CAE INC (CAE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CAE - CA1247651088 - Common Stock
42.99 CAD
-0.02 (-0.05%)
We assign a fundamental rating of 5 out of 10 to CAE. CAE was compared to 11 industry peers in the Aerospace & Defense industry. CAE has an excellent profitability rating, but there are some minor concerns on its financial health. CAE is quite expensive at the moment. It does show a decent 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.
CAE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.87%, CAE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.45%, CAE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of CAE (5.96%) 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 8.45%.
The last Return On Invested Capital (5.96%) for CAE is above the 3 year average (5.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.45% | ||
| ROIC | 5.96% |
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 (8.88%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of CAE has remained more or less at the same level.
CAE's Operating Margin of 13.19% is amongst the best of the industry. CAE outperforms 100.00% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
CAE has a Gross Margin of 28.22%. This is amongst the best in the industry. CAE outperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of CAE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.19% | ||
| PM (TTM) | 8.88% | ||
| GM | 28.22% |
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.
Compared to 1 year ago, CAE has more shares outstanding
CAE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CAE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.25 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 2.25, CAE belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
CAE has a debt to FCF ratio of 7.20. This is a slightly negative value and a sign of low solvency as CAE would need 7.20 years to pay back of all of its debts.
CAE's Debt to FCF ratio of 7.20 is amongst the best of the industry. CAE outperforms 81.82% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that CAE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, CAE is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.67
WACC8.85%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
CAE's Current ratio of 0.83 is on the low side compared to the rest of the industry. CAE is outperformed by 72.73% of its industry peers.
A Quick Ratio of 0.59 indicates that CAE may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.59, CAE is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.21%, which is quite good.
CAE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.17% yearly.
CAE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.12%.
The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)13.21%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
3.2 Future
The Earnings Per Share is expected to grow by 15.64% on average over the next years. This is quite good.
Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 6.57% on average per year.
EPS Next Y1.92%
EPS Next 2Y12.08%
EPS Next 3Y14.64%
EPS Next 5Y15.64%
Revenue Next Year4.9%
Revenue Next 2Y5.29%
Revenue Next 3Y5.75%
Revenue Next 5Y6.57%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 35.83, which means the current valuation is very expensive for CAE.
Based on the Price/Earnings ratio, CAE is valued a bit more expensive than 63.64% of the companies in the same industry.
CAE is valuated rather expensively when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.28, CAE can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CAE is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
CAE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.83 | ||
| Fwd PE | 28.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued a bit more expensive than 63.64% of the companies in the same industry.
CAE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.56 | ||
| EV/EBITDA | 15.72 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CAE's earnings are expected to grow with 14.64% in the coming years.
PEG (NY)18.68
PEG (5Y)N/A
EPS Next 2Y12.08%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:CAE (12/24/2025, 7:00:00 PM)
42.99
-0.02 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap13.82B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)6.31%
Min EPS beat(2)0.2%
Max EPS beat(2)12.42%
EPS beat(4)4
Avg EPS beat(4)3.37%
Min EPS beat(4)0.15%
Max EPS beat(4)12.42%
EPS beat(8)6
Avg EPS beat(8)2.45%
EPS beat(12)10
Avg EPS beat(12)6.79%
EPS beat(16)12
Avg EPS beat(16)2.45%
Revenue beat(2)1
Avg Revenue beat(2)1.52%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)7.25%
Revenue beat(4)2
Avg Revenue beat(4)1.05%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)7.25%
Revenue beat(8)4
Avg Revenue beat(8)-1.03%
Revenue beat(12)8
Avg Revenue beat(12)-0.03%
Revenue beat(16)9
Avg Revenue beat(16)-0.49%
PT rev (1m)1.52%
PT rev (3m)1.52%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-12.1%
EPS NY rev (1m)-4.78%
EPS NY rev (3m)-5.5%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.83 | ||
| Fwd PE | 28.28 | ||
| P/S | 2.86 | ||
| P/FCF | 29.56 | ||
| P/OCF | 14.61 | ||
| P/B | 2.72 | ||
| P/tB | 10.58 | ||
| EV/EBITDA | 15.72 |
EPS(TTM)1.2
EY2.79%
EPS(NY)1.52
Fwd EY3.54%
FCF(TTM)1.45
FCFY3.38%
OCF(TTM)2.94
OCFY6.84%
SpS15.03
BVpS15.79
TBVpS4.06
PEG (NY)18.68
PEG (5Y)N/A
Graham Number20.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.45% | ||
| ROCE | 7.38% | ||
| ROIC | 5.96% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 10.98% | ||
| OM | 13.19% | ||
| PM (TTM) | 8.88% | ||
| GM | 28.22% | ||
| FCFM | 9.67% |
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%
ROICexgc growth 3Y7.17%
ROICexgc 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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 107.63% | ||
| Cap/Sales | 9.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.41% | ||
| Profit Quality | 108.95% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 2.25 |
F-Score5
WACC8.85%
ROIC/WACC0.67
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)13.21%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%-4.17%
EPS Next Y1.92%
EPS Next 2Y12.08%
EPS Next 3Y14.64%
EPS Next 5Y15.64%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year4.9%
Revenue Next 2Y5.29%
Revenue Next 3Y5.75%
Revenue Next 5Y6.57%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year65.35%
EBIT Next 3Y25.36%
EBIT Next 5Y18.94%
FCF growth 1Y301.03%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y67.76%
OCF growth 3Y28.94%
OCF growth 5Y10.46%
CAE INC / CAE.CA FAQ
What is the fundamental rating for CAE stock?
ChartMill assigns a fundamental rating of 5 / 10 to CAE.CA.
What is the valuation status of CAE INC (CAE.CA) stock?
ChartMill assigns a valuation rating of 2 / 10 to CAE INC (CAE.CA). This can be considered as Overvalued.
How profitable is CAE INC (CAE.CA) stock?
CAE INC (CAE.CA) has a profitability rating of 7 / 10.
What is the valuation of CAE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CAE INC (CAE.CA) is 35.83 and the Price/Book (PB) ratio is 2.72.
How financially healthy is CAE INC?
The financial health rating of CAE INC (CAE.CA) is 4 / 10.