CAE INC (CAE) Stock Fundamental Analysis
NYSE:CAE - New York Stock Exchange, Inc. - CA1247651088 - Common Stock - Currency: USD
Taking everything into account, CAE scores 4 out of 10 in our fundamental rating. CAE was compared to 64 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.
CAE had a positive operating cash flow in the past year.
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
CAE has a Return On Assets (3.56%) which is comparable to the rest of the industry.
The Return On Equity of CAE (8.15%) is better than 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.79%, CAE is in line with its industry, outperforming 53.13% of the companies in the same industry.
CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This is below the industry average of 8.01%.
The last Return On Invested Capital (5.79%) for CAE is above the 3 year average (5.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.15% | ||
| ROIC | 5.79% |
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 (8.47%) than 75.00% 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 (12.98%) is better than 82.81% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
CAE has a Gross Margin of 27.62%. This is in the better half of the industry: CAE outperforms 60.94% of its industry peers.
In the last couple of years the Gross Margin of CAE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.98% | ||
| PM (TTM) | 8.47% | ||
| GM | 27.62% |
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.
CAE has more shares outstanding than it did 5 years ago.
CAE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.85 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAE has a worse Altman-Z score (1.85) than 71.88% of its industry peers.
The Debt to FCF ratio of CAE is 7.67, which is on the high side as it means it would take CAE, 7.67 years of fcf income to pay off all of its debts.
CAE has a Debt to FCF ratio of 7.67. This is in the better half of the industry: CAE outperforms 64.06% of its industry peers.
CAE has a Debt/Equity ratio of 0.63. This is a neutral value indicating CAE is somewhat dependend on debt financing.
The Debt to Equity ratio of CAE (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.65
WACC8.97%
2.3 Liquidity
CAE has a Current Ratio of 0.80. This is a bad value and indicates that CAE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CAE (0.80) is worse than 93.75% of its industry peers.
CAE has a Quick Ratio of 0.80. This is a bad value and indicates that CAE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CAE (0.58) is worse than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.04% over the past year.
The Earnings Per Share has been decreasing by -2.17% on average over the past years.
CAE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.89%.
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)8.04%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%27.03%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%13.24%
3.2 Future
The Earnings Per Share is expected to grow by 12.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y18.98%
EPS Next 2Y18.04%
EPS Next 3Y13.67%
EPS Next 5Y12.88%
Revenue Next Year6.91%
Revenue Next 2Y6.36%
Revenue Next 3Y5.2%
Revenue Next 5Y5.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 28.61, 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 somewhat cheap valuation: CAE is cheaper than 73.44% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. CAE is around the same levels.
With a Price/Forward Earnings ratio of 23.99, CAE is valued on the expensive side.
CAE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 65.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.77. CAE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 23.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued cheaper than 82.81% of the companies in the same industry.
85.94% of the companies in the same industry are more expensive than CAE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.46 | ||
| EV/EBITDA | 13.82 |
4.3 Compensation for Growth
CAE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CAE's earnings are expected to grow with 13.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)N/A
EPS Next 2Y18.04%
EPS Next 3Y13.67%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.18
+0.15 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners78.71%
Inst Owner Change-2.67%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap8.06B
Analysts71.76
Price Target30.29 (20.29%)
Short Float %1.04%
Short Ratio7.04
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)0.44%
Min EPS beat(2)0.15%
Max EPS beat(2)0.72%
EPS beat(4)4
Avg EPS beat(4)6.41%
Min EPS beat(4)0.15%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)6.64%
EPS beat(12)9
Avg EPS beat(12)0.44%
EPS beat(16)11
Avg EPS beat(16)1.6%
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)3.5%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)3.5%
Revenue beat(8)5
Avg Revenue beat(8)-0.92%
Revenue beat(12)8
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)-1.49%
PT rev (1m)3.57%
PT rev (3m)23.58%
EPS NQ rev (1m)-20.11%
EPS NQ rev (3m)-21.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-6.48%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 23.99 | ||
| P/S | 2.35 | ||
| P/FCF | 24.46 | ||
| P/OCF | 12.34 | ||
| P/B | 2.26 | ||
| P/tB | 10.84 | ||
| EV/EBITDA | 13.82 |
EPS(TTM)0.88
EY3.49%
EPS(NY)1.05
Fwd EY4.17%
FCF(TTM)1.03
FCFY4.09%
OCF(TTM)2.04
OCFY8.1%
SpS10.71
BVpS11.13
TBVpS2.32
PEG (NY)1.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.15% | ||
| ROCE | 7.17% | ||
| ROIC | 5.79% | ||
| ROICexc | 6% | ||
| ROICexgc | 11.32% | ||
| OM | 12.98% | ||
| PM (TTM) | 8.47% | ||
| GM | 27.62% | ||
| FCFM | 9.61% |
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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 107.09% | ||
| Cap/Sales | 9.43% | ||
| Interest Coverage | 3.03 | ||
| Cash Conversion | 87.4% | ||
| Profit Quality | 113.41% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.85 |
F-Score6
WACC8.97%
ROIC/WACC0.65
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)8.04%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%27.03%
EPS Next Y18.98%
EPS Next 2Y18.04%
EPS Next 3Y13.67%
EPS Next 5Y12.88%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%13.24%
Revenue Next Year6.91%
Revenue Next 2Y6.36%
Revenue Next 3Y5.2%
Revenue Next 5Y5.44%
EBIT growth 1Y29.14%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year69.28%
EBIT Next 3Y25.39%
EBIT Next 5Y20.32%
FCF growth 1Y407.18%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y58.14%
OCF growth 3Y28.94%
OCF growth 5Y10.46%