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. 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.
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 of -1.94%. This is in the lower half of the industry: CAE underperforms 67.19% of its industry peers.
Looking at the Return On Equity, with a value of -4.60%, CAE is doing worse than 64.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.60%, CAE is in line with its industry, outperforming 45.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAE is below the industry average of 7.98%.
The 3 year average ROIC (4.47%) for CAE is below the current ROIC(4.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.6% | ||
| ROIC | 4.6% |
ROA(3y)0.17%
ROA(5y)0.73%
ROE(3y)0.43%
ROE(5y)2.46%
ROIC(3y)4.47%
ROIC(5y)4.61%
1.3 Margins
With a decent Operating Margin value of 11.04%, CAE is doing good in the industry, outperforming 73.44% 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 (26.12%) is better than 62.50% of its industry peers.
CAE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.12% |
OM growth 3Y7.68%
OM growth 5Y-3.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.66%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAE is destroying value.
CAE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CAE has been increased compared to 5 years ago.
The debt/assets ratio for CAE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.86 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAE has a Altman-Z score of 1.86. This is in the lower half of the industry: CAE underperforms 70.31% of its industry peers.
CAE has a debt to FCF ratio of 10.82. This is a negative value and a sign of low solvency as CAE would need 10.82 years to pay back of all of its debts.
CAE's Debt to FCF ratio of 10.82 is in line compared to the rest of the industry. CAE outperforms 57.81% of its industry peers.
CAE has a Debt/Equity ratio of 0.71. This is a neutral value indicating CAE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, CAE is doing worse than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.82 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.57
WACC8.1%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CAE may have some problems paying its short term obligations.
CAE's Current ratio of 0.86 is on the low side compared to the rest of the industry. CAE is outperformed by 89.06% of its industry peers.
CAE has a Quick Ratio of 0.86. 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 0.63, CAE is doing worse than 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.64% over the past year.
The Earnings Per Share has been decreasing by -2.02% on average over the past years.
Looking at the last year, CAE shows a small growth in Revenue. The Revenue has grown by 1.44% in the last year.
The Revenue has been growing slightly by 5.33% on average over the past years.
EPS 1Y (TTM)1.64%
EPS 3Y34.53%
EPS 5Y-2.02%
EPS Q2Q%24.18%
Revenue 1Y (TTM)1.44%
Revenue growth 3Y12.83%
Revenue growth 5Y5.33%
Sales Q2Q%13.38%
3.2 Future
The Earnings Per Share is expected to grow by 13.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.39% on average over the next years.
EPS Next Y8.5%
EPS Next 2Y13.21%
EPS Next 3Y14.63%
EPS Next 5Y13.01%
Revenue Next Year3.54%
Revenue Next 2Y5.41%
Revenue Next 3Y5.57%
Revenue Next 5Y5.39%
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
A Price/Earnings ratio of 31.11 indicates a quite expensive valuation of CAE.
Compared to the rest of the industry, the Price/Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 67.19% of the companies listed in the same industry.
CAE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 24.33, the valuation of CAE can be described as rather expensive.
CAE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 71.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CAE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.11 | ||
| Fwd PE | 24.33 |
4.2 Price Multiples
68.75% of the companies in the same industry are more expensive than CAE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CAE is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.07 | ||
| EV/EBITDA | 16.53 |
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.
A more expensive valuation may be justified as CAE's earnings are expected to grow with 14.63% in the coming years.
PEG (NY)3.66
PEG (5Y)N/A
EPS Next 2Y13.21%
EPS Next 3Y14.63%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.58
-0.92 (-3.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners78.71%
Inst Owner Change2.8%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap7.86B
Analysts70
Price Target24.51 (-0.28%)
Short Float %1.53%
Short Ratio10.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)12.7%
Min EPS beat(2)2.57%
Max EPS beat(2)22.83%
EPS beat(4)3
Avg EPS beat(4)3.87%
Min EPS beat(4)-11.82%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)7.12%
EPS beat(12)9
Avg EPS beat(12)2.43%
EPS beat(16)11
Avg EPS beat(16)2.1%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)3.23%
Max Revenue beat(2)4.9%
Revenue beat(4)3
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-13.83%
Max Revenue beat(4)4.9%
Revenue beat(8)6
Avg Revenue beat(8)0.01%
Revenue beat(12)8
Avg Revenue beat(12)0.11%
Revenue beat(16)9
Avg Revenue beat(16)-1.21%
PT rev (1m)6.72%
PT rev (3m)15.36%
EPS NQ rev (1m)1.77%
EPS NQ rev (3m)-7.52%
EPS NY rev (1m)0.58%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.11 | ||
| Fwd PE | 24.33 | ||
| P/S | 2.45 | ||
| P/FCF | 33.07 | ||
| P/OCF | 14.15 | ||
| P/B | 2.39 | ||
| P/tB | 13.86 | ||
| EV/EBITDA | 16.53 |
EPS(TTM)0.79
EY3.21%
EPS(NY)1.01
Fwd EY4.11%
FCF(TTM)0.74
FCFY3.02%
OCF(TTM)1.74
OCFY7.07%
SpS10.03
BVpS10.29
TBVpS1.77
PEG (NY)3.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.6% | ||
| ROCE | 5.88% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.77% | ||
| ROICexgc | 8.97% | ||
| OM | 11.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.12% | ||
| FCFM | 7.41% |
ROA(3y)0.17%
ROA(5y)0.73%
ROE(3y)0.43%
ROE(5y)2.46%
ROIC(3y)4.47%
ROIC(5y)4.61%
ROICexc(3y)4.61%
ROICexc(5y)5.04%
ROICexgc(3y)9.14%
ROICexgc(5y)9.16%
ROCE(3y)5.71%
ROCE(5y)5.89%
ROICexcg growth 3Y11.59%
ROICexcg growth 5Y-5.42%
ROICexc growth 3Y8.35%
ROICexc growth 5Y-6.33%
OM growth 3Y7.68%
OM growth 5Y-3.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.66%
GM growth 5Y-1.1%
F-Score2
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.82 | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 112.71% | ||
| Cap/Sales | 9.9% | ||
| Interest Coverage | 2.51 | ||
| Cash Conversion | 87.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.86 |
F-Score2
WACC8.1%
ROIC/WACC0.57
Cap/Depr(3y)122.86%
Cap/Depr(5y)109.7%
Cap/Sales(3y)10.68%
Cap/Sales(5y)9.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.64%
EPS 3Y34.53%
EPS 5Y-2.02%
EPS Q2Q%24.18%
EPS Next Y8.5%
EPS Next 2Y13.21%
EPS Next 3Y14.63%
EPS Next 5Y13.01%
Revenue 1Y (TTM)1.44%
Revenue growth 3Y12.83%
Revenue growth 5Y5.33%
Sales Q2Q%13.38%
Revenue Next Year3.54%
Revenue Next 2Y5.41%
Revenue Next 3Y5.57%
Revenue Next 5Y5.39%
EBIT growth 1Y-9.41%
EBIT growth 3Y21.5%
EBIT growth 5Y1.78%
EBIT Next Year73.65%
EBIT Next 3Y28.61%
EBIT Next 5Y19.47%
FCF growth 1Y4229.49%
FCF growth 3Y-23.97%
FCF growth 5YN/A
OCF growth 1Y81.55%
OCF growth 3Y15.64%
OCF growth 5Y1.34%