CAE INC (CAE.CA) Stock Fundamental Analysis
TSX:CAE - CA1247651088 - Common Stock
37.03 CAD
-0.12 (-0.32%)
CAE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the Aerospace & Defense industry. CAE has only an average score on both its financial health and profitability. While showing a medium growth rate, CAE is valued expensive at the moment.
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
CAE has a Return On Assets of 3.75%. This is amongst the best in the industry. CAE outperforms 100.00% of its industry peers.
The Return On Equity of CAE (8.31%) is better than 91.67% of its industry peers.
CAE has a Return On Invested Capital of 5.81%. This is comparable to the rest of the industry: CAE outperforms 58.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAE is below the industry average of 8.31%.
The 3 year average ROIC (5.18%) for CAE is below the current ROIC(5.81%), indicating increased profibility in the last year.
| 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.
CAE's Profit Margin has been stable in the last couple of years.
CAE has a better Operating Margin (13.03%) than 100.00% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 28.09%, CAE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
CAE's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAE is destroying value.
Compared to 1 year ago, CAE has more shares outstanding
Compared to 5 years ago, CAE has more shares outstanding
CAE has a better debt/assets ratio than last year.
2.2 Solvency
CAE has an Altman-Z score of 2.06. 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.
CAE has a Altman-Z score of 2.06. This is amongst the best in the industry. CAE outperforms 83.33% of its industry peers.
The Debt to FCF ratio of CAE is 7.71, which is on the high side as it means it would take CAE, 7.71 years of fcf income to pay off 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 | 2.06 |
ROIC/WACC0.63
WACC9.29%
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.
Looking at the Current ratio, with a value of 0.87, CAE is doing worse than 75.00% of the companies in the same industry.
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.
CAE's Quick ratio of 0.60 is in line compared to the rest of the industry. CAE outperforms 58.33% of 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.
CAE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.17% yearly.
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.
The Revenue is expected to grow by 6.08% on average over the next years.
EPS Next Y7.84%
EPS Next 2Y14.08%
EPS Next 3Y14.61%
EPS Next 5Y15.35%
Revenue Next Year3.58%
Revenue Next 2Y4.78%
Revenue Next 3Y5.19%
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
CAE is valuated quite expensively with a Price/Earnings ratio of 30.60.
CAE's Price/Earnings is on the same level as the industry average.
CAE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.52, the valuation of CAE can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as CAE.
CAE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.6 | ||
| Fwd PE | 23.52 |
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 | 26.88 | ||
| EV/EBITDA | 14.43 |
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 14.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.9
PEG (5Y)N/A
EPS Next 2Y14.08%
EPS Next 3Y14.61%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CAE (8/29/2025, 7:00:00 PM)
37.03
-0.12 (-0.32%)
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 Cap11.88B
Analysts75.29
Price Target44.88 (21.2%)
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)7.87%
PT rev (3m)7.32%
EPS NQ rev (1m)-12.55%
EPS NQ rev (3m)-18.26%
EPS NY rev (1m)-9.36%
EPS NY rev (3m)-9.36%
Revenue NQ rev (1m)-2.41%
Revenue NQ rev (3m)-3.06%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.6 | ||
| Fwd PE | 23.52 | ||
| P/S | 2.51 | ||
| P/FCF | 26.88 | ||
| P/OCF | 13.28 | ||
| P/B | 2.42 | ||
| P/tB | 10.08 | ||
| EV/EBITDA | 14.43 |
EPS(TTM)1.21
EY3.27%
EPS(NY)1.57
Fwd EY4.25%
FCF(TTM)1.38
FCFY3.72%
OCF(TTM)2.79
OCFY7.53%
SpS14.76
BVpS15.3
TBVpS3.67
PEG (NY)3.9
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 | 2.06 |
F-Score6
WACC9.29%
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 Y7.84%
EPS Next 2Y14.08%
EPS Next 3Y14.61%
EPS Next 5Y15.35%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
Revenue Next Year3.58%
Revenue Next 2Y4.78%
Revenue Next 3Y5.19%
Revenue Next 5Y6.08%
EBIT growth 1Y35.75%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year69.28%
EBIT Next 3Y25.16%
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%