CAE INC (CAE.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CAE • CA1247651088
42.66 CAD
+1.16 (+2.8%)
Last: Feb 6, 2026, 07:00 PM
Taking everything into account, CAE scores 4 out of 10 in our fundamental rating. CAE was compared to 13 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of CAE get a neutral evaluation. Nothing too spectacular is happening here. 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.
- In the past year CAE had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: CAE reported negative net income in multiple years.
- In the past 5 years CAE always reported a positive cash flow from operatings.
1.2 Ratios
- CAE has a better Return On Assets (3.87%) than 84.62% of its industry peers.
- CAE has a better Return On Equity (8.45%) than 84.62% of its industry peers.
- CAE has a Return On Invested Capital (5.96%) 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 8.16%.
- 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.
- CAE's Profit Margin has been stable in the last couple of years.
- CAE has a better Operating Margin (13.19%) than 92.31% 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 28.22%, CAE is in the better half of the industry, outperforming 76.92% 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 | 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.
- 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.
- The debt/assets ratio for CAE has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.20 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.20, CAE belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 7.20, CAE is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- CAE has a Debt/Equity ratio of 0.61. This is a neutral value indicating CAE is somewhat dependend on debt financing.
- The Debt to Equity ratio of CAE (0.61) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.62
WACC9.56%
2.3 Liquidity
- A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
- CAE has a worse Current ratio (0.83) than 76.92% 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 in the better half 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 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.
- 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
- Based on estimates for the next years, CAE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.25% on average per year.
- CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
EPS Next Y1.92%
EPS Next 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y15.25%
Revenue Next Year4.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.58%
Revenue Next 5Y5.95%
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
- A Price/Earnings ratio of 35.55 indicates a quite expensive valuation of CAE.
- Based on the Price/Earnings ratio, CAE is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 27.92. CAE is valued slightly more expensive when compared to this.
- CAE is valuated quite expensively with a Price/Forward Earnings ratio of 28.14.
- Compared to the rest of the industry, the Price/Forward 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.
- CAE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 28.14 |
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 61.54% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CAE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.34 | ||
| EV/EBITDA | 15.27 |
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)18.53
PEG (5Y)N/A
EPS Next 2Y11.93%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
- CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:CAE (2/6/2026, 7:00:00 PM)
42.66
+1.16 (+2.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-11 2025-11-11/amc
Earnings (Next)02-12 2026-02-12/amc
Inst Owners77.26%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap13.72B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target49.22 (15.38%)
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)1.29%
PT rev (3m)3.79%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-13.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.46%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 28.14 | ||
| P/S | 2.84 | ||
| P/FCF | 29.34 | ||
| P/OCF | 14.5 | ||
| P/B | 2.7 | ||
| P/tB | 10.5 | ||
| EV/EBITDA | 15.27 |
EPS(TTM)1.2
EY2.81%
EPS(NY)1.52
Fwd EY3.55%
FCF(TTM)1.45
FCFY3.41%
OCF(TTM)2.94
OCFY6.9%
SpS15.03
BVpS15.79
TBVpS4.06
PEG (NY)18.53
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 | 2.2 |
F-Score5
WACC9.56%
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)13.21%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%-4.17%
EPS Next Y1.92%
EPS Next 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y15.25%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year4.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.58%
Revenue Next 5Y5.95%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year65.22%
EBIT Next 3Y25.25%
EBIT Next 5Y18.45%
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%.