CAE INC (CAE.CA)
CA1247651088 - Common Stock
Taking everything into account, CAE scores 3 out of 10 in our fundamental rating. CAE was compared to 13 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of CAE while its profitability can be described as average. While showing a medium growth rate, CAE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CAE had positive earnings in the past year.
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.
Each year in the past 5 years CAE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.23%, CAE is doing worse than 61.54% of the companies in the same industry.
CAE's Return On Equity of -7.46% is fine compared to the rest of the industry. CAE outperforms 76.92% of its industry peers.
CAE has a Return On Invested Capital (4.69%) 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 7.19%.
The 3 year average ROIC (4.47%) for CAE is below the current ROIC(4.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.23% | ||
| ROE | -7.46% | ||
| ROIC | 4.69% |
ROA(3y)0.17%
ROA(5y)0.73%
ROE(3y)0.43%
ROE(5y)2.46%
ROIC(3y)4.47%
ROIC(5y)4.61%
1.3 Margins
CAE's Operating Margin of 10.29% is amongst the best of the industry. CAE outperforms 92.31% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
CAE has a better Gross Margin (26.05%) than 76.92% of its industry peers.
In the last couple of years the Gross Margin of CAE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.29% | ||
| PM (TTM) | N/A | ||
| GM | 26.05% |
OM growth 3Y7.68%
OM growth 5Y-3.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.66%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
CAE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CAE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CAE has more shares outstanding
CAE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.98 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAE has a Altman-Z score of 1.98. This is amongst the best in the industry. CAE outperforms 84.62% of its industry peers.
The Debt to FCF ratio of CAE is 25.02, which is on the high side as it means it would take CAE, 25.02 years of fcf income to pay off all of its debts.
CAE's Debt to FCF ratio of 25.02 is fine compared to the rest of the industry. CAE outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that CAE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, CAE perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 25.02 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.54
WACC8.62%
2.3 Liquidity
CAE has a Current Ratio of 0.84. 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's Current ratio of 0.84 is on the low side compared to the rest of the industry. CAE is outperformed by 84.62% of its industry peers.
CAE has a Quick Ratio of 0.84. 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 Quick ratio, with a value of 0.59, CAE is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
CAE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.02%.
CAE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.02% yearly.
CAE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.23%.
The Revenue has been growing slightly by 5.33% on average over the past years.
EPS 1Y (TTM)-7.02%
EPS 3Y34.53%
EPS 5Y-2.02%
EPS Q2Q%-11.11%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y12.83%
Revenue growth 5Y5.33%
Sales Q2Q%4.42%
3.2 Future
The Earnings Per Share is expected to grow by 13.22% on average over the next years. This is quite good.
CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.61% yearly.
EPS Next Y9.4%
EPS Next 2Y13.89%
EPS Next 3Y14.95%
EPS Next 5Y13.22%
Revenue Next Year2.21%
Revenue Next 2Y4.71%
Revenue Next 3Y5.49%
Revenue Next 5Y5.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 34.45.
CAE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. CAE is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 25.14 indicates a quite expensive valuation of CAE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of CAE to the average of the S&P500 Index (23.80), we can say CAE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.45 | ||
| Fwd PE | 25.14 |
4.2 Price Multiples
CAE's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 89.77 | ||
| EV/EBITDA | 17.11 |
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.
A more expensive valuation may be justified as CAE's earnings are expected to grow with 14.95% in the coming years.
PEG (NY)3.66
PEG (5Y)N/A
EPS Next 2Y13.89%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CAE INC
TSX:CAE (12/27/2024, 7:00:00 PM)
36.52
+0.79 (+2.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners76.94%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap11.64B
Analysts72.5
Price Target32.68 (-10.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)12.38%
Min EPS beat(2)1.92%
Max EPS beat(2)22.83%
EPS beat(4)2
Avg EPS beat(4)1.53%
Min EPS beat(4)-11.82%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)8.49%
EPS beat(12)8
Avg EPS beat(12)2.14%
EPS beat(16)11
Avg EPS beat(16)3.6%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)0.23%
Max Revenue beat(2)3.23%
Revenue beat(4)2
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-13.83%
Max Revenue beat(4)3.23%
Revenue beat(8)6
Avg Revenue beat(8)-0.57%
Revenue beat(12)7
Avg Revenue beat(12)-1%
Revenue beat(16)9
Avg Revenue beat(16)-1.48%
PT rev (1m)11.45%
PT rev (3m)11.13%
EPS NQ rev (1m)-3.23%
EPS NQ rev (3m)-9.13%
EPS NY rev (1m)2.99%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.45 | ||
| Fwd PE | 25.14 | ||
| P/S | 2.63 | ||
| P/FCF | 89.77 | ||
| P/OCF | 19.9 | ||
| P/B | 2.66 | ||
| P/tB | 10.55 | ||
| EV/EBITDA | 17.11 |
EPS(TTM)1.06
EY2.9%
EPS(NY)1.45
Fwd EY3.98%
FCF(TTM)0.41
FCFY1.11%
OCF(TTM)1.84
OCFY5.03%
SpS13.9
BVpS13.75
TBVpS3.46
PEG (NY)3.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.23% | ||
| ROE | -7.46% | ||
| ROCE | 5.99% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 8.59% | ||
| OM | 10.29% | ||
| PM (TTM) | N/A | ||
| GM | 26.05% | ||
| FCFM | 2.93% |
ROA(3y)0.17%
ROA(5y)0.73%
ROE(3y)0.43%
ROE(5y)2.46%
ROIC(3y)4.47%
ROIC(5y)4.61%
ROICexc(3y)4.61%
ROICexc(5y)5.04%
ROICexgc(3y)9.14%
ROICexgc(5y)9.16%
ROCE(3y)5.71%
ROCE(5y)5.89%
ROICexcg growth 3Y11.59%
ROICexcg growth 5Y-5.42%
ROICexc growth 3Y8.35%
ROICexc growth 5Y-6.33%
OM growth 3Y7.68%
OM growth 5Y-3.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.66%
GM growth 5Y-1.1%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 25.02 | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 117.01% | ||
| Cap/Sales | 10.28% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 69.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.98 |
F-Score4
WACC8.62%
ROIC/WACC0.54
Cap/Depr(3y)122.86%
Cap/Depr(5y)109.7%
Cap/Sales(3y)10.68%
Cap/Sales(5y)9.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.02%
EPS 3Y34.53%
EPS 5Y-2.02%
EPS Q2Q%-11.11%
EPS Next Y9.4%
EPS Next 2Y13.89%
EPS Next 3Y14.95%
EPS Next 5Y13.22%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y12.83%
Revenue growth 5Y5.33%
Sales Q2Q%4.42%
Revenue Next Year2.21%
Revenue Next 2Y4.71%
Revenue Next 3Y5.49%
Revenue Next 5Y5.61%
EBIT growth 1Y-19.14%
EBIT growth 3Y21.5%
EBIT growth 5Y1.78%
EBIT Next Year73.65%
EBIT Next 3Y28.61%
EBIT Next 5Y22.84%
FCF growth 1Y51.34%
FCF growth 3Y-23.97%
FCF growth 5YN/A
OCF growth 1Y18.99%
OCF growth 3Y15.64%
OCF growth 5Y1.34%