CAE INC (CAE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAE - CA1247651088 - Common Stock
34.05 USD
+0.9 (+2.71%)
34.05 USD
0 (0%)
Overall CAE gets a fundamental rating of 4 out of 10. We evaluated CAE against 72 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- CAE had positive earnings in the past year.
- 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.
- 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 61.11% of its industry peers.
- With a decent Return On Equity value of 8.45%, CAE is doing good in the industry, outperforming 61.11% of the companies in the same industry.
- With a Return On Invested Capital value of 5.96%, CAE perfoms like the industry average, outperforming 51.39% 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 8.56%.
- 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 75.00% 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 13.19%, CAE is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- CAE's Operating Margin has declined in the last couple of years.
- CAE has a Gross Margin of 28.22%. This is in the better half of the industry: CAE outperforms 63.89% of its industry peers.
- CAE's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAE is destroying 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
- CAE has a better debt/assets ratio than last year.
2.2 Solvency
- CAE has an Altman-Z score of 2.39. 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 2.39 is on the low side compared to the rest of the industry. CAE is outperformed by 68.06% 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.
- Looking at the Debt to FCF ratio, with a value of 7.20, CAE is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- A Debt/Equity ratio of 0.61 indicates that CAE is somewhat dependend on debt financing.
- The Debt to Equity ratio of CAE (0.61) is worse than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.39 |
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.
- CAE's Current ratio of 0.83 is on the low side compared to the rest of the industry. CAE is outperformed by 90.28% of its industry peers.
- 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 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.21% over the past year.
- The Earnings Per Share has been decreasing by -2.17% on average over the past years.
- The Revenue has grown by 9.12% in the past year. This is quite good.
- CAE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
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
- Based on estimates for the next years, CAE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.25% on average per year.
- Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 39.59, 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 68.06% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CAE to the average of the S&P500 Index (27.38), we can say CAE is valued slightly more expensively.
- CAE is valuated quite expensively with a Price/Forward Earnings ratio of 31.26.
- CAE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 73.61% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. CAE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.59 | ||
| Fwd PE | 31.26 |
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 87.50% of the companies listed in the same industry.
- 88.89% 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 | 32.52 | ||
| EV/EBITDA | 16.99 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- CAE's earnings are expected to grow with 14.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)20.64
PEG (5Y)N/A
EPS Next 2Y11.82%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
- No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
34.05
+0.9 (+2.71%)
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 Change0.07%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap10.95B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target33.6 (-1.32%)
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)2.94%
PT rev (3m)4.26%
EPS NQ rev (1m)0%
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 | 39.59 | ||
| Fwd PE | 31.26 | ||
| P/S | 3.15 | ||
| P/FCF | 32.52 | ||
| P/OCF | 16.07 | ||
| P/B | 2.99 | ||
| P/tB | 11.63 | ||
| EV/EBITDA | 16.99 |
EPS(TTM)0.86
EY2.53%
EPS(NY)1.09
Fwd EY3.2%
FCF(TTM)1.05
FCFY3.07%
OCF(TTM)2.12
OCFY6.22%
SpS10.82
BVpS11.37
TBVpS2.93
PEG (NY)20.64
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 | 2.39 |
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%.