(CAE) CAE - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 7.451m USD | Total Return: -8% in 12m
Avg Turnover: 18.8M
EPS Trend: 66.6%
Qual. Beats: 2
Rev. Trend: 97.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
CAE Inc. provides comprehensive training, simulation, and operational solutions for the global aerospace and defense industries. The company operates through two primary segments: Civil Aviation, which serves commercial and business flight personnel, and Defense and Security, which provides platform-independent readiness solutions for government and military agencies.
The business model relies heavily on long-term service contracts and high-fidelity flight simulation hardware, creating a recurring revenue stream through pilot certification and training requirements. Within the Aerospace & Defense sector, CAE maintains a significant market position by integrating digital flight operations software with physical simulation infrastructure. You may find further insights on these industry dynamics by exploring ValueRay.
Headquartered in Saint-Laurent, Canada, the firm has expanded its geographic footprint to include operations across the Americas, Europe, Asia, and Africa. Its defense segment specifically focuses on enhancing force readiness for original equipment manufacturers and public safety organizations worldwide.
- Civil aviation pilot shortages drive sustained demand for full-flight training simulators
- Defense segment margin recovery remains critical for enterprise-wide profitability improvement
- Global commercial aviation traffic growth accelerates aftermarket training services revenue
- High interest rates increase debt servicing costs for capital-intensive equipment production
- Backlog execution efficiency determines short-term earnings growth and free cash flow generation
| Net Income: 375.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 0.31 > 1.0 |
| NWC/Revenue: -4.16% < 20% (prev -7.98%; Δ 3.82% < -1%) |
| CFO/TA 0.07 > 3% & CFO 780.2m > Net Income 375.9m |
| Net Debt (3.57b) to EBITDA (1.11b): 3.22 < 3 |
| Current Ratio: 0.91 > 1.5 & < 3 |
| Outstanding Shares: last quarter (322.7m) vs 12m ago 0.90% < -2% |
| Gross Margin: 28.39% > 18% (prev 0.26%; Δ 2.81k% > 0.5%) |
| Asset Turnover: 43.99% > 50% (prev 41.13%; Δ 2.86% > 0%) |
| Interest Coverage Ratio: 3.11 > 6 (EBITDA TTM 1.11b / Interest Expense TTM 210.9m) |
| A: -0.02 (Total Current Assets 2.16b - Total Current Liabilities 2.36b) / Total Assets 11.0b |
| B: 0.22 (Retained Earnings 2.40b / Total Assets 11.0b) |
| C: 0.06 (EBIT TTM 656.7m / Avg Total Assets 11.1b) |
| D: 0.88 (Book Value of Equity 5.07b / Total Liabilities 5.78b) |
| Altman-Z'' = 1.91 = BBB |
| DSRI: 0.86 (Receivables 1.06b/1.16b, Revenue 4.86b/4.56b) |
| GMI: 0.92 (GM 28.39% / 26.12%) |
| AQI: 0.98 (AQ_t 0.47 / AQ_t-1 0.47) |
| SGI: 1.07 (Revenue 4.86b / 4.56b) |
| TATA: -0.04 (NI 375.9m - CFO 780.2m) / TA 11.0b) |
| Beneish M = -3.22 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 23.16 with a total of 4,668,800 shares traded.
Over the past week, the price has changed by -9.14%,
over one month by -9.64%,
over three months by -21.12% and
over the past year by -8.02%.
CAE has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy CAE.
- StrongBuy: 5
- Buy: 4
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 33.2 | 43.2% |
Market Cap CAD = 10.3b (7.45b USD * 1.3805 USD.CAD)
P/E Trailing = 32.6197
P/E Forward = 29.4985
P/S = 1.5324
P/B = 2.3067
P/EG = 1.8268
Revenue TTM = 4.86b CAD
EBIT TTM = 656.7m CAD
EBITDA TTM = 1.11b CAD
Long Term Debt = 3.00b CAD (from longTermDebt, last quarter)
Short Term Debt = 242.9m CAD (from shortTermDebt, last quarter)
Debt = 4.04b CAD (from shortLongTermDebtTotal, last quarter) + Leases 792.1m
Net Debt = 3.57b CAD (calculated: Debt 4.04b - CCE 463.7m)
Enterprise Value = 13.9b CAD (10.3b + Debt 4.04b - CCE 463.7m)
Interest Coverage Ratio = 3.11 (Ebit TTM 656.7m / Interest Expense TTM 210.9m)
EV/FCF = 30.88x (Enterprise Value 13.9b / FCF TTM 448.8m)
FCF Yield = 3.24% (FCF TTM 448.8m / Enterprise Value 13.9b)
FCF Margin = 9.23% (FCF TTM 448.8m / Revenue TTM 4.86b)
Net Margin = 7.73% (Net Income TTM 375.9m / Revenue TTM 4.86b)
Gross Margin = 28.39% ((Revenue TTM 4.86b - Cost of Revenue TTM 3.48b) / Revenue TTM)
Gross Margin QoQ = 28.93% (prev 25.82%)
Tobins Q-Ratio = 1.26 (Enterprise Value 13.9b / Total Assets 11.0b)
Interest Expense / Debt = 5.22% (Interest Expense 210.9m / Debt 4.04b)
Taxrate = 20.89% (29.6m / 141.7m)
NOPAT = 519.5m (EBIT 656.7m * (1 - 20.89%))
Current Ratio = 0.91 (Total Current Assets 2.16b / Total Current Liabilities 2.36b)
Debt / Equity = 0.78 (Debt 4.04b / totalStockholderEquity, last quarter 5.17b)
Debt / EBITDA = 3.22 (Net Debt 3.57b / EBITDA 1.11b)
Debt / FCF = 7.96 (Net Debt 3.57b / FCF TTM 448.8m)
Total Stockholder Equity = 5.01b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.40% (Net Income 375.9m / Total Assets 11.0b)
RoE = 7.50% (Net Income TTM 375.9m / Total Stockholder Equity 5.01b)
RoCE = 8.19% (EBIT 656.7m / Capital Employed (Equity 5.01b + L.T.Debt 3.00b))
RoIC = 5.83% (NOPAT 519.5m / Invested Capital 8.91b)
WACC = 7.88% (E(10.3b)/V(14.3b) * Re(9.35%) + D(4.04b)/V(14.3b) * Rd(5.22%) * (1-Tc(0.21)))
Discount Rate = 9.35% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 68.89 | Cagr: 0.49%
[DCF] Terminal Value 76.39% ; FCFF base≈436.2m ; Y1≈465.5m ; Y5≈557.0m
[DCF] Fair Price = 15.48 (EV 8.56b - Net Debt 3.57b = Equity 4.98b / Shares 321.7m; r=8.35% [WACC [floored]]; 5y FCF grow 7.59% → 2.50% )
EPS Correlation: 66.60 | EPS CAGR: 8.47% | SUE: 1.27 | # QB: 2
Revenue Correlation: 97.12 | Revenue CAGR: 12.10% | SUE: -0.03 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.22 | Chg30d=-6.89% | Revisions=-20% | Analysts=5
[Analyst] Revisions Ratio: -20%