CAE INC (CAE.CA) Stock Fundamental Analysis
Canada - TSX:CAE - CA1247651088 - Common Stock
38.65 CAD
+0.07 (+0.18%)
We assign a fundamental rating of 4 out of 10 to CAE. CAE was compared to 12 industry peers in the Aerospace & Defense industry. CAE has only an average score on both its financial health and profitability. 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.
CAE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CAE (3.75%) is better than 100.00% of its industry peers.
CAE's Return On Equity of 8.31% is amongst the best of the industry. CAE outperforms 91.67% of its industry peers.
The Return On Invested Capital of CAE (5.81%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.31%.
The last Return On Invested Capital (5.81%) for CAE is above the 3 year average (5.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.31% | ||
| ROIC | 5.81% |
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 8.61%. This is amongst the best in the industry. CAE outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of CAE has remained more or less at the same level.
With an excellent Operating Margin value of 13.03%, 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's Gross Margin of 28.09% is fine compared to the rest of the industry. CAE outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of CAE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.03% | ||
| PM (TTM) | 8.61% | ||
| GM | 28.09% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAE is destroying value.
CAE has more shares outstanding than it did 1 year ago.
CAE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.12 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.12, CAE belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
CAE has a debt to FCF ratio of 7.71. This is a slightly negative value and a sign of low solvency as CAE would need 7.71 years to pay back of all of its debts.
CAE has a better Debt to FCF ratio (7.71) than 83.33% of its industry peers.
CAE has a Debt/Equity ratio of 0.64. This is a neutral value indicating CAE is somewhat dependend on debt financing.
The Debt to Equity ratio of CAE (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.64
WACC9.04%
2.3 Liquidity
A Current Ratio of 0.87 indicates that CAE may have some problems paying its short term obligations.
CAE has a Current ratio of 0.87. This is in the lower half of the industry: CAE underperforms 75.00% of its industry peers.
A Quick Ratio of 0.60 indicates that CAE may have some problems paying its short term obligations.
CAE has a Quick ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.01% over the past year.
The Earnings Per Share has been decreasing by -2.17% on average over the past years.
CAE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.04%.
CAE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
EPS 1Y (TTM)11.01%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%0%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
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 15.35% yearly.
CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y7.84%
EPS Next 2Y14.08%
EPS Next 3Y13.22%
EPS Next 5Y15.35%
Revenue Next Year3.2%
Revenue Next 2Y4.61%
Revenue Next 3Y5.15%
Revenue Next 5Y6.08%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.94, the valuation of CAE can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as CAE.
CAE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 24.54, CAE is valued on the expensive side.
CAE's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CAE to the average of the S&P500 Index (22.87), we can say CAE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 24.54 |
4.2 Price Multiples
CAE's Enterprise Value to EBITDA is on the same level as the industry average.
CAE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.05 | ||
| EV/EBITDA | 14.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CAE may justify a higher PE ratio.
A more expensive valuation may be justified as CAE's earnings are expected to grow with 13.22% in the coming years.
PEG (NY)4.07
PEG (5Y)N/A
EPS Next 2Y14.08%
EPS Next 3Y13.22%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CAE (9/22/2025, 7:00:00 PM)
38.65
+0.07 (+0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.68%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap12.40B
Analysts75.29
Price Target44.88 (16.12%)
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)0.46%
Min EPS beat(2)0.2%
Max EPS beat(2)0.72%
EPS beat(4)4
Avg EPS beat(4)5.98%
Min EPS beat(4)0.15%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)4.83%
EPS beat(12)10
Avg EPS beat(12)6.59%
EPS beat(16)11
Avg EPS beat(16)0.77%
Revenue beat(2)0
Avg Revenue beat(2)-3.28%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-2.34%
Revenue beat(4)2
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)3.5%
Revenue beat(8)4
Avg Revenue beat(8)-1.75%
Revenue beat(12)8
Avg Revenue beat(12)-0.33%
Revenue beat(16)8
Avg Revenue beat(16)-1.59%
PT rev (1m)3.43%
PT rev (3m)9.2%
EPS NQ rev (1m)-5.39%
EPS NQ rev (3m)-24.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.36%
Revenue NQ rev (1m)-1.87%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 24.54 | ||
| P/S | 2.62 | ||
| P/FCF | 28.05 | ||
| P/OCF | 13.86 | ||
| P/B | 2.53 | ||
| P/tB | 10.52 | ||
| EV/EBITDA | 14.92 |
EPS(TTM)1.21
EY3.13%
EPS(NY)1.57
Fwd EY4.07%
FCF(TTM)1.38
FCFY3.56%
OCF(TTM)2.79
OCFY7.21%
SpS14.76
BVpS15.3
TBVpS3.67
PEG (NY)4.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.31% | ||
| ROCE | 7.2% | ||
| ROIC | 5.81% | ||
| ROICexc | 5.93% | ||
| ROICexgc | 10.67% | ||
| OM | 13.03% | ||
| PM (TTM) | 8.61% | ||
| GM | 28.09% | ||
| FCFM | 9.33% |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 105.02% | ||
| Cap/Sales | 9.55% | ||
| Interest Coverage | 2.95 | ||
| Cash Conversion | 85.35% | ||
| Profit Quality | 108.36% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.12 |
F-Score6
WACC9.04%
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)11.01%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%0%
EPS Next Y7.84%
EPS Next 2Y14.08%
EPS Next 3Y13.22%
EPS Next 5Y15.35%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
Revenue Next Year3.2%
Revenue Next 2Y4.61%
Revenue Next 3Y5.15%
Revenue Next 5Y6.08%
EBIT growth 1Y35.75%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year69.28%
EBIT Next 3Y24.79%
EBIT Next 5Y18.61%
FCF growth 1Y576.72%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y71.38%
OCF growth 3Y28.94%
OCF growth 5Y10.46%