CAE (CAE) AI Stock Analysis

• Market Cap: $11.82B
• Dividend Yield: N/A
• Average Volume (3M): 635.39K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.87
• Revenue Growth: 8.04%
• EPS Growth: N/A
• Country: CA
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Aerospace & Defense
• EPS (TTM): 0.21
• Shares Outstanding: 320,726,230
• 10 Day Avg. Volume: 441,939
• 30 Day Avg. Volume: 635,389
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 3.41
• Enterprise Value/Gross Profit: 12.13
• Enterprise Value/Ebitda: 13.82
• 1Y Price Target: $44.10
• Price Target Upside: 19.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: C$42.00 ▲(13.98% Upside)

CAE's overall stock score is driven by strong financial performance and a balanced outlook from the latest earnings call. The company's robust revenue growth and profitability are key strengths, but challenges in cash flow and valuation concerns due to a high P/E ratio limit the score. Technical indicators suggest a bearish trend, adding caution to the outlook.

Positive Factors

Civil Services Growth

Civil’s services revenue grew approximately 11% year-over-year, driven by enduring business jet training demand.

Defense Segment Performance

Margins in the Defense segment held at high single digit and show improvement from CAE’s performance.

Leadership Changes

Mathew Bromberg officially began his role as CAE’s new President and CEO, and the changes are viewed favorably with positive feedback from discussions with clients.

Negative Factors

Civil Aviation Revenue

Civil Aviation posted muted revenue growth, weaker simulator utilization, and a book-to-bill of 0.84x.

US Pilot Hiring

US commercial hiring is down 40% year-over-year, reflecting a significant slowdown in the recruitment of new pilots.

US Training Center Utilization

Traffic at CAE's US training centers fell 4% year-over-year, suggesting a utilization rate of 72%, which is below estimates.

CAE Business Overview & Revenue Model

Company Description

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions worldwide. It operates through three segments: Civil Aviation, Defense and Security, and Healthcare. The Civil Aviation segment provides training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as end to end digitally enabled crew management, training operations solutions, and optimization software. The Defense and Security segment offers training and mission support solutions for defense forces across multi-domain operations, OEMs, government agencies and public safety organizations. The Healthcare segment provides integrated education and training solutions, including interventional and imaging simulations, curricula, audiovisual debriefing solutions, center management platforms, and patient simulators for healthcare students and clinical professionals, hospital and university simulation centers, medical and nursing schools, paramedic organizations, defense forces, medical societies, public health agencies and OEMs. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.

How the Company Makes Money

CAE generates revenue through multiple streams, primarily by offering simulation-based training solutions and services to airlines, military organizations, and healthcare providers. Key revenue streams include the sale of flight simulators and training devices, training services provided to pilots and crew members, and maintenance services for simulation equipment. Additionally, CAE partners with various airlines and defense organizations to deliver customized training programs, further enhancing its revenue potential. The company's contracts with government agencies and commercial entities also contribute significantly to its earnings, ensuring a steady flow of income from long-term agreements and service contracts.

CAE Financial Statement Overview

Summary

CAE has shown strong financial performance with significant revenue growth, improved profitability metrics, and robust cash flow generation. The balance sheet is stable with a balanced leverage approach, enhancing financial flexibility.

Income Statement

CAE has demonstrated robust financial performance with a consistent increase in total revenue over the years, reaching CAD 4.71 billion in 2025, marking a solid revenue growth rate of 9.92% from 2024 to 2025. The company achieved a gross profit margin of 27.61% and a significant improvement in net profit margin from negative to 8.61%. Additionally, the EBIT margin improved to 15.49%, indicating enhanced operational efficiency. This reflects a strong recovery and growth trajectory in its financial health.

Balance Sheet

The balance sheet showcases a stable financial position with a debt-to-equity ratio of 0.71, suggesting a balanced approach to leverage. The return on equity (ROE) improved significantly to 8.29%, showcasing effective utilization of equity. The equity ratio stands at 43.61%, indicating a solid equity base relative to total assets. While the debt levels are manageable, continuous monitoring is essential to maintain financial stability.

Cash Flow

Cash flow performance is strong, with the operating cash flow increasing to CAD 896.5 million, supporting robust free cash flow growth. The free cash flow to net income ratio is 1.12, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio of 2.21 further underscores the company's ability to convert income into cash. The upward trend in free cash flow demonstrates effective capital management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.73B	4.71B	4.28B	4.20B	3.37B	2.98B
Gross Profit	1.33B	1.30B	1.15B	1.17B	955.50M	765.00M
EBITDA	1.17B	1.12B	117.70M	747.00M	548.10M	351.00M
Net Income	414.20M	405.30M	-304.00M	222.70M	141.70M	-47.20M
Balance Sheet
Total Assets	10.88B	11.21B	9.83B	10.44B	9.58B	8.75B
Cash, Cash Equivalents and Short-Term Investments	171.20M	293.70M	160.10M	217.60M	346.10M	926.10M
Total Debt	3.41B	3.47B	3.07B	3.25B	3.05B	2.35B
Total Liabilities	5.89B	6.24B	5.53B	5.85B	5.49B	5.54B
Stockholders Equity	4.91B	4.89B	4.22B	4.51B	4.01B	3.14B
Cash Flow
Free Cash Flow	441.90M	452.40M	126.30M	-16.90M	55.40M	203.00M
Operating Cash Flow	894.10M	896.50M	566.90M	408.40M	418.20M	366.60M
Investing Cash Flow	-744.30M	-732.30M	-215.40M	-400.70M	-2.24B	-343.40M
Financing Cash Flow	-132.10M	-49.80M	-395.30M	-152.60M	1.26B	-21.30M

CAE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CAE, the sentiment is Negative. The current price of 36.85 is below the 20-day moving average (MA) of 37.95, below the 50-day MA of 38.86, and above the 200-day MA of 35.61, indicating a neutral trend. The MACD of -0.58 indicates Positive momentum. The RSI at 38.90 is Neutral, neither overbought nor oversold. The STOCH value of 29.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CAE.

CAE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDA	79 Outperform	C$5.47B	46.56	9.64%	―	57.21%	136.79%
CAE	71 Outperform	$11.82B	28.42	8.73%	―	8.04%	―
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%
BDRBF	―	$11.39B	24.90		―	―	―
FTG	77 Outperform	C$301.45M	21.06	18.05%	―	17.52%	54.86%
BBD.A	63 Neutral	C$15.72B	24.76	-23.10%	―	6.69%	64.89%
MAL	56 Neutral	C$897.65M	23.67	4.85%	0.79%	6.58%	121.23%

CAE Corporate Events

CAE Announces 2025 Board of Directors Election Results

CAE announced the election results for its Board of Directors at the 2025 Annual and Special Meeting of Shareholders, with 13 nominees successfully elected. This outcome reinforces CAE’s leadership structure as it continues to focus on delivering excellence in training and simulation solutions, thereby strengthening its position in the aviation and defense industries.

The most recent analyst rating on (TSE:CAE) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on CAE stock, see the TSE:CAE Stock Forecast page.

CAE Inc. Reports Strong Q1 Fiscal 2026 Results and Announces Leadership Transition

CAE Inc. reported a solid first quarter for fiscal 2026, with revenue of $1,098.6 million and an EPS of $0.18, reflecting growth from the previous year. The company announced leadership changes with Matthew Bromberg set to succeed Marc Parent as President and CEO, and Calin Rovinescu becoming Executive Chairman. The results highlight CAE’s strong performance in both civil and defense sectors, and the company is poised to capitalize on future opportunities with a focus on operational excellence and shareholder value.

The most recent analyst rating on (TSE:CAE) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on CAE stock, see the TSE:CAE Stock Forecast page.

CAE Appoints Matthew Bromberg as New CEO Amid Leadership Transition

CAE Inc. has announced the appointment of Matthew Bromberg as its new President and CEO, effective August 13, 2025. This leadership change is part of an orderly transition following the departure of Marc Parent, who has significantly transformed CAE into a world leader in aviation training solutions. The company also appointed Calin Rovinescu as Executive Chairman and Sophie Brochu as Lead Independent Director, emphasizing CAE’s commitment to strong governance. Bromberg brings extensive experience in aerospace and defense, having held executive roles at Northrop Grumman and RTX Corp. His leadership is expected to drive CAE’s strategic growth and innovation.

The most recent analyst rating on (TSE:CAE) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on CAE stock, see the TSE:CAE Stock Forecast page.