CAE INC (CAE.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CAE • CA1247651088
43.64 CAD
-0.7 (-1.58%)
Last: Jan 30, 2026, 07:00 PM
CAE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 13 industry peers in the Aerospace & Defense industry. CAE has an average financial health and profitability rating. 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.
- 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
- With an excellent Return On Assets value of 3.87%, CAE belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- CAE has a Return On Equity of 8.45%. This is amongst the best in the industry. CAE outperforms 84.62% of its industry peers.
- CAE has a Return On Invested Capital (5.96%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.16%.
- 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
- The Profit Margin of CAE (8.88%) is better than 92.31% of its industry peers.
- CAE's Profit Margin has been stable in the last couple of years.
- The Operating Margin of CAE (13.19%) is better than 92.31% of its industry peers.
- In the last couple of years the Operating Margin of CAE has declined.
- The Gross Margin of CAE (28.22%) is better than 76.92% of its industry peers.
- CAE's Gross Margin has declined in the last couple of years.
| 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
- The number of shares outstanding for CAE has been increased compared to 5 years ago.
- Compared to 1 year ago, CAE has an improved debt to assets ratio.
2.2 Solvency
- CAE has an Altman-Z score of 2.27. 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.
- With an excellent Altman-Z score value of 2.27, CAE belongs to the best of the industry, outperforming 92.31% 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.
- With a decent Debt to FCF ratio value of 7.20, CAE is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- CAE has a Debt/Equity ratio of 0.61. This is a neutral value indicating CAE is somewhat dependend on debt financing.
- The Debt to Equity ratio of CAE (0.61) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.62
WACC9.62%
2.3 Liquidity
- A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
- With a Current ratio value of 0.83, CAE is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
- A Quick Ratio of 0.59 indicates that CAE may have some problems paying its short term obligations.
- CAE's Quick ratio of 0.59 is fine compared to the rest of the industry. CAE outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.21% over the past year.
- Measured over the past years, CAE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.17% on average per year.
- The Revenue has grown by 9.12% in the past year. This is quite good.
- 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)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
- Based on estimates for the next years, CAE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.25% on average per year.
- The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y1.92%
EPS Next 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y15.25%
Revenue Next Year4.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.58%
Revenue Next 5Y5.95%
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
- A Price/Earnings ratio of 36.37 indicates a quite expensive valuation of CAE.
- CAE's Price/Earnings ratio is a bit more expensive when compared to the industry. CAE is more expensive than 69.23% of the companies in the same industry.
- CAE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.32.
- A Price/Forward Earnings ratio of 28.79 indicates a quite expensive valuation of CAE.
- CAE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CAE is more expensive than 69.23% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, CAE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.37 | ||
| Fwd PE | 28.79 |
4.2 Price Multiples
- 61.54% of the companies in the same industry are cheaper than CAE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.01 | ||
| EV/EBITDA | 15.91 |
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.
- The decent profitability rating of CAE may justify a higher PE ratio.
- CAE's earnings are expected to grow with 14.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)18.96
PEG (5Y)N/A
EPS Next 2Y11.93%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
- CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CAE INC / CAE.CA FAQ
What is the fundamental rating for CAE stock?
ChartMill assigns a fundamental rating of 4 / 10 to CAE.CA.
What is the valuation status for CAE 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 6 / 10.
What is the expected EPS growth for CAE INC (CAE.CA) stock?
The Earnings per Share (EPS) of CAE INC (CAE.CA) is expected to grow by 1.92% in the next year.
Is the dividend of CAE INC sustainable?
The dividend rating of CAE INC (CAE.CA) is 0 / 10 and the dividend payout ratio is 0%.