CAE INC (CAE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAE - CA1247651088 - Common Stock
29.84 USD
+1.54 (+5.44%)
29.84 USD
0 (0%)
Taking everything into account, CAE scores 4 out of 10 in our fundamental rating. CAE was compared to 72 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CAE was profitable.
CAE had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.87%, CAE perfoms like the industry average, outperforming 59.72% of the companies in the same industry.
With a decent Return On Equity value of 8.45%, CAE is doing good in the industry, outperforming 61.11% 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 51.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAE is below the industry average of 8.58%.
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 better Profit Margin (8.88%) than 75.00% 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 has a Operating Margin of 13.19%. This is in the better half of the industry: CAE outperforms 77.78% of its industry peers.
In the last couple of years the Operating Margin of CAE has declined.
CAE's Gross Margin of 28.22% is fine compared to the rest of the industry. CAE outperforms 62.50% of its industry peers.
CAE's Gross Margin has declined in the last couple of years.
| 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.
CAE has a better debt/assets ratio than last year.
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.
With a Altman-Z score value of 2.12, CAE is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
The Debt to FCF ratio of CAE is 7.20, which is on the high side as it means it would take CAE, 7.20 years of fcf income to pay off all of its debts.
CAE's Debt to FCF ratio of 7.20 is fine compared to the rest of the industry. CAE outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that CAE is somewhat dependend on debt financing.
CAE has a worse Debt to Equity ratio (0.61) than 65.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.67
WACC8.9%
2.3 Liquidity
CAE has a Current 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 Current ratio of 0.83 is on the low side compared to the rest of the industry. CAE is outperformed by 91.67% 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 88.89% 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.
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.
The Revenue has grown by 9.12% in the past year. This is quite good.
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
CAE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.64% yearly.
CAE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y1.92%
EPS Next 2Y12.08%
EPS Next 3Y14.64%
EPS Next 5Y15.64%
Revenue Next Year4.9%
Revenue Next 2Y5.29%
Revenue Next 3Y5.75%
Revenue Next 5Y6.57%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.30, 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 72.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAE to the average of the S&P500 Index (26.54), we can say CAE is valued slightly more expensively.
CAE is valuated quite expensively with a Price/Forward Earnings ratio of 27.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAE indicates a somewhat cheap valuation: CAE is cheaper than 76.39% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. CAE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.3 | ||
| Fwd PE | 27.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAE is valued cheaper than 88.89% 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 90.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.31 | ||
| EV/EBITDA | 14.55 |
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.
CAE's earnings are expected to grow with 14.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)17.88
PEG (5Y)N/A
EPS Next 2Y12.08%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.84
+1.54 (+5.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner Change1.36%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap9.60B
Revenue(TTM)4.83B
Net Income(TTM)429.20M
Analysts75.29
Price Target32.64 (9.38%)
Short Float %0.97%
Short Ratio5.3
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)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)1.41%
PT rev (3m)0.98%
EPS NQ rev (1m)-12.56%
EPS NQ rev (3m)-11.29%
EPS NY rev (1m)-4.78%
EPS NY rev (3m)-5.5%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.3 | ||
| Fwd PE | 27.09 | ||
| P/S | 2.74 | ||
| P/FCF | 28.31 | ||
| P/OCF | 14 | ||
| P/B | 2.61 | ||
| P/tB | 10.13 | ||
| EV/EBITDA | 14.55 |
EPS(TTM)0.87
EY2.92%
EPS(NY)1.1
Fwd EY3.69%
FCF(TTM)1.05
FCFY3.53%
OCF(TTM)2.13
OCFY7.14%
SpS10.89
BVpS11.45
TBVpS2.95
PEG (NY)17.88
PEG (5Y)N/A
Graham Number14.97
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 | 2.12 |
F-Score5
WACC8.9%
ROIC/WACC0.67
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 2Y12.08%
EPS Next 3Y14.64%
EPS Next 5Y15.64%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y11.77%
Revenue growth 5Y5.38%
Sales Q2Q%8.8%
Revenue Next Year4.9%
Revenue Next 2Y5.29%
Revenue Next 3Y5.75%
Revenue Next 5Y6.57%
EBIT growth 1Y39.93%
EBIT growth 3Y17.08%
EBIT growth 5Y3.38%
EBIT Next Year65.35%
EBIT Next 3Y25.36%
EBIT Next 5Y18.94%
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 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 34.3 and the Price/Book (PB) ratio is 2.61.
How financially healthy is CAE INC?
The financial health rating of CAE INC (CAE) is 2 / 10.