CAE Inc.
Find Ratings Reports
0.21 |
0.70%
CAE INC's gross profit margin for the third quarter of its fiscal year 2020 has decreased when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the subsector. CAE INC has weak liquidity. Currently, the Quick Ratio is 0.60 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 17.76% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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| Income Statement | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 832.4 | 923.5 |
| EBITDA ($mil) | 166.3 | 217.3 |
| EBIT ($mil) | 87.1 | 139.6 |
| Net Income ($mil) | 48.8 | 97.7 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 619.9 | 278.5 |
| Total Assets ($mil) | 7778.9 | 7444.6 |
| Total Debt ($mil) | 2439.8 | 2585.1 |
| Equity ($mil) | 2782.0 | 2362.4 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 37.01 | 39.98 |
| EBITDA Margin | 19.97 | 23.53 |
| Operating Margin | 10.46 | 15.12 |
| Sales Turnover | 0.39 | 0.49 |
| Return on Assets | 0.14 | 4.77 |
| Return on Equity | 0.41 | 15.04 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 1.24 | 1.17 |
| Debt/Capital | 0.47 | 0.52 |
| Interest Expense | 35.6 | 39.1 |
| Interest Coverage | 2.45 | 3.57 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 282.76 | 265.87 |
| Div / share | 0.0 | 0.08 |
| EPS | 0.18 | 0.37 |
| Book value / share | 9.84 | 8.89 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 466233.0 | 406762.0 |
HOLD. CAE INC's P/E ratio indicates a significant premium compared to an average of 51.62 for the Machinery Manufacturing subsector and a significant premium compared to the S&P 500 average of 43.53. To use another comparison, its price-to-book ratio of 3.07 indicates a discount versus the S&P 500 average of 4.31 and a significant discount versus the subsector average of 6.68. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CAE 1005.33 | Peers 58.78 | CAE 18.29 | Peers 63.22 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. CAE is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CAE is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| CAE NA | Peers 147.76 | CAE NA | Peers 5.05 | |||||||||||||||||||||
|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| CAE 3.07 | Peers 6.68 | CAE -97.77 | Peers -389.50 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CAE is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. CAE is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| CAE 2.78 | Peers 273.17 | CAE -16.44 | Peers -3.80 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CAE is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CAE significantly trails its peers on the basis of sales growth. |
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