CAE INC (CAE) Stock Fundamental Analysis
USA - NYSE:CAE - CA1247651088 - Common Stock
26.41 USD
+0.09 (+0.34%)
26.38 USD
-0.03 (-0.11%)
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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CAE had positive earnings in the past year.
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.
Each year in the past 5 years CAE had a positive operating cash flow.
1.2 Ratios
CAE's Return On Assets of 3.87% is fine compared to the rest of the industry. CAE outperforms 61.11% of its industry peers.
The Return On Equity of CAE (8.45%) is better than 62.50% of its industry peers.
CAE has a Return On Invested Capital (5.96%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CAE is below the industry average of 8.49%.
The last Return On Invested Capital (5.96%) for CAE is above the 3 year average (5.18%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.88%, CAE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
CAE's Profit Margin has been stable in the last couple of years.
CAE has a Operating Margin of 13.19%. This is in the better half of the industry: CAE outperforms 79.17% of its industry peers.
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
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.
Compared to 1 year ago, CAE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.06 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 2.06. This is in the lower half of the industry: CAE underperforms 69.44% 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 62.50% of the companies in the same industry.
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 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.65
WACC9.14%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CAE may have some problems paying 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 88.89% 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.
CAE has a worse Quick ratio (0.59) 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 8.04% over the past year.
CAE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.17% yearly.
Looking at the last year, CAE shows a quite strong growth in Revenue. The Revenue has grown by 9.12% in the last year.
The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)8.04%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%39.31%
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
CAE is valuated quite expensively with a Price/Earnings ratio of 30.71.
Based on the Price/Earnings ratio, CAE is valued a bit cheaper than 73.61% of the companies in the same industry.
CAE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 23.70, the valuation of CAE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CAE is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
CAE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.71 | ||
| Fwd PE | 23.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CAE is valued cheaper than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.4 | ||
| EV/EBITDA | 13.92 |
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 14.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.36
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 |
26.41
+0.09 (+0.34%)
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 Cap8.47B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target32 (21.17%)
Short Float %0.91%
Short Ratio4.99
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.75%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)7.72%
Revenue beat(4)2
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)7.72%
Revenue beat(8)4
Avg Revenue beat(8)-0.98%
Revenue beat(12)8
Avg Revenue beat(12)0.01%
Revenue beat(16)9
Avg Revenue beat(16)-0.46%
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 | 30.71 | ||
| Fwd PE | 23.7 | ||
| P/S | 2.46 | ||
| P/FCF | 25.4 | ||
| P/OCF | 12.55 | ||
| P/B | 2.34 | ||
| P/tB | 9.09 | ||
| EV/EBITDA | 13.92 |
EPS(TTM)0.86
EY3.26%
EPS(NY)1.11
Fwd EY4.22%
FCF(TTM)1.04
FCFY3.94%
OCF(TTM)2.1
OCFY7.97%
SpS10.75
BVpS11.29
TBVpS2.91
PEG (NY)4.36
PEG (5Y)N/A
Graham Number14.78
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 | 2.06 |
F-Score5
WACC9.14%
ROIC/WACC0.65
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%39.31%
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 30.71 and the Price/Book (PB) ratio is 2.34.
How financially healthy is CAE INC?
The financial health rating of CAE INC (CAE) is 2 / 10.