CAE INC (CAE) Stock Fundamental Analysis
USA - NYSE:CAE - CA1247651088 - Common Stock
25.99 USD
+0.22 (+0.85%)
We assign a fundamental rating of 4 out of 10 to CAE. CAE was compared to 71 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.
In multiple years CAE reported negative net income over the last 5 years.
Each year in the past 5 years CAE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.87%, CAE is doing good in the industry, outperforming 60.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.45%, CAE is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
CAE has a Return On Invested Capital (5.96%) which is comparable to the rest of the industry.
CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This is below the industry average of 8.47%.
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
Looking at the Profit Margin, with a value of 8.88%, CAE is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
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 78.87% 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 63.38% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAE is destroying value.
CAE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CAE has more shares outstanding
Compared to 1 year ago, CAE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.03 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CAE (2.03) is worse than 69.01% 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 better Debt to FCF ratio (7.20) than 61.97% 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.
CAE has a Debt to Equity ratio of 0.61. This is in the lower half of the industry: CAE underperforms 64.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.66
WACC8.98%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.83, CAE is doing worse than 88.73% of the companies in the same industry.
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.
With a Quick ratio value of 0.59, CAE is not doing good in the industry: 87.32% of the companies in the same industry are doing better.
| 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 15.75% on average per year.
The Revenue is expected to grow by 5.98% on average over the next years.
EPS Next Y7.04%
EPS Next 2Y13.63%
EPS Next 3Y14.38%
EPS Next 5Y15.75%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5.1%
Revenue Next 5Y5.98%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 30.58, which means the current valuation is very expensive for CAE.
74.65% of the companies in the same industry are more expensive than CAE, based on the Price/Earnings ratio.
CAE is valuated rather expensively when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.40, CAE is valued on the expensive side.
76.06% of the companies in the same industry are more expensive than CAE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.08. CAE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.58 | ||
| Fwd PE | 23.4 |
4.2 Price Multiples
CAE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CAE is cheaper than 87.32% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAE is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.07 | ||
| EV/EBITDA | 13.68 |
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 14.38% in the coming years.
PEG (NY)4.34
PEG (5Y)N/A
EPS Next 2Y13.63%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:CAE (11/21/2025, 2:18:04 PM)
25.99
+0.22 (+0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.47%
Inst Owner Change1.33%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap8.34B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target32.47 (24.93%)
Short Float %0.89%
Short Ratio4.9
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)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)-0.72%
PT rev (3m)-0.14%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-10.04%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.58 | ||
| Fwd PE | 23.4 | ||
| P/S | 2.43 | ||
| P/FCF | 25.07 | ||
| P/OCF | 12.39 | ||
| P/B | 2.31 | ||
| P/tB | 8.97 | ||
| EV/EBITDA | 13.68 |
EPS(TTM)0.85
EY3.27%
EPS(NY)1.11
Fwd EY4.27%
FCF(TTM)1.04
FCFY3.99%
OCF(TTM)2.1
OCFY8.07%
SpS10.72
BVpS11.26
TBVpS2.9
PEG (NY)4.34
PEG (5Y)N/A
Graham Number14.67
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 | 2.03 |
F-Score5
WACC8.98%
ROIC/WACC0.66
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 Y7.04%
EPS Next 2Y13.63%
EPS Next 3Y14.38%
EPS Next 5Y15.75%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5.1%
Revenue Next 5Y5.98%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year68.06%
EBIT Next 3Y25.45%
EBIT Next 5Y18.34%
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 of CAE INC (CAE) stock?
ChartMill assigns a valuation rating of 5 / 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 valuation of CAE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CAE INC (CAE) is 30.58 and the Price/Book (PB) ratio is 2.31.
How financially healthy is CAE INC?
The financial health rating of CAE INC (CAE) is 2 / 10.