CAE INC (CAE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAE - CA1247651088 - Common Stock
33.15 USD
+0.26 (+0.79%)
33.15 USD
0 (0%)
CAE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of CAE while its profitability can be described as average. CAE has a correct valuation and a medium 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.
- Each year in the past 5 years CAE had a positive operating cash flow.
1.2 Ratios
- CAE has a Return On Assets of 3.87%. This is in the better half of the industry: CAE outperforms 60.56% of its industry peers.
- CAE's Return On Equity of 8.45% is fine compared to the rest of the industry. CAE outperforms 60.56% of its industry peers.
- CAE has a Return On Invested Capital (5.96%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.54%.
- 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 fine compared to the rest of the industry. CAE outperforms 74.65% 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's Operating Margin of 13.19% is fine compared to the rest of the industry. CAE outperforms 77.46% of its industry peers.
- CAE's Operating Margin has declined in the last couple of years.
- CAE's Gross Margin of 28.22% is fine compared to the rest of the industry. CAE outperforms 63.38% of its industry peers.
- 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
- 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
- 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
- CAE has an Altman-Z score of 2.35. 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.
- CAE's Altman-Z score of 2.35 is on the low side compared to the rest of the industry. CAE is outperformed by 69.01% of its industry peers.
- 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 60.56% 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.
- Looking at the Debt to Equity ratio, with a value of 0.61, CAE is doing worse than 64.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.69
WACC8.65%
2.3 Liquidity
- CAE has a Current 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.
- Looking at the Current ratio, with a value of 0.83, CAE is doing worse than 91.55% of the companies in the same industry.
- 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 worse than 88.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.21%, 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 9.12% in the last year.
- The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)13.21%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
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 15.25% yearly.
- CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
EPS Next Y1.92%
EPS Next 2Y11.82%
EPS Next 3Y14.32%
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.
- 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
- A Price/Earnings ratio of 38.55 indicates a quite expensive valuation of CAE.
- CAE's Price/Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 70.42% of the companies in the same industry.
- CAE is valuated rather expensively when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 30.46 indicates a quite expensive valuation of CAE.
- Based on the Price/Forward Earnings ratio, CAE is valued a bit cheaper than the industry average as 74.65% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, CAE is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.55 | ||
| Fwd PE | 30.46 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAE indicates a rather cheap valuation: CAE is cheaper than 87.32% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CAE is valued cheaper than 88.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.7 | ||
| EV/EBITDA | 16.64 |
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's earnings are expected to grow with 14.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)20.1
PEG (5Y)N/A
EPS Next 2Y11.82%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
- CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
33.15
+0.26 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-11 2025-11-11/amc
Earnings (Next)02-13 2026-02-13/bmo
Inst Owners77.26%
Inst Owner Change0.01%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap10.66B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target33.36 (0.63%)
Short Float %0.7%
Short Ratio3.98
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)2.2%
PT rev (3m)3.51%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-12.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.55 | ||
| Fwd PE | 30.46 | ||
| P/S | 3.07 | ||
| P/FCF | 31.7 | ||
| P/OCF | 15.67 | ||
| P/B | 2.92 | ||
| P/tB | 11.34 | ||
| EV/EBITDA | 16.64 |
EPS(TTM)0.86
EY2.59%
EPS(NY)1.09
Fwd EY3.28%
FCF(TTM)1.05
FCFY3.16%
OCF(TTM)2.12
OCFY6.38%
SpS10.81
BVpS11.36
TBVpS2.92
PEG (NY)20.1
PEG (5Y)N/A
Graham Number14.83
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 | 2.35 |
F-Score5
WACC8.65%
ROIC/WACC0.69
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)13.21%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%-4.17%
EPS Next Y1.92%
EPS Next 2Y11.82%
EPS Next 3Y14.32%
EPS Next 5Y15.25%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
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 FAQ
What is the fundamental rating for CAE stock?
ChartMill assigns a fundamental rating of 4 / 10 to CAE.
What is the valuation status for CAE stock?
ChartMill assigns a valuation rating of 4 / 10 to CAE INC (CAE). This can be considered as Fairly Valued.
How profitable is CAE INC (CAE) stock?
CAE INC (CAE) has a profitability rating of 5 / 10.
What is the expected EPS growth for CAE INC (CAE) stock?
The Earnings per Share (EPS) of CAE INC (CAE) 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) is 0 / 10 and the dividend payout ratio is 0%.