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Thales SA Unsponsored ADR (THLLY)
OTHER OTC:THLLY
US Market
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Thales SA Unsponsored ADR (THLLY) AI Stock Analysis

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THLLY

Thales SA Unsponsored ADR

(OTC:THLLY)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
$57.00
â–²(5.95% Upside)
Action:Upgraded
Date:07/23/26
The score is driven primarily by solid financial performance (strong cash generation and improving profitability) and a constructive earnings call (upgraded cash and order intake guidance, improving balance sheet). Offsetting this are weaker technical momentum (below key moving averages with negative MACD) and a relatively high P/E that limits valuation support.
Positive Factors
Strong free cash flow
Consistent multi‑billion euro free cash flow supports durable financial flexibility: it funds CapEx, debt reduction and inorganic investment while enabling resilient operations through program timing swings. High FCF lowers funding risk and underpins strategic choices over 2–6 months.
Negative Factors
Meaningful leverage remains
Despite recent reductions, a still‑sizeable debt load limits financial flexibility and raises sensitivity to interest rates or weaker cash conversion. For a contract‑driven aero/defense group, elevated leverage increases risk if awards or payment timing deteriorate over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent multi‑billion euro free cash flow supports durable financial flexibility: it funds CapEx, debt reduction and inorganic investment while enabling resilient operations through program timing swings. High FCF lowers funding risk and underpins strategic choices over 2–6 months.
Read all positive factors

Thales SA Unsponsored ADR (THLLY) vs. SPDR S&P 500 ETF (SPY)

Thales SA Unsponsored ADR Business Overview & Revenue Model

Company Description
Thales S.A. stands as a global technology leader, delivering a wide array of advanced solutions to both civilian and military clients across critical sectors. These encompass aeronautics, space exploration, defense, overall security, ground transp...
How the Company Makes Money
Thales primarily makes money by selling and supporting complex, high-value technology systems and long-lived platforms to government and commercial customers, with revenue typically coming from a mix of new equipment deliveries and recurring servi...

Thales SA Unsponsored ADR Earnings Call Summary

Earnings Call Date:Jul 23, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Mar 09, 2027
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture driven by very strong order intake (+22% organic), robust sales growth (7.8% organic; ~9.6% ex‑satellite cancellation), margin expansion (adjusted EBIT +10% and 12.5% margin), exceptional free cash flow (~EUR 1.8–1.9bn) and a major reduction in net debt (~EUR 3bn year‑on‑year). Defence and Aerospace were key drivers with strong bookings and improved profitability. Offsetting factors include one‑off satellite cancellations, weaker performance and margin pressure in parts of Cyber & Digital (Payments and Identity), and normal H2 seasonality and timing risks for cash flow and large defence/space awards. Overall the positives materially outweigh the negatives, but watch the Digital margin recovery and H2 cash/capex phasing.
Positive Updates
Strong Order Intake and Book-to-Bill
Order intake reached EUR 12.5bn in H1 2026, up 22% organically year‑on‑year; book-to-bill remained above 1 at 1.14 and guidance for 2026 book-to-bill was upgraded to above 1.1.
Negative Updates
Satellite Contract Cancellations Impact
Cancellation of 2 geostationary telco satellites reduced H1 sales by approximately EUR 153m and lowered reported Space revenue growth; management cites reuse of delivered work but it is a one‑off negative impact on H1 sales.
Read all updates
Q2-2026 Updates
Negative
Strong Order Intake and Book-to-Bill
Order intake reached EUR 12.5bn in H1 2026, up 22% organically year‑on‑year; book-to-bill remained above 1 at 1.14 and guidance for 2026 book-to-bill was upgraded to above 1.1.
Read all positive updates
Company Guidance
Thales upgraded two 2026 guidance items and confirmed others: book‑to‑bill is now expected above 1.1 and the conversion of adjusted net income into free operating cash flow has been raised to 100–110%; the group confirms 2026 organic sales growth of 6–7% (implying sales of EUR 23.3–23.6bn) and an adjusted EBIT margin target of 12.6–12.8%; CapEx guidance is roughly EUR 850m and an additional French corporate tax of about EUR 100m is expected in 2026; management also expects Defence adjusted EBIT margin to stay above 13.5% and aims for Space profitability around 7% by 2027.

Thales SA Unsponsored ADR Financial Statement Overview

Summary
Profitability improved over 2020–2024 (net margin ~3.1% to ~6.9% and gross margin ~23.3% to ~26.1%) and cash generation is strong (FCF ~2.0B in 2024 and ~2.53B in 2025). Key offsetting risks are the sharp 2025 revenue decline (~-40%) and a still-meaningful leverage profile despite debt reduction (debt ~7.8B in 2024 to ~6.1B in 2025).
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue22.95B21.26B20.58B18.43B17.57B16.19B
Gross Profit6.17B5.62B5.37B4.77B4.46B4.03B
EBITDA3.53B3.18B2.67B2.46B2.27B2.05B
Net Income1.50B1.61B1.42B1.02B1.12B1.09B
Balance Sheet
Total Assets39.99B39.14B39.99B38.79B34.42B32.84B
Cash, Cash Equivalents and Short-Term Investments5.05B4.49B4.77B4.08B5.30B5.05B
Total Debt5.57B6.13B7.82B8.43B5.47B6.13B
Total Liabilities31.98B31.15B32.43B31.82B27.04B26.12B
Stockholders Equity8.00B7.97B7.52B6.83B7.17B6.48B
Cash Flow
Free Cash Flow4.02B2.53B2.01B970.80M2.56B2.26B
Operating Cash Flow4.76B3.19B2.64B1.60B3.06B2.71B
Investing Cash Flow-856.94M-873.89M-62.80M-4.23B-1.17B-493.40M
Financing Cash Flow-2.84B-2.55B-2.00B1.59B-1.75B-2.17B

Thales SA Unsponsored ADR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price53.80
Price Trends
50DMA
53.44
Positive
100DMA
54.97
Positive
200DMA
55.87
Positive
Market Momentum
MACD
1.79
Negative
RSI
75.54
Negative
STOCH
99.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THLLY, the sentiment is Positive. The current price of 53.8 is below the 20-day moving average (MA) of 53.88, above the 50-day MA of 53.44, and below the 200-day MA of 55.87, indicating a bullish trend. The MACD of 1.79 indicates Negative momentum. The RSI at 75.54 is Negative, neither overbought nor oversold. The STOCH value of 99.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THLLY.

Thales SA Unsponsored ADR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$103.74B23.0617.43%1.60%9.13%10.37%
76
Outperform
$134.49B21.3886.24%2.34%7.20%52.79%
76
Outperform
$290.06B37.4311.79%1.30%11.84%24.93%
70
Outperform
$58.28B33.7818.73%1.70%14.68%133.82%
70
Outperform
$77.07B17.2026.58%1.73%5.90%16.00%
68
Neutral
$51.59B27.829.52%1.63%7.29%10.75%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
THLLY
Thales SA Unsponsored ADR
60.47
5.60
10.21%
GD
General Dynamics
384.08
74.55
24.09%
LHX
L3Harris Technologies
286.12
13.66
5.01%
LMT
Lockheed Martin
577.60
154.17
36.41%
NOC
Northrop Grumman
557.47
-22.72
-3.92%
RTX
RTX
222.31
69.00
45.01%
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.Date of analysis: Jul 23, 2026