CAE INC (CAE.CA) Stock Fundamental Analysis
TSX:CAE - Toronto Stock Exchange - CA1247651088 - Common Stock - Currency: CAD
CAE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 11 industry peers in the Aerospace & Defense industry. While CAE has a great profitability rating, there are some minor concerns on its financial health. CAE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CAE was profitable.
CAE had a positive operating cash flow in the past year.
In multiple years CAE reported negative net income over the last 5 years.
In the past 5 years CAE always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.56%, CAE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CAE has a Return On Equity of 8.15%. This is amongst the best in the industry. CAE outperforms 100.00% of its industry peers.
CAE's Return On Invested Capital of 5.79% is in line compared to the rest of the industry. CAE outperforms 45.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.03%.
The 3 year average ROIC (5.18%) for CAE is below the current ROIC(5.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.15% | ||
| ROIC | 5.79% |
ROA(3y)0.89%
ROA(5y)0.72%
ROE(3y)2.01%
ROE(5y)1.61%
ROIC(3y)5.18%
ROIC(5y)4.62%
1.3 Margins
CAE has a Profit Margin of 8.47%. This is amongst the best in the industry. CAE outperforms 100.00% of its industry peers.
CAE's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 12.98%, CAE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CAE's Operating Margin has declined in the last couple of years.
CAE has a Gross Margin of 27.62%. This is amongst the best in the industry. CAE outperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of CAE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.98% | ||
| PM (TTM) | 8.47% | ||
| GM | 27.62% |
OM growth 3Y4.74%
OM growth 5Y-1.9%
PM growth 3Y27%
PM growth 5Y0.03%
GM growth 3Y-0.86%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
CAE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CAE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CAE has been increased compared to 5 years ago.
The debt/assets ratio for CAE has been reduced compared to a year ago.
2.2 Solvency
CAE has an Altman-Z score of 1.87. This is not the best score and indicates that CAE is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CAE (1.87) is better than 90.91% of its industry peers.
CAE has a debt to FCF ratio of 7.67. This is a slightly negative value and a sign of low solvency as CAE would need 7.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.67, CAE belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
CAE has a Debt/Equity ratio of 0.63. This is a neutral value indicating CAE is somewhat dependend on debt financing.
CAE's Debt to Equity ratio of 0.63 is fine compared to the rest of the industry. CAE outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.64
WACC8.98%
2.3 Liquidity
A Current Ratio of 0.80 indicates that CAE may have some problems paying its short term obligations.
CAE has a worse Current ratio (0.80) than 72.73% of its industry peers.
CAE has a Quick Ratio of 0.80. This is a bad value and indicates that CAE is not financially healthy enough and could expect problems in meeting its short term obligations.
CAE has a Quick ratio of 0.58. This is in the better half of the industry: CAE outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.04% over the past year.
CAE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.17% yearly.
CAE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.89%.
Measured over the past years, CAE shows a small growth in Revenue. The Revenue has been growing by 5.38% on average per year.
EPS 1Y (TTM)8.04%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%27.03%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%13.24%
3.2 Future
CAE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.88% yearly.
The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y18.98%
EPS Next 2Y18.04%
EPS Next 3Y13.67%
EPS Next 5Y12.88%
Revenue Next Year6.91%
Revenue Next 2Y6.36%
Revenue Next 3Y5.2%
Revenue Next 5Y5.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.91, the valuation of CAE can be described as expensive.
CAE's Price/Earnings is on the same level as the industry average.
CAE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.30, the valuation of CAE can be described as rather expensive.
CAE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CAE is more expensive than 63.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. CAE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 24.3 |
4.2 Price Multiples
CAE's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CAE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.76 | ||
| EV/EBITDA | 14.02 |
4.3 Compensation for Growth
CAE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CAE may justify a higher PE ratio.
CAE's earnings are expected to grow with 13.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)N/A
EPS Next 2Y18.04%
EPS Next 3Y13.67%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CAE (5/28/2025, 7:00:00 PM)
34.98
+0.18 (+0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners78.71%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap11.20B
Analysts71.76
Price Target41.82 (19.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.44%
Min EPS beat(2)0.15%
Max EPS beat(2)0.72%
EPS beat(4)4
Avg EPS beat(4)6.41%
Min EPS beat(4)0.15%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)6.64%
EPS beat(12)9
Avg EPS beat(12)0.44%
EPS beat(16)11
Avg EPS beat(16)1.6%
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)3.5%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)3.5%
Revenue beat(8)5
Avg Revenue beat(8)-0.92%
Revenue beat(12)8
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)-1.49%
PT rev (1m)-0.61%
PT rev (3m)10.56%
EPS NQ rev (1m)-20.11%
EPS NQ rev (3m)-21.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-6.48%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 24.3 | ||
| P/S | 2.38 | ||
| P/FCF | 24.76 | ||
| P/OCF | 12.5 | ||
| P/B | 2.29 | ||
| P/tB | 10.98 | ||
| EV/EBITDA | 14.02 |
EPS(TTM)1.21
EY3.46%
EPS(NY)1.44
Fwd EY4.12%
FCF(TTM)1.41
FCFY4.04%
OCF(TTM)2.8
OCFY8%
SpS14.7
BVpS15.27
TBVpS3.19
PEG (NY)1.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.15% | ||
| ROCE | 7.17% | ||
| ROIC | 5.79% | ||
| ROICexc | 6% | ||
| ROICexgc | 11.32% | ||
| OM | 12.98% | ||
| PM (TTM) | 8.47% | ||
| GM | 27.62% | ||
| FCFM | 9.61% |
ROA(3y)0.89%
ROA(5y)0.72%
ROE(3y)2.01%
ROE(5y)1.61%
ROIC(3y)5.18%
ROIC(5y)4.62%
ROICexc(3y)5.32%
ROICexc(5y)4.87%
ROICexgc(3y)10.15%
ROICexgc(5y)9.27%
ROCE(3y)6.41%
ROCE(5y)5.72%
ROICexcg growth 3Y7.17%
ROICexcg growth 5Y-1.54%
ROICexc growth 3Y11.66%
ROICexc growth 5Y-4.72%
OM growth 3Y4.74%
OM growth 5Y-1.9%
PM growth 3Y27%
PM growth 5Y0.03%
GM growth 3Y-0.86%
GM growth 5Y-1.58%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 107.09% | ||
| Cap/Sales | 9.43% | ||
| Interest Coverage | 3.03 | ||
| Cash Conversion | 87.4% | ||
| Profit Quality | 113.41% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.87 |
F-Score6
WACC8.98%
ROIC/WACC0.64
Cap/Depr(3y)119.61%
Cap/Depr(5y)105.55%
Cap/Sales(3y)10.24%
Cap/Sales(5y)9.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.04%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%27.03%
EPS Next Y18.98%
EPS Next 2Y18.04%
EPS Next 3Y13.67%
EPS Next 5Y12.88%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%13.24%
Revenue Next Year6.91%
Revenue Next 2Y6.36%
Revenue Next 3Y5.2%
Revenue Next 5Y5.44%
EBIT growth 1Y29.14%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year69.28%
EBIT Next 3Y25.39%
EBIT Next 5Y20.32%
FCF growth 1Y407.18%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y58.14%
OCF growth 3Y28.94%
OCF growth 5Y10.46%