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CAE INC (CAE.CA) Stock Fundamental Analysis

Canada - TSX:CAE - CA1247651088 - Common Stock

38.38 CAD
-0.3 (-0.78%)
Last: 10/17/2025, 7:00:00 PM
Fundamental Rating

5

CAE gets a fundamental rating of 5 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. CAE is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year CAE was profitable.
In the past year CAE had a positive cash flow from operations.
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.
CAE.CA Yearly Net Income VS EBIT VS OCF VS FCFCAE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M 800M

1.2 Ratios

The Return On Assets of CAE (3.75%) is better than 100.00% of its industry peers.
CAE has a Return On Equity of 8.31%. This is amongst the best in the industry. CAE outperforms 90.91% of its industry peers.
CAE has a Return On Invested Capital (5.81%) which is in line with its industry peers.
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 RankSector 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%
CAE.CA Yearly ROA, ROE, ROICCAE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

The Profit Margin of CAE (8.61%) is better than 100.00% of its industry peers.
CAE's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 13.03%, 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 has a better Gross Margin (28.09%) than 81.82% of its industry peers.
In the last couple of years the Gross Margin of CAE has declined.
Industry RankSector 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%
CAE.CA Yearly Profit, Operating, Gross MarginsCAE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAE is destroying value.
Compared to 1 year ago, CAE has more shares outstanding
CAE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAE has an improved debt to assets ratio.
CAE.CA Yearly Shares OutstandingCAE.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
CAE.CA Yearly Total Debt VS Total AssetsCAE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 2.11 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAE has a better Altman-Z score (2.11) than 90.91% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.71, 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 0.64. This is a neutral value indicating CAE is somewhat dependend on debt financing.
CAE's Debt to Equity ratio of 0.64 is fine compared to the rest of the industry. CAE outperforms 63.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 7.71
Altman-Z 2.11
ROIC/WACC0.63
WACC9.16%
CAE.CA Yearly LT Debt VS Equity VS FCFCAE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

CAE has a Current Ratio of 0.87. 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 0.87 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 0.87. 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 0.60, CAE is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.6
CAE.CA Yearly Current Assets VS Current LiabilitesCAE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

5

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.
Looking at the last year, CAE shows a quite strong growth in Revenue. The Revenue has grown by 8.04% in the last year.
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)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 Y6.68%
EPS Next 2Y13.45%
EPS Next 3Y13.71%
EPS Next 5Y15.35%
Revenue Next Year3.27%
Revenue Next 2Y4.6%
Revenue Next 3Y4.82%
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.
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.
CAE.CA Yearly Revenue VS EstimatesCAE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
CAE.CA Yearly EPS VS EstimatesCAE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5 2

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 31.72, CAE can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CAE is valued a bit more expensive than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, CAE is valued at the same level.
CAE is valuated rather expensively with a Price/Forward Earnings ratio of 24.64.
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.
CAE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 31.72
Fwd PE 24.64
CAE.CA Price Earnings VS Forward Price EarningsCAE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as CAE.
CAE's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 27.86
EV/EBITDA 14.84
CAE.CA Per share dataCAE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
CAE's earnings are expected to grow with 13.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.75
PEG (5Y)N/A
EPS Next 2Y13.45%
EPS Next 3Y13.71%

0

5. Dividend

5.1 Amount

CAE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

CAE INC

TSX:CAE (10/17/2025, 7:00:00 PM)

38.38

-0.3 (-0.78%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)08-12 2025-08-12/amc
Earnings (Next)11-12 2025-11-12/bmo
Inst Owners79.47%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap12.31B
Analysts75.29
Price Target44.88 (16.94%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)0%
PT rev (3m)7.87%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-19.5%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-10.34%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-4.89%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-3.41%
Valuation
Industry RankSector Rank
PE 31.72
Fwd PE 24.64
P/S 2.6
P/FCF 27.86
P/OCF 13.77
P/B 2.51
P/tB 10.45
EV/EBITDA 14.84
EPS(TTM)1.21
EY3.15%
EPS(NY)1.56
Fwd EY4.06%
FCF(TTM)1.38
FCFY3.59%
OCF(TTM)2.79
OCFY7.26%
SpS14.76
BVpS15.3
TBVpS3.67
PEG (NY)4.75
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.11
F-Score6
WACC9.16%
ROIC/WACC0.63
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 Y6.68%
EPS Next 2Y13.45%
EPS Next 3Y13.71%
EPS Next 5Y15.35%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
Revenue Next Year3.27%
Revenue Next 2Y4.6%
Revenue Next 3Y4.82%
Revenue Next 5Y6.08%
EBIT growth 1Y35.75%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year68.06%
EBIT Next 3Y25.33%
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%