CAE INC (CAE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CAE • CA1247651088
32.81 USD
+0.73 (+2.28%)
Last: Feb 10, 2026, 02:46 PM
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.
1. Profitability
1.1 Basic Checks
- In the past year CAE was profitable.
- 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 better Return On Assets (3.87%) than 60.27% of its industry peers.
- CAE's Return On Equity of 8.45% is fine compared to the rest of the industry. CAE outperforms 60.27% 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 50.68% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.70%.
- 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 76.71% 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 78.08% of its industry peers.
- In the last couple of years the Operating Margin of CAE has declined.
- The Gross Margin of CAE (28.22%) is better than 63.01% 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.
- CAE has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.27 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 2.27. This is in the lower half of the industry: CAE underperforms 67.12% 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.
- CAE has a Debt to FCF ratio of 7.20. This is comparable to the rest of the industry: CAE outperforms 57.53% 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's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. CAE is outperformed by 63.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.27 |
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.
- Looking at the Current ratio, with a value of 0.83, CAE is doing worse than 90.41% of the companies in the same industry.
- A Quick Ratio of 0.59 indicates that CAE may have some problems paying its short term obligations.
- With a Quick ratio value of 0.59, CAE is not doing good in the industry: 87.67% 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
- 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.
- CAE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.17% yearly.
- 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 15.25% on average per year.
- The Revenue is expected to grow by 5.95% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 37.28, the valuation of CAE can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 73.97% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.06, CAE is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 29.45, CAE can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 78.08% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.86. CAE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 29.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAE indicates a rather cheap valuation: CAE is cheaper than 89.04% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CAE is valued cheaper than 87.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.7 | ||
| EV/EBITDA | 15.91 |
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 14.29% in the coming years.
PEG (NY)19.44
PEG (5Y)N/A
EPS Next 2Y11.93%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
- CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:CAE (2/10/2026, 2:46:56 PM)
32.81
+0.73 (+2.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-11 2025-11-11/amc
Earnings (Next)02-12 2026-02-12/amc
Inst Owners77.26%
Inst Owner Change-1.86%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap10.55B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target35.99 (9.69%)
Short Float %0.66%
Short Ratio3.6
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)7.89%
PT rev (3m)11.81%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-14.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.78%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 29.45 | ||
| P/S | 2.97 | ||
| P/FCF | 30.7 | ||
| P/OCF | 15.18 | ||
| P/B | 2.83 | ||
| P/tB | 10.98 | ||
| EV/EBITDA | 15.91 |
EPS(TTM)0.88
EY2.68%
EPS(NY)1.11
Fwd EY3.4%
FCF(TTM)1.07
FCFY3.26%
OCF(TTM)2.16
OCFY6.59%
SpS11.05
BVpS11.61
TBVpS2.99
PEG (NY)19.44
PEG (5Y)N/A
Graham Number15.16
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 | 2.27 |
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 2Y11.93%
EPS Next 3Y14.29%
EPS Next 5Y15.25%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year4.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.58%
Revenue Next 5Y5.95%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year65.22%
EBIT Next 3Y25.25%
EBIT Next 5Y18.45%
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 for 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 expected EPS growth for CAE INC (CAE) stock?
The Earnings per Share (EPS) of CAE INC (CAE) is expected to grow by 1.92% in the next year.
Is the dividend of CAE INC sustainable?
The dividend rating of CAE INC (CAE) is 0 / 10 and the dividend payout ratio is 0%.