Cae Inc (NYSE: CAE)

Sector: Industrials Industry: Aerospace & Defense CIK: 0001173382
Market Cap 10.50 Bn
P/B 2.85
P/E 33.27
P/S 3.00
ROIC (Qtr) 8.76
Div Yield % 0.00
Rev 1y % (Qtr) 7.22
Total Debt (Qtr) 2.44 Bn
Debt/Equity (Qtr) 0.66

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 685.51M provides exceptional 93.66x coverage of minority interest expenses 7.32M, showing strong core operations.
  • Operating cash flow of 685.51M provides strong 30.92x coverage of stock compensation 22.17M, indicating sustainable incentive practices.
  • Strong operating cash flow of 685.51M provides 1.55x coverage of SG&A expenses 443.48M, showing efficient operational cost management.
  • Tangible assets of 5.30B provide exceptional 7.08x coverage of deferred revenue 749.13M, showing strong service capability backing.
  • Cash position of 129.49M provides exceptional 17.69x coverage of minority interest expenses 7.32M, indicating strong liquidity.

Bear case

  • Operating cash flow of 685.51M barely covers its investment activities of (560.36M), with a coverage ratio of -1.22, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (560.36M) provide weak support for R&D spending of 89.71M, which is -6.25x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 129.49M provide limited coverage of acquisition spending of (190.29M), which is -0.68x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 685.51M provides insufficient coverage of deferred revenue obligations of 749.13M, which is 0.92x, raising concerns about future service delivery capabilities.
  • Operating earnings of 566.30M show weak coverage of depreciation charges of 322.10M, with a 1.76 ratio indicating high capital intensity and potential reinvestment needs.

Geographical areas [axis] Breakdown of Revenue (2025)

Peer comparison

Companies in the Aerospace & Defense
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GE General Electric Co 342.94 Bn 42.54 7.80 20.84 Bn
2 RTX RTX Corp 252.05 Bn 38.24 2.93 40.71 Bn
3 BA Boeing Co 174.43 Bn -17.16 2.16 53.35 Bn
4 LMT Lockheed Martin Corp 126.61 Bn 30.15 1.73 22.19 Bn
5 GD General Dynamics Corp 95.62 Bn 22.69 1.86 8.01 Bn
6 NOC Northrop Grumman Corp /De/ 89.30 Bn 22.22 2.18 16.96 Bn
7 HWM Howmet Aerospace Inc. 88.16 Bn 60.80 11.05 3.19 Bn
8 TDG TransDigm Group INC 80.97 Bn 43.39 9.17 30.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.19 3.58
EV to Cash from Ops. EV/CFO 14.00 58.38
EV to Debt EV to Debt 3.94 98.04
EV to EBIT EV/EBIT 16.95 19.42
EV to EBITDA EV/EBITDA 11.63 33.60
EV to Free Cash Flow [EV/FCF] EV/FCF 23.34 91.66
EV to Market Cap EV to Market Cap 0.91 1.13
EV to Revenue EV/Rev 2.74 11.27
Price to Book Value [P/B] P/B 2.85 4.81
Price to Earnings [P/E] P/E 33.27 31.79
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -3.75
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 22.95
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 14.15
Interest Coverage Int. cover (Qtr) 3.48 -18.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -14.92 -50.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -2.00 1,609.43
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.75
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 504.49 -30.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 662.70 10.65
EBIT Growth (1y) % EBIT 1y % (Qtr) 544.16 -26.90
EBT Growth (1y) % EBT 1y % (Qtr) 244.20 -27.25
EPS Growth (1y) % EPS 1y % (Qtr) 231.08 -99.21
FCF Growth (1y) % FCF 1y % (Qtr) 114.61 6.61
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.97 -5.55
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.32 0.51
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.07 1.76
Current Ratio Curr Ratio (Qtr) 0.84 3.72
Debt to Equity Ratio Debt/Equity (Qtr) 0.66 0.07
Interest Cover Ratio Int Coverage (Qtr) 3.48 -18.00
Times Interest Earned Times Interest Earned (Qtr) 3.48 -18.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.40 -345.84
EBIT Margin % EBIT Margin % (Qtr) 22.31 -382.63
EBT Margin % EBT Margin % (Qtr) 11.52 -387.93
Gross Margin % Gross Margin % (Qtr) 28.10 -33.31
Net Profit Margin % Net Margin % (Qtr) 9.00 -389.13