Thales SA Unsponsored ADR (THLLY)
OTHER OTC:THLLY
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Thales SA Unsponsored ADR
(OTC:THLLY)
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Rating:66Neutral
Price Target:
$68.00
▲(30.04% Upside)
Action:ReiteratedDate:03/08/26
The score is supported by solid underlying financial performance (improving margins and strong cash generation) and a positive earnings call with upbeat 2026 guidance and strong order/backlog visibility. These are tempered by weak technical momentum (below key moving averages with negative MACD) and some fundamental uncertainty from the sharp latest-period revenue decline and ongoing execution/headwind risks in Cyber & Digital.
Positive Factors
Strong free cash flow generation
Consistent, large free cash flow underpins durable financial flexibility: funds R&D, CapEx, dividend payout and debt reduction. High cash conversion in 2024–25 demonstrates reported profits translating into cash, supporting investment and resilience across defense/aerospace cycles.
Negative Factors
Meaningful leverage despite improvement
A still-elevated debt load limits financial flexibility in downturns and raises refinancing and interest cost risk. For a contract-driven, cyclical aerospace & defense business, persistent leverage can constrain M&A optionality, increase vulnerability to working-capital swings, and pressure ratings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, large free cash flow underpins durable financial flexibility: funds R&D, CapEx, dividend payout and debt reduction. High cash conversion in 2024–25 demonstrates reported profits translating into cash, supporting investment and resilience across defense/aerospace cycles.
Read all positive factors
Thales SA Unsponsored ADR (THLLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$64.45B
Dividend Yield1.4%
Average Volume (3M)15.82K
Price to Earnings (P/E)29.4
Beta (1Y)0.34
Revenue Growth11.77%
EPS Growth-50.07%
CountryUS
Employees78,189
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.15
Shares Outstanding1,029,709,600
10 Day Avg. Volume39,220
30 Day Avg. Volume15,819
Financial Highlights & Ratios
PEG Ratio2.21
Price to Book (P/B)5.93
Price to Sales (P/S)2.22
P/FCF Ratio18.67
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue2.58
Enterprise Value/Gross Profit9.74
Enterprise Value/Ebitda18.02
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 Description
Thales 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, a...
How the Company Makes Money
Thales makes money primarily by selling high-value products, systems, software, and long-term services to government and commercial customers across its core markets.
1) Defense and security programs (government contracting): A significant portio...
Thales SA Unsponsored ADR Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive financial and commercial performance for 2025: record-level order intake, accelerating organic sales growth (+8.8%), improved profitability (adjusted EBIT +>13%, margin 12.4%), exceptional free operating cash flow (EUR 2.6bn, +27%) and meaningful deleveraging (net debt EUR 1.6bn). Strategic highlights include Defence momentum (EUR 15.1bn orders, EUR 42bn backlog), Avionics/Space recovery, AI and R&D leadership, and progress on a proposed European space JV. Key challenges center on Cyber & Digital underperformance (Cyber Products -3.8% organic; Cyber Services down double-digit) linked to integration friction, FX headwinds (~-1.5pp on sales), a recurring French tax surcharge (EUR 75m in 2025; ~EUR 90m expected in 2026), and higher near-term CapEx. On balance, the positive commercial, profitability and cash-generation results and strong defence/aerospace momentum outweigh the cyber and near-term cost/FX headwinds, and management provided clear plans and guidance to address weaknesses.Positive Updates
Record Order Intake Maintained
Order intake of EUR 25.3 billion in 2025, matching the record level from 2024; group book-to-bill ratio at 1.14 and 1.24 for Defence, indicating strong commercial momentum and healthy future revenue visibility.
Negative Updates
Cyber & Digital Underperformance
Cyber & Digital sales were broadly flat organically in 2025. Cyber Products declined 3.8% organically and Cyber Services were down double-digit (notably soft in Australia). Integration of Imperva caused elevated sales-force turnover and weighed on performance; Digital Identity only up ~1% organically. CDI adjusted EBIT margin was 13.7% but management indicates recurring margin closer to ~13% for 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Order Intake Maintained
Order intake of EUR 25.3 billion in 2025, matching the record level from 2024; group book-to-bill ratio at 1.14 and 1.24 for Defence, indicating strong commercial momentum and healthy future revenue visibility.
Read all positive updates
Company Guidance
Thales guided for 2026 to a book‑to‑bill above 1 with dynamic organic sales growth of 6–7% (sales €23.3–23.6bn including FX), an adjusted EBIT margin of 12.6–12.8%, and a free operating cash‑flow conversion ratio of 95–100%; CapEx is expected around €820–850m (~3.5% of sales) and the company plans to recruit >9,000 employees. By division, Defence is expected to grow high single‑digit (backlog €42bn, ~3.4 years of sales), Aerospace mid‑single‑digit (avionics mid‑single‑digit), and Cyber & Digital mid‑single‑digit overall (cyber above, digital lower). The 2026 P&L will absorb a French tax surcharge (~€90m, ~€50m higher than 2025), the Board will propose a €3.90 dividend (+5.5%), and Thales reaffirmed medium‑term targets: 2024–28 average cash conversion 95–105% and an ambition to reach ~13–14% adjusted EBIT margin by 2028.Thales SA Unsponsored ADR Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.26B | 20.58B | 18.43B | 17.57B | 16.19B |
| Gross Profit | 5.62B | 5.37B | 4.77B | 4.46B | 4.03B |
| EBITDA | 3.18B | 2.67B | 2.46B | 2.27B | 2.05B |
| Net Income | 1.61B | 1.42B | 1.02B | 1.12B | 1.09B |
Balance Sheet | |||||
| Total Assets | 39.14B | 39.99B | 38.79B | 34.42B | 32.84B |
| Cash, Cash Equivalents and Short-Term Investments | 4.49B | 4.77B | 4.08B | 5.30B | 5.05B |
| Total Debt | 6.13B | 7.82B | 8.43B | 5.47B | 6.13B |
| Total Liabilities | 31.15B | 32.43B | 31.82B | 27.04B | 26.12B |
| Stockholders Equity | 7.97B | 7.52B | 6.83B | 7.17B | 6.48B |
Cash Flow | |||||
| Free Cash Flow | 2.53B | 2.01B | 970.80M | 2.56B | 2.26B |
| Operating Cash Flow | 3.19B | 2.64B | 1.60B | 3.06B | 2.71B |
| Investing Cash Flow | -873.89M | -62.80M | -4.23B | -1.17B | -493.40M |
| Financing Cash Flow | -2.55B | -2.00B | 1.59B | -1.75B | -2.17B |
Thales SA Unsponsored ADR Technical Analysis
Positive
52.29
Price Trends
59.02
Positive
57.40
Positive
57.13
Positive
Market Momentum
0.89
Negative
64.89
Neutral
96.04
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 52.29 is below the 20-day moving average (MA) of 58.18, below the 50-day MA of 59.02, and below the 200-day MA of 57.13, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 64.89 is Neutral, neither overbought nor oversold. The STOCH value of 96.04 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $98.01B | 19.57 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $66.86B | 47.45 | 8.28% | 1.61% | 2.83% | 47.00% | |
74 Outperform | $92.99B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $143.54B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
66 Neutral | $64.45B | 29.37 | 22.17% | 1.40% | 11.77% | -50.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $172.93B | 74.05 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
THLLY
Thales SA Unsponsored ADR
62.68
8.29
15.25%
BA
Boeing
220.06
64.54
41.50%
GD
General Dynamics
343.90
77.23
28.96%
LHX
L3Harris Technologies
357.97
148.06
70.53%
LMT
Lockheed Martin
623.87
172.50
38.22%
NOC
Northrop Grumman
690.57
182.64
35.96%
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.