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Thales SA Unsponsored ADR (THLLY)
:THLLY
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Thales SA Unsponsored ADR
(OTC:THLLY)
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Rating:69Neutral
Price Target:
$62.00
▲(18.57% Upside)
Thales SA's overall stock score is driven by strong financial performance and a positive earnings call outlook, highlighting robust sales growth and strategic initiatives in the Defense segment. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The combination of these factors results in a balanced score, reflecting both the company's strengths and market challenges.
Positive Factors
Strong Revenue Growth
Consistent revenue growth in key segments like Avionics and Defense indicates strong market demand and effective strategic positioning, supporting long-term financial health.
Record Order Intake
A high order intake ensures future revenue streams and demonstrates the company's competitive edge and strong market position in the industry.
Strong Free Cash Flow
Robust free cash flow enhances financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic downturns.
Negative Factors
Cyber & Digital Segment Decline
Decline in the Cyber & Digital segment could hinder growth in an increasingly digital world, affecting the company's ability to capitalize on cybersecurity trends.
Increase in Net Debt
Rising net debt may limit financial flexibility and increase interest obligations, potentially impacting future investment capabilities and profitability.
Temporary Additional Tax Impact
Although temporary, additional tax impacts can reduce net income, affecting short-term profitability and potentially limiting reinvestment in growth initiatives.
Thales SA Unsponsored ADR (THLLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.83B
Dividend Yield1.41%
Average Volume (3M)118.65K
Price to Earnings (P/E)73.6
Beta (1Y)0.13
Revenue Growth11.77%
EPS Growth-50.07%
CountryUS
Employees78,189
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.71
Shares Outstanding1,029,709,600
10 Day Avg. Volume12,229
30 Day Avg. Volume118,653
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)3.77
Price to Sales (P/S)1.38
P/FCF Ratio14.07
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit11.55
Enterprise Value/Ebitda25.61
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Thales SA Unsponsored ADR Business Overview & Revenue Model
Company DescriptionThales S.A. provides various solutions for civilian and military customers in the aeronautics, space, defense, security, ground transportation, and digital security 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; training and simulation solutions for air, land, naval, and joint forces; and digital identity and security solutions. It also provides air traffic management solutions; flight decks and avionics equipment and functions; 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; signaling, communications and supervision, and fare collection management systems and related services; cybersecurity and railway digitalization systems; and main line rail, and urban and intermodal 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. Thales S.A. has a strategic agreement with Google LLC. 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.
How the Company Makes MoneyThales SA generates revenue through multiple key streams, primarily by providing high-tech systems and services to both governmental and commercial clients. The company's revenue model is largely driven by long-term contracts and partnerships in sectors such as defense and aerospace, where it supplies equipment and services for military and civilian aircraft, satellite systems, and ground transportation infrastructure. Additionally, Thales earns revenue from cybersecurity solutions that cater to both private enterprises and public institutions, focusing on securing sensitive data and critical systems. Strategic alliances with other technology firms and defense contractors enhance its market reach, while ongoing investments in research and development help to maintain a competitive edge and drive future growth.
Thales SA Unsponsored ADR Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong sales growth, record order intake, and robust performance in the Defense segment. However, challenges in the Cyber & Digital segment and increased net debt were noted. Overall, the highlights significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Sales Growth
Thales achieved a high single-digit sales growth in the first half of the year, primarily driven by the Avionics and Defense segments, with sales up 8.1% to EUR 10.3 billion.
Record Order Intake
The company reported EUR 10.4 billion worth of orders, reflecting a robust demand for Thales products and solutions, with a book-to-bill ratio above 1.
Defense Segment Performance
Defense sales recorded a sharp organic growth of 12.7%, driven by a strong commercial momentum and continuous production ramp-up.
Adjusted EBIT Growth
Adjusted EBIT reached EUR 1.2 billion, showing a solid 12.7% organic growth, with an EBIT margin increase to 12.2%.
Strong Free Cash Flow
H1 2025 witnessed a particularly strong free operational cash flow of EUR 499 million, reflecting a significant improvement in working capital management.
Negative Updates
Cyber & Digital Segment Decline
Cyber & Digital sales were slightly down by 1.9%, impacted by disruptions from the merger of Thales and Imperva sales forces and integration challenges.
Increase in Net Debt
Net debt increased by EUR 383 million from December 2024, reaching EUR 3.4 billion, due to seasonal effects including dividend payments.
Temporary Additional Tax Impact
Adjusted net income was affected by a temporary additional corporate tax in France, reducing the net income growth to 8%.
Company Guidance
During the Thales H1 2025 Results Conference Call, significant guidance was provided regarding the company's financial performance and strategic priorities. Thales reported a high single-digit sales growth driven by Avionics and Defense, with the latter benefiting from a favorable geopolitical context and notable contracts, such as a GBP 1.16 billion deal with the U.K. Ministry of Defense and a new order for 26 Rafale jets for the Indian Navy. The company's order intake totaled EUR 10.4 billion, resulting in a book-to-bill ratio above 1. Sales increased by 8.1% to EUR 10.3 billion, and adjusted EBIT rose by 12.7% to EUR 1.2 billion, yielding a margin of 12.2%. Adjusted net income was EUR 877 million, or EUR 937 million excluding a temporary French corporate tax. Free operational cash flow was robust at EUR 499 million, while net debt increased to EUR 3.4 billion. Thales upgraded its full-year guidance, forecasting organic growth of 6% to 7% and an adjusted EBIT margin of 12.2% to 12.4%, driven by strong defense demand and ongoing strategic initiatives.Thales SA Unsponsored ADR Financial Statement Overview
Summary
Thales SA exhibits a solid financial position characterized by strong revenue growth, improved profitability margins, and effective cash management. The elimination of total debt enhances financial flexibility, while the positive cash flow trends bolster its liquidity position. Although the equity ratio is moderate, the company maintains a stable financial foundation suitable for future growth and expansion within the Aerospace & Defense industry.Income Statement
Thales SA has demonstrated strong revenue growth with a notable increase from 2023 to 2024, resulting in a revenue growth rate of 11.65%. The gross profit margin stands at 26.12% for 2024, indicating efficient cost management. The net profit margin has improved to 6.90%, reflecting enhanced profitability. Both EBIT and EBITDA margins have also shown positive trends, reaching 8.26% and 12.99%, respectively, highlighting operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet is robust with a significant reduction in total debt to zero by 2024, which translates to a debt-to-equity ratio of zero. The return on equity (ROE) has improved to 18.89%, indicating efficient utilization of shareholder equity to generate profits. The equity ratio stands at 18.79%, suggesting a moderate level of financial stability. However, the relatively low equity ratio may imply potential vulnerabilities in asset financing.78
Positive
Cash Flow
Thales SA's cash flow performance is strong, with a significant increase in free cash flow, showing a growth rate of 107.55% from 2023 to 2024. The operating cash flow to net income ratio is 1.86, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 1.42 further supports the company's ability to convert earnings into cash, highlighting effective cash management practices.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.35B | 20.58B | 18.43B | 17.57B | 16.19B | 15.37B |
| Gross Profit | 5.58B | 5.37B | 4.77B | 4.46B | 4.03B | 3.58B |
| EBITDA | 2.51B | 2.67B | 2.46B | 2.27B | 2.05B | 1.73B |
| Net Income | 683.00M | 1.42B | 1.02B | 1.12B | 1.09B | 483.40M |
Balance Sheet | ||||||
| Total Assets | 38.89B | 39.99B | 38.79B | 34.42B | 32.84B | 31.81B |
| Cash, Cash Equivalents and Short-Term Investments | 3.89B | 4.77B | 4.08B | 5.30B | 5.05B | 5.00B |
| Total Debt | 7.31B | 7.82B | 8.43B | 5.47B | 6.13B | 7.60B |
| Total Liabilities | 31.72B | 32.43B | 31.82B | 27.04B | 26.12B | 26.50B |
| Stockholders Equity | 7.14B | 7.52B | 6.83B | 7.17B | 6.48B | 5.14B |
Cash Flow | ||||||
| Free Cash Flow | 2.54B | 2.01B | 970.80M | 2.56B | 2.26B | 950.20M |
| Operating Cash Flow | 3.16B | 2.64B | 1.60B | 3.06B | 2.71B | 1.35B |
| Investing Cash Flow | -949.20M | -62.80M | -4.23B | -1.17B | -493.40M | -386.40M |
| Financing Cash Flow | -2.25B | -2.00B | 1.59B | -1.75B | -2.17B | 1.32B |
Thales SA Unsponsored ADR Technical Analysis
Neutral
52.29
Price Trends
55.59
Negative
55.97
Negative
55.92
Negative
Market Momentum
-0.37
Negative
51.45
Neutral
68.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THLLY, the sentiment is Neutral. The current price of 52.29 is below the 20-day moving average (MA) of 52.87, below the 50-day MA of 55.59, and below the 200-day MA of 55.92, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 68.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THLLY.
Thales SA Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $90.87B | 21.80 | 17.78% | 1.73% | 11.86% | 17.39% | |
76 Outperform | $80.52B | 20.25 | 26.15% | 1.61% | -0.14% | 72.35% | |
70 Outperform | $109.87B | 26.50 | 62.78% | 2.84% | 2.88% | -35.15% | |
70 Neutral | $52.14B | 29.93 | 9.13% | 1.70% | 2.83% | 47.00% | |
69 Neutral | $54.83B | 73.65 | 14.07% | 1.41% | 11.77% | -50.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $161.57B | -15.22 | ― | ― | 10.19% | -6.03% |
* Industrials Sector Average
THLLY
Thales SA Unsponsored ADR
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25.56
89.17%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.