ThalesTHLLY +1.84%89 Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 2025. GuruFocus rates THLLY with a GF Score™ of 89/100 and a GF Value™ of $42.20 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 334 Aerospace & Defense companies, Thales ranks better than 99.7% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Thales's annualized net income for the quarter that ended in Dec. 2025 was $2,367 Mil. Thales's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $-3,552 Mil. Therefore, Thales's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for Thales's Return-on-Tangible-Equity or its related term are showing as below:
THLLY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 94.58 Med: 229.62 Max: 333.12
Current: Negative Tangible Equity
During the past 13 years, Thales's highest Return-on-Tangible-Equity was 333.12%. The lowest was 94.58%. And the median was 229.62%.
THLLY's Return-on-Tangible-Equity is ranked better than 99.7% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs THLLY: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Thales Return-on-Tangible-Equity Related Terms
Thales Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Thales's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
THLLY vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Thales's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Thales Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Thales's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Thales's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Thales (THLLY) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Thales and its competitors. Over the past decade, Thales' Return-on-Tangible-Equity has ranged from 94.58 to 333.12. According to the industry distribution chart, Thales ranks #1 out of 334 companies in the Aerospace & Defense industry, placing it in the top 0.3%.
Is Thales' Return-on-Tangible-Equity too high?
Thales' current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 94.58 to a high of 333.12. Based on the distribution chart, Thales ranks #1 out of 334 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Thales has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Thales' Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Thales ranks #1 out of 334 companies for Return-on-Tangible-Equity. This places Thales in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.20. Historically, Thales' own Return-on-Tangible-Equity has ranged from 94.58 to 333.12 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Thales and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Thales's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Thales stock overvalued right now?
Based on GuruFocus' analysis, Thales (THLLY) is currently considered Modestly Overvalued. The stock's GF Value™ is $42.20, compared to a current price of $51.48 — trading 22% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Thales' overall GF Score™ is 89/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Thales (THLLY), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Thales (THLLY) Overvalued in 2026?
Based on GuruFocus' analysis, Thales stock appears to be overvalued.
The current stock price of $51.48 is trading 22% above its estimated GF Value™ of $42.20.
GuruFocus considers Thales to be Modestly Overvalued.
No single metric tells the full story. See the THLLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Thales is a French aerospace and defense industrial and one of Europe's largest defense contractors. The company has three 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 governmental markets; and digital identity and security provides biometric, data, and identity security solutions, payments services, and the manufacturing of SIM cards.
89GF Score
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