CAE INC (CAE) Stock Fundamental Analysis
NYSE:CAE • CA1247651088
30.04 USD
-0.3 (-0.99%)
At close: Feb 18, 2026
30.04 USD
0 (0%)
After Hours: 2/18/2026, 4:03:47 PM
We assign a fundamental rating of 4 out of 10 to CAE. CAE was compared to 73 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 decent growth rate and is not valued too expensively.
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.
- The reported net income has been mixed in the past 5 years: CAE reported negative net income in multiple years.
- In the past 5 years CAE always reported a positive cash flow from operatings.
1.2 Ratios
- CAE has a Return On Assets (3.35%) which is comparable to the rest of the industry.
- The Return On Equity of CAE (7.15%) is comparable to the rest of the industry.
- With an excellent Return On Invested Capital value of 14.50%, CAE belongs to the best of the industry, outperforming 90.41% of the companies in the same industry.
- CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This is below the industry average of 8.97%.
- The 3 year average ROIC (5.18%) for CAE is below the current ROIC(14.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 7.15% | ||
| ROIC | 14.5% |
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 7.60%. This is in the better half of the industry: CAE outperforms 72.60% 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 (31.96%) than 98.63% of its industry peers.
- CAE's Operating Margin has declined in the last couple of years.
- CAE's Gross Margin of 28.52% is fine compared to the rest of the industry. CAE outperforms 64.38% of its industry peers.
- In the last couple of years the Gross Margin of CAE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.96% | ||
| PM (TTM) | 7.6% | ||
| GM | 28.52% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for CAE has been increased compared to 1 year ago.
- Compared to 5 years ago, CAE has more shares outstanding
- Compared to 1 year ago, CAE has an improved debt to assets ratio.
2.2 Solvency
- CAE has an Altman-Z score of 2.55. 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.
- With a Altman-Z score value of 2.55, CAE is not doing good in the industry: 64.38% of the companies in the same industry are doing better.
- The Debt to FCF ratio of CAE is 6.46, which is on the high side as it means it would take CAE, 6.46 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 6.46, CAE perfoms like the industry average, outperforming 57.53% of the companies in the same industry.
- A Debt/Equity ratio of 0.58 indicates that CAE is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.58, CAE is not doing good in the industry: 64.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.57
WACC9.21%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that CAE may have some problems paying its short term obligations.
- The Current ratio of CAE (0.91) is worse than 90.41% of its industry peers.
- CAE has a Quick Ratio of 0.91. 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 (0.69) is worse than 84.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.61% over the past year.
- Measured over the past years, CAE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.17% on average per year.
- The Revenue has been growing slightly by 6.67% in the past year.
- The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)12.61%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%17.24%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.35%
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 14.97% on average per year.
- 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 Year4.46%
Revenue Next 2Y3.69%
Revenue Next 3Y4.4%
Revenue Next 5Y5.55%
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
- Based on the Price/Earnings ratio of 32.65, the valuation of CAE can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 79.45% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.16. CAE is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 27.06, which means the current valuation is very expensive for CAE.
- Based on the Price/Forward Earnings ratio, CAE is valued cheaply inside the industry as 83.56% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.10, CAE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.65 | ||
| Fwd PE | 27.06 |
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 98.63% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CAE is valued cheaply inside the industry as 89.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.27 | ||
| EV/EBITDA | 8.02 |
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.
- The decent profitability rating of CAE 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)17.02
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% |
30.04
-0.3 (-0.99%)
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 Change10.06%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap9.66B
Revenue(TTM)4.86B
Net Income(TTM)369.50M
Analysts75.29
Price Target35.99 (19.81%)
Short Float %0.7%
Short Ratio3.52
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)12.32%
Min EPS beat(2)12.21%
Max EPS beat(2)12.42%
EPS beat(4)4
Avg EPS beat(4)6.39%
Min EPS beat(4)0.2%
Max EPS beat(4)12.42%
EPS beat(8)7
Avg EPS beat(8)4.83%
EPS beat(12)10
Avg EPS beat(12)6.68%
EPS beat(16)13
Avg EPS beat(16)3.27%
Revenue beat(2)1
Avg Revenue beat(2)3.04%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)7.25%
Revenue beat(4)1
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)7.25%
Revenue beat(8)4
Avg Revenue beat(8)-0.92%
Revenue beat(12)7
Avg Revenue beat(12)-0.15%
Revenue beat(16)9
Avg Revenue beat(16)-0.03%
PT rev (1m)7.89%
PT rev (3m)12.48%
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 | 32.65 | ||
| Fwd PE | 27.06 | ||
| P/S | 2.71 | ||
| P/FCF | 26.27 | ||
| P/OCF | 14.2 | ||
| P/B | 2.55 | ||
| P/tB | 9.03 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)0.92
EY3.06%
EPS(NY)1.11
Fwd EY3.7%
FCF(TTM)1.14
FCFY3.81%
OCF(TTM)2.12
OCFY7.04%
SpS11.07
BVpS11.77
TBVpS3.33
PEG (NY)17.02
PEG (5Y)N/A
Graham Number15.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 7.15% | ||
| ROCE | 17.94% | ||
| ROIC | 14.5% | ||
| ROICexc | 15.32% | ||
| ROICexgc | 27.96% | ||
| OM | 31.96% | ||
| PM (TTM) | 7.6% | ||
| GM | 28.52% | ||
| FCFM | 10.33% |
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%
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-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.46 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 94.09% | ||
| Cap/Sales | 8.78% | ||
| Interest Coverage | 7.88 | ||
| Cash Conversion | 46.26% | ||
| Profit Quality | 135.89% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.55 |
F-Score8
WACC9.21%
ROIC/WACC1.57
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)12.61%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%17.24%
EPS Next Y1.92%
EPS Next 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y14.97%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.35%
Revenue Next Year4.46%
Revenue Next 2Y3.69%
Revenue Next 3Y4.4%
Revenue Next 5Y5.55%
EBIT growth 1Y208.7%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year65.22%
EBIT Next 3Y25.25%
EBIT Next 5Y17.75%
FCF growth 1Y464.16%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y74.53%
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 5 / 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 6 / 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%.