CAE INC (CAE) Stock Fundamental Analysis
USA - NYSE:CAE - CA1247651088 - Common Stock
27.42 USD
-0.09 (-0.33%)
We assign a fundamental rating of 4 out of 10 to CAE. CAE was compared to 71 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.
In the past year CAE had a positive cash flow from operations.
In multiple years CAE reported negative net income over the last 5 years.
In the past 5 years CAE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CAE (3.75%) is comparable to the rest of the industry.
CAE has a Return On Equity of 8.31%. This is in the better half of the industry: CAE outperforms 61.97% of its industry peers.
With a Return On Invested Capital value of 5.81%, CAE perfoms like the industry average, outperforming 52.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAE is below the industry average of 8.48%.
The 3 year average ROIC (5.18%) for CAE is below the current ROIC(5.81%), indicating increased profibility in the last year.
| 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
CAE's Profit Margin of 8.61% is fine compared to the rest of the industry. CAE outperforms 74.65% of its industry peers.
In the last couple of years the Profit Margin of CAE has remained more or less at the same level.
CAE's Operating Margin of 13.03% is amongst the best of the industry. CAE outperforms 80.28% of its industry peers.
CAE's Operating Margin has declined in the last couple of years.
The Gross Margin of CAE (28.09%) is better than 64.79% 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.
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.
The debt/assets ratio for CAE has been reduced compared to a year ago.
2.2 Solvency
CAE has an Altman-Z score of 2.12. 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.
The Altman-Z score of CAE (2.12) is worse than 71.83% 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.
With a decent Debt to FCF ratio value of 7.71, CAE is doing good in the industry, outperforming 63.38% of the companies in the same industry.
CAE has a Debt/Equity ratio of 0.64. This is a neutral value indicating CAE is somewhat dependend on debt financing.
CAE has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: CAE underperforms 67.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.66
WACC8.84%
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: 90.14% 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.
Looking at the Quick ratio, with a value of 0.60, CAE is doing worse than 88.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CAE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.01%, which is quite good.
The Earnings Per Share has been decreasing by -2.17% on average over the past years.
CAE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.04%.
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
Based on estimates for the next years, CAE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.35% on average per year.
CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y6.68%
EPS Next 2Y13.45%
EPS Next 3Y13.71%
EPS Next 5Y15.35%
Revenue Next Year3.27%
Revenue Next 2Y4.6%
Revenue Next 3Y4.82%
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 31.88, which means the current valuation is very expensive for CAE.
Compared to the rest of the industry, the Price/Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 73.24% of the companies listed in the same industry.
CAE is valuated rather expensively when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.88 indicates a rather expensive valuation of CAE.
Based on the Price/Forward Earnings ratio, CAE is valued a bit cheaper than 73.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, CAE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.88 | ||
| Fwd PE | 24.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued cheaper than 87.32% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAE indicates a rather cheap valuation: CAE is cheaper than 87.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.12 | ||
| EV/EBITDA | 14.99 |
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 13.71% in the coming years.
PEG (NY)4.78
PEG (5Y)N/A
EPS Next 2Y13.45%
EPS Next 3Y13.71%
5. Dividend
5.1 Amount
No dividends for CAE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:CAE (11/6/2025, 10:04:28 AM)
27.42
-0.09 (-0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.47%
Inst Owner Change-0.16%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap8.79B
Revenue(TTM)4.73B
Net Income(TTM)407.80M
Analysts75.29
Price Target32.19 (17.4%)
Short Float %0.91%
Short Ratio4.99
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)-0.79%
PT rev (3m)6.17%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-20.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.88 | ||
| Fwd PE | 24.88 | ||
| P/S | 2.62 | ||
| P/FCF | 28.12 | ||
| P/OCF | 13.9 | ||
| P/B | 2.53 | ||
| P/tB | 10.55 | ||
| EV/EBITDA | 14.99 |
EPS(TTM)0.86
EY3.14%
EPS(NY)1.1
Fwd EY4.02%
FCF(TTM)0.98
FCFY3.56%
OCF(TTM)1.97
OCFY7.2%
SpS10.45
BVpS10.83
TBVpS2.6
PEG (NY)4.78
PEG (5Y)N/A
Graham Number14.48
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%
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-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 | 2.12 |
F-Score6
WACC8.84%
ROIC/WACC0.66
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 Y6.68%
EPS Next 2Y13.45%
EPS Next 3Y13.71%
EPS Next 5Y15.35%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%2.43%
Revenue Next Year3.27%
Revenue Next 2Y4.6%
Revenue Next 3Y4.82%
Revenue Next 5Y6.08%
EBIT growth 1Y35.75%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year68.06%
EBIT Next 3Y25.33%
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%
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 of CAE INC (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 valuation of CAE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CAE INC (CAE) is 31.88 and the Price/Book (PB) ratio is 2.53.
How financially healthy is CAE INC?
The financial health rating of CAE INC (CAE) is 2 / 10.