702.20 4,999.30
2018-03-31 5,383.50 2,702.20 4,999.30
2017-12-31 5,138.50 1,664.40 4,612.40
2017-09-30 5,555.50 1,664.40 4,612.40
2017-06-30 5,003.00 1,553.60 3,827.30
2017-03-31 5,003.00 1,553.60 3,827.30
2016-12-31 4,866.00 1,546.60 3,868.20
2016-09-30 4,866.00 1,546.60 3,868.20
2016-06-30 4,649.10 2,142.20 3,547.50
2016-03-31 4,649.10 2,142.20 3,547.50
2015-12-31 4,941.80 1,539.60 3,456.50
2015-09-30 4,941.80 1,539.60 3,456.50
2015-06-30 4,416.80 1,523.90 2,100.60
2015-03-31 4,416.80 1,523.90 2,100.60
2014-12-31 4,080.80 1,580.00 2,485.10
2014-09-30 4,080.80 1,580.00 2,485.10
2014-06-30 4,245.90 1,606.80 1,623.80
2014-03-31 4,245.90 1,606.80 1,623.80
2013-12-31 4,085.10 1,704.80 2,564.30
2013-09-30 3,940.90 2,007.10 3,167.40
2013-06-30 3,666.00 1,965.10 2,395.70
  • Thales's level of debt (80.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (37.7% vs 80.3% today).
  • Debt is well covered by operating cash flow (38.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 31x coverage).
X
Financial health checks
We assess Thales's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Thales has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.57%
Current annual income from Thales dividends. Estimated to be 3.99% next year.
If you bought €2,000 of Thales shares you are expected to receive €71 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Thales's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.59%).
  • Thales's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.08%).
Upcoming dividend payment

Purchase Thales before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BATS-CHIXE:HOP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 3.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 588 Stocks 5.6%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.6%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BATS-CHIXE:HOP Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 3.30 1.00
2023-12-31 3.33 3.00
2022-12-31 3.27 12.00
2021-12-31 2.96 15.00
2020-12-31 2.63 16.00
2020-04-07
BATS-CHIXE:HOP Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-02-26 2.650 3.531
2019-04-09 2.080 2.110
2019-02-26 2.080 1.933
2018-09-27 1.800 1.685
2018-04-03 1.750 1.572
2018-03-06 1.750 1.803
2017-09-28 1.650 1.833
2017-04-06 1.600 1.678
2017-02-28 1.600 1.775
2016-09-22 1.410 1.604
2016-05-18 1.360 1.744
2015-09-17 1.130 1.633
2015-02-26 1.120 1.992
2014-09-16 1.190 2.733
2014-05-14 1.120 2.568
2013-09-17 0.900 1.973
2013-02-28 0.880 2.456
2012-11-29 0.780 2.895
2012-03-06 0.780 2.958
2011-07-29 0.500 2.005
2011-07-27 0.500 1.709
2011-05-18 0.500 1.741
2010-02-18 0.500 1.806
2009-04-09 1.050 3.244

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Thales's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Thales's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Thales afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Thales has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Thales's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Patrice Caine
COMPENSATION €1,925,700
AGE 49
TENURE AS CEO 5.3 years
CEO Bio

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 the following operating units - Air & Naval, Communication, Navigation & Identification, Air Systems, Radio-communication Products and Network & Infrastructure Systems and Protection Systems. He is a Independent Director of L'Oréal SA since April 17, 2018. In February 2013, he was appointed Senior Executive Vice-President, Chief Operating Officer and Chief Performance Officer of Thales. Mr. Caine began his career in 1992 with the pharmaceutical group Fournier before becoming an adviser on mergers, acquisitions and corporate strategy at Charterhouse Bank Limited in London. From 1995 to 1998, he was special adviser to the Prefect of the Franche-Comté region of France and head of the Industrial Development and Energy Division at DRIRE, the French agency responsible for industry, research and the environment. From 1998 to 2000, he worked at the Conseil Général des Mines and was in charge of human resources for the Corps des Mines. Mr. Caine was responsible for training engineering students at the École des Mines de Paris for the Technical Grand Corps of the French State. From 2000 to 2002, he served as the Technical Advisor on energy at the cabinet office of the French Minister for the economy, finance and industry. He serves as Chairman of Thales Group. He serves as Director of DCNS SA. He was awarded the Médaille de la Défense Nationale (National Defense Medal - Bronze) and in 2014, he was named Chevalier de l’Ordre National du Mérite (Knight of the National Order of Merit). Mr. Caine is a graduate of the École Polytechnique and the École des Mines de Paris and holds the rank of Ingénieur en Chef of the Corps des Mines.

CEO Compensation
  • Patrice's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Patrice's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Thales management team in years:

5
Average Tenure
53.5
Average Age
  • The average tenure for the Thales management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Patrice Caine

TITLE
Chairman & CEO
COMPENSATION
€2M
AGE
49
TENURE
5.3 yrs

Pascal Bouchiat

TITLE
CFO and Senior Executive VP of Finance & Information Systems
AGE
59

Jean-Loïc Galle

TITLE
Senior Executive VP
TENURE
0.2 yrs

Jean-Claude Climeau

TITLE
Head of Group Treasury & Corporate Finance and Vice President
TENURE
4.2 yrs

Philippe Keryer

TITLE
Executive Vice President of Strategy
TENURE
4.3 yrs

Bertrand Delcaire

TITLE
Head of Investor Relations & VP
TENURE
4.2 yrs

Isabelle Simon

TITLE
Executive VP
AGE
49
TENURE
5 yrs

Pierre Schaeffer

TITLE
Chief Marketing Officer & Senior VP
AGE
56
TENURE
5.6 yrs

David Tournadre

TITLE
Senior Executive Vice President of Human Resources
AGE
51
TENURE
6.8 yrs

Pascale Sourisse

TITLE
Senior Executive Vice President of International Development
AGE
57
TENURE
13.3 yrs
Board of Directors Tenure

Average tenure and age of the Thales board of directors in years:

9.4
Average Tenure
67.5
Average Age
  • The tenure for the Thales board of directors is about average.
Board of Directors

Patrice Caine

TITLE
Chairman & CEO
COMPENSATION
€2M
AGE
49
TENURE
5.3 yrs

Yannick d'Escatha

TITLE
Independent Director
COMPENSATION
€45K
AGE
71
TENURE
10.9 yrs

Anne-Claire Taittinger

TITLE
Independent Director
COMPENSATION
€45K
AGE
70
TENURE
7.9 yrs

Philippe Lépinay

TITLE
Director
COMPENSATION
€40K
AGE
66
TENURE
13 yrs

Charles Edelstenne

TITLE
Director
COMPENSATION
€40K
AGE
81
TENURE
10.9 yrs

Loïk Segalen

TITLE
Director
COMPENSATION
€41K
AGE
59
TENURE
10.9 yrs

Éric Trappier

TITLE
Director
COMPENSATION
€41K
AGE
59
TENURE
10.9 yrs

Ann Taylor

TITLE
Independent Director
COMPENSATION
€31K
AGE
72
TENURE
7.9 yrs

Marie-Françoise Walbaum

TITLE
Director
COMPENSATION
€36K
AGE
69
TENURE
6.6 yrs

Laurence Broseta

TITLE
Non-Executive Director
COMPENSATION
€28K
AGE
51
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Thales's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Thales has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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; IFE and connectivity systems and services; electrical systems; aerospace training solutions; navigation solutions; and support and services for avionics equipment. 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 for ground transportation, as well as cybersecurity and railway digitalization systems. 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 headquartered in Courbevoie, France.

Details
Name: Thales S.A.
HOP
Exchange: BATS-CHIXE
Founded: 1893
€15,790,797,820
212,756,640
Website: http://www.thalesgroup.com/en
Address: Thales S.A.
Tour Carpe Diem,
31 Place des Corolles,
Paris,
Ile-de-France, 92098,
France
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTPA HO Common Stock Euronext Paris FR EUR 02. Jan 1992
OTCPK THLE.F Common Stock Pink Sheets LLC US USD 02. Jan 1992
DB CSF Common Stock Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0IW5 Common Stock London Stock Exchange GB EUR 02. Jan 1992
BATS-CHIXE HOP Common Stock BATS 'Chi-X Europe' GB EUR 02. Jan 1992
ETLX CSF Common Stock Eurotlx IT EUR 02. Jan 1992
ENXTPA HONV EUR3 (RFD 01/01/2020) Euronext Paris FR EUR 02. Jan 2020
OTCPK THLL.Y UNSPONSORD ADR Pink Sheets LLC US USD 11. Jan 2018
Number of employees
Current staff
Staff numbers
82,605
Thales employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 22:28
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.