Yahoo Finance Did CAE Inc’s (TSE:CAE) Recent Earnings Growth Beat The Trend?
Examining CAE Inc’s (TSX:CAE) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess CAE’s latest performance announced on 31 March 2018 and weight these figures against its longer term trend and industry movements. View our latest analysis for CAE
How CAE fared against its long-term earnings performance and its industry
I look at data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend allows me to analyze various companies on a similar basis, using the latest information. For CAE, its most recent trailing-twelve-month earnings is CA$347.00M, which, against the previous year’s figure, has climbed up by 37.70%. Given that these figures are fairly myopic, I have determined an annualized five-year value for CAE’s earnings, which stands at CA$208.38M This means on average, CAE has been able to consistently raise its bottom line over the last few years as well.
What’s enabled this growth? Let’s see if it is merely attributable to industry tailwinds, or if CAE has seen some company-specific growth. In the past few years, CAE increased its bottom line faster than revenue by successfully controlling its costs. This brought about a margin expansion and profitability over time. Eyeballing growth from a sector-level, the Canadian aerospace & defense industry has been growing its average earnings by double-digit 37.70% in the previous twelve months, and 10.76% over the past five years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research CAE to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CAE’s future growth? Take a look at our free research report of analyst consensus for CAE’s outlook.
Financial Health: Is CAE’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
