CAE INC (CAE) Stock Fundamental Analysis
NYSE:CAE - New York Stock Exchange, Inc. - CA1247651088 - Common Stock - Currency: USD
CAE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. While CAE is still in line with the averages on profitability rating, there are concerns on its financial health. CAE is not valued too expensively and it also shows 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.
In the past 5 years CAE always reported a positive cash flow from operatings.
1.2 Ratios
CAE has a Return On Assets (3.56%) which is in line with its industry peers.
CAE has a better Return On Equity (8.15%) than 63.08% of its industry peers.
CAE has a Return On Invested Capital (5.79%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CAE is below the industry average of 8.44%.
The last Return On Invested Capital (5.79%) for CAE is above the 3 year average (5.18%), which is a sign of increasing profitability.
| 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 76.92% of its industry peers.
CAE's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 12.98%, CAE belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
In the last couple of years the Operating Margin of CAE has declined.
The Gross Margin of CAE (27.62%) is better than 63.08% 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
CAE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CAE has more shares outstanding than it did 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
CAE has an Altman-Z score of 2.04. 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.
Looking at the Altman-Z score, with a value of 2.04, CAE is doing worse than 70.77% of the companies in the same industry.
The Debt to FCF ratio of CAE is 7.67, which is on the high side as it means it would take CAE, 7.67 years of fcf income to pay off all of its debts.
CAE's Debt to FCF ratio of 7.67 is fine compared to the rest of the industry. CAE outperforms 63.08% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that CAE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, CAE is in line with its industry, outperforming 41.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.62
WACC9.39%
2.3 Liquidity
A Current Ratio of 0.80 indicates that CAE may have some problems paying its short term obligations.
With a Current ratio value of 0.80, CAE is not doing good in the industry: 90.77% of the companies in the same industry are doing better.
CAE has a Quick 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.
The Quick ratio of CAE (0.58) is worse than 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.04%, 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 small growth in Revenue. The Revenue has grown by 7.89% 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)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.
CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
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
With a Price/Earnings ratio of 33.42, CAE can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CAE is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
CAE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.29.
CAE is valuated quite expensively with a Price/Forward Earnings ratio of 28.21.
CAE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 66.15% of the companies in the same industry.
CAE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.42 | ||
| Fwd PE | 28.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued a bit cheaper than 76.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAE indicates a rather cheap valuation: CAE is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.75 | ||
| EV/EBITDA | 15.78 |
4.3 Compensation for Growth
CAE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CAE's earnings are expected to grow with 13.97% in the coming years.
PEG (NY)1.76
PEG (5Y)N/A
EPS Next 2Y18.04%
EPS Next 3Y13.97%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.74
+0.09 (+0.3%)
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 Cap9.52B
Analysts74.12
Price Target30 (0.87%)
Short Float %0.68%
Short Ratio4.01
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)-0.93%
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 | 33.42 | ||
| Fwd PE | 28.21 | ||
| P/S | 2.76 | ||
| P/FCF | 28.75 | ||
| P/OCF | 14.51 | ||
| P/B | 2.66 | ||
| P/tB | 12.75 | ||
| EV/EBITDA | 15.78 |
EPS(TTM)0.89
EY2.99%
EPS(NY)1.05
Fwd EY3.54%
FCF(TTM)1.03
FCFY3.48%
OCF(TTM)2.05
OCFY6.89%
SpS10.76
BVpS11.18
TBVpS2.33
PEG (NY)1.76
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 | 2.04 |
F-Score6
WACC9.39%
ROIC/WACC0.62
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%