The long-term trend of the EPS is an important number as it indicates the present value of CAE. The EPS growth rate, as it is usually called, is typically displayed as a percentage, which at this time is hard to estimate, but revenue growth has been 9.90 % over the last twelve months. The long-term trend in EPS shows how well the management of CAE is adding value for shareholders.



CAE is part of the aerospace and defense industry and is in the industrials sector. The company CEO is Marc Parent. CAE Inc and its subsidiaries design, manufacture and supply simulation equipment. It provides training and develop integrated training solutions for defence and security markets, commercial airlines, business aircraft operators and helicopter operators.

Previous Intraday Performance:

The CAE shares had a previous change of 1.35% which opened at 20.01 and closed at 20.29. It moved to an intraday high of 20.37 and a low of 19.92.

SeekingAlpha:  CAE Inc. (CAE) CEO Marc Parent on Q2 2019 Results – Earnings Call Transcript

Historical Performance:

Over the last five trading days, CAE shares returned 1.20% and in the past 30 trading days it returned 10.57%. Over three months, it changed 1.42%. In one year it has changed 15.36% and within that year its 52-week high was 21.70 and its 52-week low was 16.84. CAE stock is 20.49% above its 52 Week Low.

Our calculations result in a 200 day moving average of 19.50 and a 50 day moving average of 19.16. Right now, CAE stock is trading 4.03% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  Notable earnings before Tuesday’s open

Liquidity:

The company has a market cap of $5.4b with 266.3m shares outstanding and a float of 266.3m shares. Trading volume was 193,932 shares and has experienced an average volume of 178,521 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for CAE was 1 which ended on 31st of March 2018, which according to the previous close, that is a PE of 20.29. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.22. The trailing twelve month EPS is 0.80, which comes to a trailing twelve month PE of 25.36. Historically, the PE high was 29.90 and the PE low was 17.10. If the stock reached its PE low, that would represent a price of 13.68, which is a decrease of -32.57%.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.18
06-30-2018:  0.20
03-31-2018:  0.29
12-31-2017:  0.22

The dividend per share is currently 0.30, which is a dividend yield of 1.49%. Also, the payout ratio is 37.74%, therefore the dividend is safe according to our calculations.



Base on our calculations, the intrinsic value per share is 13.95, which means it might overvalued by -45.43%

Indicators Also to Watch:

Based on the latest filings, there is 68.30% of institutional ownership. Short-interest was 348,254, which was 0.13% of shares outstanding. The short-interest ratio or days-to-cover ratio was 1.99. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 0.80

SeekingAlpha:  Notable earnings before Tuesday’s open

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 16.78%, return on assets is 6.48%, profit margin is 12.15%, price-to-sales is 1.81 and price-to-book is 3.26.

Company Score Card:

Results are out of six:
 3  : Growth Expectations Result
 5  : Financial Safety Result
 5  : Past Performance Result
 1  : Valuation Result
 5  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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