CAE INC (CAE.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CAE • CA1247651088
42.66 CAD
+1.16 (+2.8%)
Last: Feb 6, 2026, 07:00 PM
We assign a fundamental rating of 4 out of 10 to CAE. CAE was compared to 13 industry peers in the Aerospace & Defense industry. CAE has an average financial health and profitability rating. 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.
- 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
- Looking at the Return On Assets, with a value of 3.87%, CAE belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- The Return On Equity of CAE (8.45%) is better than 84.62% of its industry peers.
- CAE has a Return On Invested Capital of 5.96%. This is comparable to the rest of the industry: CAE outperforms 46.15% of its industry peers.
- CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This 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
- With an excellent Profit Margin value of 8.88%, CAE belongs to the best of the industry, outperforming 92.31% 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.
- Looking at the Operating Margin, with a value of 13.19%, CAE belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
- In the last couple of years the Operating Margin of CAE has declined.
- Looking at the Gross Margin, with a value of 28.22%, CAE is in the better half of the industry, outperforming 76.92% 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 | 13.19% | ||
| 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.
- The number of shares outstanding for CAE has been increased compared to 1 year ago.
- The number of shares outstanding for CAE has been increased compared to 5 years ago.
- The debt/assets ratio for CAE has been reduced compared to a year ago.
2.2 Solvency
- CAE has an Altman-Z score of 2.20. 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.
- Looking at the Altman-Z score, with a value of 2.20, CAE belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
- The Debt to FCF ratio of CAE is 7.20, which is on the high side as it means it would take CAE, 7.20 years of fcf income to pay off 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.
- A Debt/Equity ratio of 0.61 indicates that CAE is somewhat dependend on debt financing.
- CAE's Debt to Equity ratio of 0.61 is fine compared to the rest of the industry. CAE outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.62
WACC9.56%
2.3 Liquidity
- A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
- CAE has a worse Current ratio (0.83) than 76.92% of its industry peers.
- A Quick Ratio of 0.59 indicates that CAE may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.59, CAE is in the better half of the industry, outperforming 61.54% 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.
- The Revenue has grown by 9.12% in the past year. This is quite good.
- 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
- CAE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.25% yearly.
- Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
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
- CAE is valuated quite expensively with a Price/Earnings ratio of 35.55.
- 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 27.92.
- With a Price/Forward Earnings ratio of 28.14, CAE can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, CAE is valued a bit more expensive than 69.23% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CAE to the average of the S&P500 Index (27.78), we can say CAE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 28.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAE is valued a bit more expensive than 61.54% of the companies in the same industry.
- CAE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.34 | ||
| EV/EBITDA | 15.27 |
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)18.53
PEG (5Y)N/A
EPS Next 2Y11.93%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
- No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:CAE (2/6/2026, 7:00:00 PM)
42.66
+1.16 (+2.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-11 2025-11-11/amc
Earnings (Next)02-13 2026-02-13/bmo
Inst Owners77.26%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap13.72B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target46.58 (9.19%)
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)1.29%
PT rev (3m)3.79%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-13.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.46%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 28.14 | ||
| P/S | 2.84 | ||
| P/FCF | 29.34 | ||
| P/OCF | 14.5 | ||
| P/B | 2.7 | ||
| P/tB | 10.5 | ||
| EV/EBITDA | 15.27 |
EPS(TTM)1.2
EY2.81%
EPS(NY)1.52
Fwd EY3.55%
FCF(TTM)1.45
FCFY3.41%
OCF(TTM)2.94
OCFY6.9%
SpS15.03
BVpS15.79
TBVpS4.06
PEG (NY)18.53
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 | 2.2 |
F-Score5
WACC9.56%
ROIC/WACC0.62
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 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y15.25%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year4.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.58%
Revenue Next 5Y5.95%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year65.22%
EBIT Next 3Y25.25%
EBIT Next 5Y18.45%
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 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%.