Thales S.A. (THLLY) Stock Analysis

Why this analysis is different

• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Thales S.A. (THLLY) Industrial Operations Profile

Thales S.A., a French multinational, delivers advanced technology solutions across aerospace, defense, security, and digital identity markets. With a global presence and a focus on innovation, Thales serves diverse sectors, offering integrated systems and services to both civilian and military clients, marked by a P/E ratio of 31.10.

What Is the Investment Thesis for THLLY?

The company's focus on technology innovation, particularly in digital identity and security, positions it to capitalize on increasing demand for secure solutions. With a market capitalization of $53.5B and a profit margin of 7.6%, Thales demonstrates financial stability. The company's growth is supported by ongoing investments in research and development and strategic partnerships. However, investors may want to evaluate potential risks related to geopolitical factors and economic cycles that could impact defense spending and infrastructure projects. The dividend yield of 1.52% offers a modest return, while a beta of 0.13 indicates lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

THLLY Key Highlights

Market capitalization of $53.5B reflects Thales' significant presence in the aerospace and defense industry.

• P/E ratio of 31.10 indicates investor expectations for future earnings growth.
• Profit margin of 7.6% demonstrates the company's ability to generate profits from its operations.
• Gross margin of 26.4% highlights the efficiency of Thales' production and service delivery.
• Dividend yield of 1.52% provides a steady income stream for investors.

Who Are THLLY's Competitors?

THLLY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are THLLY's Key Strengths?

Diversified business model across multiple sectors.

• Strong technological capabilities and innovation.
• Global presence and established brand reputation.
• Long-term relationships with key customers.

What Are THLLY's Weaknesses?

Exposure to economic cycles and geopolitical risks.

• Dependence on government contracts and defense spending.
• Complex organizational structure and decision-making processes.
• Potential for cost overruns and project delays.

What Could Drive THLLY Stock Higher?

Increasing demand for cybersecurity solutions driven by rising cyber threats.

• Growth in the aerospace sector due to increased air travel and modernization of aircraft fleets.
• Potential new government contracts for defense and security solutions.
• Expansion in digital identity and security market.
• Strategic partnerships and acquisitions to expand capabilities.

What Are the Key Risks for THLLY?

Economic downturns and reduced government spending on defense.

• Geopolitical tensions and conflicts impacting project timelines.
• Cybersecurity threats and data breaches compromising sensitive information.
• Intense competition from other technology companies.
• Currency fluctuations affecting the value of ADR.

What Are the Growth Opportunities for THLLY?

• Expansion in Digital Identity and Security: Thales is well-positioned to capitalize on the growing demand for digital identity and security solutions. The increasing prevalence of cyber threats and the need for secure digital transactions are driving market growth. Thales' expertise in biometrics, data protection, and cybersecurity enables it to offer comprehensive solutions to governments and businesses. The global digital security market is projected to reach $30 billion by 2028, providing a significant opportunity for Thales to expand its market share.
• Aerospace Innovation and Modernization: Thales can leverage its technological expertise to drive innovation in the aerospace sector. The increasing demand for more efficient and sustainable air travel is creating opportunities for Thales to develop advanced avionics, flight management systems, and in-flight entertainment solutions. The modernization of existing aircraft fleets and the development of new aircraft platforms will further fuel growth in this segment. Thales' strategic partnerships with aircraft manufacturers and airlines position it to capture a significant share of this market.
• Defense and Security Solutions for Emerging Markets: Thales can expand its presence in emerging markets by offering tailored defense and security solutions. The increasing geopolitical tensions and the need for enhanced security measures are driving demand for advanced defense technologies. Thales' portfolio of surveillance, detection, and intelligence systems enables it to provide comprehensive solutions to governments and security agencies. The company's ability to adapt its offerings to local requirements and establish strong relationships with local partners will be critical for success in these markets.
• Growth in Ground Transportation Solutions: Thales is positioned to benefit from the increasing demand for advanced ground transportation solutions. The growth of urbanization and the need for more efficient and sustainable transportation systems are driving demand for signaling, communications, and supervision systems. Thales' expertise in railway digitalization and urban mobility solutions enables it to offer comprehensive solutions to transportation authorities and operators. The company's focus on innovation and its ability to integrate its solutions with existing infrastructure will be key differentiators in this market.
• Strategic Partnerships and Acquisitions: Thales can pursue strategic partnerships and acquisitions to expand its capabilities and market reach. Collaborating with other technology companies and acquiring complementary businesses can enhance Thales' portfolio and accelerate its growth. The company's strategic agreement with Google LLC demonstrates its commitment to innovation and its ability to leverage external expertise. Thales' financial strength and its track record of successful acquisitions position it to pursue further strategic initiatives.

What Are THLLY's Competitive Advantages?

• Technological expertise and innovation in key sectors.
• Strong relationships with government and industry partners.
• Diversified product portfolio across multiple markets.
• Global presence and established brand reputation.

What Does THLLY Do?

Founded in 1893 and headquartered in Courbevoie, France, Thales S.A. has evolved from Thomson-CSF into a global technology powerhouse. The company operates through four primary segments: Aerospace, Transport, Defence & Security, and Digital Identity & Security. Thales provides a comprehensive suite of solutions, including communication, command, and control systems; surveillance, detection, and intelligence systems; and digital identity and security solutions. Its offerings extend to air traffic management, flight decks, avionics, and in-flight entertainment systems. Thales also designs and delivers satellite-based systems and solutions for railway digitalization, cybersecurity, and urban mobility. Thales serves a diverse clientele, including civilian and military organizations, across various sectors such as aeronautics, space, defense, security, ground transportation, and digital security. The company's strategic agreement with Google LLC underscores its commitment to innovation and technological advancement. With a workforce of over 78,000 employees, Thales continues to expand its global footprint and strengthen its position as a key player in the technology industry.

What Products and Services Does THLLY Offer?

• Provides communication, command, and control systems for defense and security applications.
• Offers mission services and support for air, land, and naval forces.
• Develops protection and combat systems for military platforms.
• Creates surveillance, detection, and intelligence systems for various security needs.
• Delivers training and simulation solutions for aerospace and defense sectors.
• Provides digital identity and security solutions for businesses and governments.
• Offers air traffic management solutions to improve efficiency and safety.
• Designs and operates satellite-based systems for telecommunications and earth observation.

How Does THLLY Make Money?

• Develops and sells technology solutions to civilian and military customers.
• Provides services and support for its products, generating recurring revenue.
• Partners with other companies to expand its product offerings and market reach.
• Invests in research and development to maintain its technological edge.

What Industry Does THLLY Operate In?

Thales S.A. operates in the aerospace and defense industry, which is characterized by technological innovation, government regulations, and significant barriers to entry. The industry is experiencing growth driven by increasing demand for air travel, rising defense spending, and the need for advanced security solutions. Thales competes with other major players in the sector, including BAE Systems and other defense contractors. The company's diversified portfolio and global presence enable it to capture opportunities in both developed and emerging markets. The industry is also influenced by geopolitical factors and economic cycles, which can impact investment decisions and project timelines.

Who Are THLLY's Key Customers?

• Government agencies and defense organizations.
• Airlines and aerospace companies.
• Transportation authorities and operators.
• Businesses requiring digital identity and security solutions.

Thales S.A. (THLLY) Valuation Context

Valued at $53.5B, THLLY is classified as a large-cap stock. Relative to its peer group, THLLY's quantitative score of 46/100 is roughly in line with the peer average of 54/100.

THLLY Revenue & Earnings Trend

In Q2 FY2026, THLLY generated $12.96B in top-line revenue, marking a sequential decrease of 5.2%. The company recorded net income of $573.9M, with diluted EPS of $0.56. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Industrials. Across the four most recent quarters, THLLY averaged $0.61 in diluted EPS.

Company Profile

Thales S.A. operates in the Aerospace & Defense industry within the Industrials sector. It is headquartered in Meudon, FR. The company is led by CEO Patrice Caine. THLLY has traded publicly since 2002.

Return on equity for Thales S.A. stands at 18.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.7%, showing how much profit it generates from its asset base. THLLY trades at a trailing price-to-earnings ratio of 31.10, above the Industrials sector average of ~28.00x. Its free cash flow yield is 7.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.83 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 2.7%, the inverse of the P/E and a quick read on earnings relative to price.

Thales S.A.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.34 places it in the grey zone, a middle ground that warrants monitoring.

THLLY Financials

THLLY Latest News

THLLY Analyst Consensus

THLLY MoonshotScore

Thales S.A. Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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