Is the business good?
How good a business is CAE?
CAE Inc. earns 7.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.1%
Return on invested capital · cost of capital 9.0% · 1.9 points below what the capital costs: growth destroys value
- Operating margin
- 15%
Operating margin · Aerospace & Defense median 9.6% · fiscal year to FY2025
- Cash conversion
- 1.33×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.48%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 15% |
| FY2021 | 1.6% |
| FY2022 | 8.4% |
| FY2023 | 12% |
| FY2024 | −4.3% |
| FY2025 | 15% |
Details›
- Gross marginfiscal year to FY2025
- 28%
- Operating marginfiscal year to FY2025
- 15%
- Net marginfiscal year to FY2025
- 8.6%
- Free cash flow margin
- 11%
- R&D as % of revenue
- 2.6%
- Revenue, trailing twelve months
- $4.71B
- Free cash flow, trailing twelve months
- $540M
- Net income, trailing twelve months
- $405M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Aerospace & Defense
Ranks #20 of 48 by Smart Score