Want to see TSE:CAE full AI Analyst Report?
Top Page
CAE
(NASDAQ:CAE)
Select Model
Select Model
Rating:58Neutral
Price Target:
C$39.00
▲(9.83% Upside)
Action:Reiterated
Date:05/26/26
The score is driven primarily by decent underlying financial momentum (revenue growth and improved cash generation) but constrained by profitability volatility and leverage. Technicals are notably weak with the stock trading below major moving averages and negative MACD. Valuation is also a headwind due to a high P/E, while the earnings call was mixed: strong cash flow and a credible transformation plan, but FY2027 guidance points to near-term margin pressure and execution risk.
Positive Factors
Improving free cash flow
Material and sustained improvement in free cash flow and conversion supports durable deleveraging, funds transformation investments, and operational resilience. Strong cash generation increases optionality for reinvestment, servicing debt, and returning capital while insulating against cyclical revenue swings.
Negative Factors
Meaningful leverage
Material net debt and leverage constrain financial flexibility during a multi-year transformation. Interest and principal obligations reduce room for discretionary investment, raise sensitivity to any cash-flow setbacks, and increase execution risk if free cash flow or margins underperform targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving free cash flow
Material and sustained improvement in free cash flow and conversion supports durable deleveraging, funds transformation investments, and operational resilience. Strong cash generation increases optionality for reinvestment, servicing debt, and returning capital while insulating against cyclical revenue swings.
Read all positive factors
CAE (CAE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$11.77B
Dividend YieldN/A
Average Volume (3M)780.36K
Price to Earnings (P/E)40.4
Beta (1Y)1.09
Revenue Growth5.38%
EPS Growth-31.14%
CountryCA
Employees13,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.90
Shares Outstanding321,579,680
10 Day Avg. Volume886,799
30 Day Avg. Volume780,359
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)2.31
Price to Sales (P/S)2.40
P/FCF Ratio24.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$42.33Price Target Upside19.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.26
Revenue Forecast (FY)C$5.00B
CAE Business Overview & Revenue Model
Company Description
Operating globally, CAE Inc. and its subsidiaries specialize in delivering advanced simulation-based training and vital operational support. Its business is organized into three core segments: Civil Aviation, Defense and Security, and Healthcare. ...
How the Company Makes Money
CAE makes money primarily by selling training services and simulation-related products and support to airlines, business aviation operators, aircraft manufacturers, and defense/government customers. A major revenue stream comes from civil aviation...
CAE Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly constructive outlook: solid top-line growth (consolidated +6.8%), a strong Defense quarter (+8.3% revenue, +9.1% adjusted operating income) and a material free cash flow turnaround ($104M vs -$135M). Management emphasized disciplined capital allocation, active share repurchases, and a detailed transformation plan targeting $125–$150M of structural savings and network/right‑sizing actions. Near-term headwinds include Civil margin pressure (Civil adjusted operating income down 13.7%), costs from the transformation program, credit-related charges and Middle East–related disruptions. Overall, the positive operational momentum, sizable Defense backlog/pipeline, and cash-flow improvement outweigh the near-term lowlights and transitional costs.Positive Updates
Consolidated Revenue Growth
Consolidated revenues of $1.2 billion, up 6.8% year-over-year, driven by gains across Civil and Defense.
Negative Updates
Decline in Consolidated Adjusted Operating Income
Adjusted segment operating income fell to $156.6 million, down 7.5% year-over-year from $169.3 million, reflecting transformation costs and headwinds in Civil despite Defense gains.
Read all updates
Q1-2027 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated revenues of $1.2 billion, up 6.8% year-over-year, driven by gains across Civil and Defense.
Read all positive updates
Company Guidance
The company reiterated its fiscal 2027 outlook and fiscal 2030 targets, reporting Q1 revenue of $1.2 billion (+6.8% y/y), adjusted segment operating income of $156.6 million (‑7.5% y/y), adjusted EPS of $0.26, and strong free cash flow of $104 million ( versus ‑$135 million a year ago); net debt was $2.6 billion with net debt/adjusted EBITDA of 2.27x, and CAE repurchased 1.1 million shares for $39 million. Management remains on track with the transformation program (Q1 spend $48 million, $12 million non‑cash; total spent to date $133 million, $71 million non‑cash; expected total program cost $200–250 million with ~ $100 million non‑cash) targeting $125–150 million of structural run‑rate savings by FY2030 and $950 million–$1.0 billion of adjusted segment operating income by FY2030. Key actions include retiring 13–15 simulators in FY2027 (6 retired to date) to remove ~500,000 sq ft of Civil capacity (and ~1.7 million sq ft company‑wide, ~17% vs FY2025), shifting ERP systems from 5 to 2, and a savings mix of ~50% labor productivity / 30% reduced square footage / 20% operational improvements; segment detail: Civil revenue $641.6 million (+5.6%) with ASOI $106.1 million (‑13.7%, margin 16.5% vs 20.2%), utilization 72.2% (up from 68.8% but with a ~200 bp comparative impact from a standardized definition), Civil new orders $838 million (book‑to‑sales 1.31x); Defense revenue $531.8 million (+8.3%) with ASOI $50.5 million (+9.1%, margin 9.5%), an adjusted Defense backlog of $10.7 billion and a materially larger pipeline (including ~ $5 billion of highlighted program opportunities).CAE Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.99B | 4.91B | 4.71B | 4.28B | 4.01B | 3.37B |
| Gross Profit | 1.43B | 1.34B | 1.30B | 1.15B | 1.08B | 955.50M |
| EBITDA | 989.10M | 1.08B | 915.70M | 785.70M | 693.60M | 552.30M |
| Net Income | 286.90M | 313.10M | 405.30M | -304.00M | 222.70M | 141.70M |
Balance Sheet | ||||||
| Total Assets | 11.18B | 11.15B | 11.21B | 9.83B | 10.44B | 9.58B |
| Cash, Cash Equivalents and Short-Term Investments | 568.70M | 552.40M | 293.70M | 160.10M | 217.60M | 346.10M |
| Total Debt | 3.21B | 3.25B | 3.47B | 3.07B | 3.49B | 3.05B |
| Total Liabilities | 5.69B | 5.76B | 6.24B | 5.53B | 5.85B | 5.49B |
| Stockholders Equity | 5.41B | 5.30B | 4.89B | 4.22B | 4.51B | 4.01B |
Cash Flow | ||||||
| Free Cash Flow | 736.94M | 583.70M | 452.40M | 126.30M | -16.90M | 55.40M |
| Operating Cash Flow | 957.63M | 871.50M | 896.50M | 566.90M | 408.40M | 418.20M |
| Investing Cash Flow | -276.10M | -398.90M | -732.30M | -215.40M | -400.70M | -2.24B |
| Financing Cash Flow | -291.77M | -212.70M | -49.80M | -395.30M | -152.60M | 1.26B |
CAE Technical Analysis
Negative
35.51
Price Trends
36.00
Positive
35.96
Positive
38.33
Negative
Market Momentum
0.44
Positive
48.00
Neutral
38.21
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 35.51 is below the 20-day moving average (MA) of 36.42, below the 50-day MA of 36.00, and below the 200-day MA of 38.33, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 38.21 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$618.01M | 40.13 | 15.33% | ― | 11.09% | 4.67% | |
72 Outperform | C$2.39B | 53.90 | 5.48% | 0.57% | 15.36% | 57.18% | |
65 Neutral | C$34.00B | 26.77 | -93.00% | ― | 10.95% | 111.91% | |
64 Neutral | C$7.86B | 60.32 | 6.60% | ― | 38.30% | -13.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$34.00B | 26.77 | -93.00% | ― | 10.95% | 111.91% | |
58 Neutral | C$11.77B | 40.44 | 5.47% | ― | 5.38% | -31.14% |
* Industrials Sector Average
TSE:CAE
CAE
36.25
-2.13
-5.55%
TSE:BBD.B
Bombardier
354.52
190.21
115.76%
TSE:BBD.A
Bombardier Cl A MV
353.93
189.05
114.66%
TSE:FTG
Firan Tech
24.08
12.22
103.04%
TSE:MAL
Magellan Aerospace
42.79
27.44
178.71%
TSE:MDA
MDA Space Ltd
48.86
2.50
5.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.