CAE INC (CAE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CAE - CA1247651088 - Common Stock
42.99 CAD
-0.02 (-0.05%)
Overall CAE gets a fundamental rating of 5 out of 10. We evaluated CAE against 11 industry peers in the Aerospace & Defense industry. While CAE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, CAE is valued expensive at the moment.
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.
The Return On Equity of CAE (8.45%) is better than 100.00% of its industry peers.
With a Return On Invested Capital value of 5.96%, CAE perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This is below the industry average of 8.45%.
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
The Profit Margin of CAE (8.88%) is better 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.
In the last couple of years the Operating Margin of CAE has declined.
CAE's Gross Margin of 28.22% is amongst the best of 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.
CAE has more shares outstanding than it did 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 2.25. 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 2.25, CAE belongs to the top of the industry, outperforming 90.91% 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.
CAE's Debt to FCF ratio of 7.20 is amongst the best of the industry. CAE outperforms 81.82% 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 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
CAE has a Current Ratio of 0.83. 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 0.83, CAE is doing worse than 72.73% of the companies in the same industry.
CAE has a Quick Ratio of 0.83. This is a bad value and indicates that CAE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CAE (0.59) is better than 72.73% 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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 35.83, the valuation of CAE can be described as expensive.
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.
CAE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.59.
The Price/Forward Earnings ratio is 28.28, which means the current valuation is very expensive for CAE.
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.
The average S&P500 Price/Forward Earnings ratio is at 24.03. CAE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.83 | ||
| Fwd PE | 28.28 |
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 63.64% 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 | 29.56 | ||
| EV/EBITDA | 15.72 |
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 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
No dividends for CAE!.
| 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.