Thales SA Unsponsored ADR (THLLY) AI Stock Analysis

• Market Cap: $56.46B
• Dividend Yield: 1.4%
• Average Volume (3M): 19.00K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.27
• Revenue Growth: 11.77%
• EPS Growth: -50.07%
• Country: US
• Employees: 78,189
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.15
• Shares Outstanding: 1,029,709,600
• 10 Day Avg. Volume: 12,313
• 30 Day Avg. Volume: 19,003
• PEG Ratio: 0.49
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 14.07
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 9.20
• Enterprise Value/Ebitda: 20.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $67.00 ▲(28.13% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

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

Revenue Growth & Profitability

Thales shows durable top-line expansion and margin improvement—2024 revenue growth ~11.7% and H1 sales +8.1%. EBIT and EBITDA margins improved, indicating scalable operations and sustained profitability that support long-term contract wins and reinvestment in tech.

Cash Generation

Strong cash conversion (F F C F up 107.6%, OCF/net income 1.86) demonstrates reliable internal funding for R&D, capital spending and dividends. Persistent FCF strength reduces reliance on external financing and underpins strategic flexibility over multiple quarters.

Balance Sheet Strength (2024)

Elimination of total debt as of end-2024 materially improved financial optionality, lowering interest burden and creating capacity to pursue large defense contracts or M&A. A debt-free position enhances resilience to cyclical defense spending shifts over the medium term.

Negative Factors

Cyber & Digital Segment Weakness

A decline in Cyber & Digital sales (-1.9%) tied to integration of Imperva sales forces signals execution risk in a strategic growth area. Persistent integration frictions could slow product cross-sell and delay realizing cybersecurity revenue synergies over the next several quarters.

Net Debt Rebound

Net debt rose to EUR 3.4bn in H1 2025, reversing the prior year’s zero debt position. Higher leverage can constrain capital allocation, raise interest exposure and limit financial flexibility, making funding large programs or opportunistic investments more costly.

Moderate Equity Ratio

An equity ratio below 20% indicates the company finances a large share of assets with liabilities. That structural profile reduces shock absorption capacity and raises sensitivity to adverse cash-flow swings or contract delays over the medium term.

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, 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 Money

Thales 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 52.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THLLY, the sentiment is Negative. The current price of 52.29 is below the 20-day moving average (MA) of 59.25, below the 50-day MA of 59.24, and below the 200-day MA of 57.23, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 11.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THLLY.

Thales SA Unsponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOC	77 Outperform	$105.02B	19.57	26.17%	1.55%	-0.14%	72.35%
LHX	75 Outperform	$67.26B	47.45	8.20%	1.61%	2.83%	47.00%
GD	74 Outperform	$97.53B	21.58	17.66%	1.73%	11.86%	17.39%
LMT	74 Outperform	$150.70B	22.26	76.87%	2.77%	2.88%	-35.15%
THLLY	69 Neutral	$56.46B	19.41	22.21%	1.40%	11.77%	-50.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	56 Neutral	$174.39B	74.05	289.00%	―	10.19%	-6.03%