CAE INC (CAE) Stock Fundamental Analysis
NYSE:CAE - CA1247651088 - Common Stock
26.94 USD
-0.07 (-0.26%)
26.94 USD
0 (0%)
CAE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 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 has a correct valuation and a medium growth rate.
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.
The reported net income has been mixed in the past 5 years: CAE reported negative net income in multiple years.
CAE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CAE (3.75%) is comparable to the rest of the industry.
The Return On Equity of CAE (8.31%) is better than 62.32% of its industry peers.
The Return On Invested Capital of CAE (5.81%) 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 8.22%.
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
The Profit Margin of CAE (8.61%) is better than 75.36% 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 (13.03%) is better than 81.16% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 28.09%, CAE is doing good in the industry, outperforming 63.77% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAE 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
The debt/assets ratio for CAE has been reduced compared to a year ago.
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 in the lower half of the industry: CAE underperforms 71.01% 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.
The Debt to FCF ratio of CAE (7.71) is better than 63.77% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that CAE is somewhat dependend on debt financing.
The Debt to Equity ratio of CAE (0.64) is worse than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.64
WACC9.1%
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 89.86% 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 Quick ratio value of 0.60, CAE is not doing good in the industry: 86.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.01%, which is quite good.
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.
The Revenue has grown by 8.04% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 15.35% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 30.61, the valuation of CAE can be described as expensive.
CAE's Price/Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 73.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.13. CAE is around the same levels.
Based on the Price/Forward Earnings ratio of 23.53, the valuation of CAE can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 69.57% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CAE to the average of the S&P500 Index (22.76), we can say CAE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.61 | ||
| Fwd PE | 23.53 |
4.2 Price Multiples
CAE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CAE is cheaper than 89.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAE is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.89 | ||
| EV/EBITDA | 14.43 |
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'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 |
26.94
-0.07 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.68%
Inst Owner Change-1.28%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap8.64B
Analysts75.29
Price Target32.33 (20.01%)
Short Float %0.62%
Short Ratio3.06
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)6.63%
PT rev (3m)6.73%
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 | 30.61 | ||
| Fwd PE | 23.53 | ||
| P/S | 2.51 | ||
| P/FCF | 26.89 | ||
| P/OCF | 13.29 | ||
| P/B | 2.42 | ||
| P/tB | 10.09 | ||
| EV/EBITDA | 14.43 |
EPS(TTM)0.88
EY3.27%
EPS(NY)1.15
Fwd EY4.25%
FCF(TTM)1
FCFY3.72%
OCF(TTM)2.03
OCFY7.53%
SpS10.73
BVpS11.13
TBVpS2.67
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
WACC9.1%
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)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%