CAE INC (CAE.CA) Stock Fundamental Analysis
TSX:CAE - Toronto Stock Exchange - CA1247651088 - Common Stock - Currency: CAD
Taking everything into account, CAE scores 4 out of 10 in our fundamental rating. CAE was compared to 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. 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.
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
CAE's Return On Assets of 3.56% is amongst the best of the industry. CAE outperforms 100.00% of its industry peers.
CAE has a Return On Equity of 8.15%. This is amongst the best in the industry. CAE outperforms 100.00% of its industry peers.
With a Return On Invested Capital value of 5.79%, CAE perfoms like the industry average, outperforming 45.45% 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 8.10%.
The last Return On Invested Capital (5.79%) for CAE is above the 3 year average (5.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.15% | ||
| ROIC | 5.79% |
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 Profit Margin of 8.47%. This is amongst the best in the industry. CAE outperforms 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 has a Operating Margin of 12.98%. This is amongst the best in the industry. CAE outperforms 100.00% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 27.62%, CAE belongs to the top of the industry, outperforming 81.82% 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 | 12.98% | ||
| PM (TTM) | 8.47% | ||
| GM | 27.62% |
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.
CAE has more shares outstanding than it did 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 2.02. 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.
CAE has a better Altman-Z score (2.02) than 81.82% of its industry peers.
The Debt to FCF ratio of CAE is 7.67, which is on the high side as it means it would take CAE, 7.67 years of fcf income to pay off all of its debts.
CAE has a Debt to FCF ratio of 7.67. This is amongst the best in the industry. CAE outperforms 81.82% of its industry peers.
CAE has a Debt/Equity ratio of 0.63. This is a neutral value indicating CAE is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.63, CAE is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.62
WACC9.37%
2.3 Liquidity
CAE has a Current Ratio of 0.80. This is a bad value and indicates that CAE is not financially healthy enough and could expect problems in meeting its short term obligations.
CAE has a Current ratio of 0.80. This is in the lower half of the industry: CAE underperforms 72.73% of its industry peers.
CAE has a Quick Ratio of 0.80. This is a bad value and indicates that CAE is not financially healthy enough and could expect problems in meeting its short term obligations.
CAE has a Quick ratio of 0.58. This is in the better half of the industry: CAE outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.04%, which is quite good.
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 been growing slightly by 7.89% in the past year.
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)8.04%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%27.03%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%13.24%
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 11.57% yearly.
The Revenue is expected to grow by 5.08% on average over the next years.
EPS Next Y18.98%
EPS Next 2Y18.04%
EPS Next 3Y13.97%
EPS Next 5Y11.57%
Revenue Next Year6.91%
Revenue Next 2Y6.36%
Revenue Next 3Y5.1%
Revenue Next 5Y5.08%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
CAE is valuated quite expensively with a Price/Earnings ratio of 32.58.
CAE's Price/Earnings ratio is in line with the industry average.
CAE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.38, CAE can be considered very expensive at the moment.
CAE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, CAE is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.58 | ||
| Fwd PE | 27.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAE is on the same level as its industry peers.
CAE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.91 | ||
| EV/EBITDA | 15.58 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CAE may justify a higher PE ratio.
CAE's earnings are expected to grow with 13.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y18.04%
EPS Next 3Y13.97%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CAE (7/11/2025, 7:00:00 PM)
39.42
-0.57 (-1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.68%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap12.63B
Analysts74.12
Price Target41.1 (4.26%)
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)0.44%
Min EPS beat(2)0.15%
Max EPS beat(2)0.72%
EPS beat(4)4
Avg EPS beat(4)6.41%
Min EPS beat(4)0.15%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)6.64%
EPS beat(12)9
Avg EPS beat(12)0.44%
EPS beat(16)11
Avg EPS beat(16)1.6%
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)3.5%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)3.5%
Revenue beat(8)5
Avg Revenue beat(8)-0.92%
Revenue beat(12)8
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)-1.49%
PT rev (1m)-1.73%
PT rev (3m)-2.32%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)-19.62%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.58 | ||
| Fwd PE | 27.38 | ||
| P/S | 2.68 | ||
| P/FCF | 27.91 | ||
| P/OCF | 14.08 | ||
| P/B | 2.58 | ||
| P/tB | 12.37 | ||
| EV/EBITDA | 15.58 |
EPS(TTM)1.21
EY3.07%
EPS(NY)1.44
Fwd EY3.65%
FCF(TTM)1.41
FCFY3.58%
OCF(TTM)2.8
OCFY7.1%
SpS14.7
BVpS15.27
TBVpS3.19
PEG (NY)1.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.15% | ||
| ROCE | 7.17% | ||
| ROIC | 5.79% | ||
| ROICexc | 6% | ||
| ROICexgc | 11.32% | ||
| OM | 12.98% | ||
| PM (TTM) | 8.47% | ||
| GM | 27.62% | ||
| FCFM | 9.61% |
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%
ROICexcg growth 3Y7.17%
ROICexcg 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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 107.09% | ||
| Cap/Sales | 9.43% | ||
| Interest Coverage | 3.03 | ||
| Cash Conversion | 87.4% | ||
| Profit Quality | 113.41% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.02 |
F-Score6
WACC9.37%
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)8.04%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%27.03%
EPS Next Y18.98%
EPS Next 2Y18.04%
EPS Next 3Y13.97%
EPS Next 5Y11.57%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%13.24%
Revenue Next Year6.91%
Revenue Next 2Y6.36%
Revenue Next 3Y5.1%
Revenue Next 5Y5.08%
EBIT growth 1Y29.14%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year69.28%
EBIT Next 3Y24.64%
EBIT Next 5Y19.87%
FCF growth 1Y407.18%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y58.14%
OCF growth 3Y28.94%
OCF growth 5Y10.46%