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 65 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 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.
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
Looking at the Return On Assets, with a value of 3.56%, CAE is in line with its industry, outperforming 56.92% of the companies in the same industry.
CAE has a Return On Equity of 8.15%. This is in the better half of the industry: CAE outperforms 61.54% of its industry peers.
CAE has a Return On Invested Capital (5.79%) which is comparable to the rest of the industry.
CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This is below the industry average of 8.35%.
The 3 year average ROIC (5.18%) for CAE is below the current ROIC(5.79%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 8.47%, CAE is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
CAE's Profit Margin has been stable in the last couple of years.
The Operating Margin of CAE (12.98%) is better than 83.08% of its industry peers.
In the last couple of years the Operating Margin of CAE has declined.
CAE's Gross Margin of 27.62% is fine compared to the rest of the industry. CAE outperforms 61.54% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
CAE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.88 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.88, CAE is doing worse than 70.77% of the companies in the same industry.
CAE has a debt to FCF ratio of 7.67. This is a slightly negative value and a sign of low solvency as CAE would need 7.67 years to pay back of all of its debts.
CAE's Debt to FCF ratio of 7.67 is fine compared to the rest of the industry. CAE outperforms 63.08% 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.
CAE has a Debt to Equity ratio (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.64
WACC9.02%
2.3 Liquidity
A Current Ratio of 0.80 indicates that CAE may have some problems paying its short term obligations.
CAE has a worse Current ratio (0.80) than 92.31% 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.
CAE has a worse Quick ratio (0.58) than 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.04%, which is quite good.
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%.
CAE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
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
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.
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
CAE is valuated quite expensively with a Price/Earnings ratio of 29.22.
Compared to the rest of the industry, the Price/Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 72.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAE to the average of the S&P500 Index (26.25), we can say CAE is valued inline with the index average.
The Price/Forward Earnings ratio is 24.66, which indicates a rather expensive current valuation of CAE.
Based on the Price/Forward Earnings ratio, CAE is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
CAE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.22 | ||
| Fwd PE | 24.66 |
4.2 Price Multiples
81.54% of the companies in the same industry are more expensive than CAE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CAE is valued cheaply inside the industry as 86.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.13 | ||
| EV/EBITDA | 14.18 |
4.3 Compensation for Growth
The 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)1.54
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 |
25.71
+0.29 (+1.14%)
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 Cap8.23B
Analysts71.76
Price Target30.29 (17.81%)
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)0.25%
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 | 29.22 | ||
| Fwd PE | 24.66 | ||
| P/S | 2.41 | ||
| P/FCF | 25.13 | ||
| P/OCF | 12.68 | ||
| P/B | 2.32 | ||
| P/tB | 11.14 | ||
| EV/EBITDA | 14.18 |
EPS(TTM)0.88
EY3.42%
EPS(NY)1.04
Fwd EY4.06%
FCF(TTM)1.02
FCFY3.98%
OCF(TTM)2.03
OCFY7.89%
SpS10.65
BVpS11.06
TBVpS2.31
PEG (NY)1.54
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 | 1.88 |
F-Score6
WACC9.02%
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)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%