CAE INC (CAE.CA) Stock Fundamental Analysis
TSX:CAE • CA1247651088
41.2 CAD
-1.63 (-3.81%)
Last: Feb 13, 2026, 07:00 PM
CAE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 13 industry peers in the Aerospace & Defense industry. CAE has an average financial health and profitability rating. CAE is quite expensive at the moment. It does show a decent growth rate.
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.
- 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
- With an excellent Return On Assets value of 3.87%, CAE belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- CAE has a better Return On Equity (8.45%) than 84.62% of its industry peers.
- CAE's Return On Invested Capital of 5.96% is in line compared to the rest of the industry. CAE outperforms 46.15% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 7.93%.
- The 3 year average ROIC (5.18%) for CAE is below the current ROIC(5.96%), indicating increased profibility in the last year.
| 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.
- CAE's Operating Margin of 13.19% 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 Gross Margin of 28.22%. This is in the better half of the industry: CAE outperforms 76.92% 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
- CAE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for CAE has been increased compared to 1 year ago.
- Compared to 5 years ago, CAE has more shares outstanding
- The debt/assets ratio for CAE has been reduced compared to a year ago.
2.2 Solvency
- CAE has an Altman-Z score of 2.24. 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 (2.24) than 92.31% 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 better Debt to FCF ratio (7.20) than 69.23% of its industry peers.
- A Debt/Equity ratio of 0.61 indicates that CAE is somewhat dependend on debt financing.
- CAE has a better Debt to Equity ratio (0.61) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.65
WACC9.15%
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.
- With a Current ratio value of 0.83, CAE is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
- A Quick Ratio of 0.59 indicates that CAE may have some problems paying its short term obligations.
- CAE's Quick ratio of 0.59 is fine compared to the rest of the industry. CAE outperforms 61.54% 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 11.42% over the past year.
- 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.
- CAE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.93%.
- CAE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
EPS 1Y (TTM)11.42%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%12.68%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%-0.04%
3.2 Future
- Based on estimates for the next years, CAE will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.97% on average per year.
- Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 5.55% on average per year.
EPS Next Y1.92%
EPS Next 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y14.97%
Revenue Next Year4.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.58%
Revenue Next 5Y5.55%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 33.23, which means the current valuation is very expensive for CAE.
- Compared to the rest of the industry, the Price/Earnings ratio of CAE indicates a slightly more expensive valuation: CAE is more expensive than 69.23% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CAE to the average of the S&P500 Index (26.68), we can say CAE is valued slightly more expensively.
- A Price/Forward Earnings ratio of 27.18 indicates a quite expensive valuation of CAE.
- Based on the Price/Forward Earnings ratio, CAE is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, CAE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.23 | ||
| Fwd PE | 27.18 |
4.2 Price Multiples
- CAE's Enterprise Value to EBITDA ratio is in line with the industry average.
- CAE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.33 | ||
| EV/EBITDA | 15.62 |
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)17.32
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 (2/13/2026, 7:00:00 PM)
41.2
-1.63 (-3.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-11 2026-05-11/amc
Inst Owners77.26%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap13.25B
Revenue(TTM)4.71B
Net Income(TTM)429.20M
Analysts75.29
Price Target49.22 (19.47%)
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)7.02%
PT rev (3m)9.66%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-14.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.78%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.23 | ||
| Fwd PE | 27.18 | ||
| P/S | 2.74 | ||
| P/FCF | 28.33 | ||
| P/OCF | 14 | ||
| P/B | 2.61 | ||
| P/tB | 10.14 | ||
| EV/EBITDA | 15.62 |
EPS(TTM)1.24
EY3.01%
EPS(NY)1.52
Fwd EY3.68%
FCF(TTM)1.45
FCFY3.53%
OCF(TTM)2.94
OCFY7.14%
SpS15.03
BVpS15.79
TBVpS4.06
PEG (NY)17.32
PEG (5Y)N/A
Graham Number20.99
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 | 2.24 |
F-Score5
WACC9.15%
ROIC/WACC0.65
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)11.42%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%12.68%
EPS Next Y1.92%
EPS Next 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y14.97%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%-0.04%
Revenue Next Year4.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.58%
Revenue Next 5Y5.55%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year65.22%
EBIT Next 3Y25.25%
EBIT Next 5Y17.75%
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%.