CAE INC (CAE) Fundamental Analysis & Valuation
NYSE:CAE • CA1247651088
27.07 USD
-1.39 (-4.88%)
At close: Mar 12, 2026
26.98 USD
-0.09 (-0.33%)
After Hours: 3/12/2026, 8:26:27 PM
This CAE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, CAE scores 4 out of 10 in our fundamental rating. CAE was compared to 78 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. CAE Profitability Analysis
1.1 Basic Checks
- CAE had positive earnings in the past year.
- 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.
- In the past 5 years CAE always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CAE (3.35%) is comparable to the rest of the industry.
- CAE's Return On Equity of 7.15% is in line compared to the rest of the industry. CAE outperforms 53.85% of its industry peers.
- The Return On Invested Capital of CAE (14.50%) is better than 92.31% 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 9.32%.
- The last Return On Invested Capital (14.50%) for CAE is above the 3 year average (5.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 7.15% | ||
| ROIC | 14.5% |
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 7.60%, CAE is in the better half of the industry, outperforming 70.51% 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 31.96%. This is amongst the best in the industry. CAE outperforms 98.72% of its industry peers.
- CAE's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 28.52%, CAE is doing good in the industry, outperforming 64.10% of the companies in the same industry.
- In the last couple of years the Gross Margin of CAE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.96% | ||
| PM (TTM) | 7.6% | ||
| GM | 28.52% |
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. CAE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAE is creating some value.
- CAE has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for CAE has been increased compared to 5 years ago.
- Compared to 1 year ago, CAE has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.46 indicates that CAE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CAE has a worse Altman-Z score (2.46) than 66.67% of its industry peers.
- The Debt to FCF ratio of CAE is 6.46, which is on the high side as it means it would take CAE, 6.46 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CAE (6.46) is better than 61.54% of its industry peers.
- A Debt/Equity ratio of 0.58 indicates that CAE is somewhat dependend on debt financing.
- CAE's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. CAE is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.57
WACC9.24%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that CAE may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.91, CAE is doing worse than 89.74% of the companies in the same industry.
- CAE has a Quick Ratio of 0.91. This is a bad value and indicates that CAE is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of CAE (0.69) is worse than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
3. CAE Growth Analysis
3.1 Past
- CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.61%, 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.
- CAE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.67%.
- Measured over the past years, CAE shows a small growth in Revenue. The Revenue has been growing by 5.38% on average per year.
EPS 1Y (TTM)12.61%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%17.24%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.35%
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 14.22% yearly.
- The Revenue is expected to grow by 5.06% on average over the next years.
EPS Next Y-0.21%
EPS Next 2Y3.79%
EPS Next 3Y10.04%
EPS Next 5Y14.22%
Revenue Next Year3.81%
Revenue Next 2Y1.65%
Revenue Next 3Y3.27%
Revenue Next 5Y5.06%
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 stable.
4. CAE Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 29.42, 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 75.64% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CAE to the average of the S&P500 Index (25.71), we can say CAE is valued inline with the index average.
- CAE is valuated quite expensively with a Price/Forward Earnings ratio of 28.23.
- CAE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 74.36% 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 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.42 | ||
| Fwd PE | 28.23 |
4.2 Price Multiples
- 97.44% 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 89.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 7.58 |
4.3 Compensation for Growth
- The decent profitability rating of CAE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.79%
EPS Next 3Y10.04%
5. CAE Dividend Analysis
5.1 Amount
- No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CAE Fundamentals: All Metrics, Ratios and Statistics
27.07
-1.39 (-4.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-11 2026-05-11/amc
Inst Owners84.21%
Inst Owner Change8.84%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap8.70B
Revenue(TTM)4.86B
Net Income(TTM)369.50M
Analysts72.94
Price Target35.32 (30.48%)
Short Float %0.77%
Short Ratio3.66
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)12.32%
Min EPS beat(2)12.21%
Max EPS beat(2)12.42%
EPS beat(4)4
Avg EPS beat(4)6.39%
Min EPS beat(4)0.2%
Max EPS beat(4)12.42%
EPS beat(8)7
Avg EPS beat(8)4.83%
EPS beat(12)10
Avg EPS beat(12)6.68%
EPS beat(16)13
Avg EPS beat(16)3.27%
Revenue beat(2)1
Avg Revenue beat(2)3.04%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)7.25%
Revenue beat(4)1
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)7.25%
Revenue beat(8)4
Avg Revenue beat(8)-0.92%
Revenue beat(12)7
Avg Revenue beat(12)-0.15%
Revenue beat(16)9
Avg Revenue beat(16)-0.03%
PT rev (1m)-1.85%
PT rev (3m)8.22%
EPS NQ rev (1m)-11.03%
EPS NQ rev (3m)-10.82%
EPS NY rev (1m)-2.09%
EPS NY rev (3m)-2.09%
Revenue NQ rev (1m)-4.38%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)-1.04%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.42 | ||
| Fwd PE | 28.23 | ||
| P/S | 2.43 | ||
| P/FCF | 23.56 | ||
| P/OCF | 12.74 | ||
| P/B | 2.29 | ||
| P/tB | 8.1 | ||
| EV/EBITDA | 7.58 |
EPS(TTM)0.92
EY3.4%
EPS(NY)0.96
Fwd EY3.54%
FCF(TTM)1.15
FCFY4.24%
OCF(TTM)2.13
OCFY7.85%
SpS11.13
BVpS11.82
TBVpS3.34
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 7.15% | ||
| ROCE | 17.94% | ||
| ROIC | 14.5% | ||
| ROICexc | 15.32% | ||
| ROICexgc | 27.96% | ||
| OM | 31.96% | ||
| PM (TTM) | 7.6% | ||
| GM | 28.52% | ||
| FCFM | 10.33% |
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%
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-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.46 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 94.09% | ||
| Cap/Sales | 8.78% | ||
| Interest Coverage | 7.88 | ||
| Cash Conversion | 46.26% | ||
| Profit Quality | 135.89% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.46 |
F-Score8
WACC9.24%
ROIC/WACC1.57
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)12.61%
EPS 3Y12.94%
EPS 5Y-2.17%
EPS Q2Q%17.24%
EPS Next Y-0.21%
EPS Next 2Y3.79%
EPS Next 3Y10.04%
EPS Next 5Y14.22%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.35%
Revenue Next Year3.81%
Revenue Next 2Y1.65%
Revenue Next 3Y3.27%
Revenue Next 5Y5.06%
EBIT growth 1Y208.7%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year61.97%
EBIT Next 3Y21.33%
EBIT Next 5Y17.1%
FCF growth 1Y464.16%
FCF growth 3Y101.37%
FCF growth 5Y22.94%
OCF growth 1Y74.53%
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 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 6 / 10.
What is the expected EPS growth for CAE INC (CAE) stock?
The Earnings per Share (EPS) of CAE INC (CAE) is expected to decline by -0.21% 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%.