Overall CAE gets a fundamental rating of 4 out of 10. We evaluated CAE against 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 has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CAE was profitable.
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 in the better half of the industry: CAE outperforms 61.64% of its industry peers.
With a decent Return On Equity value of 8.45%, CAE is doing good in the industry, outperforming 60.27% of the companies in the same industry.
CAE's Return On Invested Capital of 5.96% is in line compared to the rest of the industry. CAE outperforms 52.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.65%.
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 Profit Margin of 8.88%. This is in the better half of the industry: CAE outperforms 75.34% of its industry peers.
CAE's Profit Margin has been stable in the last couple of years.
CAE's Operating Margin of 13.19% is fine compared to the rest of the industry. CAE outperforms 78.08% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
CAE has a better Gross Margin (28.22%) than 64.38% 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
The debt/assets ratio for CAE has been reduced compared to a year ago.

2.2 Solvency

CAE has an Altman-Z score of 2.26. 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 2.26, CAE is not doing good in the industry: 71.23% 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.
CAE has a Debt to FCF ratio of 7.20. This is comparable to the rest of the industry: CAE outperforms 58.90% 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 worse Debt to Equity ratio (0.61) than 64.38% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.61
Debt/FCF	7.2
Altman-Z	2.26

ROIC/WACC0.64

WACC9.37%

2.3 Liquidity

A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
The Current ratio of CAE (0.83) is worse than 90.41% 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.
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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
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)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

CAE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.25% yearly.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 36.00, the valuation of CAE can be described as expensive.
Based on the Price/Earnings ratio, CAE is valued a bit cheaper than 72.60% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. CAE is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 28.58, which means the current valuation is very expensive for CAE.
CAE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 76.71% of the companies in the same industry.
CAE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	36
Fwd PE	28.58

4.2 Price Multiples

87.67% of the companies in the same industry are more expensive than CAE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CAE is valued cheaply inside the industry as 89.04% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	29.8
EV/EBITDA	15.82

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.