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Thales SA Unsponsored ADR (THLLY)
:THLLY
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Thales SA Unsponsored ADR
(OTC:THLLY)
Rating:77Outperform
Price Target:―
Thales SA Unsponsored ADR (THLLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.50B
Dividend Yield0.02%
Average Volume (3M)9.62K
Price to Earnings (P/E)77.2
Beta (1Y)0.06
Revenue Growth11.72%
EPS Growth3.12%
CountryUS
Employees78,189
SectorIndustrials
Sector Strength93
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.71
Shares Outstanding1,029,709,600
10 Day Avg. Volume6,118
30 Day Avg. Volume9,615
Financial Highlights & Ratios
PEG Ratio-1.93
Price to Book (P/B)6.78
Price to Sales (P/S)0.00
P/FCF Ratio26.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 its diversified portfolio of products and services across several key sectors. In aerospace, it earns money from the sale and maintenance of avionics and air traffic management systems to commercial airlines and air navigation service providers. The defense sector contributes significantly through contracts with governments and defense organizations for equipment, systems, and services, including radars, communications, and command systems. In the security sector, revenue comes from providing cybersecurity solutions and integrated security systems to both public and private entities. The transportation sector adds to earnings through solutions for rail signaling and urban transport systems. Furthermore, Thales SA benefits from strategic partnerships and long-term contracts that provide a steady stream of income, leveraging its expertise to support large-scale projects and technological innovations.
Thales SA Unsponsored ADR Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: -1.92%|
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed view of Thales' financial performance. While there were significant achievements such as strong sales growth, major defense contracts, and a solid order intake, challenges in the Cyber & Digital and Space segments, along with a temporary tax impact, were notable. The company's net debt increased due to seasonal effects, but the overall reduction compared to the previous year was positive.Q2-2025 Updates
Positive Updates
High Single-Digit Sales Growth
Thales achieved a high single-digit sales growth in the first half of the year, mainly driven by Avionics and Defense, with a robust sales progression up 8.1% to EUR 10.3 billion.
Significant Defense Contracts
Thales secured a new order of 26 Rafale fighter jets for the Indian Navy and a GBP 1.16 billion contract with the U.K. Ministry of Defense for LMM missiles, reflecting strong defense demand.
Strong Adjusted EBIT Margin
Adjusted EBIT margin increased sharply to 12.2%, with an adjusted EBIT of EUR 1.2 billion, showing a 12.7% organic growth.
Solid Order Intake
Commercial momentum was strong with EUR 10.4 billion in orders, resulting in a book-to-bill ratio above 1, reflecting high demand for Thales products.
Reduction in Net Debt
Net debt at the end of June 2025 was reduced by more than EUR 1 billion compared to June 2024.
Negative Updates
Cyber & Digital Segment Decline
Sales in the Cyber & Digital segment were slightly down by 1.9% organically in H1 2025, with integration challenges affecting performance.
Space Segment Challenges
Space sales were impacted by low demand in the Telco business over the last two years, although there are signs of improvement with recent orders.
Temporary Additional Corporate Tax
Adjusted net income was impacted by a temporary additional corporate tax in France, resulting in a net income of EUR 877 million versus EUR 937 million excluding the tax.
Increased Net Debt Due to Seasonal Effects
Net debt increased by EUR 383 million compared to December 2024 due to seasonal effects, including dividend payments.
Company Guidance
During the Thales H1 2025 results conference call, guidance was provided for the company's financial and strategic outlook. The company reported a high single-digit sales growth, with a notable 8.1% increase in the first half of the year, reaching EUR 10.3 billion in sales. The order intake was robust at EUR 10.4 billion, resulting in a book-to-bill ratio above 1. Adjusted EBIT grew by 12.7% to EUR 1.2 billion, with a margin of 12.2%. Adjusted net income reached EUR 877 million, or EUR 937 million excluding temporary additional corporate tax in France. Free operational cash flow was notably strong at EUR 499 million. Thales' strategic priorities include ramping up capacity, restoring space profitability, maintaining innovation leadership, and delivering value from recent acquisitions. The company upgraded its 2025 guidance to an organic growth of 6% to 7%, reflecting the strong commercial momentum, particularly in the Defense sector.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.58B | 18.43B | 17.57B | 16.19B | 16.99B |
| Gross Profit | 5.37B | 4.77B | 4.46B | 4.03B | 3.94B |
| EBITDA | 2.67B | 2.46B | 2.29B | 2.17B | 1.65B |
| Net Income | 1.42B | 1.02B | 1.12B | 1.09B | 483.40M |
Balance Sheet | |||||
| Total Assets | 39.99B | 38.79B | 34.42B | 32.84B | 31.81B |
| Cash, Cash Equivalents and Short-Term Investments | 4.77B | 4.08B | 5.30B | 5.05B | 5.00B |
| Total Debt | 0.00 | 8.43B | 5.47B | 5.92B | 7.60B |
| Total Liabilities | 32.43B | 31.82B | 27.04B | 26.12B | 26.50B |
| Stockholders Equity | 7.52B | 6.83B | 7.17B | 6.48B | 5.11B |
Cash Flow | |||||
| Free Cash Flow | 2.01B | 970.80M | 2.56B | 2.26B | 950.20M |
| Operating Cash Flow | 2.64B | 1.60B | 3.06B | 2.71B | 1.35B |
| Investing Cash Flow | -62.80M | -4.23B | -1.21B | -493.40M | -386.40M |
| Financing Cash Flow | -2.00B | 1.59B | -1.77B | -2.17B | 1.20B |
Thales SA Unsponsored ADR Technical Analysis
Neutral
56.06
Price Trends
57.96
Negative
55.94
Positive
43.94
Positive
Market Momentum
-0.29
Positive
45.03
Neutral
8.20
Positive
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 56.06 is below the 20-day moving average (MA) of 57.44, below the 50-day MA of 57.96, and above the 200-day MA of 43.94, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 8.20 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $51.08B | 30.10 | 8.90% | 1.73% | 2.93% | 43.29% | |
77 Outperform | $57.50B | 77.19 | 14.07% | 0.02% | 11.72% | 3.12% | |
76 Outperform | $84.53B | 21.28 | 17.91% | 1.86% | 11.85% | 16.12% | |
72 Outperform | $10.33B | 19.14 | 12.27% | 2.03% | -1.04% | -21.80% | |
71 Outperform | $81.40B | 20.90 | 26.50% | 1.49% | -0.65% | 77.20% | |
64 Neutral | $98.18B | 23.61 | 73.06% | 3.10% | 1.09% | -35.50% | |
58 Neutral | HK$14.94B | 4.73 | -2.78% | 5.01% | 3.80% | -54.55% |
* Industrials Sector Average
Performance Comparison
THLLY
Thales SA Unsponsored ADR
56.33
25.37
81.94%
GD
General Dynamics
314.02
29.58
10.40%
LHX
L3Harris Technologies
269.28
44.44
19.77%
HII
Huntington Ingalls
264.82
-4.33
-1.61%
LMT
Lockheed Martin
421.17
-90.14
-17.63%
NOC
Northrop Grumman
569.74
97.73
20.71%
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.