CAE INC (CAE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAE - CA1247651088 - Common Stock
32.63 USD
-1.42 (-4.17%)
32.63 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CAE. CAE was compared to 73 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of CAE while its profitability can be described as average. CAE has a correct valuation and a medium growth rate.
1. Profitability
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.
- CAE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CAE has a better Return On Assets (3.87%) than 61.64% of its industry peers.
- CAE's Return On Equity of 8.45% is fine compared to the rest of the industry. CAE outperforms 61.64% of its industry peers.
- The Return On Invested Capital of CAE (5.96%) is comparable to the rest of the industry.
- CAE had an Average Return On Invested Capital over the past 3 years of 5.18%. This is below the industry average of 8.56%.
- 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
- CAE has a better Profit Margin (8.88%) than 75.34% of its industry peers.
- In the last couple of years the Profit Margin of CAE has remained more or less at the same level.
- The Operating Margin of CAE (13.19%) is better than 78.08% of its industry peers.
- In the last couple of years the Operating Margin of CAE has declined.
- CAE has a Gross Margin of 28.22%. This is in the better half of the industry: CAE outperforms 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAE is destroying value.
- The number of shares outstanding for CAE has been increased compared to 1 year ago.
- The number of shares outstanding for CAE has been increased compared to 5 years ago.
- The debt/assets ratio for CAE has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.39 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 (2.39) than 68.49% of its industry peers.
- 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 in the better half of the industry: CAE outperforms 61.64% 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.
- Looking at the Debt to Equity ratio, with a value of 0.61, CAE is doing worse than 64.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.65
WACC9.11%
2.3 Liquidity
- A Current Ratio of 0.83 indicates that CAE may have some problems paying its short term obligations.
- CAE has a Current ratio of 0.83. This is amonst the worse of the industry: CAE underperforms 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.
- CAE's Quick ratio of 0.59 is on the low side compared to the rest of the industry. CAE is outperformed by 87.67% of its industry peers.
| 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.
- CAE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.12%.
- 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)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
- The Earnings Per Share is expected to grow by 15.25% 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 5.95% on average per year.
EPS Next Y1.92%
EPS Next 2Y11.82%
EPS Next 3Y14.32%
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
- With a Price/Earnings ratio of 37.94, CAE can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, CAE is valued a bit cheaper than 68.49% of the companies in the same industry.
- CAE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.94.
- The Price/Forward Earnings ratio is 29.94, which means the current valuation is very expensive for CAE.
- 73.97% of the companies in the same industry are more expensive than CAE, based on the Price/Forward Earnings ratio.
- CAE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 29.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAE is valued cheaper than 87.67% of the companies in the same industry.
- 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 | 31.15 | ||
| EV/EBITDA | 16.99 |
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 14.32% in the coming years.
PEG (NY)19.78
PEG (5Y)N/A
EPS Next 2Y11.82%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
- No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
32.63
-1.42 (-4.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-11 2025-11-11/amc
Earnings (Next)02-13 2026-02-13/bmo
Inst Owners77.26%
Inst Owner Change0.07%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap10.49B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target33.6 (2.97%)
Short Float %0.77%
Short Ratio4.18
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)2.94%
PT rev (3m)4.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 29.94 | ||
| P/S | 3.01 | ||
| P/FCF | 31.15 | ||
| P/OCF | 15.4 | ||
| P/B | 2.87 | ||
| P/tB | 11.15 | ||
| EV/EBITDA | 16.99 |
EPS(TTM)0.86
EY2.64%
EPS(NY)1.09
Fwd EY3.34%
FCF(TTM)1.05
FCFY3.21%
OCF(TTM)2.12
OCFY6.49%
SpS10.83
BVpS11.38
TBVpS2.93
PEG (NY)19.78
PEG (5Y)N/A
Graham Number14.84
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 | 2.39 |
F-Score5
WACC9.11%
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 2Y11.82%
EPS Next 3Y14.32%
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%.