CAE INC (CAE.CA) Stock Fundamental Analysis
Canada - TSX:CAE - CA1247651088 - Common Stock
40.1 CAD
-0.05 (-0.12%)
We assign a fundamental rating of 5 out of 10 to CAE. 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 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.
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's Return On Assets of 3.75% is amongst the best of the industry. CAE outperforms 100.00% of its industry peers.
CAE has a Return On Equity of 8.31%. This is amongst the best in the industry. CAE outperforms 90.91% of its industry peers.
CAE has a Return On Invested Capital of 5.81%. This is comparable to the rest of the industry: CAE outperforms 54.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.31%.
The 3 year average ROIC (5.18%) for CAE is below the current ROIC(5.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.31% | ||
| ROIC | 5.81% |
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's Profit Margin of 8.61% is amongst the best of the industry. CAE outperforms 100.00% of its industry peers.
CAE's Profit Margin has been stable in the last couple of years.
The Operating Margin of CAE (13.03%) is better than 100.00% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
CAE has a better Gross Margin (28.09%) than 81.82% of its industry peers.
CAE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.03% | ||
| PM (TTM) | 8.61% | ||
| GM | 28.09% |
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.
Compared to 1 year ago, CAE has an improved debt to assets ratio.
2.2 Solvency
CAE has an Altman-Z score of 2.16. 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 2.16, 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 7.71, which is on the high side as it means it would take CAE, 7.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAE (7.71) is better than 81.82% of its industry peers.
CAE has a Debt/Equity ratio of 0.64. This is a neutral value indicating CAE is somewhat dependend on debt financing.
CAE has a better Debt to Equity ratio (0.64) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.66
WACC8.84%
2.3 Liquidity
A Current Ratio of 0.87 indicates that CAE may have some problems paying its short term obligations.
CAE has a Current ratio of 0.87. This is in the lower half of the industry: CAE underperforms 72.73% of its industry peers.
CAE has a Quick Ratio of 0.87. 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 decent Quick ratio value of 0.60, CAE is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.01%, 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.
CAE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.04%.
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)11.01%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%0%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
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 15.35% yearly.
CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y6.68%
EPS Next 2Y13.45%
EPS Next 3Y13.71%
EPS Next 5Y15.35%
Revenue Next Year3.27%
Revenue Next 2Y4.6%
Revenue Next 3Y4.82%
Revenue Next 5Y6.08%
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
With a Price/Earnings ratio of 33.14, CAE can be considered very expensive at the moment.
63.64% of the companies in the same industry are cheaper than CAE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, CAE is valued a bit more expensive.
CAE is valuated quite expensively with a Price/Forward Earnings ratio of 25.75.
63.64% of the companies in the same industry are cheaper than CAE, based on the Price/Forward Earnings ratio.
CAE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.14 | ||
| Fwd PE | 25.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CAE.
CAE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.1 | ||
| EV/EBITDA | 15.37 |
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.
CAE's earnings are expected to grow with 13.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.96
PEG (5Y)N/A
EPS Next 2Y13.45%
EPS Next 3Y13.71%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CAE (10/27/2025, 7:00:00 PM)
40.1
-0.05 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.47%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap12.86B
Revenue(TTM)4.73B
Net Income(TTM)407.80M
Analysts75.29
Price Target44.88 (11.92%)
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)0.46%
Min EPS beat(2)0.2%
Max EPS beat(2)0.72%
EPS beat(4)4
Avg EPS beat(4)5.98%
Min EPS beat(4)0.15%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)4.83%
EPS beat(12)10
Avg EPS beat(12)6.59%
EPS beat(16)11
Avg EPS beat(16)0.77%
Revenue beat(2)0
Avg Revenue beat(2)-3.28%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-2.34%
Revenue beat(4)2
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)3.5%
Revenue beat(8)4
Avg Revenue beat(8)-1.75%
Revenue beat(12)8
Avg Revenue beat(12)-0.33%
Revenue beat(16)8
Avg Revenue beat(16)-1.59%
PT rev (1m)0%
PT rev (3m)7.87%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-19.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.34%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.14 | ||
| Fwd PE | 25.75 | ||
| P/S | 2.72 | ||
| P/FCF | 29.1 | ||
| P/OCF | 14.38 | ||
| P/B | 2.62 | ||
| P/tB | 10.92 | ||
| EV/EBITDA | 15.37 |
EPS(TTM)1.21
EY3.02%
EPS(NY)1.56
Fwd EY3.88%
FCF(TTM)1.38
FCFY3.44%
OCF(TTM)2.79
OCFY6.95%
SpS14.76
BVpS15.3
TBVpS3.67
PEG (NY)4.96
PEG (5Y)N/A
Graham Number20.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.31% | ||
| ROCE | 7.2% | ||
| ROIC | 5.81% | ||
| ROICexc | 5.93% | ||
| ROICexgc | 10.67% | ||
| OM | 13.03% | ||
| PM (TTM) | 8.61% | ||
| GM | 28.09% | ||
| FCFM | 9.33% |
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-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 105.02% | ||
| Cap/Sales | 9.55% | ||
| Interest Coverage | 2.95 | ||
| Cash Conversion | 85.35% | ||
| Profit Quality | 108.36% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.16 |
F-Score6
WACC8.84%
ROIC/WACC0.66
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)11.01%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%0%
EPS Next Y6.68%
EPS Next 2Y13.45%
EPS Next 3Y13.71%
EPS Next 5Y15.35%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
Revenue Next Year3.27%
Revenue Next 2Y4.6%
Revenue Next 3Y4.82%
Revenue Next 5Y6.08%
EBIT growth 1Y35.75%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year68.06%
EBIT Next 3Y25.33%
EBIT Next 5Y18.61%
FCF growth 1Y576.72%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y71.38%
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 33.14 and the Price/Book (PB) ratio is 2.62.
How financially healthy is CAE INC?
The financial health rating of CAE INC (CAE.CA) is 4 / 10.