CAE INC (CAE.CA) Fundamental Analysis & Valuation
TSX:CAE • CA1247651088
42.13 CAD
+1.79 (+4.44%)
Last: Mar 4, 2026, 07:00 PM
This CAE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
CAE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 13 industry peers in the Aerospace & Defense industry. CAE has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, CAE is valued expensive at the moment.
1. CAE.CA Profitability Analysis
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
- CAE has a Return On Assets of 3.35%. This is in the lower half of the industry: CAE underperforms 61.54% of its industry peers.
- With a decent Return On Equity value of 7.15%, CAE is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 14.50%, CAE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This is below the industry average of 9.48%.
- The 3 year average ROIC (5.18%) for CAE is below the current ROIC(14.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 7.15% | ||
| ROIC | 14.5% |
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 (7.60%) which is in line with its industry peers.
- CAE's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 31.96%, 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 28.52% is fine compared to the rest of the industry. CAE outperforms 76.92% of its industry peers.
- In the last couple of years the Gross Margin of CAE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.96% | ||
| PM (TTM) | 7.6% | ||
| GM | 28.52% |
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. CAE.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAE is creating some value.
- Compared to 1 year ago, CAE has more shares outstanding
- Compared to 5 years ago, CAE has more shares outstanding
- The debt/assets ratio for CAE has been reduced compared to a year ago.
2.2 Solvency
- CAE has an Altman-Z score of 2.52. 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 (2.52) is better than 92.31% of its industry peers.
- CAE has a debt to FCF ratio of 6.46. This is a slightly negative value and a sign of low solvency as CAE would need 6.46 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 6.46, CAE is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
- CAE has a Debt/Equity ratio of 0.58. This is a neutral value indicating CAE is somewhat dependend on debt financing.
- CAE has a better Debt to Equity ratio (0.58) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.62
WACC8.93%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that CAE may have some problems paying its short term obligations.
- With a Current ratio value of 0.91, CAE is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
- A Quick Ratio of 0.69 indicates that CAE may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.69, CAE is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
3. CAE.CA Growth Analysis
3.1 Past
- CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.61%, which is quite good.
- CAE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.17% yearly.
- The Revenue has been growing slightly by 6.67% in the past year.
- The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)12.61%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%17.24%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.35%
3.2 Future
- The Earnings Per Share is expected to grow by 14.97% on average over the next years. This is quite good.
- Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 5.55% on average per year.
EPS Next Y1.92%
EPS Next 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y14.97%
Revenue Next Year4.46%
Revenue Next 2Y3.69%
Revenue Next 3Y4.4%
Revenue Next 5Y5.55%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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. CAE.CA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 33.70, the valuation of CAE can be described as expensive.
- Based on the Price/Earnings ratio, CAE is valued a bit more expensive than 61.54% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CAE to the average of the S&P500 Index (27.03), we can say CAE is valued slightly more expensively.
- The Price/Forward Earnings ratio is 27.79, which means the current valuation is very expensive for CAE.
- CAE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CAE is more expensive than 69.23% of the companies in the same industry.
- CAE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.7 | ||
| Fwd PE | 27.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAE is valued a bit cheaper than 61.54% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CAE is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.98 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- CAE's earnings are expected to grow with 14.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)17.57
PEG (5Y)N/A
EPS Next 2Y11.93%
EPS Next 3Y14.29%
5. CAE.CA Dividend Analysis
5.1 Amount
- No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CAE.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:CAE (3/4/2026, 7:00:00 PM)
42.13
+1.79 (+4.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-11 2026-05-11/amc
Inst Owners77.26%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap13.55B
Revenue(TTM)4.86B
Net Income(TTM)369.50M
Analysts75.29
Price Target48.37 (14.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)12.32%
Min EPS beat(2)12.21%
Max EPS beat(2)12.42%
EPS beat(4)4
Avg EPS beat(4)6.39%
Min EPS beat(4)0.2%
Max EPS beat(4)12.42%
EPS beat(8)7
Avg EPS beat(8)4.83%
EPS beat(12)10
Avg EPS beat(12)6.68%
EPS beat(16)13
Avg EPS beat(16)3.27%
Revenue beat(2)1
Avg Revenue beat(2)3.04%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)7.25%
Revenue beat(4)1
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)7.25%
Revenue beat(8)4
Avg Revenue beat(8)-0.92%
Revenue beat(12)7
Avg Revenue beat(12)-0.15%
Revenue beat(16)9
Avg Revenue beat(16)-0.03%
PT rev (1m)3.83%
PT rev (3m)6.16%
EPS NQ rev (1m)-10.94%
EPS NQ rev (3m)-10.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.78%
Revenue NQ rev (1m)-4.38%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.7 | ||
| Fwd PE | 27.79 | ||
| P/S | 2.79 | ||
| P/FCF | 26.98 | ||
| P/OCF | 14.58 | ||
| P/B | 2.62 | ||
| P/tB | 9.28 | ||
| EV/EBITDA | 7.85 |
EPS(TTM)1.25
EY2.97%
EPS(NY)1.52
Fwd EY3.6%
FCF(TTM)1.56
FCFY3.71%
OCF(TTM)2.89
OCFY6.86%
SpS15.12
BVpS16.07
TBVpS4.54
PEG (NY)17.57
PEG (5Y)N/A
Graham Number21.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 7.15% | ||
| ROCE | 17.94% | ||
| ROIC | 14.5% | ||
| ROICexc | 15.32% | ||
| ROICexgc | 27.96% | ||
| OM | 31.96% | ||
| PM (TTM) | 7.6% | ||
| GM | 28.52% | ||
| FCFM | 10.33% |
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%
ROICexgc growth 3Y7.17%
ROICexgc 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-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.46 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 94.09% | ||
| Cap/Sales | 8.78% | ||
| Interest Coverage | 7.88 | ||
| Cash Conversion | 46.26% | ||
| Profit Quality | 135.89% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.52 |
F-Score8
WACC8.93%
ROIC/WACC1.62
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)12.61%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%17.24%
EPS Next Y1.92%
EPS Next 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y14.97%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.35%
Revenue Next Year4.46%
Revenue Next 2Y3.69%
Revenue Next 3Y4.4%
Revenue Next 5Y5.55%
EBIT growth 1Y208.7%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year61.7%
EBIT Next 3Y21.58%
EBIT Next 5Y17.75%
FCF growth 1Y464.16%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y74.53%
OCF growth 3Y28.94%
OCF growth 5Y10.46%
CAE INC / CAE.CA FAQ
What is the fundamental rating for CAE stock?
ChartMill assigns a fundamental rating of 3 / 10 to CAE.CA.
What is the valuation status for CAE stock?
ChartMill assigns a valuation rating of 1 / 10 to CAE INC (CAE.CA). This can be considered as Overvalued.
How profitable is CAE INC (CAE.CA) stock?
CAE INC (CAE.CA) has a profitability rating of 5 / 10.
What is the expected EPS growth for CAE INC (CAE.CA) stock?
The Earnings per Share (EPS) of CAE INC (CAE.CA) is expected to grow by 1.92% in the next year.
Is the dividend of CAE INC sustainable?
The dividend rating of CAE INC (CAE.CA) is 0 / 10 and the dividend payout ratio is 0%.