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 66 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 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.
CAE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAE has a Return On Assets of 3.56%. This is comparable to the rest of the industry: CAE outperforms 59.09% of its industry peers.
CAE has a Return On Equity of 8.15%. This is in the better half of the industry: CAE outperforms 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.79%, CAE is in line with its industry, outperforming 51.52% 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 8.44%.
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
The Profit Margin of CAE (8.47%) is better than 77.27% of its industry peers.
In the last couple of years the Profit Margin of CAE has remained more or less at the same level.
With an excellent Operating Margin value of 12.98%, CAE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
CAE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 27.62%, CAE is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
In the last couple of years the Gross Margin of CAE has declined.
| 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.
The number of shares outstanding for CAE has been increased compared to 1 year ago.
CAE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CAE has been reduced compared to a year ago.
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.
CAE has a worse Altman-Z score (2.03) than 69.70% 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.
Looking at the Debt to FCF ratio, with a value of 7.67, CAE is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that CAE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, CAE perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.64
WACC9.1%
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 Current ratio of 0.80. This is amonst the worse of the industry: CAE underperforms 90.91% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.58, CAE is doing worse than 89.39% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -2.17% on average over the past years.
The Revenue has been growing slightly by 7.89% in the past year.
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
Based on estimates for the next years, CAE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.57% on average per year.
Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 5.08% on average per year.
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
A Price/Earnings ratio of 33.31 indicates a quite expensive valuation of CAE.
Based on the Price/Earnings ratio, CAE is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.45, CAE is valued a bit more expensive.
The Price/Forward Earnings ratio is 27.99, which means the current valuation is very expensive for CAE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. CAE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.31 | ||
| Fwd PE | 27.99 |
4.2 Price Multiples
CAE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAE is cheaper than 78.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAE is valued cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.53 | ||
| EV/EBITDA | 15.68 |
4.3 Compensation for Growth
The 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)1.75
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 |
29.65
+0.37 (+1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.68%
Inst Owner Change-47.97%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap9.50B
Analysts74.12
Price Target30 (1.18%)
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 | 33.31 | ||
| Fwd PE | 27.99 | ||
| P/S | 2.74 | ||
| P/FCF | 28.53 | ||
| P/OCF | 14.4 | ||
| P/B | 2.64 | ||
| P/tB | 12.65 | ||
| EV/EBITDA | 15.68 |
EPS(TTM)0.89
EY3%
EPS(NY)1.06
Fwd EY3.57%
FCF(TTM)1.04
FCFY3.5%
OCF(TTM)2.06
OCFY6.95%
SpS10.81
BVpS11.24
TBVpS2.34
PEG (NY)1.75
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
WACC9.1%
ROIC/WACC0.64
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%