CAE INC (CAE) Stock Fundamental Analysis
NYSE:CAE - New York Stock Exchange, Inc. - CA1247651088 - Common Stock - Currency: USD
Overall CAE gets a fundamental rating of 4 out of 10. We evaluated CAE against 66 industry peers in the Aerospace & Defense industry. CAE has a medium profitability rating, but doesn't score so well on its financial health evaluation. CAE has a correct valuation and a medium growth rate.
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.
In the past 5 years CAE always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.56%, CAE perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.15%, CAE is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.79%, CAE is in line with its industry, outperforming 50.00% 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 8.47%.
The 3 year average ROIC (5.18%) for CAE is below the current ROIC(5.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.15% | ||
| ROIC | 5.79% |
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 Profit Margin of 8.47%. This is in the better half of the industry: CAE outperforms 77.27% of its industry peers.
CAE's Profit Margin has been stable in the last couple of years.
CAE has a better Operating Margin (12.98%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of CAE has declined.
CAE's Gross Margin of 27.62% is fine compared to the rest of the industry. CAE outperforms 63.64% of its industry peers.
CAE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.98% | ||
| PM (TTM) | 8.47% | ||
| GM | 27.62% |
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.
Compared to 1 year ago, CAE has more shares outstanding
Compared to 5 years ago, CAE has more shares outstanding
CAE has a better debt/assets ratio than last year.
2.2 Solvency
CAE has an Altman-Z score of 2.03. 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.
The Altman-Z score of CAE (2.03) is worse than 72.73% of its industry peers.
CAE has a debt to FCF ratio of 7.67. This is a slightly negative value and a sign of low solvency as CAE would need 7.67 years to pay back of all of its debts.
The Debt to FCF ratio of CAE (7.67) is better than 63.64% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that CAE is somewhat dependend on debt financing.
CAE has a Debt to Equity ratio (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.6
WACC9.62%
2.3 Liquidity
CAE has a Current Ratio of 0.80. 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 has a worse Current ratio (0.80) than 90.91% of its industry peers.
A Quick Ratio of 0.58 indicates that CAE may have some problems paying its short term obligations.
CAE's Quick ratio of 0.58 is on the low side compared to the rest of the industry. CAE is outperformed by 89.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.04% over the past year.
The Earnings Per Share has been decreasing by -2.17% on average over the past years.
CAE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.89%.
CAE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
EPS 1Y (TTM)8.04%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%27.03%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%13.24%
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 11.57% yearly.
The Revenue is expected to grow by 5.08% on average over the next years.
EPS Next Y18.98%
EPS Next 2Y18.04%
EPS Next 3Y13.97%
EPS Next 5Y11.57%
Revenue Next Year6.91%
Revenue Next 2Y6.36%
Revenue Next 3Y5.1%
Revenue Next 5Y5.08%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 33.07, which means the current valuation is very expensive for CAE.
CAE's Price/Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 69.70% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, CAE is valued a bit more expensive.
With a Price/Forward Earnings ratio of 27.82, CAE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 65.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, CAE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.07 | ||
| Fwd PE | 27.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
86.36% of the companies in the same industry are more expensive than CAE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.38 | ||
| EV/EBITDA | 15.7 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CAE's earnings are expected to grow with 13.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)N/A
EPS Next 2Y18.04%
EPS Next 3Y13.97%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.1
-0.2 (-0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.68%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap9.33B
Analysts74.12
Price Target30 (3.09%)
Short Float %0.62%
Short Ratio3.34
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)0.44%
Min EPS beat(2)0.15%
Max EPS beat(2)0.72%
EPS beat(4)4
Avg EPS beat(4)6.41%
Min EPS beat(4)0.15%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)6.64%
EPS beat(12)9
Avg EPS beat(12)0.44%
EPS beat(16)11
Avg EPS beat(16)1.6%
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)3.5%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)3.5%
Revenue beat(8)5
Avg Revenue beat(8)-0.92%
Revenue beat(12)8
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)-1.49%
PT rev (1m)-0.7%
PT rev (3m)2.6%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)-19.62%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.07 | ||
| Fwd PE | 27.82 | ||
| P/S | 2.73 | ||
| P/FCF | 28.38 | ||
| P/OCF | 14.32 | ||
| P/B | 2.62 | ||
| P/tB | 12.58 | ||
| EV/EBITDA | 15.7 |
EPS(TTM)0.88
EY3.02%
EPS(NY)1.05
Fwd EY3.59%
FCF(TTM)1.03
FCFY3.52%
OCF(TTM)2.03
OCFY6.98%
SpS10.67
BVpS11.09
TBVpS2.31
PEG (NY)1.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.15% | ||
| ROCE | 7.17% | ||
| ROIC | 5.79% | ||
| ROICexc | 6% | ||
| ROICexgc | 11.32% | ||
| OM | 12.98% | ||
| PM (TTM) | 8.47% | ||
| GM | 27.62% | ||
| FCFM | 9.61% |
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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 107.09% | ||
| Cap/Sales | 9.43% | ||
| Interest Coverage | 3.03 | ||
| Cash Conversion | 87.4% | ||
| Profit Quality | 113.41% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.03 |
F-Score6
WACC9.62%
ROIC/WACC0.6
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)8.04%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%27.03%
EPS Next Y18.98%
EPS Next 2Y18.04%
EPS Next 3Y13.97%
EPS Next 5Y11.57%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%13.24%
Revenue Next Year6.91%
Revenue Next 2Y6.36%
Revenue Next 3Y5.1%
Revenue Next 5Y5.08%
EBIT growth 1Y29.14%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year69.28%
EBIT Next 3Y24.64%
EBIT Next 5Y19.87%
FCF growth 1Y407.18%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y58.14%
OCF growth 3Y28.94%
OCF growth 5Y10.46%