Market Cap
CA$8.5b
Last Updated
2021/01/26 00:20 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and fair value.
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 is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: CAE's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
-8.2%
CAE
-5.5%
CA Aerospace & Defense
-0.2%
CA Market
1 Year Return
-23.3%
CAE
-21.7%
CA Aerospace & Defense
2.4%
CA Market
Return vs Industry: CAE underperformed the Canadian Aerospace & Defense industry which returned -21.7% over the past year.
Return vs Market: CAE underperformed the Canadian Market which returned 2.4% over the past year.
Shareholder returns
| CAE | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.2% | -5.5% | -0.2% |
| 30 Day | -12.5% | -7.3% | 2.8% |
| 90 Day | 29.7% | 33.4% | 15.1% |
| 1 Year | -23.1%-23.3% | -21.2%-21.7% | 6.1%2.4% |
| 3 Year | 36.9%32.7% | 13.3%9.4% | 14.7%3.8% |
| 5 Year | 128.8%114.3% | 91.2%78.6% | 62.6%37.5% |
Long-Term 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
1 week ago | Simply Wall St
What Type Of Shareholders Make Up CAE Inc.'s (TSE:CAE) Share Registry?3 weeks ago | Simply Wall St
How Many CAE Inc. (TSE:CAE) Shares Did Insiders Buy, In The Last Year?1 month ago | Simply Wall St
How Much Is CAE Inc. (TSE:CAE) Paying Its CEO?Valuation
Is CAE undervalued compared to its fair value and its price relative to the market?
28.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CAE (CA$30.22) is trading below our estimate of fair value (CA$42.36)
Significantly Below Fair Value: CAE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CAE is poor value based on its PE Ratio (133.2x) compared to the XN Aerospace & Defense industry average (30.6x).
PE vs Market: CAE is poor value based on its PE Ratio (133.2x) compared to the Canadian market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: CAE is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: CAE is good value based on its PB Ratio (3.5x) compared to the CA Aerospace & Defense industry average (4.4x).
Next Steps
Future Growth
How is CAE forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
68.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAE's forecast earnings growth (68.4% per year) is above the savings rate (1.5%).
Earnings vs Market: CAE's earnings (68.4% per year) are forecast to grow faster than the Canadian market (26.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CAE's revenue (9% per year) is forecast to grow faster than the Canadian market (8% per year).
High Growth Revenue: CAE's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CAE's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has CAE performed over the past 5 years?
0.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAE has a large one-off loss of CA$190.8M impacting its September 30 2020 financial results.
Growing Profit Margin: CAE's current net profit margins (1.9%) are lower than last year (9.4%).
Past Earnings Growth Analysis
Earnings Trend: CAE's earnings have grown by 0.4% per year over the past 5 years.
Accelerating Growth: CAE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CAE had negative earnings growth (-82%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-13.1%).
Return on Equity
High ROE: CAE's Return on Equity (2.8%) is considered low.
Next Steps
Financial Health
How is CAE's financial position?
Financial Position Analysis
Short Term Liabilities: CAE's short term assets (CA$2.1B) exceed its short term liabilities (CA$1.9B).
Long Term Liabilities: CAE's short term assets (CA$2.1B) do not cover its long term liabilities (CA$3.2B).
Debt to Equity History and Analysis
Debt Level: CAE's debt to equity ratio (90.6%) is considered high.
Reducing Debt: CAE's debt to equity ratio has increased from 60.8% to 90.6% over the past 5 years.
Debt Coverage: CAE's debt is well covered by operating cash flow (24.7%).
Interest Coverage: CAE's interest payments on its debt are well covered by EBIT (3.1x coverage).
Balance Sheet
Next Steps
Dividend
What is CAE current dividend yield, its reliability and sustainability?
0.54%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CAE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CAE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CAE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CAE's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: CAE is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CAE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Marc Parent (59 yo)
11.25yrs
Tenure
CA$7,423,461
Compensation
Mr. Marc Parent, C.M., has been the Chief Executive Officer and President of CAE Inc. since October 2009 and its Director since November 2008. Mr. Parent joined CAE in February 2005 as Group President, Sim...
CEO Compensation Analysis
Compensation vs Market: Marc's total compensation ($USD5.82M) is above average for companies of similar size in the Canadian market ($USD3.77M).
Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 11.25yrs | CA$7.42m | 0.10% CA$ 8.7m | |
| Executive VP of Finance & CFO | 4.67yrs | CA$2.78m | 0.0062% CA$ 520.3k | |
| General Counsel | 4.92yrs | CA$1.60m | 0.0077% CA$ 648.9k | |
| Group President of Civil Aviation Training Solutions | 14.67yrs | CA$3.15m | 0.021% CA$ 1.8m | |
| Senior Vice-President of Global Operations | 3.5yrs | no data | 0.0033% CA$ 281.7k | |
| Senior Vice-President of Strategy & Investor Relations | 14yrs | no data | 0.0013% CA$ 110.0k | |
| Senior Vice President of Public Affairs | 5.92yrs | no data | 0.0024% CA$ 205.6k | |
| Senior Vice President of Global Human Resources | 5.92yrs | no data | 0.0030% CA$ 252.1k | |
| President of CAE Healthcare and Executive VP of Business Development & Growth Initiatives | 0.67yr | no data | no data | |
| Group President of Defense & Security | 0.42yr | no data | no data | |
| Treasurer | 5yrs | no data | no data | |
| VP & Corporate Controller | 4.67yrs | no data | no data |
5.0yrs
Average Tenure
Experienced Management: CAE's management team is considered experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 11.25yrs | CA$7.42m | 0.10% CA$ 8.7m | |
| Independent Director | 3.17yrs | CA$183.29k | no data | |
| Independent Director | 10.42yrs | CA$192.00k | no data | |
| Independent Director | 8yrs | CA$190.71k | no data | |
| Independent Chairman of Board | 2.42yrs | CA$310.00k | no data | |
| Independent Director | 3.92yrs | CA$187.00k | no data | |
| Independent Director | 1.42yrs | CA$111.34k | 0.0055% CA$ 467.0k | |
| Independent Director | 5.42yrs | CA$193.29k | no data | |
| Independent Director | 5.67yrs | CA$202.00k | 0.0014% CA$ 122.7k | |
| Independent Director | 0.67yr | no data | no data |
4.7yrs
Average Tenure
60.5yo
Average Age
Experienced Board: CAE's board of directors are considered experienced (4.7 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 been diluted in the past year, with total shares outstanding growing by 6.3%.
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$8.460b
- Shares outstanding: 282.76m
- 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 |
| CAE N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | 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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/26 00:20 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.