CAE INC (CAE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CAE - CA1247651088 - Common Stock
37.29 CAD
+0.13 (+0.35%)
Taking everything into account, CAE scores 4 out of 10 in our fundamental rating. CAE was compared to 10 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of CAE while its profitability can be described as average. CAE is quite expensive at the moment. 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.
Each year in the past 5 years CAE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.87%, CAE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CAE's Return On Equity of 8.45% is amongst the best of the industry. CAE outperforms 90.00% of its industry peers.
The Return On Invested Capital of CAE (5.96%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CAE is below the industry average of 8.50%.
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
CAE has a better Profit Margin (8.88%) than 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.
The Operating Margin of CAE (13.19%) is better than 100.00% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
CAE's Gross Margin of 28.22% is fine compared to the rest of the industry. CAE outperforms 80.00% 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.
The number of shares outstanding for CAE has been increased compared to 5 years ago.
Compared to 1 year ago, CAE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.06 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAE has a Altman-Z score of 2.06. This is amongst the best in the industry. CAE outperforms 90.00% of its industry peers.
CAE has a debt to FCF ratio of 7.20. This is a slightly negative value and a sign of low solvency as CAE would need 7.20 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.20, CAE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
CAE has a Debt/Equity ratio of 0.61. This is a neutral value indicating CAE is somewhat dependend on debt financing.
CAE has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.63
WACC9.4%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
CAE has a Current ratio of 0.83. This is amonst the worse of the industry: CAE underperforms 90.00% 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.
Looking at the Quick ratio, with a value of 0.59, CAE is in line with its industry, outperforming 60.00% 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.
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 9.12%.
CAE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
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 15.75% yearly.
CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y7.04%
EPS Next 2Y13.63%
EPS Next 3Y14.38%
EPS Next 5Y15.75%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5.1%
Revenue Next 5Y5.98%
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
The Price/Earnings ratio is 31.07, which means the current valuation is very expensive for CAE.
Compared to the rest of the industry, the Price/Earnings ratio of CAE indicates a slightly more expensive valuation: CAE is more expensive than 70.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAE to the average of the S&P500 Index (26.31), we can say CAE is valued inline with the index average.
A Price/Forward Earnings ratio of 23.87 indicates a rather expensive valuation of CAE.
70.00% of the companies in the same industry are cheaper than CAE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.59. CAE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.08 | ||
| Fwd PE | 23.87 |
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 | 25.58 | ||
| EV/EBITDA | 13.99 |
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 14.38% in the coming years.
PEG (NY)4.42
PEG (5Y)N/A
EPS Next 2Y13.63%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CAE (11/27/2025, 7:00:00 PM)
37.29
+0.13 (+0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.47%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap11.96B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target45.56 (22.18%)
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)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)1.52%
PT rev (3m)1.52%
EPS NQ rev (1m)-11.1%
EPS NQ rev (3m)-10.08%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.08 | ||
| Fwd PE | 23.87 | ||
| P/S | 2.47 | ||
| P/FCF | 25.58 | ||
| P/OCF | 12.64 | ||
| P/B | 2.35 | ||
| P/tB | 9.15 | ||
| EV/EBITDA | 13.99 |
EPS(TTM)1.2
EY3.22%
EPS(NY)1.56
Fwd EY4.19%
FCF(TTM)1.46
FCFY3.91%
OCF(TTM)2.95
OCFY7.91%
SpS15.07
BVpS15.83
TBVpS4.08
PEG (NY)4.42
PEG (5Y)N/A
Graham Number20.68
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 | 2.06 |
F-Score5
WACC9.4%
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)13.21%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%-4.17%
EPS Next Y7.04%
EPS Next 2Y13.63%
EPS Next 3Y14.38%
EPS Next 5Y15.75%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5.1%
Revenue Next 5Y5.98%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year68.06%
EBIT Next 3Y25.45%
EBIT Next 5Y18.34%
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 of CAE INC (CAE.CA) stock?
ChartMill assigns a valuation rating of 2 / 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 6 / 10.
What is the valuation of CAE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CAE INC (CAE.CA) is 31.08 and the Price/Book (PB) ratio is 2.35.
How financially healthy is CAE INC?
The financial health rating of CAE INC (CAE.CA) is 3 / 10.