CAE INC (CAE.CA) Stock Fundamental Analysis
Canada - TSX:CAE - CA1247651088 - Common Stock
37.05 CAD
-0.11 (-0.3%)
We assign a fundamental rating of 4 out of 10 to CAE. CAE was compared to 12 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
In the past year CAE was profitable.
CAE had a positive operating cash flow in the past year.
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
CAE has a Return On Assets of 3.75%. This is amongst the best in the industry. CAE outperforms 100.00% of its industry peers.
CAE has a better Return On Equity (8.31%) than 91.67% 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 58.33% 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 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 has a better Profit Margin (8.61%) than 100.00% of its industry peers.
CAE's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 13.03%, CAE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CAE's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 28.09%, CAE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
CAE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.03% | ||
| 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
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.
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 2.06 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 2.06, CAE belongs to the best of the industry, outperforming 91.67% 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.
CAE has a better Debt to FCF ratio (7.71) than 83.33% 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's Debt to Equity ratio of 0.64 is in line compared to the rest of the industry. CAE outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.63
WACC9.22%
2.3 Liquidity
CAE has a Current 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.
CAE's Current ratio of 0.87 is on the low side compared to the rest of the industry. CAE is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.60 indicates that CAE may have some problems paying its short term obligations.
The Quick ratio of CAE (0.60) is comparable to the rest of the 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.
CAE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.17% yearly.
Looking at the last year, CAE shows a quite strong growth in Revenue. The Revenue has grown by 8.04% in the last year.
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
Based on estimates for the next years, CAE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.35% on average per year.
The Revenue is expected to grow by 6.08% on average over the next years.
EPS Next Y7.84%
EPS Next 2Y14.08%
EPS Next 3Y13.22%
EPS Next 5Y15.35%
Revenue Next Year3.2%
Revenue Next 2Y4.61%
Revenue Next 3Y5.15%
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
CAE is valuated quite expensively with a Price/Earnings ratio of 30.62.
The rest of the industry has a similar Price/Earnings ratio as CAE.
When comparing the Price/Earnings ratio of CAE to the average of the S&P500 Index (27.20), we can say CAE is valued inline with the index average.
A Price/Forward Earnings ratio of 23.53 indicates a rather expensive valuation of CAE.
CAE's Price/Forward Earnings ratio is in line with the industry average.
CAE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.62 | ||
| Fwd PE | 23.53 |
4.2 Price Multiples
CAE's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 26.89 | ||
| EV/EBITDA | 14.43 |
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 13.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.9
PEG (5Y)N/A
EPS Next 2Y14.08%
EPS Next 3Y13.22%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CAE (9/17/2025, 7:00:00 PM)
37.05
-0.11 (-0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.68%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap11.88B
Analysts75.29
Price Target44.88 (21.13%)
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)3.43%
PT rev (3m)8.09%
EPS NQ rev (1m)-19.61%
EPS NQ rev (3m)-24.85%
EPS NY rev (1m)-9.36%
EPS NY rev (3m)-9.36%
Revenue NQ rev (1m)-3.75%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.62 | ||
| Fwd PE | 23.53 | ||
| P/S | 2.51 | ||
| P/FCF | 26.89 | ||
| P/OCF | 13.29 | ||
| P/B | 2.42 | ||
| P/tB | 10.09 | ||
| EV/EBITDA | 14.43 |
EPS(TTM)1.21
EY3.27%
EPS(NY)1.57
Fwd EY4.25%
FCF(TTM)1.38
FCFY3.72%
OCF(TTM)2.79
OCFY7.52%
SpS14.76
BVpS15.3
TBVpS3.67
PEG (NY)3.9
PEG (5Y)N/A
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%
ROICexcg growth 3Y7.17%
ROICexcg 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 | 2.06 |
F-Score6
WACC9.22%
ROIC/WACC0.63
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 Y7.84%
EPS Next 2Y14.08%
EPS Next 3Y13.22%
EPS Next 5Y15.35%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
Revenue Next Year3.2%
Revenue Next 2Y4.61%
Revenue Next 3Y5.15%
Revenue Next 5Y6.08%
EBIT growth 1Y35.75%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year69.28%
EBIT Next 3Y24.79%
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%