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CAE

TSX:CAE
Snowflake Description

Average dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CAE
TSX
CA$5B
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company description

CAE Inc., together with its subsidiaries, provides training solutions for the civil aviation, defence and security, and healthcare markets worldwide. The last earnings update was 61 days ago. More info.


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  • CAE has significant price volatility in the past 3 months.
CAE Share Price and Events
7 Day Returns
4.4%
TSX:CAE
-6%
CA Aerospace & Defense
1.1%
CA Market
1 Year Returns
-43.1%
TSX:CAE
-47.3%
CA Aerospace & Defense
-22.9%
CA Market
CAE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CAE (CAE) 4.4% -43% -54.1% -43.1% -15.1% 16.7%
CA Aerospace & Defense -6% -48.1% -54.4% -47.3% -27.4% -1.3%
CA Market 1.1% -17.3% -23.4% -22.9% -20.8% -14.9%
1 Year Return vs Industry and Market
  • CAE outperformed the Aerospace & Defense industry which returned -47.3% over the past year.
  • CAE underperformed the Market in Canada which returned -22.9% over the past year.
Price Volatility
CAE
Industry
5yr Volatility vs Market

CAE Value

 Is CAE undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CAE to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CAE.

TSX:CAE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CAE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.846 (1 + (1- 26.5%) (56.06%))
1.13
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.13 * 5.44%)
7.59%

Discounted Cash Flow Calculation for TSX:CAE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CAE is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:CAE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7.59%)
2020 254.20 Analyst x5 236.27
2021 246.00 Analyst x6 212.52
2022 352.75 Analyst x4 283.25
2023 351.00 Analyst x2 261.97
2024 368.50 Analyst x2 255.63
2025 381.61 Est @ 3.56% 246.05
2026 392.76 Est @ 2.92% 235.38
2027 402.50 Est @ 2.48% 224.20
2028 411.22 Est @ 2.17% 212.90
2029 419.23 Est @ 1.95% 201.74
Present value of next 10 years cash flows CA$2,369.00
TSX:CAE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$419.23 × (1 + 1.44%) ÷ (7.59% – 1.44%)
CA$6,916.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$6,916.58 ÷ (1 + 7.59%)10
CA$3,328.38
TSX:CAE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$2,369.00 + CA$3,328.38
CA$5,697.38
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$5,697.38 / 266.07
CA$21.41
TSX:CAE Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$21.41
Current discount Discount to share price of CA$17.33
= -1 x (CA$17.33 - CA$21.41) / CA$21.41
19.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CAE is available for.
Intrinsic value
19%
Share price is CA$17.33 vs Future cash flow value of CA$21.41
Current Discount Checks
For CAE to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CAE's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • CAE's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CAE's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CAE's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CAE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$1.34
TSX:CAE Share Price ** TSX (2020-04-07) in CAD CA$17.33
North America Aerospace & Defense Industry PE Ratio Median Figure of 43 Publicly-Listed Aerospace & Defense Companies 12.72x
Canada Market PE Ratio Median Figure of 498 Publicly-Listed Companies 10.51x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CAE.

TSX:CAE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CAE Share Price ÷ EPS (both in CAD)

= 17.33 ÷ 1.34

12.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CAE is overvalued based on earnings compared to the North America Aerospace & Defense industry average.
  • CAE is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does CAE's expected growth come at a high price?
Raw Data
TSX:CAE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.96x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
-0.7%per year
North America Aerospace & Defense Industry PEG Ratio Median Figure of 34 Publicly-Listed Aerospace & Defense Companies 1.74x
Canada Market PEG Ratio Median Figure of 233 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

TSX:CAE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.96x ÷ -0.7%

-18.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CAE earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on CAE's assets?
Raw Data
TSX:CAE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$8.89
TSX:CAE Share Price * TSX (2020-04-07) in CAD CA$17.33
Canada Aerospace & Defense Industry PB Ratio Median Figure of 10 Publicly-Listed Aerospace & Defense Companies 1.67x
Canada Market PB Ratio Median Figure of 2,363 Publicly-Listed Companies 1x
TSX:CAE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CAE Share Price ÷ Book Value per Share (both in CAD)

= 17.33 ÷ 8.89

1.95x

* Primary Listing of CAE.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CAE is overvalued based on assets compared to the CA Aerospace & Defense industry average.
X
Value checks
We assess CAE's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. CAE has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CAE Future Performance

 How is CAE expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CAE expected to grow at an attractive rate?
  • CAE's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.4%.
Growth vs Market Checks
  • CAE's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • CAE's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CAE Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CAE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts -0.7%
TSX:CAE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 2.3%
North America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
North America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 5.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CAE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CAE Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2025-03-31 4,920 1
2024-03-31 3,933 630 352 3
2023-03-31 3,614 575 294 3
2022-03-31 3,464 611 291 7
2021-03-31 3,413 475 228 10
2020-04-08
2020-03-31 3,706 540 359 10
TSX:CAE Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 3,668 465 355
2019-09-30 3,561 361 335
2019-06-30 3,408 501 322
2019-03-31 3,304 530 330
2018-12-31 3,003 502 290
2018-09-30 3,015 472 356
2018-06-30 2,889 392 356
2018-03-31 2,824 403 346
2017-12-31 2,837 463 331
2017-09-30 2,692 432 255
2017-06-30 2,709 391 243
2017-03-31 2,705 464 252

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CAE's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • CAE's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CAE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from CAE Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CAE Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2025-03-31
2024-03-31 1.31 1.42 1.19 2.00
2023-03-31 1.09 1.20 0.98 2.00
2022-03-31 1.06 1.48 0.75 5.00
2021-03-31 0.73 1.61 0.35 6.00
2020-04-08
2020-03-31 1.29 1.38 1.15 6.00
TSX:CAE Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 1.34
2019-09-30 1.26
2019-06-30 1.21
2019-03-31 1.24
2018-12-31 1.09
2018-09-30 1.33
2018-06-30 1.33
2018-03-31 1.29
2017-12-31 1.23
2017-09-30 0.95
2017-06-30 0.90
2017-03-31 0.94

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CAE is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CAE's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CAE has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CAE Past Performance

  How has CAE performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CAE's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CAE's year on year earnings growth rate has been positive over the past 5 years.
  • CAE's 1-year earnings growth exceeds its 5-year average (22.5% vs 11.5%)
  • CAE's earnings growth has exceeded the North America Aerospace & Defense industry average in the past year (22.5% vs 3.4%).
Earnings and Revenue History
CAE's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CAE Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CAE Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 3,667.90 355.30 458.40 111.20
2019-09-30 3,560.70 335.20 441.60 108.70
2019-06-30 3,407.70 322.10 431.60 102.00
2019-03-31 3,304.10 330.00 420.90 101.40
2018-12-31 3,003.00 290.00 409.70 114.30
2018-09-30 3,014.90 356.20 406.70 113.00
2018-06-30 2,889.30 355.80 393.60 113.90
2018-03-31 2,823.50 346.00 385.70 114.90
2017-12-31 2,837.30 331.10 383.00 123.40
2017-09-30 2,691.80 254.90 374.40 122.40
2017-06-30 2,709.10 242.90 383.70 118.30
2017-03-31 2,704.50 252.00 369.60 111.00
2016-12-31 2,692.30 245.80 349.10 106.20
2016-09-30 2,625.90 236.10 340.70 97.40
2016-06-30 2,607.20 263.10 325.70 91.80
2016-03-31 2,512.60 239.30 317.00 87.60
2015-12-31 2,421.70 241.40 297.30 80.60
2015-09-30 2,364.50 235.60 286.40 74.20
2015-06-30 2,277.10 202.30 277.60 70.50
2015-03-31 2,246.30 201.20 269.50 64.10
2014-12-31 2,190.40 197.80 270.20 64.10
2014-09-30 2,135.20 191.20 261.40 66.50
2014-06-30 2,084.00 187.40 260.70 64.80
2014-03-31 2,077.90 188.30 264.50 67.70
2013-12-31 2,067.80 171.50 260.00 66.20
2013-09-30 2,064.80 163.50 263.80 64.10
2013-06-30 2,093.10 160.90 270.10 63.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CAE has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CAE used its assets less efficiently than the North America Aerospace & Defense industry average last year based on Return on Assets.
  • CAE's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CAE's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CAE has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CAE Health

 How is CAE's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CAE's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CAE is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CAE's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of CAE's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CAE Company Filings, last reported 3 months ago.

TSX:CAE Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 2,445.90 2,585.10 278.50
2019-09-30 2,351.30 2,665.30 222.50
2019-06-30 2,366.10 2,634.70 322.00
2019-03-31 2,410.00 2,069.00 446.10
2018-12-31 2,368.80 1,347.40 361.70
2018-09-30 2,282.60 1,299.40 504.30
2018-06-30 2,315.60 1,311.60 500.10
2018-03-31 2,297.50 1,115.50 611.50
2017-12-31 2,185.70 1,242.40 530.80
2017-09-30 2,111.70 1,210.80 541.00
2017-06-30 2,125.30 1,236.20 431.90
2017-03-31 2,081.00 1,082.10 504.70
2016-12-31 2,025.50 1,270.60 416.80
2016-09-30 1,951.50 1,266.00 343.30
2016-06-30 1,905.50 1,225.30 345.00
2016-03-31 1,940.30 1,106.50 485.60
2015-12-31 1,945.50 1,336.30 541.40
2015-09-30 1,861.00 1,313.80 377.00
2015-06-30 1,740.40 1,291.20 284.40
2015-03-31 1,686.40 1,098.60 330.20
2014-12-31 1,565.90 1,235.30 263.60
2014-09-30 1,503.30 1,276.30 277.80
2014-06-30 1,474.90 1,182.40 280.80
2014-03-31 1,482.20 1,009.30 312.30
2013-12-31 1,390.10 1,152.80 266.30
2013-09-30 1,281.90 1,097.30 286.90
2013-06-30 1,235.50 1,156.70 258.90
  • CAE's level of debt (95.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (68.7% vs 95.1% today).
  • Debt is well covered by operating cash flow (20%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).
X
Financial health checks
We assess CAE's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CAE has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CAE Dividends

 What is CAE's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.54%
Current annual income from CAE dividends. Estimated to be 1.59% next year.
If you bought CA$2,000 of CAE shares you are expected to receive CA$51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CAE's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.68%).
  • CAE's dividend is below the markets top 25% of dividend payers in Canada (8.42%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CAE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
North America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CAE Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2025-03-31 0.44 1.00
2024-03-31 0.40 1.00
2023-03-31 0.30 1.00
2022-03-31 0.33 3.00
2021-03-31 0.16 4.00
2020-04-08
2020-03-31 0.40 3.00
TSX:CAE Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-02-07 0.440 1.747
2019-11-13 0.440 1.209
2019-08-14 0.440 1.316
2019-05-17 0.400 1.137
2019-02-08 0.400 1.349
2018-11-13 0.400 1.518
2018-08-14 0.400 1.585
2018-05-25 0.360 1.321
2017-11-10 0.360 1.537
2017-08-10 0.360 1.694
2017-02-14 0.320 1.515
2016-11-10 0.320 1.688
2016-08-11 0.320 1.720
2016-08-10 0.320 1.793
2016-05-19 0.300 1.819
2016-02-11 0.300 2.011
2016-02-10 0.300 2.227
2015-08-12 0.300 2.046
2015-05-26 0.280 1.879
2015-02-09 0.280 1.868
2014-11-12 0.280 1.859
2014-08-13 0.280 2.017
2014-02-11 0.240 1.653
2013-11-13 0.240 1.824
2013-08-08 0.200 1.749
2013-05-21 0.198 1.786
2013-02-13 0.200 1.928
2012-11-08 0.200 1.959
2012-08-09 0.200 1.927
2012-05-23 0.160 1.606
2012-02-08 0.160 1.534
2011-11-10 0.160 1.573
2011-08-10 0.160 1.570
2011-05-19 0.160 1.290
2011-02-15 0.160 1.267
2010-11-10 0.160 1.352
2010-08-11 0.160 1.503
2010-05-13 0.120 1.248
2010-02-10 0.120 1.265
2009-11-13 0.120 1.378
2009-11-11 0.120 1.384
2009-05-14 0.120 1.532

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of CAE's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).
X
Income/ dividend checks
We assess CAE's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CAE afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CAE has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CAE Management

 What is the CEO of CAE's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marc Parent
COMPENSATION CA$7,545,220
AGE 58
TENURE AS CEO 10.5 years
CEO Bio

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 Products, responsible for the CAE’s civil simulation products business as well as the design, manufacture and support of products for civil and military training businesses. He served as Group President, Simulation Products and Military Training & Services of CAE Inc. since May 2006. He served as an Executive Vice President and Chief Operating Officer of CAE Inc. from November 2008 to September 30, 2009, responsible for all four of CAE’s business segments and new growth initiatives. He was Chief Executive Officer and President of Parc Aviation Limited. Mr. Parent has more than 30 years of experience in the aerospace industry. He started his career in 1984 with Canadair as an engineer on the Challenger and Canadair regional jet programs. Beginning in 1993, he held positions of increasing scope in aircraft product development, starting as head of the Challenger 604 program development team; in 1995, he headed the Q400 turboprop aircraft development program; and in 1998, he was promoted to Vice President, Program Management, with responsibilities covering all Bombardier aircraft development programs. From 2000 to 2004, Mr. Parent held numerous executive positions within Bombardier Aerospace, leading a number of facilities and product lines. In 2000, he held the position of Vice President, Operations, at Bombardier’s de Havilland site in Toronto; in 2001, he was promoted to Vice President and General Manager of Operations of the Toronto facility; in 2003, he held the position of Vice President and General Manager, U.S. Operations, with responsibilities encompassing Learjet facilities in Wichita and Tucson; and in March 2004, he returned to Montreal as Vice President and General Manager of Challenger 300, 604 and 850/870 programs as well as the CRJ 200 Regional Aircraft product line. He has been Director of TELUS Corporation since November 2017. Mr. Parent served as Chairman of the Board for Aero Montreal from October 2008 to April 2010. He served as Chairman of the Board of Aerospace Industries Association of Canada from September 2009 to August 2010. Mr. Parent has been a Director of CAE Inc. since November 2008. He is a past member of the Board of Directors and Executive Committee of the Canadian Association of Defense and Security Industries (CADSI) since March 2008. He is Member of the Board of Directors and Executive Committee of the Aerospace Industries Association of Canada (AIAC) since October 2007. He serves as Director of Aero Montreal. Mr. Parent was honoured in 1999 as one of “Canada’s Top 40 under 40” leaders. He was also selected as a 2010 Fellow of SAE International for his leadership and contributions in aircraft product development and for his successes at Bombardier and CAE. He serves as Director of Business Council of Canada since January 2016 and McGill University Health Centre Foundation since April 2018. He received the 2005 Society of Automotive Engineers (SAE) Aerospace Engineering Leadership Award and is a past recipient of the SAE Forest R. McFarland award. In February 2011, Marc Parent was named Canadian Defense Review’s first ever Defense Executive of the Year. Mr. Parent is an active pilot holding an Airline Transport Pilot License (ATPL) from Transport Canada. A native of Montreal, he is a graduate of mechanical engineering from Montreal’s École Polytechnique and of the Harvard Business School’s Advanced Management Program. In 2016, he was awarded the Prix Mérite 2016 of the Association of Polytechnique de Montréal Graduates. Mr. Parent was awarded an Honorary Doctorate by the École Polytechnique de Montréal for his contributions to the aerospace industry in Montreal and internationally.

CEO Compensation
  • Marc's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Marc's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the CAE management team in years:

4.7
Average Tenure
  • The tenure for the CAE management team is about average.
Management Team

Marc Parent

TITLE
President
COMPENSATION
CA$8M
AGE
58
TENURE
10.5 yrs

Sonya Branco

TITLE
VP of Finance & CFO
COMPENSATION
CA$3M
TENURE
3.9 yrs

Mark Hounsell

TITLE
General Counsel
COMPENSATION
CA$2M
TENURE
4.2 yrs

Nick Leontidis

TITLE
Group President of Civil Aviation Training Solutions
COMPENSATION
CA$3M
TENURE
13.9 yrs

Pascal Grenier

TITLE
Vice President of Global Operations
TENURE
2.8 yrs

Andrew Arnovitz

TITLE
Vice President of Investor Relations & Strategy
TENURE
13.3 yrs

Hélène Gagnon

TITLE
Vice President of Public Affairs & Global Communications
TENURE
5.2 yrs

Dan Sharkey

TITLE
Vice President of Global Human Resources
TENURE
5.2 yrs

Todd Probert

TITLE
Group President of Defence & Security
TENURE
0.3 yrs

Mario Pizzolongo

TITLE
Treasurer
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the CAE board of directors in years:

4.7
Average Tenure
58
Average Age
  • The tenure for the CAE board of directors is about average.
Board of Directors

John Manley

TITLE
Chairman of Board
COMPENSATION
CA$264K
AGE
69
TENURE
1.7 yrs

Marc Parent

TITLE
President
COMPENSATION
CA$8M
AGE
58
TENURE
11.4 yrs

Michael Fortier

TITLE
Independent Director
COMPENSATION
CA$192K
AGE
57
TENURE
9.7 yrs

Andy Stevens

TITLE
Independent Director
COMPENSATION
CA$197K
AGE
63
TENURE
7.3 yrs

Alan MacGibbon

TITLE
Independent Director
COMPENSATION
CA$202K
AGE
63
TENURE
4.9 yrs

Peg Billson

TITLE
Independent Director
COMPENSATION
CA$183K
AGE
57
TENURE
4.7 yrs

François Olivier

TITLE
Independent Director
COMPENSATION
CA$183K
AGE
54
TENURE
3.2 yrs

Michael Roach

TITLE
Independent Director
COMPENSATION
CA$177K
AGE
67
TENURE
2.4 yrs

Marianne Harrison

TITLE
Independent Director
AGE
54
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
25. Nov 19 Buy Marc Parent Individual 20. Nov 19 21. Nov 19 13,100 CA$35.40 CA$462,744
20. Nov 19 Buy Marc Parent Individual 18. Nov 19 18. Nov 19 5,200 CA$35.34 CA$183,762
12. Jun 19 Buy Sonya Branco Individual 10. Jun 19 10. Jun 19 3,200 CA$34.29 CA$109,712
12. Jun 19 Sell Andrew Arnovitz Individual 07. Jun 19 07. Jun 19 -11,000 CA$34.50 CA$-379,500
05. Jun 19 Sell Nick Leontidis Individual 31. May 19 31. May 19 -22,125 CA$34.31 CA$-759,197
05. Jun 19 Buy Nick Leontidis Individual 05. Jun 19 05. Jun 19 7,050 CA$35.46 CA$249,975
24. May 19 Buy Sonya Branco Individual 22. May 19 22. May 19 2,965 CA$34.54 CA$102,353
X
Management checks
We assess CAE's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CAE has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CAE News

Simply Wall St News

CAE Inc. (TSE:CAE): Can Growth Justify Its August Share Price?

CAE is trading at price-to-earnings (PE) ratio of 27.59x, which suggests that CAE is overvalued based on current earnings compared to the Aerospace &amp; Defense industry average of 23.38x , and overvalued compared to the CA market average ratio of 14.03x. … TSX:CAE Price Estimation Relative to Market, August 30th 2019 After looking at CAE's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … This means that, when we account for CAE's growth, the stock can be viewed as overvalued , based on the fundamentals.

Simply Wall St -

Calculating The Intrinsic Value Of CAE Inc. (TSE:CAE)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$291.3m CA$376.8m CA$436.0m CA$483.0m CA$522.3m CA$555.1m CA$582.7m CA$606.4m CA$627.2m CA$645.9m Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x3 Est @ 10.78% Est @ 8.13% Est @ 6.28% Est @ 4.98% Est @ 4.07% Est @ 3.43% Est @ 2.99% Present Value (CA$, Millions) Discounted @ 8.11% CA$269.5 CA$322.4 CA$345.1 CA$353.6 CA$353.7 CA$347.7 CA$337.6 CA$325.0 CA$310.9 CA$296.2 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$3.3b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.1%.

Simply Wall St -

Read This Before Selling CAE Inc. (TSE:CAE) Shares

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for CAE The Last 12 Months Of Insider Transactions At CAE Over the last year, we can see that the biggest insider sale was by the Group President of Civil Aviation Training Solutions, Nick Leontidis, for CA$759k worth of shares, at about CA$34.31 per share. … TSX:CAE Recent Insider Trading, August 12th 2019 Insiders at CAE Have Sold Stock Recently There was substantially more insider selling, than buying, of CAE shares over the last three months. … Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Simply Wall St -

Does CAE Inc.'s (TSE:CAE) CEO Pay Compare Well With Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … See our latest analysis for CAE How Does Marc Parent's Compensation Compare With Similar Sized Companies? … We looked at a group of companies with market capitalizations from CA$5.3b to CA$16b, and the median CEO total compensation was CA$5.5m.

Simply Wall St -

Should CAE Inc. (TSE:CAE) Be Part Of Your Dividend Portfolio?

We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see CAE has grown its earnings per share at 11% per annum over the past five years. Earnings per share have been growing at a good rate, and the company is paying less than half its earnings as dividends. We generally think this is an attractive combination, as it permits further reinvestment in the business. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Is CAE (TSE:CAE) A Risky Investment?

TSX:CAE Historical Debt, July 9th 2019 A Look At CAE's Liabilities The latest balance sheet data shows that CAE had liabilities of CA$1.89b due within a year, and liabilities of CA$2.87b falling due after that. … Because it carries more debt than cash, we think it's worth watching CAE's balance sheet over time. … Having said that, its net debt to EBITDA somewhat sensitizes us to potential future risks to the balance sheet.

Simply Wall St -

Here's What CAE Inc.'s (TSE:CAE) P/E Is Telling Us

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for CAE: P/E of 28.44 = CA$35.21 ÷ CA$1.24 (Based on the year to March 2019.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Probably the most important factor in determining what P/E a company trades on is the earnings growth. … How Does CAE's Debt Impact Its P/E Ratio?

Simply Wall St -

What Do Analysts Think About CAE Inc.'s (TSE:CAE) Future?

(TSE:CAE) released its earnings in March 2019, analysts seem cautiously optimistic, with profits predicted to increase by 14% next year relative to the past 5-year average growth rate of 13%. … To get an idea of the overall earnings growth trend for CAE, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … TSX:CAE Past and Future Earnings, June 20th 2019 From the current net income level of CA$330m and the final forecast of CA$418m by 2022, the annual rate of growth for CAE’s earnings is 9.2%.

Simply Wall St -

Can We See Significant Institutional Ownership On The CAE Inc. (TSE:CAE) Share Register?

In the chart below below, we can see that institutional investors have bought into the company. … TSX:CAE Income Statement, June 9th 2019 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. … It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest.

Simply Wall St -

Want To Invest In CAE Inc. (TSE:CAE)? Here's How It Performed Lately

Today I will assess CAE's recent performance announced on 31 March 2019 and compare these figures to its long-term trend and industry movements. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 13%, indicating the rate at which CAE is growing has slowed down. … And finally, its return on capital (ROC), which also accounts for CAE’s debt level, has declined over the past 3 years from 8.3% to 8.0%.

Simply Wall St -

CAE Company Info

Description

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. CAE Inc. has a strategic partnership with Directional Aviation Capital. 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.

Details
Name: CAE Inc.
CAE
Exchange: TSX
Founded: 1947
CA$4,611,057,272
266,073,703
Website: http://www.cae.com
Address: CAE Inc.
8585 Cote-de-Liesse,
Saint-Laurent,
Quebec, H4T 1G6,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CAE Common Shares The Toronto Stock Exchange CA CAD 13. Dec 1972
NYSE CAE Common Shares New York Stock Exchange US USD 13. Dec 1972
DB CE9 Common Shares Deutsche Boerse AG DE EUR 13. Dec 1972
Number of employees
Current staff
Staff numbers
10,000
CAE employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 02:45
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/02/07
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.