CAE INC (CAE) Stock Fundamental Analysis
NYSE:CAE - New York Stock Exchange, Inc. - CA1247651088 - Common Stock - Currency: USD
Taking everything into account, CAE scores 3 out of 10 in our fundamental rating. CAE was compared to 65 industry peers in the Aerospace & Defense industry. Both the profitability and financial health of CAE have multiple concerns. 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.
CAE had a positive operating cash flow in the past year.
In multiple years CAE reported negative net income over the last 5 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 -1.94%. This is in the lower half of the industry: CAE underperforms 66.15% of its industry peers.
CAE has a worse Return On Equity (-4.60%) than 63.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.60%, CAE is in line with its industry, outperforming 46.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAE is below the industry average of 7.87%.
The 3 year average ROIC (4.47%) for CAE is below the current ROIC(4.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.6% | ||
| ROIC | 4.6% |
ROA(3y)0.17%
ROA(5y)0.73%
ROE(3y)0.43%
ROE(5y)2.46%
ROIC(3y)4.47%
ROIC(5y)4.61%
1.3 Margins
CAE has a better Operating Margin (11.04%) than 75.38% of its industry peers.
In the last couple of years the Operating Margin of CAE has declined.
The Gross Margin of CAE (26.12%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CAE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.12% |
OM growth 3Y7.68%
OM growth 5Y-3.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.66%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAE is destroying value.
The number of shares outstanding for CAE remains at a similar level compared to 1 year ago.
The number of shares outstanding for CAE has been increased compared to 5 years ago.
CAE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that CAE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.74, CAE is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
CAE has a debt to FCF ratio of 10.82. This is a negative value and a sign of low solvency as CAE would need 10.82 years to pay back of all of its debts.
CAE has a Debt to FCF ratio (10.82) which is in line with its industry peers.
A Debt/Equity ratio of 0.71 indicates that CAE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, CAE is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.82 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.54
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CAE may have some problems paying its short term obligations.
CAE's Current ratio of 0.86 is on the low side compared to the rest of the industry. CAE is outperformed by 90.77% of its industry peers.
CAE has a Quick Ratio of 0.86. 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 0.63 is on the low side compared to the rest of the industry. CAE is outperformed by 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
CAE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.91%.
Measured over the past years, CAE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.02% on average per year.
Looking at the last year, CAE shows a small growth in Revenue. The Revenue has grown by 1.44% in the last year.
The Revenue has been growing slightly by 5.33% on average over the past years.
EPS 1Y (TTM)0.91%
EPS 3Y34.53%
EPS 5Y-2.02%
EPS Q2Q%20.83%
Revenue 1Y (TTM)1.44%
Revenue growth 3Y12.83%
Revenue growth 5Y5.33%
Sales Q2Q%11.78%
3.2 Future
The Earnings Per Share is expected to grow by 11.90% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.23% on average over the next years.
EPS Next Y8.54%
EPS Next 2Y13.38%
EPS Next 3Y14.61%
EPS Next 5Y11.9%
Revenue Next Year4.48%
Revenue Next 2Y5.72%
Revenue Next 3Y5.71%
Revenue Next 5Y5.23%
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. Valuation
4.1 Price/Earnings Ratio
CAE is valuated quite expensively with a Price/Earnings ratio of 28.99.
CAE's Price/Earnings ratio is a bit cheaper when compared to the industry. CAE is cheaper than 70.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, CAE is valued at the same level.
A Price/Forward Earnings ratio of 22.36 indicates a rather expensive valuation of CAE.
76.92% 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 similar valuation than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 22.36 |
4.2 Price Multiples
CAE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAE is cheaper than 67.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAE is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.48 | ||
| EV/EBITDA | 15.21 |
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 14.61% in the coming years.
PEG (NY)3.39
PEG (5Y)N/A
EPS Next 2Y13.38%
EPS Next 3Y14.61%
5. Dividend
5.1 Amount
CAE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.19
-0.24 (-1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners78.71%
Inst Owner Change-0.57%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap7.41B
Analysts71.76
Price Target29.24 (26.09%)
Short Float %1.22%
Short Ratio6.96
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)11.49%
Min EPS beat(2)0.15%
Max EPS beat(2)22.83%
EPS beat(4)3
Avg EPS beat(4)3.27%
Min EPS beat(4)-11.82%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)6.82%
EPS beat(12)9
Avg EPS beat(12)2.23%
EPS beat(16)11
Avg EPS beat(16)1.95%
Revenue beat(2)2
Avg Revenue beat(2)3.37%
Min Revenue beat(2)3.23%
Max Revenue beat(2)3.5%
Revenue beat(4)3
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-13.83%
Max Revenue beat(4)3.5%
Revenue beat(8)6
Avg Revenue beat(8)-0.16%
Revenue beat(12)8
Avg Revenue beat(12)-0.01%
Revenue beat(16)9
Avg Revenue beat(16)-1.3%
PT rev (1m)4.65%
PT rev (3m)27.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.97%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)3.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 22.36 | ||
| P/S | 2.26 | ||
| P/FCF | 30.48 | ||
| P/OCF | 13.05 | ||
| P/B | 2.2 | ||
| P/tB | 12.78 | ||
| EV/EBITDA | 15.21 |
EPS(TTM)0.8
EY3.45%
EPS(NY)1.04
Fwd EY4.47%
FCF(TTM)0.76
FCFY3.28%
OCF(TTM)1.78
OCFY7.67%
SpS10.27
BVpS10.53
TBVpS1.81
PEG (NY)3.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.6% | ||
| ROCE | 5.88% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.77% | ||
| ROICexgc | 8.97% | ||
| OM | 11.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.12% | ||
| FCFM | 7.41% |
ROA(3y)0.17%
ROA(5y)0.73%
ROE(3y)0.43%
ROE(5y)2.46%
ROIC(3y)4.47%
ROIC(5y)4.61%
ROICexc(3y)4.61%
ROICexc(5y)5.04%
ROICexgc(3y)9.14%
ROICexgc(5y)9.16%
ROCE(3y)5.71%
ROCE(5y)5.89%
ROICexcg growth 3Y11.59%
ROICexcg growth 5Y-5.42%
ROICexc growth 3Y8.35%
ROICexc growth 5Y-6.33%
OM growth 3Y7.68%
OM growth 5Y-3.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.66%
GM growth 5Y-1.1%
F-Score2
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.82 | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 112.71% | ||
| Cap/Sales | 9.9% | ||
| Interest Coverage | 2.51 | ||
| Cash Conversion | 87.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.74 |
F-Score2
WACC8.58%
ROIC/WACC0.54
Cap/Depr(3y)122.86%
Cap/Depr(5y)109.7%
Cap/Sales(3y)10.68%
Cap/Sales(5y)9.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.91%
EPS 3Y34.53%
EPS 5Y-2.02%
EPS Q2Q%20.83%
EPS Next Y8.54%
EPS Next 2Y13.38%
EPS Next 3Y14.61%
EPS Next 5Y11.9%
Revenue 1Y (TTM)1.44%
Revenue growth 3Y12.83%
Revenue growth 5Y5.33%
Sales Q2Q%11.78%
Revenue Next Year4.48%
Revenue Next 2Y5.72%
Revenue Next 3Y5.71%
Revenue Next 5Y5.23%
EBIT growth 1Y-9.41%
EBIT growth 3Y21.5%
EBIT growth 5Y1.78%
EBIT Next Year81.47%
EBIT Next 3Y29.33%
EBIT Next 5Y19.34%
FCF growth 1Y4229.49%
FCF growth 3Y-23.97%
FCF growth 5YN/A
OCF growth 1Y81.55%
OCF growth 3Y15.64%
OCF growth 5Y1.34%