CAE (CAE) AI Stock Analysis

• Market Cap: $12.61B
• Dividend Yield: N/A
• Average Volume (3M): 623.78K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.86
• Revenue Growth: 7.89%
• EPS Growth: N/A
• Country: CA
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 0.21
• Shares Outstanding: 320,559,700
• 10 Day Avg. Volume: 536,454
• 30 Day Avg. Volume: 623,783
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 3.11
• Enterprise Value/Gross Profit: 11.25
• Enterprise Value/Ebitda: 12.90
• 1Y Price Target: $42.90
• Price Target Upside: 8.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: C$45.00 ▲(13.58% Upside)

CAE's strong financial performance and positive earnings call outlook are the most significant contributors to its score. Technical analysis indicates a positive trend but warns of overbought conditions. Valuation appears stretched, but recent leadership changes and strong fiscal results provide a positive outlook.

Positive Factors

Cash Flow Improvement

Management guided to a 150% conversion of earnings to free cash flow, which should help reduce net debt/EBITDA.

Defense Business Growth

CAE's defense business is on an upward trajectory with backlog doubling and positioned to benefit from increased Defense spending.

Leadership Changes

CAE announced Mathew Bromberg will be the new President and CEO, bringing extensive experience from Northrop Grumman and Pratt and Whitney.

Negative Factors

Civil Aviation Outlook

The Civil aviation segment faces headwinds with a conservative outlook and concerns over slower pilot hiring and travel demand.

Pilot Hiring

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

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 a notable revenue growth rate of 9.92%, improved profit margins, and robust cash flow generation. The balance sheet is stable with a balanced leverage approach, though maintaining leverage is crucial for continued financial health.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.71B	4.28B	4.20B	3.37B	2.98B
Gross Profit	1.30B	1.15B	1.17B	955.50M	765.00M
EBITDA	1.12B	117.70M	747.00M	548.10M	351.00M
Net Income	405.30M	-304.00M	222.70M	141.70M	-47.20M
Balance Sheet
Total Assets	11.21B	9.83B	10.44B	9.58B	8.75B
Cash, Cash Equivalents and Short-Term Investments	293.70M	160.10M	217.60M	346.10M	926.10M
Total Debt	3.47B	3.07B	3.25B	3.05B	2.35B
Total Liabilities	6.24B	5.53B	5.85B	5.49B	5.54B
Stockholders Equity	4.89B	4.22B	4.51B	4.01B	3.14B
Cash Flow
Free Cash Flow	452.40M	126.30M	-16.90M	55.40M	203.00M
Operating Cash Flow	896.50M	566.90M	408.40M	418.20M	366.60M
Investing Cash Flow	-732.30M	-215.40M	-400.70M	-2.24B	-343.40M
Financing Cash Flow	-49.80M	-395.30M	-152.60M	1.26B	-21.30M

CAE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.62
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 39.62 is below the 20-day moving average (MA) of 39.63, above the 50-day MA of 38.42, and above the 200-day MA of 34.68, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 53.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CAE.

CAE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAE	78 Outperform	$12.61B	30.98	8.87%	―	7.89%	―
MDA	78 Outperform	C$5.25B	44.65	9.64%	―	57.21%	136.79%
Sector *	59 Neutral	AU$1.65B	10.36	-5.90%	3.59%	9.84%	11.11%
BDRBF	―	$11.98B	26.29		―	―	―
FTG	77 Outperform	C$314.82M	22.00	18.05%	―	17.52%	54.86%
MAL	70 Outperform	C$968.50M	24.21	5.12%	0.74%	8.59%	242.80%
BBD.A	63 Neutral	C$16.47B	26.00	-23.10%	―	6.69%	64.89%

CAE Corporate Events

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.

CAE Inc. Reports Strong Fiscal 2025 Results, Poised for Continued Growth

CAE Inc. reported strong financial results for the fourth quarter and full fiscal year 2025, showcasing significant improvements across key metrics such as revenue, operating income, and free cash flow. The company achieved a record adjusted backlog and demonstrated robust cash conversion, driven by disciplined execution and efficient capital management. CAE’s strategic focus on operational rigor has led to increased profitability in its Defense segment and resilience in its Civil segment, despite external challenges. The company is poised for continued growth in fiscal 2026, supported by higher margins, strong free cash flow, and strategic partnerships, particularly in the defense sector.

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.