CAE INC (CAE.CA) Stock Fundamental Analysis
TSX:CAE • CA1247651088
42.65 CAD
-0.18 (-0.42%)
Last: Feb 12, 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. CAE has only an average score on both its financial health and profitability. CAE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CAE was profitable.
- 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.
- CAE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.87%, CAE belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- With an excellent Return On Equity value of 8.45%, CAE belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.96%, CAE is in line with its industry, outperforming 46.15% of the companies in the same 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
- CAE's Profit Margin of 8.88% is amongst the best of the industry. CAE outperforms 92.31% of its industry peers.
- 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.
- In the last couple of years the Operating Margin of CAE has declined.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAE is destroying value.
- The number of shares outstanding for CAE has been increased compared to 1 year ago.
- The number of shares outstanding for CAE has been increased compared to 5 years ago.
- CAE has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.24 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 2.24. This is amongst the best in the industry. CAE outperforms 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.
- With a decent Debt to FCF ratio value of 7.20, CAE is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- 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
- A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
- The Current ratio of CAE (0.83) is worse than 76.92% of its industry peers.
- CAE has a Quick 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.
- The Quick ratio of CAE (0.59) is better than 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.
- 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 9.93% in the past year. This is quite good.
- 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 15.25% on average per year.
- Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
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
- 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
- CAE is valuated quite expensively with a Price/Earnings ratio of 34.40.
- CAE's Price/Earnings ratio is a bit more expensive when compared to the industry. CAE is more expensive than 69.23% of the companies in the same industry.
- CAE is valuated rather expensively when we compare the Price/Earnings ratio to 27.97, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 28.13 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 27.96. CAE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.4 | ||
| Fwd PE | 28.13 |
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.
- 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 | 29.33 | ||
| 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.
- CAE has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as CAE's earnings are expected to grow with 14.29% in the coming years.
PEG (NY)17.93
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 (2/12/2026, 7:00:00 PM)
42.65
-0.18 (-0.42%)
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 Cap13.71B
Revenue(TTM)4.71B
Net Income(TTM)429.20M
Analysts75.29
Price Target49.22 (15.4%)
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)-0.47%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.4 | ||
| Fwd PE | 28.13 | ||
| P/S | 2.84 | ||
| P/FCF | 29.33 | ||
| P/OCF | 14.5 | ||
| P/B | 2.7 | ||
| P/tB | 10.49 | ||
| EV/EBITDA | 15.62 |
EPS(TTM)1.24
EY2.91%
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)17.93
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 5Y15.25%
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 5Y5.95%
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%.