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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
$59.22B
Dividend Yield2.18%
Average Volume (3M)10.44K
Price to Earnings (P/E)52.8
Beta (1Y)0.12
Revenue Growth11.72%
EPS Growth3.12%
CountryUS
Employees78,189
SectorIndustrials
Sector Strength87
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.02
Shares Outstanding1,029,709,600
10 Day Avg. Volume19,262
30 Day Avg. Volume10,438
Financial Highlights & Ratios
PEG Ratio6.78
Price to Book (P/B)3.52
Price to Sales (P/S)0.00
P/FCF Ratio9.85
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:Mar 04, 2025
(Q4-2024)
| % Change Since: 11.14%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
Thales exhibited strong financial performance with record order intake and sales growth, driven by the Defence segment and successful acquisitions. However, challenges remain in the Space segment's profitability and in the supply chain. Overall, the positive aspects slightly outweigh the negatives.Q4-2024 Updates
Positive Updates
Record Order Intake and Sales Growth
Thales achieved a record order intake of €25.3 billion, with sales growing by 8.3% organically to €20.6 billion, driven by strong growth in Defence and successful acquisitions.
Double-Digit EBIT and Cash Flow Growth
Adjusted EBIT increased by over 13% with a margin improvement to 11.8%, while free operating cash flow from continued activities increased by 9%, exceeding €2 billion.
Strong Performance in Defence Segment
Defence orders reached €14.7 billion with a book-to-bill ratio of 1.34, supported by large contracts, leading to a sales growth of 13.3% organically.
CSR Achievements
Thales reduced CO2 emissions from Scope 1 and 2 by 56.8% and Scope 3 by 24.7% compared to 2018, achieving its 2030 targets ahead of schedule.
Successful Integration of Acquisitions
The integration of Imperva and Cobham AeroComms was successful, contributing positively to operational performance and profitability.
Negative Updates
Space Segment Profitability Challenges
The Space segment posted a negative adjusted EBIT due to continuous R&D efforts and restructuring costs, with an absolute EBIT level of minus €65 million.
Ongoing Supply Chain Challenges
Despite improvements, there are still challenges in the supply chain, particularly with PCBs, requiring continued management attention.
Cyber & Digital Segment Growth Concerns
Digital Identity activities were impacted by a slowdown in the banking and payment solutions markets, with destocking in North America lasting longer than expected.
Company Guidance
The call provided a comprehensive overview of Thales' 2024 financial performance and future guidance. Key highlights included a record order intake of €25.3 billion, driven by six contracts each exceeding €500 million, resulting in a book-to-bill ratio of 1.23. Sales grew by 8.3% organically, reaching €20.6 billion, with the adjusted EBIT increasing by 13% and a margin of 11.8%. The adjusted net income group share rose to €1.9 billion, despite higher financial expenses, and the free operating cash flow grew by 9%, surpassing €2 billion. The Board proposed a 9% dividend increase to €3.70 per share. In terms of extra-financial performance, Thales achieved significant reductions in CO2 emissions and surpassed gender diversity targets. For 2025, Thales aims for a book-to-bill ratio above 1, organic sales growth of 5% to 6%, and an adjusted EBIT margin of 12.2% to 12.4%, while focusing on ramping up capacity, restoring Space profitability, maintaining R&D leadership, and capitalizing on recent acquisitions.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 | 19.20B | 20.58B | 18.43B | 17.57B | 16.19B | 16.99B |
| Gross Profit | 5.00B | 5.37B | 4.77B | 4.46B | 4.03B | 3.94B |
| EBITDA | 2.23B | 2.67B | 2.46B | 2.29B | 2.17B | 1.65B |
| Net Income | 1.39B | 1.42B | 1.02B | 1.12B | 1.09B | 483.40M |
Balance Sheet | ||||||
| Total Assets | 38.18B | 39.99B | 38.79B | 34.42B | 32.84B | 31.81B |
| Cash, Cash Equivalents and Short-Term Investments | 3.82B | 4.77B | 4.08B | 5.30B | 5.05B | 5.00B |
| Total Debt | 8.41B | 0.00 | 8.43B | 5.47B | 5.92B | 7.60B |
| Total Liabilities | 30.79B | 32.43B | 31.82B | 27.04B | 26.12B | 26.50B |
| Stockholders Equity | 7.28B | 7.52B | 6.83B | 7.17B | 6.48B | 5.11B |
Cash Flow | ||||||
| Free Cash Flow | 680.10M | 2.01B | 970.80M | 2.56B | 2.26B | 950.20M |
| Operating Cash Flow | 1.30B | 2.64B | 1.60B | 3.06B | 2.71B | 1.35B |
| Investing Cash Flow | -2.96B | -62.80M | -4.23B | -1.21B | -493.40M | -386.40M |
| Financing Cash Flow | 1.12B | -2.00B | 1.59B | -1.77B | -2.17B | 1.20B |
Thales SA Unsponsored ADR Technical Analysis
Positive
51.46
Price Trends
57.25
Positive
51.95
Positive
41.53
Positive
Market Momentum
-0.14
Positive
49.83
Neutral
70.64
Neutral
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 51.46 is below the 20-day moving average (MA) of 58.57, below the 50-day MA of 57.25, and above the 200-day MA of 41.53, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 70.64 is Neutral, 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $107.45B | 19.81 | 82.55% | 2.88% | 3.12% | -15.29% | |
79 Outperform | $78.03B | 20.18 | 18.23% | 2.06% | 14.11% | 17.65% | |
77 Outperform | $59.22B | 52.80 | 14.22% | 2.18% | 11.72% | 3.12% | |
76 Outperform | $46.17B | 29.27 | 8.49% | 1.94% | 5.39% | 36.86% | |
74 Outperform | $71.10B | 19.44 | 25.41% | 1.87% | 0.61% | 77.28% | |
71 Outperform | ¥255.65B | 12.95 | 8.49% | 3.09% | 6.31% | 12.94% | |
71 Outperform | $9.36B | 17.20 | 12.27% | 2.26% | -1.04% | -21.80% |
* Industrials Sector Average
Performance Comparison
THLLY
Thales SA Unsponsored ADR
57.61
25.33
78.47%
GD
General Dynamics
290.74
8.75
3.10%
LHX
L3Harris Technologies
246.98
29.44
13.53%
HII
Huntington Ingalls
238.65
-1.99
-0.83%
LMT
Lockheed Martin
458.59
4.14
0.91%
NOC
Northrop Grumman
494.00
66.51
15.56%
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.