Thales HO.PA
Thales is a French technology group operating in the defense, aerospace, transport, and digital security sectors, selling equipment and systems to governments and businesses. Thales has solid financial health (ND/EBITDA of 0.17) and good quality (ROE 19.35%, ROIC 17.30%), but its earnings growth is negative (-27%) and its valuation is demanding (P/E 31.6). The context of increased European defense spending is a tailwind, but the earnings decline and negative momentum (-8.08%) weigh on the overall score.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Thales is a French technology group operating in the defense, aerospace, transport, and digital security sectors, selling equipment and systems to governments and businesses. Thales has solid financial health (ND/EBITDA of 0.17) and good quality (ROE 19.35%, ROIC 17.30%), but its earnings growth is negative (-27%) and its valuation is demanding (P/E 31.6). The context of increased European defense spending is a tailwind, but the earnings decline and negative momentum (-8.08%) weigh on the overall score.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.5 |
| Quality / Moat | 6.9 |
| Valuation | 5.4 |
| Growth | 3.8 |
| Dividend | 6.4 |
| Momentum | 3.7 |
| Risk & Context | 8.0 |
OVERALL SCORE: 6.1/10
Context and risks
Thales operates in defense and security, sectors with high exposure to European government spending policy. The increase in defense spending is a tailwind, but dependence on government budgets and the possibility of changes in political priorities introduce a business model risk not captured by financial metrics.
News considered in the analysis
- Defense Stocks Gaining Attention As Russia Sanctions Reshape Energy Security — El aumento del gasto en defensa europeo por la crisis energética y de seguridad es un viento de cola estructural para Thales, aunque ya está parcialmente descontado en el sector.
- Wall Street Just Gave Palantir Its Highest-Ever Price Target, Right When Europe Started Saying No — Noticia sobre un competidor (Palantir) y su valoración; no aporta información directa sobre los fundamentales de Thales.
- 01 Quantum Inc (OONEF) Q3 2026 Earnings Call Highlights: Quantum-Safe Email Opportunity and ... — Noticia sobre una empresa distinta (01 Quantum Inc); irrelevante para Thales.
- Palantir Gains as Europe Builds a Sovereign AI Counterweight — El impulso europeo hacia una IA soberana y autónoma puede beneficiar indirectamente a Thales, que opera en defensa y seguridad digital, aunque el impacto directo es limitado.
- Rheinmetall Stock And Europe Defense Shares Riding The EU Canada Reset — El repunte del sector defensa europeo, impulsado por acuerdos y reconfiguración de alianzas, es un viento de cola para Thales, aunque ya está parcialmente descontado.
Verdict: Hold; the solid financial position and the defense spending tailwind are offset by negative earnings growth and a valuation that is not cheap.
Main risk: The main risk is dependence on European government defense budgets, which can be volatile and subject to political changes, directly impacting Thales' revenue and growth.
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