Market Cap
CA$10.8b
Last Updated
2020/02/16 23:35 UTC
Data Sources
Company Financials +
Executive Summary
CAE Inc., together with its subsidiaries, provides training solutions for the civil aviation, defence and security, and healthcare markets worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record average dividend payer.
Similar Companies
Share Price & News
How has CAE's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CAE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.5%
CAE
-2.5%
CA Aerospace & Defense
0.6%
CA Market
1 Year Return
45.4%
CAE
31.7%
CA Aerospace & Defense
5.8%
CA Market
Return vs Industry: CAE exceeded the Canadian Aerospace & Defense industry which returned 31.7% over the past year.
Return vs Market: CAE exceeded the Canadian Market which returned 5.8% over the past year.
Shareholder returns
| CAE | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.5% | -2.5% | 0.6% |
| 30 Day | 4.5% | 3.4% | 0.5% |
| 90 Day | 14.6% | 11.2% | 3.6% |
| 1 Year | 47.3%45.4% | 33.4%31.7% | 9.1%5.8% |
| 3 Year | 107.0%98.1% | 80.1%72.9% | 15.4%5.0% |
| 5 Year | 183.2%161.0% | 142.2%124.9% | 33.6%14.0% |
Price Volatility Vs. Market
How volatile is CAE's share price compared to the market and industry in the last 5 years?
Simply Wall St News
11 hours ago | Simply Wall St
Need To Know: CAE Inc. (TSE:CAE) Insiders Have Been Buying Shares1 week ago | Simply Wall St
Is It Time To Consider Buying CAE Inc. (TSE:CAE)?2 weeks ago | Simply Wall St
CAE Inc.'s (TSE:CAE) Earnings Dropped -5.9%, Did Its Industry Show Weakness Too?Valuation
Is CAE undervalued compared to its fair value and its price relative to the market?
30.26x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CAE (CA$40.46) is trading above our estimate of fair value (CA$31.38)
Significantly Below Fair Value: CAE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CAE is poor value based on its PE Ratio (30.3x) compared to the Aerospace & Defense industry average (21.2x).
PE vs Market: CAE is poor value based on its PE Ratio (30.3x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: CAE is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: CAE is overvalued based on its PB Ratio (4.6x) compared to the CA Aerospace & Defense industry average (2.7x).
Next Steps
Future Growth
How is CAE forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
9.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAE's forecast earnings growth (9.9% per year) is above the savings rate (1.4%).
Earnings vs Market: CAE's earnings (9.9% per year) are forecast to grow slower than the Canadian market (10.4% per year).
High Growth Earnings: CAE's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAE's revenue (6% per year) is forecast to grow faster than the Canadian market (4.9% per year).
High Growth Revenue: CAE's revenue (6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CAE's Return on Equity is forecast to be low in 3 years time (16%).
Next Steps
Past Performance
How has CAE performed over the past 5 years?
11.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAE has high quality earnings.
Growing Profit Margin: CAE's current net profit margins (9.7%) are higher than last year (9.7%).
Past Earnings Growth Analysis
Earnings Trend: CAE's earnings have grown by 11.5% per year over the past 5 years.
Accelerating Growth: CAE's earnings growth over the past year (22.5%) exceeds its 5-year average (11.5% per year).
Earnings vs Industry: CAE earnings growth over the past year (22.5%) exceeded the Aerospace & Defense industry 12.4%.
Return on Equity
High ROE: CAE's Return on Equity (14.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is CAE's financial position?
Financial Position Analysis
Short Term Liabilities: CAE's short term assets (CA$2.0B) exceed its short term liabilities (CA$1.7B).
Long Term Liabilities: CAE's short term assets (CA$2.0B) do not cover its long term liabilities (CA$3.3B).
Debt to Equity History and Analysis
Debt Level: CAE's debt to equity ratio (95.1%) is considered high.
Reducing Debt: CAE's debt to equity ratio has increased from 68.7% to 95.1% over the past 5 years.
Debt Coverage: CAE's debt is not well covered by operating cash flow (20%).
Interest Coverage: CAE's interest payments on its debt are well covered by EBIT (4.7x coverage).
Balance Sheet
Inventory Level: CAE has a high level of physical assets or inventory.
Debt Coverage by Assets: CAE's debt is not covered by short term assets (assets are 0.9x debt).
Next Steps
Dividend
What is CAE's current dividend yield, its reliability and sustainability?
1.09%
Current Dividend Yield
Upcoming Dividend Payment
Purchase CAE before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CAE's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.91%).
High Dividend: CAE's dividend (1.09%) is low compared to the top 25% of dividend payers in the Canadian market (5.32%).
Stability and Growth of Payments
Stable Dividend: CAE's dividends per share have been stable in the past 10 years.
Growing Dividend: CAE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31.4%), CAE's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CAE's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Marc Parent (58yo)
10.3yrs
Tenure
CA$7,545,220
Compensation
Mr. Marc Parent has been the Chief Executive Officer and President of CAE Inc. since October 2009 and its Director since November 2008. Mr. Parent joined CAE in February 2005 as Group President, Simulation ...
CEO Compensation Analysis
Compensation vs Market: Marc's total compensation ($USD5.69M) is above average for companies of similar size in the Canadian market ($USD3.73M).
Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 10.3yrs | CA$7.55m | 0.11% CA$11.6m | |
| VP of Finance & CFO | 3.8yrs | CA$2.70m | 0.0060% CA$647.0k | |
| General Counsel | 4yrs | CA$1.65m | 0.0077% CA$825.7k | |
| Group President of Civil Aviation Training Solutions | 13.8yrs | CA$3.32m | 0.019% CA$2.1m | |
| Vice President of Global Operations | 2.6yrs | no data | 0.0031% CA$337.0k | |
| Vice President of Investor Relations & Strategy | 13.1yrs | no data | 0.0014% CA$146.4k | |
| Vice President of Public Affairs & Global Communications | 5yrs | no data | 0.0022% CA$235.8k | |
| Vice President of Global Human Resources | 5yrs | no data | 0.0028% CA$299.3k | |
| Group President of Defence & Security | 0.08yrs | no data | no data | |
| Treasurer | 4.1yrs | no data | no data |
4.5yrs
Average Tenure
Experienced Management: CAE's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 10.3yrs | CA$7.55m | 0.11% CA$11.6m | |
| Independent Director | 2.3yrs | CA$177.00k | no data | |
| Independent Director | 9.5yrs | CA$192.00k | no data | |
| Independent Director | 7.1yrs | CA$197.00k | no data | |
| Chairman of Board | 1.5yrs | CA$264.37k | no data | |
| Independent Director | 3yrs | CA$183.29k | no data | |
| Independent Director | 0.5yrs | no data | no data | |
| Independent Director | 4.5yrs | CA$183.29k | no data | |
| Independent Director | 4.8yrs | CA$202.00k | 0.0015% CA$165.8k |
4.5yrs
Average Tenure
58yo
Average Age
Experienced Board: CAE's board of directors are considered experienced (4.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CAE insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CAE Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: CAE Inc.
- Ticker: CAE
- Exchange: TSX
- Founded: 1947
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: CA$10.765b
- Shares outstanding: 266.07m
- Website: https://www.cae.com
Number of Employees
Location
- CAE Inc.
- 8585 Cote-de-Liesse
- Saint-Laurent
- Quebec
- H4T 1G6
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CAE | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1972 |
| CAE | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1972 |
| CE9 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1972 |
Biography
CAE Inc., together with its subsidiaries, provides training solutions for the civil aviation, defence and security, and healthcare markets worldwide. The company’s Civil Aviation Training Solutions segment provides training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; flight simulation training devices; and ab initio pilot training and crew sourcing services. Its Defence and Security segment operates as a training systems integrator for defense forces in the air, land, and naval domains, as well as for government organizations responsible for public safety. The company’s Healthcare segment designs and manufactures simulators; offers audiovisual and simulation center management solutions; and develops courseware and offers services for training of medical, nursing, and allied healthcare students, as well as medical practitioners. It trains approximately 220,000 civil and defence crewmembers, including approximately 135,000 pilots and various healthcare professionals. CAE Inc. has a strategic partnership with Directional Aviation Capital. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in June 1993. CAE Inc. was founded in 1947 and is headquartered in Saint-Laurent, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:35 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.