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Is this Large Market Cap Stock target price reasonable for CAE Inc. (NYSE:CAE)?

The company in question is, CAE Inc. (NYSE:CAE) currently with a stock price of 14.33 (0.92% today). The market cap for CAE Inc. is 3862.83, and is in the sector Industrial Goods, and Aerospace/Defense Products & Services industry. The target price for CAE Inc. is 14.48. Currently CAE Inc. is trading with a P/E of 19.24, and a forward P/E of 17.73. Average volume for CAE Inc. is 62.6 and so far today it is 14298.

Performance in the last year for CAE Inc. has been 28.52%. For EPS growth, CAE Inc. has seen a growth of 17.50%, and is looking to grow in the next year to 8.98%. More long term stats show that EPS growth has been 7.40% over the last five years and could be 8.85% for the next five years. CAE Inc. has seen sales growth quarter over quarter at 17.00%, with EPS growth quarter over quarter at 52.00%. The 20-day simple moving average is 2.18%, with the 200-day simple moving average coming to 17.70%.

Since the IPO date for CAE Inc. on the 01/10/1996, CAE Inc. has seen performance year to date to be 29.84%. With CAE Inc. trading at 14.33, the dividend yield is 1.69%, and the EPS is 0.74.

So could CAE Inc., be undervalued? Well as said before P/E is 19.24. The PEG is 2.17, P/S is 1.96 and the P/B is at 2.73. The P/cash is 14.8, with P/free cash flow at 21.75.

CAE Inc. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.2. This is with long term debt/equity at 0.63, and total debt/equity at 0.66.

In terms of margins, CAE Inc. has a gross margin of 27.90%, an operating margin of 13.50% and a profit margin of 9.70%.Payout ratio for CAE Inc. is 31.80%. Return on assets come to 5.10% with return on investment coming to 10.00%.

Insider ownership for CAE Inc., is at 1.10% and institutional ownership comes to 73.30%. Outstanding shares are at 272.03. While shares float is 266.94. The float short is currently 0.17%, and short ratio is 7.43.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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