CAE INC (CAE) Stock Fundamental Analysis
USA - NYSE:CAE - CA1247651088 - Common Stock
26.98 USD
+0.09 (+0.33%)
26.98 USD
0 (0%)
CAE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 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 3.75% is fine compared to the rest of the industry. CAE outperforms 60.87% of its industry peers.
CAE has a Return On Equity of 8.31%. This is in the better half of the industry: CAE outperforms 62.32% of its industry peers.
CAE's Return On Invested Capital of 5.81% is in line compared to the rest of the industry. CAE outperforms 52.17% of 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 8.29%.
The last Return On Invested Capital (5.81%) for CAE is above the 3 year average (5.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.31% | ||
| ROIC | 5.81% |
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 8.61%, CAE is in the better half of the industry, outperforming 75.36% 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 13.03%. This is amongst the best in the industry. CAE outperforms 81.16% of its industry peers.
In the last couple of years the Operating Margin of CAE has declined.
CAE's Gross Margin of 28.09% is fine compared to the rest of the industry. CAE outperforms 63.77% of its industry peers.
In the last couple of years the Gross Margin of CAE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.03% | ||
| PM (TTM) | 8.61% | ||
| GM | 28.09% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAE is destroying value.
Compared to 1 year ago, CAE has more shares outstanding
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
CAE has an Altman-Z score of 2.06. 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.
CAE has a Altman-Z score of 2.06. This is in the lower half of the industry: CAE underperforms 69.57% of its industry peers.
The Debt to FCF ratio of CAE is 7.71, which is on the high side as it means it would take CAE, 7.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAE (7.71) is better than 63.77% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that CAE is somewhat dependend on debt financing.
CAE has a worse Debt to Equity ratio (0.64) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.63
WACC9.24%
2.3 Liquidity
A Current Ratio of 0.87 indicates that CAE may have some problems paying its short term obligations.
With a Current ratio value of 0.87, CAE is not doing good in the industry: 89.86% of the companies in the same industry are doing better.
CAE has a Quick Ratio of 0.87. 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 Quick ratio of 0.60. This is amonst the worse of the industry: CAE underperforms 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.01% 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.
Looking at the last year, CAE shows a quite strong growth in Revenue. The Revenue has grown by 8.04% in the last year.
CAE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
EPS 1Y (TTM)11.01%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%0%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
3.2 Future
The Earnings Per Share is expected to grow by 15.35% on average over the next years. This is quite good.
Based on estimates for the next years, CAE will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y7.84%
EPS Next 2Y14.08%
EPS Next 3Y13.22%
EPS Next 5Y15.35%
Revenue Next Year3.2%
Revenue Next 2Y4.61%
Revenue Next 3Y5.15%
Revenue Next 5Y6.08%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 30.66, which means the current valuation is very expensive for CAE.
Based on the Price/Earnings ratio, CAE is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
CAE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 23.57, 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 69.57% 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 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.66 | ||
| Fwd PE | 23.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued cheaper than 89.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAE is valued cheaper than 85.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.93 | ||
| EV/EBITDA | 14.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CAE may justify a higher PE ratio.
CAE's earnings are expected to grow with 13.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.91
PEG (5Y)N/A
EPS Next 2Y14.08%
EPS Next 3Y13.22%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.98
+0.09 (+0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.68%
Inst Owner Change-1.28%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap8.65B
Analysts75.29
Price Target32.45 (20.27%)
Short Float %0.62%
Short Ratio3.07
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)0.46%
Min EPS beat(2)0.2%
Max EPS beat(2)0.72%
EPS beat(4)4
Avg EPS beat(4)5.98%
Min EPS beat(4)0.15%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)4.83%
EPS beat(12)10
Avg EPS beat(12)6.59%
EPS beat(16)11
Avg EPS beat(16)0.77%
Revenue beat(2)0
Avg Revenue beat(2)-3.28%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-2.34%
Revenue beat(4)2
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)3.5%
Revenue beat(8)4
Avg Revenue beat(8)-1.75%
Revenue beat(12)8
Avg Revenue beat(12)-0.33%
Revenue beat(16)8
Avg Revenue beat(16)-1.59%
PT rev (1m)1.26%
PT rev (3m)7.38%
EPS NQ rev (1m)-19.61%
EPS NQ rev (3m)-24.85%
EPS NY rev (1m)-9.36%
EPS NY rev (3m)-9.36%
Revenue NQ rev (1m)-3.75%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.66 | ||
| Fwd PE | 23.57 | ||
| P/S | 2.51 | ||
| P/FCF | 26.93 | ||
| P/OCF | 13.31 | ||
| P/B | 2.43 | ||
| P/tB | 10.11 | ||
| EV/EBITDA | 14.41 |
EPS(TTM)0.88
EY3.26%
EPS(NY)1.14
Fwd EY4.24%
FCF(TTM)1
FCFY3.71%
OCF(TTM)2.03
OCFY7.51%
SpS10.73
BVpS11.13
TBVpS2.67
PEG (NY)3.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.31% | ||
| ROCE | 7.2% | ||
| ROIC | 5.81% | ||
| ROICexc | 5.93% | ||
| ROICexgc | 10.67% | ||
| OM | 13.03% | ||
| PM (TTM) | 8.61% | ||
| GM | 28.09% | ||
| FCFM | 9.33% |
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%
ROICexcg growth 3Y7.17%
ROICexcg 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-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 105.02% | ||
| Cap/Sales | 9.55% | ||
| Interest Coverage | 2.95 | ||
| Cash Conversion | 85.35% | ||
| Profit Quality | 108.36% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.06 |
F-Score6
WACC9.24%
ROIC/WACC0.63
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)11.01%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%0%
EPS Next Y7.84%
EPS Next 2Y14.08%
EPS Next 3Y13.22%
EPS Next 5Y15.35%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
Revenue Next Year3.2%
Revenue Next 2Y4.61%
Revenue Next 3Y5.15%
Revenue Next 5Y6.08%
EBIT growth 1Y35.75%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year69.28%
EBIT Next 3Y24.79%
EBIT Next 5Y18.61%
FCF growth 1Y576.72%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y71.38%
OCF growth 3Y28.94%
OCF growth 5Y10.46%