CAE INC (CAE.CA) Stock Fundamental Analysis
TSX:CAE - Toronto Stock Exchange - CA1247651088 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to CAE. CAE was compared to 11 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 is valied quite expensively at the moment, while it does show 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.
The reported net income has been mixed in the past 5 years: CAE reported negative net income in multiple years.
In the past 5 years CAE always reported a positive cash flow from operatings.
1.2 Ratios
CAE has a worse Return On Assets (-1.94%) than 72.73% of its industry peers.
With a decent Return On Equity value of -4.60%, CAE is doing good in the industry, outperforming 72.73% of the companies in the same industry.
CAE's Return On Invested Capital of 4.60% is in line compared to the rest of the industry. CAE outperforms 45.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAE is below the industry average of 7.49%.
The last Return On Invested Capital (4.60%) for CAE is above the 3 year average (4.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.6% | ||
| ROIC | 4.6% |
ROA(3y)0.17%
ROA(5y)0.73%
ROE(3y)0.43%
ROE(5y)2.46%
ROIC(3y)4.47%
ROIC(5y)4.61%
1.3 Margins
CAE's Operating Margin of 11.04% is amongst the best of the industry. CAE outperforms 90.91% of its industry peers.
In the last couple of years the Operating Margin of CAE has declined.
CAE has a better Gross Margin (26.12%) than 72.73% of its industry peers.
In the last couple of years the Gross Margin of CAE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.12% |
OM growth 3Y7.68%
OM growth 5Y-3.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.66%
GM growth 5Y-1.1%
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 remains at a similar level compared to 1 year ago.
CAE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.82 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAE's Altman-Z score of 1.82 is amongst the best of the industry. CAE outperforms 81.82% of its industry peers.
The Debt to FCF ratio of CAE is 10.82, which is on the high side as it means it would take CAE, 10.82 years of fcf income to pay off all of its debts.
CAE's Debt to FCF ratio of 10.82 is fine compared to the rest of the industry. CAE outperforms 72.73% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that CAE is somewhat dependend on debt financing.
CAE has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.82 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.57
WACC8.1%
2.3 Liquidity
CAE has a Current Ratio of 0.86. 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 0.86, CAE is doing worse than 72.73% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that CAE may have some problems paying its short term obligations.
CAE's Quick ratio of 0.63 is fine compared to the rest of the industry. CAE outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.64% over the past year.
Measured over the past years, CAE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.02% on average per year.
The Revenue has been growing slightly by 1.44% in the past year.
Measured over the past years, CAE shows a small growth in Revenue. The Revenue has been growing by 5.33% on average per year.
EPS 1Y (TTM)1.64%
EPS 3Y34.53%
EPS 5Y-2.02%
EPS Q2Q%24.18%
Revenue 1Y (TTM)1.44%
Revenue growth 3Y12.83%
Revenue growth 5Y5.33%
Sales Q2Q%13.38%
3.2 Future
Based on estimates for the next years, CAE will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.01% on average per year.
CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.39% yearly.
EPS Next Y8.5%
EPS Next 2Y13.21%
EPS Next 3Y14.63%
EPS Next 5Y13.01%
Revenue Next Year3.54%
Revenue Next 2Y5.41%
Revenue Next 3Y5.57%
Revenue Next 5Y5.39%
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.
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
CAE is valuated quite expensively with a Price/Earnings ratio of 31.21.
Based on the Price/Earnings ratio, CAE is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 29.63. CAE is around the same levels.
CAE is valuated rather expensively with a Price/Forward Earnings ratio of 24.35.
CAE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CAE is more expensive than 63.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CAE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 24.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAE indicates a slightly more expensive valuation: CAE is more expensive than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.09 | ||
| EV/EBITDA | 16.07 |
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's earnings are expected to grow with 14.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.67
PEG (5Y)N/A
EPS Next 2Y13.21%
EPS Next 3Y14.63%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CAE (2/21/2025, 7:00:00 PM)
34.96
-1.16 (-3.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners78.71%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap11.18B
Analysts70
Price Target37.83 (8.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)12.7%
Min EPS beat(2)2.57%
Max EPS beat(2)22.83%
EPS beat(4)3
Avg EPS beat(4)3.87%
Min EPS beat(4)-11.82%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)7.12%
EPS beat(12)9
Avg EPS beat(12)2.43%
EPS beat(16)11
Avg EPS beat(16)2.1%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)3.23%
Max Revenue beat(2)4.9%
Revenue beat(4)3
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-13.83%
Max Revenue beat(4)4.9%
Revenue beat(8)6
Avg Revenue beat(8)0.01%
Revenue beat(12)8
Avg Revenue beat(12)0.11%
Revenue beat(16)9
Avg Revenue beat(16)-1.21%
PT rev (1m)14.54%
PT rev (3m)15.73%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)7.36%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 24.35 | ||
| P/S | 2.45 | ||
| P/FCF | 33.09 | ||
| P/OCF | 14.16 | ||
| P/B | 2.39 | ||
| P/tB | 13.88 | ||
| EV/EBITDA | 16.07 |
EPS(TTM)1.12
EY3.2%
EPS(NY)1.44
Fwd EY4.11%
FCF(TTM)1.06
FCFY3.02%
OCF(TTM)2.47
OCFY7.06%
SpS14.26
BVpS14.62
TBVpS2.52
PEG (NY)3.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.6% | ||
| ROCE | 5.88% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.77% | ||
| ROICexgc | 8.97% | ||
| OM | 11.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.12% | ||
| FCFM | 7.41% |
ROA(3y)0.17%
ROA(5y)0.73%
ROE(3y)0.43%
ROE(5y)2.46%
ROIC(3y)4.47%
ROIC(5y)4.61%
ROICexc(3y)4.61%
ROICexc(5y)5.04%
ROICexgc(3y)9.14%
ROICexgc(5y)9.16%
ROCE(3y)5.71%
ROCE(5y)5.89%
ROICexcg growth 3Y11.59%
ROICexcg growth 5Y-5.42%
ROICexc growth 3Y8.35%
ROICexc growth 5Y-6.33%
OM growth 3Y7.68%
OM growth 5Y-3.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.66%
GM growth 5Y-1.1%
F-Score2
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.82 | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 112.71% | ||
| Cap/Sales | 9.9% | ||
| Interest Coverage | 2.51 | ||
| Cash Conversion | 87.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.82 |
F-Score2
WACC8.1%
ROIC/WACC0.57
Cap/Depr(3y)122.86%
Cap/Depr(5y)109.7%
Cap/Sales(3y)10.68%
Cap/Sales(5y)9.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.64%
EPS 3Y34.53%
EPS 5Y-2.02%
EPS Q2Q%24.18%
EPS Next Y8.5%
EPS Next 2Y13.21%
EPS Next 3Y14.63%
EPS Next 5Y13.01%
Revenue 1Y (TTM)1.44%
Revenue growth 3Y12.83%
Revenue growth 5Y5.33%
Sales Q2Q%13.38%
Revenue Next Year3.54%
Revenue Next 2Y5.41%
Revenue Next 3Y5.57%
Revenue Next 5Y5.39%
EBIT growth 1Y-9.41%
EBIT growth 3Y21.5%
EBIT growth 5Y1.78%
EBIT Next Year73.65%
EBIT Next 3Y28.61%
EBIT Next 5Y19.47%
FCF growth 1Y4229.49%
FCF growth 3Y-23.97%
FCF growth 5YN/A
OCF growth 1Y81.55%
OCF growth 3Y15.64%
OCF growth 5Y1.34%