CAE Inc., together with its subsidiaries, provides training solutions for the civil aviation, defence and security, and healthcare markets worldwide.
Slightly overvalued with questionable track record.
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's share price has been volatile over the past 3 months.
7 Day Return
CA Aerospace & Defense
1 Year Return
CA Aerospace & Defense
Return vs Industry: CAE exceeded the Canadian Aerospace & Defense industry which returned -43.5% over the past year.
Return vs Market: CAE underperformed the Canadian Market which returned -12.5% over the past year.
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
2 months ago | Simply Wall StAre Investors Undervaluing CAE Inc. (TSE:CAE) By 28%?
3 months ago | Simply Wall StAre CAE Inc.’s Returns On Capital Worth Investigating?
3 months ago | Simply Wall StA Sliding Share Price Has Us Looking At CAE Inc.'s (TSE:CAE) P/E Ratio
Is CAE undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CAE (CA$20.9) is trading below our estimate of fair value (CA$20.99)
Significantly Below Fair Value: CAE is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CAE is poor value based on its PE Ratio (17.8x) compared to the Aerospace & Defense industry average (15.9x).
PE vs Market: CAE is poor value based on its PE Ratio (17.8x) compared to the Canadian market (13.4x).
Price to Earnings Growth Ratio
PEG Ratio: CAE is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: CAE is good value based on its PB Ratio (2.2x) compared to the CA Aerospace & Defense industry average (2.2x).
How is CAE forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAE's forecast earnings growth (12.3% per year) is above the savings rate (1.7%).
Earnings vs Market: CAE's earnings (12.3% per year) are forecast to grow slower than the Canadian market (23.5% per year).
High Growth Earnings: CAE's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAE's revenue (0.9% per year) is forecast to grow slower than the Canadian market (5.4% per year).
High Growth Revenue: CAE's revenue (0.9% 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 (10.6%).
How has CAE performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAE has high quality earnings.
Growing Profit Margin: CAE's current net profit margins (8.6%) are lower than last year (10%).
Past Earnings Growth Analysis
Earnings Trend: CAE's earnings have grown by 10.3% 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 (-5.6%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (0.4%).
Return on Equity
High ROE: CAE's Return on Equity (12.4%) is considered low.
How is CAE's financial position?
Financial Position Analysis
Short Term Liabilities: CAE's short term assets (CA$2.8B) exceed its short term liabilities (CA$2.1B).
Long Term Liabilities: CAE's short term assets (CA$2.8B) do not cover its long term liabilities (CA$3.8B).
Debt to Equity History and Analysis
Debt Level: CAE's debt to equity ratio (109.5%) is considered high.
Reducing Debt: CAE's debt to equity ratio has increased from 65.1% to 109.5% over the past 5 years.
Debt Coverage: CAE's debt is not well covered by operating cash flow (19.3%).
Interest Coverage: CAE's interest payments on its debt are well covered by EBIT (4.3x coverage).
What is CAE current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CAE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CAE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CAE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CAE's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: CAE is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CAE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Marc Parent (59yo)
Mr. Marc Parent has been the Chief Executive Officer and President of CAE Inc. since October 2009 and its Director since November 2008. Mr. Parent joined CAE in February 2005 as Group President, Simulation ...
CEO Compensation Analysis
Compensation vs Market: Marc's total compensation ($USD5.46M) is above average for companies of similar size in the Canadian market ($USD3.31M).
Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.
|VP of Finance & CFO||4.17yrs||CA$2.78m||0.0066% CA$383.1k|
|General Counsel||4.42yrs||CA$1.60m||0.0082% CA$477.9k|
|Group President of Civil Aviation Training Solutions||14.17yrs||CA$3.15m||0.020% CA$1.2m|
|President of CAE Healthcare||no data||CA$1.94m||no data|
|Vice President of Global Operations||3yrs||no data||0.0035% CA$207.1k|
|Vice President of Investor Relations & Strategy||13.5yrs||no data||0.0014% CA$80.7k|
|Vice President of Public Affairs & Global Communications||5.42yrs||no data||0.0026% CA$151.5k|
|Vice President of Global Human Resources||5.42yrs||no data||0.0032% CA$186.0k|
|Interim Group President of Defence & Security and EVP of Business Development and Growth Initiatives||0.17yr||no data||no data|
Experienced Management: CAE's management team is seasoned and experienced (5.4 years average tenure).
|Independent Director||2.67yrs||CA$183.29k||no data|
|Independent Director||9.92yrs||CA$192.00k||no data|
|Independent Director||7.5yrs||CA$190.71k||no data|
|Independent Chairman of Board||1.92yrs||CA$310.00k||no data|
|Independent Director||3.42yrs||CA$187.00k||no data|
|Independent Director||0.92yr||CA$111.34k||0.0059% CA$343.3k|
|Independent Director||4.92yrs||CA$193.29k||no data|
|Independent Director||5.17yrs||CA$202.00k||0.0015% CA$90.1k|
|Independent Director||0.17yr||no data||no data|
Experienced Board: CAE's board of directors are considered experienced (4.2 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
CAE Inc.'s company bio, employee growth, exchange listings and data sources
- Name: CAE Inc.
- Ticker: CAE
- Exchange: TSX
- Founded: 1947
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: CA$5.849b
- Shares outstanding: 265.62m
- Website: https://www.cae.com
Number of Employees
- CAE Inc.
- 8585 Cote-de-Liesse
- H4T 1G6
|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|
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. 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||2020/07/02 23:55|
|End of Day Share Price||2020/07/02 00:00|
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.