BN · rank #8 · 2026-09-08
HO
PARIS · EUR · $55.29B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.25 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +8.8% |
| Forward net margin Consensus forward net margin. | +7.0% |
| Net margin TTM Trailing twelve month net margin. | +6.6% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.4% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.67 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.86× |
| Analyst upside Spread between the consensus 12m target and the current price. | +27.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | — |
| Market cap (USD) | $55.29B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
HO@PARIS (Thales S.A.) is a European aerospace, defense and digital security group with strong exposure to defense electronics, systems integration and space programs.
Rationale
The H1 2026 update reinforces the bottleneck-solver thesis with 21% order intake growth, a €52.4bn backlog, book-to-bill above 1.1 and rising defense demand, which supports the model’s revenue growth, margin expansion and upside signal.
Material risks
- 1The biggest thesis-breaker is program-execution risk on large government contracts, highlighted by the F126 frigate termination charge, which shows that cancellations or renegotiations can hit earnings and sentiment.
- 2Thales is not a sole-source supplier on key ammunition lines, so the moat depends on technology depth and integrated contracts rather than an irreplaceable bottleneck position.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.