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 is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 61.64% of its industry peers.
CAE has a Return On Equity of 8.45%. This is in the better half of the industry: CAE outperforms 61.64% of its industry peers.
CAE has a Return On Invested Capital of 5.96%. This is comparable to the rest of the industry: CAE outperforms 52.05% of its industry peers.
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 has a Profit Margin of 8.88%. This is in the better half of the industry: CAE outperforms 75.34% 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 78.08% 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 64.38% 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, CAE has an improved debt to assets ratio.

2.2 Solvency

CAE has an Altman-Z score of 2.34. 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 2.34 is on the low side compared to the rest of the industry. CAE is outperformed by 71.23% of its industry peers.
CAE has a debt to FCF ratio of 7.20. This is a slightly negative value and a sign of low solvency as CAE would need 7.20 years to pay back of all of its debts.
CAE has a Debt to FCF ratio of 7.20. This is in the better half of the industry: CAE outperforms 61.64% 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 64.38% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.61
Debt/FCF	7.2
Altman-Z	2.34

ROIC/WACC0.66

WACC9.1%

2.3 Liquidity

A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
CAE has a Current ratio of 0.83. This is amonst the worse of the industry: CAE underperforms 90.41% of its industry peers.
A Quick Ratio of 0.59 indicates that CAE may have some problems paying its short term obligations.
CAE's Quick ratio of 0.59 is on the low side compared to the rest of the industry. CAE is outperformed by 87.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.83
Quick Ratio	0.59

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
The Earnings Per Share has been decreasing by -2.17% on average over the past years.
CAE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.12%.
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)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.
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 2Y11.93%

EPS Next 3Y14.29%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 38.14, the valuation of CAE can be described as expensive.
Based on the Price/Earnings ratio, CAE is valued a bit cheaper than the industry average as 72.60% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CAE to the average of the S&P500 Index (27.21), we can say CAE is valued slightly more expensively.
A Price/Forward Earnings ratio of 30.12 indicates a quite expensive valuation of CAE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 76.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CAE is valued at the same level.

		Industry Rank	Sector Rank
PE	38.14
Fwd PE	30.12

4.2 Price Multiples

87.67% of the companies in the same industry are more expensive than CAE, based on the Enterprise Value to EBITDA ratio.
CAE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAE is cheaper than 89.04% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	31.4
EV/EBITDA	16.51

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 14.29% in the coming years. This may justify a more expensive valuation.