Thales SA Unsponsored ADR (THLLY) AI Stock Analysis

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Thales SA Unsponsored ADR

(OTC:THLLY)

77Outperform

Thales SA exhibits strong financial performance with notable revenue and cash flow growth, enhanced by a debt-free balance sheet. Despite high valuation concerns indicated by a lofty P/E ratio, the robust order intake and successful integration of acquisitions are positive indicators. Technical analysis suggests caution due to overbought conditions, but the company's strategic positioning in the Aerospace & Defense sector supports a stable outlook.

Thales SA Unsponsored ADR (THLLY) vs. S&P 500 (SPY)

Market Cap

$57.54B

Dividend Yield0.79%

Average Volume (3M)7.02K

Price to Earnings (P/E)51.3

Beta (1Y)0.16

Revenue Growth11.72%

EPS Growth3.12%

CountryUS

Employees78,189

SectorIndustrials

Sector Strength91

IndustryAerospace & Defense

Share Statistics

EPS (TTM)0.02

Shares Outstanding1,029,709,600

10 Day Avg. Volume5,237

30 Day Avg. Volume7,019

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)6.77

Price to Sales (P/S)0.00

P/FCF Ratio74.48

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 is a French aerospace and defense industrial firm and is one of Europe's largest defense contractors with EUR 18 billion in sales. The company has four reportable segments: defense and security provides sensors, mission systems, communications and control systems to European and export defense customers; aerospace sells avionics and satellites to the civil, defense and government markets; transport provides signaling services to rail operators; and digital identity and security provides biometric, data, and identity security solutions.

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 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

Very Positive

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

Positive

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

Very Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
1.65B	1.70B	1.56B	1.34B	1.14B	817.60M
	EBITDA
2.23B	2.67B	2.46B	2.29B	2.17B	1.65B
	Net Income Common Stockholders
1.39B	1.42B	1.02B	1.12B	1.09B	483.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
689.60M	4.77B	4.08B	5.30B	5.05B	5.00B
	Total Assets
4.76B	39.99B	38.79B	34.42B	32.84B	31.81B
	Total Debt
307.43M	0.00	8.43B	5.47B	5.92B	7.60B
	Net Debt
-380.20M	-4.77B	-3.98B	371.80M	872.00M	2.59B
	Total Liabilities
3.83B	32.43B	31.82B	27.04B	26.12B	26.50B
	Stockholders Equity
920.33M	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

Technical Analysis Sentiment

Positive

Last Price51.46

Price Trends

50DMA

54.51

Positive

100DMA

44.22

Positive

200DMA

38.10

Positive

Market Momentum

MACD

0.31

Positive

RSI

54.00

Neutral

STOCH

46.67

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 55.60, below the 50-day MA of 54.51, and above the 200-day MA of 38.10, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	78 Outperform	$75.34B	19.48	18.23%	2.05%	14.11%	17.65%
LMT	77 Outperform	$109.73B	20.23	82.55%	2.75%	3.12%	-15.29%
THLLY	77 Outperform	$57.54B	51.28	14.22%	0.79%	11.72%	3.12%
LHX	76 Outperform	$43.03B	27.28	8.49%	2.03%	5.39%	36.86%
HII	71 Outperform	$9.03B	16.58	12.27%	2.30%	-1.04%	-21.80%
NOC	70 Outperform	$68.10B	18.62	25.41%	1.74%	0.61%	77.28%
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%

* Industrials Sector Average

Performance Comparison

THLLY

Thales SA Unsponsored ADR

55.96

19.36

52.90%

General Dynamics

280.71

-13.39

-4.55%

LHX

L3Harris Technologies

230.20

11.08

5.06%

HII

Huntington Ingalls

230.05

-19.39

-7.77%

LMT

Lockheed Martin

468.32

13.18

2.90%

NOC

Northrop Grumman

473.17

12.16

2.64%

Thales SA Unsponsored ADR Earnings Call Summary

Earnings Call Date:Mar 04, 2025

(Q4-2024)

% Change Since: 10.33%|

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.