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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 - Gpt-5.6Sol)
Rating:70Outperform
Price Target:
$66.00
â–²(14.86% 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 order intake and backlog visibility
Order intake exceeding revenue supports future sales visibility and strengthens the multi-year backlog. The upgraded book-to-bill outlook indicates demand is replenishing delivered work, particularly across defense and aerospace programs.
Negative Factors
Sharp latest-period revenue decline creates growth uncertainty
The divergence between reported profit growth and sharply lower annual revenue raises questions about growth quality and durability. It increases reliance on contract timing, mix, and execution, even though newer 2026 results show a recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong order intake and backlog visibility
Order intake exceeding revenue supports future sales visibility and strengthens the multi-year backlog. The upgraded book-to-bill outlook indicates demand is replenishing delivered work, particularly across defense and aerospace programs.
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
Neutral
Last Price57.46
Price Trends
50DMA
55.58
Positive
100DMA
55.50
Positive
200DMA
56.14
Positive
Market Momentum
MACD
0.74
Positive
RSI
44.25
Neutral
STOCH
>-0.01
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 57.46 is below the 20-day moving average (MA) of 60.24, above the 50-day MA of 55.58, and above the 200-day MA of 56.14, indicating a neutral trend. The MACD of 0.74 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 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 (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$102.83B22.8117.43%1.60%9.13%10.37%
76
Outperform
$285.83B36.8211.79%1.30%11.84%24.93%
74
Outperform
$77.44B17.3026.58%1.73%5.90%16.00%
70
Outperform
$58.74B33.6118.73%1.70%14.68%133.82%
70
Outperform
$130.60B20.6986.24%2.34%7.20%52.79%
69
Neutral
$48.78B26.399.41%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
56.87
4.72
9.05%
GD
General Dynamics
379.32
60.38
18.93%
LHX
L3Harris Technologies
262.82
-10.37
-3.80%
LMT
Lockheed Martin
563.85
120.19
27.09%
NOC
Northrop Grumman
545.57
-35.36
-6.09%
RTX
RTX
211.71
55.43
35.47%
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