CAE.TO  Cae Inc

Exchange

TSX

Sector

Technology

Industry

Market Cap.

5.52B

Vuru Grade

46.37/100

Current Price

$20.52
-0.43 (-2.05%)

Growth Price

$11.98
Overvalued by 41.64%

Company Metrics

  • P/E 22.33
  • P/S 2.05
  • P/B 2.73
  • EPS 0.92
  • Cash ROIC 3.45%
  • Cash Ratio 0.40
  • Dividend 0.36 / 1.72 %
  • Avg. Vol. 511,994.00
  • Shares 269.01M
  • Market Cap. 5.52B

Company Description

CAE Inc., together with its subsidiaries, designs, manufactures, and supplies simulation equipment and services; and develops integrated training solutions to the military, commercial airlines, business aircraft operators, aircraft manufacturers, and healthcare education and service providers worldwide. Its Simulation Products/Civil segment provides civil flight simulators, training devices, and v... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

CAE, Inc. v. Gulfstream Aerospace Corp., DEFAX Case No. D67834 (D.Del. July 28 ...
Delaware Law Weekly - Aug 15, 2017
CAE, Inc. v. Gulfstream Aerospace Corp., DEFAX Case No. D67834 (D.Del. July 28, 2017), Sleet, J. (19 pages). Allegations of injury to a competitor did not state an antitrust claim.
CAE Inc. Ordinary Shares (NYSE:CAE) Trading Volume Significantly Higher
Modern Readers - Aug 18, 2017
Trading volume for CAE Inc. Ordinary Shares was 223K on Friday. Volume was up 161.08% over the stocks average daily volume.
CAE Inc. Ordinary Shares (NYSE:CAE) Experiences Heavy Trading Volume - HugoPress
CAE Inc. Ordinary Shares (NYSE:CAE) Sees Unusual Trading Volume in Its Shares - Highlight Press
CAE, Inc. (CAE) Misses Q1 EPS by 1c
StreetInsider.com - Aug 10, 2017
CAE, Inc. (NYSE: CAE) reported Q1 EPS of Cdn$0.24, Cdn$0.01 worse than the analyst estimate of Cdn$0.25. Revenue for the quarter came in at Cdn$698.9 million versus the consensus estimate of Cdn$699.7 million.
CAE, Inc. (CAE) Sells 49% Stake in ZFTC JV with China Southern Airlines for $96M
StreetInsider.com - Aug 10, 2017
CAE (NYSE: CAE) and China Southern Airlines have concluded a sale and purchase agreement which involves China Southern Airlines acquiring CAE's 49% equity stake in the jointly-held Zhuhai Flight Training Centre (ZFTC) for US$96 million, excluding ...
CAE Inc.: CAE reports first quarter fiscal 2018 results and announces dividend ... - The Wall Street Transcript
CAE Inc's ‍board approves 13pct quarterly dividend increase
Times of India - Aug 10, 2017
CAE Inc - ‍board of directors approves 13% quarterly dividend increase from $0.08 to $0.09 per share​. * CAE Inc - ‍announces new strategic developments with longstanding airline customers in Asia​. * CAE Inc - ‍civil backlog at end of quarter was $3.2 ...
Quant Technicals in Focus For CAE Inc. (TSX:CAE)
Rockville Register - 9 hours ago
At the time of writing, CAE Inc. (TSX:CAE) has a Piotroski F-Score of 7. The F-Score may help discover companies with strengthening balance sheets.
CAE Inc (CAE.TO) Moves Below Ichimoku Cloud
Clayton News - 16 hours ago
Shares of CAE Inc (CAE.TO) opened the last session at 20.92, touching a high of 20.97 and a low of 20.51 , yielding a change of -0.42.
Share Performance Update on CAE Inc (CAE.TO)
Clayton News - 17 hours ago
CAE Inc (CAE.TO) has ended the week in the red, yielding negative results for the shares at they ticked -2.29%. In taking a look at recent performance, we can see that shares have moved -7.23% over the past 4-weeks, 0.44% over the past half year and ...
Legato Capital Management LLC Boosts Stake in CAE Inc (NYSE:CAE)
BNB Daily (blog) - Aug 16, 2017
CAE logo Legato Capital Management LLC increased its position in shares of CAE Inc (NYSE:CAE) (TSE:CAE) by 25.7% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC).
CAE Inc. (NYSE:CAE) Sees the Tape Move -1.39%
Concord Register - 20 hours ago
CAE Inc. (NYSE:CAE) shares have moved -1.39% on the week. The stock closed the most recent session at $16.32 after seeing 165433 shares trade hands.
Credit Suisse AG Reduces Position in CAE Inc (NYSE:CAE) - BBNS
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CAE.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CAE.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$20.52 Current Price

$11.98 Growth Price (DCF)

Overvalued by 41.64%


Growth Rate Assumed by Market: 25.88%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$15.89 Book Price

Overvalued by 22.57%


Poor Cash Return on Invested Capital over the past 5 years

CAE.TO has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CAE.TO has only created $3.45 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in March
20132014201520162017
Free Cash Flow 28.90M 105.00M 63.00M 176.80M 190.50M
divided by
Invested Capital 2.58B 2.96B 3.29B 3.32B 3.58B
Cash ROIC 1.12% 3.55% 1.92% 5.33% 5.33%

Satisfactory Return on Equity over the past 5 years

CAE.TO has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

CAE.TO has generated $12.75 of Earnings for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in March
20132014201520162017
Net Income 142.40M 191.10M 204.70M 230.30M 256.60M
divided by
Stockholders' Equity 1.10B 1.44B 1.61B 1.89B 2.02B
Return on Equity 12.91% 13.26% 12.69% 12.19% 12.70%

Excellent Business Performance over the past 10 years

CAE.TO has been able to maintain profitability in good times and bad. This could mean CAE.TO has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CAE.TO has created positive free cash flow for 9 or more of the past 10 years.
Figures in CAD. Fiscal year ends in March
2008200920102011201220132014201520162017
Free Cash Flow 71.40M -8.20M 136.10M 132.10M 8.10M 28.90M 105.00M 63.00M 176.80M 190.50M

Weak Balance Sheet

CAE.TO's financial position is not ideal. The key is to check whether CAE.TO is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in CAD. Fiscal year ends in March
2008200920102011201220132014201520162017
Cash 255.70M 195.20M 312.90M 276.40M 287.30M 293.20M 312.30M 330.20M 485.60M 504.70M
Current Assets 826.40M 899.90M 963.00M 1.02B 1.15B 1.33B 1.35B 1.56B 1.75B 1.92B
Total Assets 2.25B 2.68B 2.62B 2.86B 3.18B 3.88B 4.24B 4.66B 5.00B 5.35B
Current Liabilities 736.10M 890.70M 741.60M 762.90M 883.40M 1.00B 964.50M 1.04B 1.19B 1.27B
Total Liabilities 1.30B 1.47B 1.47B 1.59B 2.16B 2.78B 2.80B 3.04B 3.11B 3.33B
Stockholder' Equity 948.50M 1.21B 1.16B 1.27B 1.02B 1.10B 1.44B 1.61B 1.89B 2.02B
Current Ratio 1.12 1.01 1.30 1.34 1.30 1.33 1.40 1.50 1.47 1.51
TL-to-TA 0.58 0.55 0.56 0.56 0.68 0.72 0.66 0.65 0.62 0.62

Consistent Reinvestment of Profits over the past 10 years

CAE.TO has consistently retained profits. This may put CAE.TO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, CAE.TO can greatly improve their long-term economic picture.
Figures in CAD. Fiscal year ends in March
2008200920102011201220132014201520162017
Retained Earnings 644.50M 813.30M 918.80M 1.05B 558.00M 625.70M 775.10M 857.30M 1.05B 1.19B
Retained Earnings Growth - 26.19% 12.97% 14.29% -46.86% 12.13% 23.88% 10.61% 22.24% 13.77%

Competitive Industry over the past 10 years

CAE.TO is likely operating in an industry with medium to low barriers to entry. This may mean that CAE.TO doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that CAE.TO invests heavily in R&D and Sales, General & Administrative expenses.

Only $8.84 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in March
2008200920102011201220132014201520162017
Net Income 43.70M 199.40M 144.50M 169.80M 180.30M 142.40M 191.10M 204.70M 230.30M 256.60M
divided by
Revenue 1.42B 1.66B 1.53B 1.63B 1.82B 2.10B 2.11B 2.25B 2.51B 2.70B
Net Profit Margin 3.07% 12.00% 9.47% 10.42% 9.90% 6.77% 9.04% 9.11% 9.17% 9.49%

Growing Pricing Power over the past 10 years

CAE.TO has growing gross margins, suggesting that they have been able to set higher prices without consideration of the cost of goods sold. Look at its future prospects to determine sustainability and whether the economic moat will continue to strengthen.

$24.44 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in March
2008200920102011201220132014201520162017
Gross Profit 251.50M 303.60M 264.10M 258.30M 600.10M 621.70M 596.90M 603.70M 695.90M 811.20M
divided by
Revenue 1.42B 1.66B 1.53B 1.63B 1.82B 2.10B 2.11B 2.25B 2.51B 2.70B
Gross Margin 17.67% 18.26% 17.30% 15.86% 32.95% 29.54% 28.22% 26.88% 27.70% 29.99%

High Capital Intensity over the past 10 years

CAE.TO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

131.23% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in March
2008200920102011201220132014201520162017
Capital Expenditure 189.50M 203.70M 130.90M 114.90M 225.80M 175.20M 171.00M 205.60M 169.00M 273.80M
divided by
Net Income 43.70M 199.40M 144.50M 169.80M 180.30M 142.40M 191.10M 204.70M 230.30M 256.60M
Capital Expenditure Ratio 433.64% 102.16% 90.59% 67.67% 125.24% 123.03% 89.48% 100.44% 73.38% 106.70%

Very Strong Dividend History over the past 10 years

CAE.TO has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests CAE.TO is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in CAD. Fiscal year ends in March
2008200920102011201220132014201520162017
Dividend Paid 9.80M 29.60M 30.30M 37.90M 33.40M 37.10M 40.10M 46.30M 56.70M 80.60M
divided by
Shares Outstanding 254.60M 255.00M 255.80M 257.30M 258.22M 259.40M 261.92M - 269.20M 269.60M
Dividend Paid Per Share 0.04 0.12 0.12 0.15 0.13 0.14 0.15 - 0.21 0.30
Price at Year End 7.58 8.49 11.19 9.89 10.02 13.49 15.09 15.41 18.78 21.37
Dividend Yield 0.50% 1.36% 1.05% 1.48% 1.28% 1.05% 1.01% - 1.11% 1.39%

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that CAE.TO hasn't initiated a stock buyback.
Figures in CAD. Fiscal year ends in March
2008200920102011201220132014201520162017
Shares Outstanding 254.60M 255.00M 255.80M 257.30M 258.22M 259.40M 261.92M - 269.20M 269.60M
Stock Bought Back - -0.16% -0.31% -0.58% -0.36% -0.45% -0.96% - -100.00% -0.15%
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