CAE Inc EBITDA jumped on 15.0% in 2015 and Revenue increased on 8.1%
26.05.2015 • About CAE Inc (
$CAE) • By InTwits
CAE Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CAE Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.9%. At the same time it's in pair with industry average of 6.6%.
- CAPEX is quite volatile: 95.2 in 2015, 100 in 2014, 78.5 in 2013, 43.8 in 2012, 38.2 in 2011
- The company has business model with average profitability: ROIC is at 11.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CAE Inc ($CAE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,631 | 1,821 | 2,035 | 2,078 | 2,246 | 8.1% |
| Gross Profit | 549 | 600 | 585 | 565 | 604 | 6.8% |
| SG&A | 240 | 256 | 264 | 259 | 265 | 2.0% |
| EBITDA | 392 | 428 | 377 | 454 | 522 | 15.0% |
| Net Income | 160 | 180 | 138 | 190 | 202 | 6.2% |
Balance Sheet
|
|---|
| Cash | 276 | 287 | 260 | 312 | 330 | 5.7% |
| Short Term Debt | 86 | 136 | 71 | 51 | 56 | 9.7% |
| Long Term Debt | 574 | 686 | 1,003 | 1,118 | 1,224 | 9.5% |
Cash flow
|
|---|
| Capex | 111 | 166 | 97 | 157 | 144 | -8.2% |
Ratios
|
|---|
| Revenue growth | 6.8% | 11.7% | 11.8% | 2.1% | 8.1% | |
| EBITDA growth | 9.8% | 9.1% | -12.0% | 20.5% | 15.0% | |
| Gross Margin | 33.7% | 33.0% | 28.7% | 27.2% | 26.9% | -0.3% |
| EBITDA Margin | 24.1% | 23.5% | 18.5% | 21.8% | 23.2% | 1.4% |
| Net Income Margin | 9.8% | 9.9% | 6.8% | 9.1% | 9.0% | -0.2% |
| SG&A, % of revenue | 14.7% | 14.1% | 13.0% | 12.5% | 11.8% | -0.7% |
| CAPEX, % of revenue | 6.8% | 9.1% | 4.8% | 7.6% | 6.4% | -1.1% |
| ROIC | 17.0% | 16.9% | 10.9% | 11.2% | 11.2% | 0.0% |
| ROE | 15.5% | 18.6% | 12.9% | 14.9% | 13.1% | -1.7% |
| Net Debt/EBITDA | 1.0x | 1.2x | 2.2x | 1.9x | 1.8x | -0.1x |
Revenue and profitability
CAE Inc's Revenue increased on 8.1% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.4 pp from 21.8% to 23.2% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue decreased slightly on 0.70 pp from 12.5% to 11.8% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 CAE Inc had CAPEX/Revenue of 6.4%. CAPEX/Revenue decreased on 2.7 pp from 9.1% in FY2012 to 6.4% in FY2015. It's average CAPEX/Revenue for the last three years was 6.2%.
Return on investment
The company operates at good ROE (13.12%) while ROIC is low (11.20%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.7 pp from 14.9% to 13.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 2.5x. Net Debt / EBITDA decreased on 0.1x from 1.9x to 1.8x in FY2015. Debt increased on 9.5% in FY2015 while cash increased on 5.7% in FY2015.
Management team
The company's CEO is Marc Parent. Marc Parent is a founder and has 9 years tenure at the company.
Appendix 1: Peers in Industrial
Below you can find CAE Inc benchmarking vs. other companies in Industrial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Electrovaya Inc ($EFL) | 104.3% | -4.0% | -71.2% | 160.5% | |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | 22.4% | 19.7% | 0.9% | 50.5% | |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | |
| |
|---|
| Median (91 companies) | 12.5% | 10.3% | 4.9% | 9.2% | 18.6% |
|---|
| CAE Inc ($CAE) | | 11.7% | 11.8% | 2.1% | 8.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (87 companies) | 23.2% | 22.9% | 23.3% | 22.3% | 26.1% |
|---|
| CAE Inc ($CAE) | 33.7% | 33.0% | 28.7% | 27.2% | 26.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (84 companies) | 8.1% | 9.1% | 8.1% | 7.1% | 10.8% |
|---|
| CAE Inc ($CAE) | 24.1% | 23.5% | 18.5% | 21.8% | 23.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (91 companies) | 2.4% | 3.0% | 3.6% | 3.1% | 2.0% |
|---|
| CAE Inc ($CAE) | 6.8% | 9.1% | 4.8% | 7.6% | 6.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | |
| |
|---|
| Median (92 companies) | 8.9% | 9.2% | 8.5% | 8.3% | 8.4% |
|---|
| CAE Inc ($CAE) | 17.0% | 16.9% | 10.9% | 11.2% | 11.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (71 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 0.0x |
|---|
| CAE Inc ($CAE) | 1.0x | 1.2x | 2.2x | 1.9x | 1.8x |
