CAE INC (CAE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CAE - CA1247651088 - Common Stock
45.31 CAD
+1.28 (+2.91%)
CAE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 11 industry peers in the Aerospace & Defense industry. CAE has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, CAE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CAE had positive earnings in the past year.
CAE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CAE reported negative net income in multiple years.
Each year in the past 5 years CAE had a positive operating cash flow.
1.2 Ratios
CAE has a better Return On Assets (3.87%) than 100.00% of its industry peers.
CAE's Return On Equity of 8.45% is amongst the best of the industry. CAE outperforms 100.00% of its industry peers.
CAE has a Return On Invested Capital of 5.96%. This is comparable to the rest of the industry: CAE outperforms 54.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.45%.
The 3 year average ROIC (5.18%) for CAE is below the current ROIC(5.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.45% | ||
| ROIC | 5.96% |
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
With an excellent Profit Margin value of 8.88%, CAE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CAE has remained more or less at the same level.
Looking at the Operating Margin, with a value of 13.19%, CAE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CAE has declined.
CAE's Gross Margin of 28.22% is amongst the best of the industry. CAE outperforms 81.82% of its industry peers.
CAE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.19% | ||
| PM (TTM) | 8.88% | ||
| GM | 28.22% |
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.
The number of shares outstanding for CAE has been increased compared to 1 year ago.
Compared to 5 years ago, CAE has more shares outstanding
CAE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.32 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 2.32, CAE belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
The Debt to FCF ratio of CAE is 7.20, which is on the high side as it means it would take CAE, 7.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.20, CAE belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that CAE is somewhat dependend on debt financing.
CAE's Debt to Equity ratio of 0.61 is fine compared to the rest of the industry. CAE outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.64
WACC9.26%
2.3 Liquidity
CAE has a Current Ratio of 0.83. 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's Current ratio of 0.83 is on the low side compared to the rest of the industry. CAE is outperformed by 72.73% of its industry peers.
CAE has a Quick Ratio of 0.83. This is a bad value and indicates that CAE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.59, CAE is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.21% over the past year.
Measured over the past years, CAE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.17% on average per year.
CAE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.12%.
The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)13.21%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
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 15.64% yearly.
Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 6.57% on average per year.
EPS Next Y1.92%
EPS Next 2Y11.82%
EPS Next 3Y14.32%
EPS Next 5Y15.64%
Revenue Next Year4.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.58%
Revenue Next 5Y6.57%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.76, which means the current valuation is very expensive for CAE.
CAE's Price/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/Earnings ratio is at 27.19. CAE is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.95, which means the current valuation is very expensive for CAE.
63.64% of the companies in the same industry are cheaper than CAE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, CAE is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 29.95 |
4.2 Price Multiples
63.64% of the companies in the same industry are cheaper than CAE, based on the Enterprise Value to EBITDA ratio.
CAE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.16 | ||
| EV/EBITDA | 16.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAE does not grow enough to justify the current Price/Earnings ratio.
CAE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CAE's earnings are expected to grow with 14.32% in the coming years.
PEG (NY)19.68
PEG (5Y)N/A
EPS Next 2Y11.82%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:CAE (1/8/2026, 7:00:00 PM)
45.31
+1.28 (+2.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners77.26%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap14.57B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target45.99 (1.5%)
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)6.31%
Min EPS beat(2)0.2%
Max EPS beat(2)12.42%
EPS beat(4)4
Avg EPS beat(4)3.37%
Min EPS beat(4)0.15%
Max EPS beat(4)12.42%
EPS beat(8)6
Avg EPS beat(8)2.45%
EPS beat(12)10
Avg EPS beat(12)6.79%
EPS beat(16)12
Avg EPS beat(16)2.45%
Revenue beat(2)1
Avg Revenue beat(2)1.52%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)7.25%
Revenue beat(4)2
Avg Revenue beat(4)1.05%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)7.25%
Revenue beat(8)4
Avg Revenue beat(8)-1.03%
Revenue beat(12)8
Avg Revenue beat(12)-0.03%
Revenue beat(16)9
Avg Revenue beat(16)-0.49%
PT rev (1m)0.93%
PT rev (3m)2.46%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-12.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 29.95 | ||
| P/S | 3.01 | ||
| P/FCF | 31.16 | ||
| P/OCF | 15.4 | ||
| P/B | 2.87 | ||
| P/tB | 11.15 | ||
| EV/EBITDA | 16.41 |
EPS(TTM)1.2
EY2.65%
EPS(NY)1.51
Fwd EY3.34%
FCF(TTM)1.45
FCFY3.21%
OCF(TTM)2.94
OCFY6.49%
SpS15.03
BVpS15.79
TBVpS4.06
PEG (NY)19.68
PEG (5Y)N/A
Graham Number20.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.45% | ||
| ROCE | 7.38% | ||
| ROIC | 5.96% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 10.98% | ||
| OM | 13.19% | ||
| PM (TTM) | 8.88% | ||
| GM | 28.22% | ||
| FCFM | 9.67% |
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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 107.63% | ||
| Cap/Sales | 9.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.41% | ||
| Profit Quality | 108.95% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 2.32 |
F-Score5
WACC9.26%
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)13.21%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%-4.17%
EPS Next Y1.92%
EPS Next 2Y11.82%
EPS Next 3Y14.32%
EPS Next 5Y15.64%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year4.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.58%
Revenue Next 5Y6.57%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year65.22%
EBIT Next 3Y25.25%
EBIT Next 5Y18.94%
FCF growth 1Y301.03%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y67.76%
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 4 / 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 7 / 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%.