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CAE Inc (CAE) stock analysis

CAENasdaqMiscellaneous Electrical Machinery, Equipment & Supplies
Financials through fiscal 2026, year ended Mar 31, 2026Last filing: 40-F on Jun 22, 2026Score 7/30
$27.39−0.34 (-1.23%)

Close on Nov 11, 2026Market cap $8.81BP/E 39.8Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth2Performance3Health2Dividend0

Weak7 of 30 checks passed

CAE passes 7 of the 30 checks behind our score; 16 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
2/6
Past performance
3/6
Financial health
2/6
Dividend
0/6

What stands out

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 24.5% of total debt.

  • Growing faster than the industry

    Revenue grew 4.4% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 1.6%.

  • Gross margin improving

    Gross margin was 28.3% over the last twelve months, against 27.6% a year earlier.

  • Return on equity above the industry

    CAE's return on equity of 6.1% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -31.2%.

What to watch

  • Return on equity under 15%

    Return on equity was 6.1% over the last twelve months and averaged 3.5% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 6.2%, below the 10% that usually covers the cost of capital.

  • High debt

    Debt is 61.0% of shareholders' equity, above the 40% we consider low.

  • Revenue growing under 10% a year

    Revenue grew 7.0% a year over the last three fiscal years, short of the 10% we look for.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B against the industry

    Needs positive book value.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth2/6

  • Revenue growing under 10% a year

    Revenue grew 7.0% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 4.4% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 1.6%.

  • Guidance issued

    The latest outlook (fiscal 2027 Cash conversion rate (updated definition), May 21, 2026) was issued for the first time, so it neither adds nor takes away points.

  • Gross margin improving

    Gross margin was 28.3% over the last twelve months, against 27.6% a year earlier.

Past performance3/6

  • Return on equity under 15%

    Return on equity was 6.1% over the last twelve months and averaged 3.5% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 6.2%, below the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    CAE's return on equity of 6.1% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -31.2%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was 6.4% over the last twelve months, against a 5-year average of 3.5%.

  • Net margin above the industry

    CAE's net margin of 6.4% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -64.6%.

Financial health2/6

  • High debt

    Debt is 61.0% of shareholders' equity, above the 40% we consider low.

  • Debt falling against equity

    Debt to equity fell from 74.9% five years ago to 61.0%.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 24.5% of total debt.

  • Interest not well covered

    Operating income covers interest expense 2.7 times; we look for at least 5.

  • Short-term assets don't cover short-term debts

    Current assets are 0.96 times current liabilities.

  • Bankruptcy risk (Altman Z)

    Needs market value, working capital and retained earnings.

Dividend0/6

  • No dividend

    CAE has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for CAE. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$13.65M
Value traded per 1% price move
$12.40M

Downside

Low risk

Typical loss in a bad month
13.4%
Volatility (annualized)
33%
Sharpe ratio, 1 year
-0.11
Beta to the S&P 500 (5Y)
1.09

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2016 to 2026

Gross margin

28.3%+2.6 pts over 5 years

Operating margin

12.5%+10.8 pts over 5 years

Net margin

6.4%+8.0 pts over 5 years

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