CAE INC (CAE.CA) Stock Fundamental Analysis
TSX:CAE • CA1247651088
41.35 CAD
+0.15 (+0.36%)
Last: Feb 17, 2026, 07:00 PM
Overall CAE gets a fundamental rating of 4 out of 10. We evaluated CAE against 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. While showing a medium growth rate, CAE is valued expensive at the moment.
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.
- CAE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of CAE (3.87%) is better than 84.62% of its industry peers.
- 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.
- CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This 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
- CAE's Profit Margin of 8.88% is amongst the best of the industry. CAE outperforms 92.31% 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 better Operating Margin (13.19%) than 92.31% of its industry peers.
- In the last couple of years the Operating Margin of CAE has declined.
- With a decent Gross Margin value of 28.22%, CAE is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- CAE's Gross Margin has declined in the last couple of years.
| 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.
- CAE has more shares outstanding than it did 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
- An Altman-Z score of 2.19 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 2.19, CAE belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- The Debt to FCF ratio of CAE is 7.20, which is on the high side as it means it would take CAE, 7.20 years of fcf income to pay off all of its debts.
- CAE has a better Debt to FCF ratio (7.20) than 69.23% of its industry peers.
- CAE has a Debt/Equity ratio of 0.61. This is a neutral value indicating 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 | 2.19 |
ROIC/WACC0.65
WACC9.18%
2.3 Liquidity
- A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
- CAE has a Current ratio of 0.83. This is in the lower half of the industry: CAE underperforms 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'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.
- The Earnings Per Share has been decreasing by -2.17% on average over the past years.
- CAE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.93%.
- 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)11.42%
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
- CAE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.97% yearly.
- The Revenue is expected to grow by 5.55% on average over the next years.
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
- 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.
- 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
- The Price/Earnings ratio is 33.35, which means the current valuation is very expensive for CAE.
- 69.23% 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 27.16, CAE is valued a bit more expensive.
- A Price/Forward Earnings ratio of 27.28 indicates a quite expensive valuation of CAE.
- 69.23% of the companies in the same industry are cheaper than CAE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 28.10. CAE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.35 | ||
| Fwd PE | 27.28 |
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 | 28.43 | ||
| EV/EBITDA | 15.18 |
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.
- CAE has a very decent profitability rating, which 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)17.38
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 (2/17/2026, 7:00:00 PM)
41.35
+0.15 (+0.36%)
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 Cap13.30B
Revenue(TTM)4.71B
Net Income(TTM)429.20M
Analysts75.29
Price Target49.22 (19.03%)
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 | 33.35 | ||
| Fwd PE | 27.28 | ||
| P/S | 2.75 | ||
| P/FCF | 28.43 | ||
| P/OCF | 14.06 | ||
| P/B | 2.62 | ||
| P/tB | 10.17 | ||
| EV/EBITDA | 15.18 |
EPS(TTM)1.24
EY3%
EPS(NY)1.52
Fwd EY3.67%
FCF(TTM)1.45
FCFY3.52%
OCF(TTM)2.94
OCFY7.11%
SpS15.03
BVpS15.79
TBVpS4.06
PEG (NY)17.38
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 | 2.19 |
F-Score5
WACC9.18%
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%.