CAE INC (CAE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CAE - CA1247651088 - Common Stock
37.16 CAD
+0.63 (+1.72%)
Overall CAE gets a fundamental rating of 4 out of 10. We evaluated CAE against 10 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
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
Looking at the Return On Assets, with a value of 3.87%, CAE belongs to the top 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 90.00% of the companies in the same industry.
The Return On Invested Capital of CAE (5.96%) is comparable to the rest of the industry.
CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This is below the industry average of 8.50%.
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 100.00% 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.
The Operating Margin of CAE (13.19%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of CAE has declined.
With a decent Gross Margin value of 28.22%, CAE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 2.06 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAE's Altman-Z score of 2.06 is amongst the best of the industry. CAE outperforms 90.00% of its industry peers.
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 has a Debt to FCF ratio of 7.20. This is in the better half of the industry: CAE outperforms 80.00% of its industry peers.
CAE has a Debt/Equity ratio of 0.61. This is a neutral value indicating CAE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, CAE is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.63
WACC9.39%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
CAE has a Current ratio of 0.83. This is amonst the worse of the industry: CAE underperforms 90.00% of its industry peers.
A Quick Ratio of 0.59 indicates that CAE may have some problems paying its short term obligations.
CAE has a Quick ratio of 0.59. This is comparable to the rest of the industry: CAE outperforms 60.00% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -2.17% on average over the past years.
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
CAE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.75% yearly.
Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 5.98% on average per year.
EPS Next Y7.04%
EPS Next 2Y13.63%
EPS Next 3Y14.38%
EPS Next 5Y15.75%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5.1%
Revenue Next 5Y5.98%
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 30.97 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 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. CAE is around the same levels.
A Price/Forward Earnings ratio of 23.79 indicates a rather 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 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, CAE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.97 | ||
| Fwd PE | 23.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAE indicates a slightly more expensive valuation: CAE is more expensive than 70.00% of the companies listed 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 | 25.49 | ||
| EV/EBITDA | 13.96 |
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 14.38% in the coming years.
PEG (NY)4.4
PEG (5Y)N/A
EPS Next 2Y13.63%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CAE (11/26/2025, 7:00:00 PM)
37.16
+0.63 (+1.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.47%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap11.92B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target45.56 (22.6%)
Short Float %N/A
Short RatioN/A
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)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)-11.1%
EPS NQ rev (3m)-10.08%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.97 | ||
| Fwd PE | 23.79 | ||
| P/S | 2.47 | ||
| P/FCF | 25.49 | ||
| P/OCF | 12.6 | ||
| P/B | 2.35 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 13.96 |
EPS(TTM)1.2
EY3.23%
EPS(NY)1.56
Fwd EY4.2%
FCF(TTM)1.46
FCFY3.92%
OCF(TTM)2.95
OCFY7.94%
SpS15.07
BVpS15.83
TBVpS4.08
PEG (NY)4.4
PEG (5Y)N/A
Graham Number20.68
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 | 2.06 |
F-Score5
WACC9.39%
ROIC/WACC0.63
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 Y7.04%
EPS Next 2Y13.63%
EPS Next 3Y14.38%
EPS Next 5Y15.75%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5.1%
Revenue Next 5Y5.98%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year68.06%
EBIT Next 3Y25.45%
EBIT Next 5Y18.34%
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 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 6 / 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 30.97 and the Price/Book (PB) ratio is 2.35.
How financially healthy is CAE INC?
The financial health rating of CAE INC (CAE.CA) is 3 / 10.