CAE INC (CAE)
CA1247651088 - Common Stock
We assign a fundamental rating of 4 out of 10 to CAE. CAE was compared to 63 industry peers in the Aerospace & Defense industry. CAE has a medium profitability rating, but doesn't score so well on its financial health evaluation. CAE is not valued too expensively and it also shows a decent growth rate.
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.
CAE had positive earnings in 4 of the past 5 years.
CAE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.66%, CAE perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
CAE has a better Return On Equity (5.99%) than 60.32% of its industry peers.
CAE's Return On Invested Capital of 6.27% is fine compared to the rest of the industry. CAE outperforms 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.69%.
The 3 year average ROIC (4.44%) for CAE is below the current ROIC(6.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 5.99% | ||
| ROIC | 6.27% |
ROA(3y)1.02%
ROA(5y)2.27%
ROE(3y)2.32%
ROE(5y)6.73%
ROIC(3y)4.44%
ROIC(5y)5.51%
1.3 Margins
CAE has a better Profit Margin (6.20%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of CAE has declined.
The Operating Margin of CAE (12.37%) is better than 82.54% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
CAE has a Gross Margin of 28.34%. This is in the better half of the industry: CAE outperforms 74.60% of its industry peers.
CAE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.37% | ||
| PM (TTM) | 6.2% | ||
| GM | 28.34% |
OM growth 3Y-7.62%
OM growth 5Y-3.71%
PM growth 3Y-14.89%
PM growth 5Y-15.44%
GM growth 3Y-2.47%
GM growth 5Y-2.25%
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.
Compared to 1 year ago, CAE has more shares outstanding
CAE has more shares outstanding than it did 5 years ago.
CAE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that CAE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.72, CAE is in line with its industry, outperforming 41.27% of the companies in the same industry.
CAE has a debt to FCF ratio of 36.07. This is a negative value and a sign of low solvency as CAE would need 36.07 years to pay back of all of its debts.
With a Debt to FCF ratio value of 36.07, CAE perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that CAE is somewhat dependend on debt financing.
CAE has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: CAE outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 36.07 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.78
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.90 indicates that CAE may have some problems paying its short term obligations.
CAE has a Current ratio of 0.90. This is amonst the worse of the industry: CAE underperforms 88.89% of its industry peers.
A Quick Ratio of 0.68 indicates that CAE may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, CAE is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.15%, which is quite impressive.
Measured over the past years, CAE shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.54% on average per year.
The Revenue has grown by 15.18% in the past year. This is quite good.
Measured over the past years, CAE shows a quite strong growth in Revenue. The Revenue has been growing by 8.28% on average per year.
EPS 1Y (TTM)34.15%
EPS 3Y-13.29%
EPS 5Y-4.54%
EPS growth Q2Q-14.29%
Revenue 1Y (TTM)15.18%
Revenue growth 3Y5.07%
Revenue growth 5Y8.28%
Revenue growth Q2Q7.27%
3.2 Future
The Earnings Per Share is expected to grow by 20.31% on average over the next years. This is a very strong growth
CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.80% yearly.
EPS Next Y34.7%
EPS Next 2Y23.13%
EPS Next 3Y22.53%
EPS Next 5Y20.31%
Revenue Next Year9.22%
Revenue Next 2Y7.02%
Revenue Next 3Y6.77%
Revenue Next 5Y6.8%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.51 indicates a rather expensive valuation of CAE.
73.02% of the companies in the same industry are more expensive than CAE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.84. CAE is around the same levels.
A Price/Forward Earnings ratio of 19.49 indicates a rather expensive valuation of CAE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 79.37% of the companies listed in the same industry.
CAE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 19.49 |
4.2 Price Multiples
88.89% of the companies in the same industry are more expensive than CAE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93 | ||
| EV/EBITDA | 12.3 |
4.3 Compensation for Growth
CAE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CAE may justify a higher PE ratio.
A more expensive valuation may be justified as CAE's earnings are expected to grow with 22.53% in the coming years.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y23.13%
EPS Next 3Y22.53%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CAE INC
NYSE:CAE (4/26/2024, 7:04:00 PM)
After market: 19.04 0 (0%)19.04
+0.29 (+1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 19.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 5.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.37% | ||
| PM (TTM) | 6.2% | ||
| GM | 28.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)34.15%
EPS 3Y-13.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y34.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.18%
Revenue growth 3Y5.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y