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Thales SA Unsponsored ADR
(OTC:THLLY)
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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)
Market Cap
$58.74B
Dividend Yield1.61%
Average Volume (3M)12.06K
Price to Earnings (P/E)33.6
Beta (1Y)0.42
Revenue Growth14.68%
EPS Growth133.82%
CountryUS
Employees84,958
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.46
Shares Outstanding1,029,709,600
10 Day Avg. Volume20,153
30 Day Avg. Volume12,060
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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. 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
Positive
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
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.95B | 21.26B | 20.58B | 18.43B | 17.57B | 16.19B |
| Gross Profit | 6.17B | 5.62B | 5.37B | 4.77B | 4.46B | 4.03B |
| EBITDA | 3.53B | 3.18B | 2.67B | 2.46B | 2.27B | 2.05B |
| Net Income | 1.50B | 1.61B | 1.42B | 1.02B | 1.12B | 1.09B |
Balance Sheet | ||||||
| Total Assets | 39.99B | 39.14B | 39.99B | 38.79B | 34.42B | 32.84B |
| Cash, Cash Equivalents and Short-Term Investments | 5.05B | 4.49B | 4.77B | 4.08B | 5.30B | 5.05B |
| Total Debt | 5.57B | 6.13B | 7.82B | 8.43B | 5.47B | 6.13B |
| Total Liabilities | 31.98B | 31.15B | 32.43B | 31.82B | 27.04B | 26.12B |
| Stockholders Equity | 8.00B | 7.97B | 7.52B | 6.83B | 7.17B | 6.48B |
Cash Flow | ||||||
| Free Cash Flow | 4.02B | 2.53B | 2.01B | 970.80M | 2.56B | 2.26B |
| Operating Cash Flow | 4.76B | 3.19B | 2.64B | 1.60B | 3.06B | 2.71B |
| Investing Cash Flow | -856.94M | -873.89M | -62.80M | -4.23B | -1.17B | -493.40M |
| Financing Cash Flow | -2.84B | -2.55B | -2.00B | 1.59B | -1.75B | -2.17B |
Thales SA Unsponsored ADR Technical Analysis
Neutral
57.46
Price Trends
55.58
Positive
55.50
Positive
56.14
Positive
Market Momentum
0.74
Positive
44.25
Neutral
>-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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $102.83B | 22.81 | 17.43% | 1.60% | 9.13% | 10.37% | |
76 Outperform | $285.83B | 36.82 | 11.79% | 1.30% | 11.84% | 24.93% | |
74 Outperform | $77.44B | 17.30 | 26.58% | 1.73% | 5.90% | 16.00% | |
70 Outperform | $58.74B | 33.61 | 18.73% | 1.70% | 14.68% | 133.82% | |
70 Outperform | $130.60B | 20.69 | 86.24% | 2.34% | 7.20% | 52.79% | |
69 Neutral | $48.78B | 26.39 | 9.41% | 1.63% | 7.29% | 10.75% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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.