CAE INC (CAE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAE - CA1247651088 - Common Stock
30.15 USD
+0.68 (+2.31%)
30.15 USD
0 (0%)
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.
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 has a Return On Assets of 3.87%. This is comparable to the rest of the industry: CAE outperforms 59.15% of its industry peers.
CAE has a Return On Equity of 8.45%. This is in the better half of the industry: CAE outperforms 60.56% of its industry peers.
CAE has a Return On Invested Capital (5.96%) which is in line with its industry peers.
CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This is below the industry average of 8.60%.
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
CAE has a better Profit Margin (8.88%) than 74.65% of its industry peers.
CAE's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 13.19%, CAE is doing good in the industry, outperforming 77.46% of the companies in the same industry.
CAE's Operating Margin has declined in the last couple of years.
The Gross Margin of CAE (28.22%) is better than 63.38% 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%
2. Health
2.1 Basic Checks
CAE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CAE has more shares outstanding
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 2.17. 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.
With a Altman-Z score value of 2.17, CAE is not doing good in the industry: 73.24% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of CAE (7.20) is better than 61.97% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that 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 67.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.65
WACC9.19%
2.3 Liquidity
CAE has a Current 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's Current ratio of 0.83 is on the low side compared to the rest of the industry. CAE is outperformed by 92.96% 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 90.14% 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 13.21% over the past year.
Measured over the past years, CAE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.17% on average per year.
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 15.64% on average per year.
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y1.92%
EPS Next 2Y12.08%
EPS Next 3Y14.64%
EPS Next 5Y15.64%
Revenue Next Year4.9%
Revenue Next 2Y5.29%
Revenue Next 3Y5.75%
Revenue Next 5Y6.57%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.66, 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 69.01% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.38, CAE is valued a bit more expensive.
A Price/Forward Earnings ratio of 27.35 indicates a quite expensive valuation of CAE.
Based on the Price/Forward Earnings ratio, CAE is valued a bit cheaper than 71.83% of the companies in the same industry.
CAE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.66 | ||
| Fwd PE | 27.35 |
4.2 Price Multiples
87.32% 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 87.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.59 | ||
| EV/EBITDA | 15.02 |
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 14.64% in the coming years.
PEG (NY)18.07
PEG (5Y)N/A
EPS Next 2Y12.08%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.15
+0.68 (+2.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner Change1.36%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap9.69B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target32.64 (8.26%)
Short Float %0.67%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2.01%
PT rev (3m)0.6%
EPS NQ rev (1m)-12.56%
EPS NQ rev (3m)-12.42%
EPS NY rev (1m)-4.78%
EPS NY rev (3m)-5.5%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.66 | ||
| Fwd PE | 27.35 | ||
| P/S | 2.77 | ||
| P/FCF | 28.59 | ||
| P/OCF | 14.13 | ||
| P/B | 2.63 | ||
| P/tB | 10.23 | ||
| EV/EBITDA | 15.02 |
EPS(TTM)0.87
EY2.89%
EPS(NY)1.1
Fwd EY3.66%
FCF(TTM)1.05
FCFY3.5%
OCF(TTM)2.13
OCFY7.08%
SpS10.9
BVpS11.45
TBVpS2.95
PEG (NY)18.07
PEG (5Y)N/A
Graham Number14.97
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 | 2.17 |
F-Score5
WACC9.19%
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)13.21%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%-4.17%
EPS Next Y1.92%
EPS Next 2Y12.08%
EPS Next 3Y14.64%
EPS Next 5Y15.64%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year4.9%
Revenue Next 2Y5.29%
Revenue Next 3Y5.75%
Revenue Next 5Y6.57%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year65.35%
EBIT Next 3Y25.36%
EBIT Next 5Y18.94%
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 4 / 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 34.66 and the Price/Book (PB) ratio is 2.63.
How financially healthy is CAE INC?
The financial health rating of CAE INC (CAE) is 2 / 10.