Analysis of Thales share price for trading

Advanced technologies have always interested investors in the sense that the companies that design it and commercialize them are very often profitable and are kind of easy to analyze because of the innovations it creates. Among these companies, the group Thales undoubtedly represents a favorite investment for trading online and for building a stock market portfolio. Discover how to analyze the price of this title and the specificities of this company.

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Analysis of Thales share price for trading
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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About Thales :

The group Thales specializes in the manufacturing and marketing of advanced electronic equipment and systems for aerospace, transportation, defense and security. Its main activities are divided in defense and security systems, aerospace system, transport systems and naval equipment.

Since this is a French company, its activity is mostly developed in France and in Europe, but it also reaches Asia, North American, the Middle East, Australia, Africa and Latin America. It currently counts with more than 60 000 employees.

 

Thales’ main competitors:

The group Thales is one of the world’s biggest companies specialized in satellite and avionics technologies and remains one of the leaders in this market. However, it is in competition with a few other companies which are in a constant war to gain shares in the market and to sign contracts that are generally very lucrative. It is therefore better to inform yourself about the competition in this sector of activity before embarking on a fundamental analysis or take a stand about this title. To help you, here is the list of the main competitors of this company around the world, categorized by profitability and importance.

Safran is undoubtedly Thales’ most important competitor, since the two companies are almost tied as the leaders in the ranking of companies in this sector.

Then comes the Company Dassault Aviation, which remains however far behind with a turnover of almost half the size.

Finally, the fourth place of this ranking is held by the Company Zodiac Aerospace which closely follows Dassault Aviation.

 

Thales main partners:

The group Thales has also established certain partnerships with other big companies in order to carry out certain projects and to multiply its sectors of activity.

It has thus associated with the company Alstom as part of a 330 million Euros contract issued by MTR Corporation for the upgrading of the signaling systems of 7 lines of the Hong Kong subway.

In 2016, ENGIE and Thales announced the signing of a contract to strengthen the security of its energy efficient IT infrastructure. Thales was supposed to provide 24/7 security supervision of ENGIE’s computer system during a period of five years.

The French technology group Thales and the French subsidiary of the American company Microsoft also established a partnership for the launching of new services that allow to encrypt sensitive information before sending e-mails or storing them in the “cloud”.

 

Analysis of the price of Thales Shares:

It is easy to anticipate an increase in the price of Thales shares when the group launches an innovation. Apart from this, the technical analysis shows us it sharp movements in the short term and in the long term.

The dividends of this title are expected to increase over the next two years according to the opinion of analysts specialized in this sector of activity who are very optimistic about it.

 

Thale’s economic and financial history:

In order to carry out an accurate and objective analysis of the price of Thales shares, it is essential to master the indicators of the technical analysis and to be able to interpret effectively the data of the fundamental analysis. To help you, lets immerse ourselves in the financial and economic history of this group in order to remember the events that have marked the evolution of this title in the stock market.

First of all, lets recall that in 1998, the French governments signed a cooperation agreement between the aerospace companies, Alcatel and Dassault, planning to give shares to Thomson-CSF and to consolidate the space activities of Alcatel, Aerospace and Thomson-CSF into one joint venture called Alcatel-Space in order to consolidate its competitiveness in the sector of defense and industrial electronics and its implementation in the European market. The companies Alcatel and Dassault Industries became then shareholders and the State only owns a minority share of 40%.

The expansion of Thales continued in the year 2000 with the takeover of the British company Racal Electronics, which boosted the sector of technology and information and mobile telecommunications. That same year, the company reorganized itself into three sectors: defense, aeronautics and information and service technologies, and Thomson-CSF officially became Thales’. In the process, the group announced its intention to create a joint venture with Raytheon named Thales Raytheon Systems which will put together the activities of military command and radar interfaces of both companies.

  • In 2004, Thales planned an approach to the company EADS but at the end, this approach did not take place.
  • In 2005, Thales finally moved closer to DCNS by acquiring 25% of its capital in order to make itself a place in the sector of European Naval military and to create the Airbus Naval.
  • In 2006, Thales obtained the Australian government’s agreement to buy the company ADI (Australian Defense Industries) which specializes in the manufacture of military equipment such as smokeless power, all the products of the brand ADI were, that same year, replaced by products of the brand Thales, the website of the company was changed too.
  • In 2007, Thales signed an agreement with the company Alcatel-Lucent to transfer its transport, security and space activities to Thales and then, a new agreement concerning this time the creation of a joint venture called “Thales Alenia Space”.
  • In 2009, Dassault Aviation bought the shares of Alcatel-Lucents and acquired 25.90% of the shares of the group Thales. That same year, Thales also participated in the design of BoostAeroSpace.
  • In 2011, Thales implemented the fusion of its subsidiaries Thales Communications and Thales security Solutions & services by creating a new entity named Thales communication & Security. In December of that same year, the group increased its stake of DCNS to 35% and planned to invest in the company Nexter. It then created a joint venture with the group Safran regarding the management of programs in the field of optronics following a negotiation of two years.
  • In 2014, Thales took over the cybersecurity activities of Alcatel-Lucents.
  • In 2015, Australia announced the acquisition of 1 100 light blinded cars of the brand Hawkei from Thales for 817 million euros. At the same time, Thales acquired Vormetric, an American company that specializes in the protection of corporate data for an amount of 400 million dollars.
  • In 2017, Thales signed a 10 years contract of a billion euros with the French Ministry of Defense.

By matching these important dates with the historical stock market charts, you will be able to understand how Thales shares have responded to the different announcements and thus determine the way it will likely behave in the future with similar announcements.

 

Important stock market data about Thales shares:

In addition to those technical analyzes and its economic history, you should of course know some basic information about Thales shares:

  • In 2017, the total market capitalization of Thales was 19 987.04 MEUR.
  • The number of titles issued by Thales and in circulation on the market is of 211 704 684.
  • The price of Thales shares is currently listed on the compartment A of the Euronext Paris market in France.
  • Thales is also part of the composition of the French stock exchange index CAC all share.
  • Thales shareholding is composed of 46.36% of floating shares, 25.82% of TSA shares, 24.76% of Dassault Aviation’s shares, 2.71% of shares owned by employees and 0.35% of treasury shares.

 

Thales’ economic and strategic organization:

Since the beginning of the 21st century, the organization of Thales has been based on a matrix model with 6 global activities reunited into three sectors which are, aerospace with avionics and space, transports with land transport system, defense and security with secure information communication systems, land and air systems, defense mission systems, but also the company DCNS held by 35% by the group. Finally, an international organization divided on the major countries in which the group operates, Germany, Australia, New Zealand, Canada, United States, France, the Netherlands and the United Kingdom as well as other European countries and emerging countries.

The 6 activities mentioned here replace the 6 divisions set up in 2004 in order to create an organization that gathers the group’s activities into one single subsidiary per country. The Netherlands were the first to be concerned with the creation of Thales Nederland.

The activities of defense and security represent 60% of Thales’s activities and cover an exceptional range of equipment, systems and services destined to military and civilian security forces including:

  • Land defense with missile systems, optronic equipment and armored cars.
  • Missions and defense with airborne surveillance systems, underwater and surface fight systems and naval systems or drones.
  • Air operations with radar equipment, navigation aid equipment, air defense and air traffic control systems.
  • C41 defense and security systems with radiocommunication equipment, Information technology security system, infrastructures networks and systems, protection and critical information system.

The remaining 40% of Thales’ activities concerns aerospace and transportation and includes activities aimed to improve the efficiency, reliability and safety of trade and transport with:

  • Avionic and its wide range of onboard equipment and functions and simulation and training solutions for civil and military aircrafts.
  • Space with satellite space communications or payloads, the fields of observation, science, navigation and infrastructures.
  • The Transport system with the signalization of railway lines and urban networks, integrated supervision systems and the ticketing systems.

In addition to these different areas of activity, Thales also carries out an activity related to radiofrequency sources, microwave sources and imaging subsystems in relation with all the other divisions. It is Thales electron devices that produces radio frequency and microwave sources for communication satellites. The group is the leader in this market worldwide.

Thales is also developing it activities in the field of drones with tactical drones, micro-UAVs, combat drones, anti-drone defense, and everything related to this field.

Where and how to trade Thales shares:

To start taking a position in the rise or fall of Thales shares price, you just have to register to the trading platform of a regulated and trusted broker like the one we proposed you before.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.