CAE

CAE Inc.

Fundamental data last updated:August 9, 2026

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company profile

SECTOR

Industrials

industry

Aerospace & Defense

Exchange

NYSE

County of HQ

CA

Next Earnings Date

08/11/2026

Business Summary

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.

 


VALUATION

P/E

26.37

Market Cap ($M USD)

$8.26B

Forward P/E

12.01

PEG

0.10

PRICE TO SALES

2.32

PRICE TO BOOK

2.15

EV / EBITDA

13.00

5-Year Average P/E

Free Cash Flow Yield

4.06%

DCF Value

$18.66

Graham Number

$19.00

Price to FCF

24.66

EV to FCF

30.46

Earnings Yield

2.75%

FCF Yield

4.06%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.97

Next Year EPS Growth Estimate

$2.14

Next Year Revenue Growth Estimate

$5.59B

Return on Equity (ROE)

6.12%

FREE CASH FLOW

Operating Margin

13.97%

Debt-to-Equity

0.61

Piotroski F-Score

7

Altman Z-Score

2.11

Return on Invested Capital (ROIC)

7.82%

Current Ratio

0.96

Quick Ratio

0.77

Net Debt to EBITDA

2.48

Interest Coverage

4.13

Gross Profit margin

28.30%

FCF PER SHARE

$1.44

REVENUE PER SHARE

$15.27

Gainseekers Quantitative Analysis

Summary

CAE Inc. presents a mixed valuation picture. Recent pricing indicated it traded above its DCF value, suggesting a potential overvaluation. However, the Forward P/E of 11.91 is compelling, hinting at anticipated earnings growth. The Earnings Yield of 3.18% and an Altman Z-score of 2.15 suggest moderate financial health, with some caution warranted. Overall, the market seems to expect robust growth, but the valuation metrics signal a need for careful consideration.

AI Exposure / Tech Reliance

Operating within the Aerospace & Defense sector, CAE is well-positioned to leverage AI advancements. The industry’s focus on simulation and training aligns with AI-driven efficiencies, enhancing operational capabilities. This positioning could bolster CAE's adaptability in a rapidly evolving tech landscape.

The Bull Case

For the value-driven investor, CAE offers enticing prospects. A strong ROIC of 8.37% highlights efficient capital use, while a Piotroski F-Score of 7 indicates solid financial health. The company's operating margin of 14.91% underscores its pricing power, and a decent FCF Yield of 4.18% suggests effective cash generation. These factors collectively paint a picture of a company with robust operational efficiency and potential for growth.

The Bear Case

Despite its strengths, CAE faces notable challenges. The Price/Book ratio of 2.29 and Price/Sales of 2.44 suggest a premium valuation, potentially limiting upside. The Current Ratio of 0.91 and Quick Ratio of 0.69 indicate liquidity constraints, raising concerns about short-term financial flexibility. Additionally, trading close to its 52-week high could imply technical overextension, warranting caution for momentum-driven investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$30.50

Institutional Ownership %

1-Year Beta

1.03

Insider Buying % (6 Mo)

Distance to 52-Week High

33.44%

Distance to 52-Week Low

11.30%

EARNINGS SURPRISE %

3.33%

50-DAY SMA

$26.25

200-DAY SMA

$28.25

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.