CAE INC (CAE) Stock Fundamental Analysis
USA - NYSE:CAE - CA1247651088 - Common Stock
28.6 USD
+0.65 (+2.33%)
28.6 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CAE. CAE was compared to 69 industry peers in the Aerospace & Defense industry. While CAE is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year CAE had a positive cash flow from operations.
In multiple years CAE reported negative net income over the last 5 years.
In the past 5 years CAE always reported a positive cash flow from operatings.
1.2 Ratios
CAE has a Return On Assets of 3.75%. This is in the better half of the industry: CAE outperforms 60.87% of its industry peers.
CAE has a better Return On Equity (8.31%) than 62.32% of its industry peers.
With a Return On Invested Capital value of 5.81%, CAE perfoms like the industry average, outperforming 52.17% 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 8.29%.
The last Return On Invested Capital (5.81%) for CAE is above the 3 year average (5.18%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.61%, CAE is doing good in the industry, outperforming 75.36% of the companies in the same industry.
In the last couple of years the Profit Margin of CAE has remained more or less at the same level.
With an excellent Operating Margin value of 13.03%, CAE belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
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 63.77% of the companies in the same industry.
In the last couple of years the Gross Margin of CAE has declined.
| 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.
CAE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CAE has been increased compared to 5 years ago.
CAE has a better debt/assets ratio than last year.
2.2 Solvency
CAE has an Altman-Z score of 2.11. 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.
The Altman-Z score of CAE (2.11) is worse than 71.01% of its industry peers.
CAE has a debt to FCF ratio of 7.71. This is a slightly negative value and a sign of low solvency as CAE would need 7.71 years to pay back of all of its debts.
The Debt to FCF ratio of CAE (7.71) is better than 63.77% 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.
Looking at the Debt to Equity ratio, with a value of 0.64, CAE is doing worse than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.64
WACC9.07%
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 89.86% of the companies in the same industry.
A Quick Ratio of 0.60 indicates that CAE may have some problems paying its short term obligations.
CAE's Quick ratio of 0.60 is on the low side compared to the rest of the industry. CAE is outperformed by 86.96% of its industry peers.
| 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.
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 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 3Y13.22%
EPS Next 5Y15.35%
Revenue Next Year3.2%
Revenue Next 2Y4.61%
Revenue Next 3Y5.15%
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
A Price/Earnings ratio of 32.50 indicates a quite expensive valuation of CAE.
Compared to the rest of the industry, the Price/Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 72.46% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. CAE is around the same levels.
CAE is valuated quite expensively with a Price/Forward Earnings ratio of 25.09.
CAE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 69.57% of the companies in the same industry.
CAE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.5 | ||
| Fwd PE | 25.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued cheaper than 88.41% of the companies in the same industry.
85.51% 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 | 28.67 | ||
| EV/EBITDA | 14.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CAE has a very decent profitability rating, which may justify a higher PE ratio.
CAE's earnings are expected to grow with 13.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.14
PEG (5Y)N/A
EPS Next 2Y14.08%
EPS Next 3Y13.22%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.6
+0.65 (+2.33%)
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 Cap9.17B
Analysts75.29
Price Target32.45 (13.46%)
Short Float %0.62%
Short Ratio3.07
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)1.26%
PT rev (3m)8.14%
EPS NQ rev (1m)-5.39%
EPS NQ rev (3m)-24.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.36%
Revenue NQ rev (1m)-1.87%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.5 | ||
| Fwd PE | 25.09 | ||
| P/S | 2.68 | ||
| P/FCF | 28.67 | ||
| P/OCF | 14.17 | ||
| P/B | 2.58 | ||
| P/tB | 10.76 | ||
| EV/EBITDA | 14.91 |
EPS(TTM)0.88
EY3.08%
EPS(NY)1.14
Fwd EY3.99%
FCF(TTM)1
FCFY3.49%
OCF(TTM)2.02
OCFY7.06%
SpS10.69
BVpS11.08
TBVpS2.66
PEG (NY)4.14
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 | 2.11 |
F-Score6
WACC9.07%
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 3Y13.22%
EPS Next 5Y15.35%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
Revenue Next Year3.2%
Revenue Next 2Y4.61%
Revenue Next 3Y5.15%
Revenue Next 5Y6.08%
EBIT growth 1Y35.75%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year69.28%
EBIT Next 3Y24.79%
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%