CAE Inc. provides simulation training and critical operations support solutions in the aerospace and defense sectors. While the company has a solid gross margin of 29.2% and operates in a growing industry, its low net margin of 2.6% and weak return on equity (0.6%) raise concerns about profitability. Additionally, the current ratio of 0.83 indicates potential liquidity issues. Overall, CAE's financial health score of 38/100 suggests challenges that may impact its growth prospects despite its market position.
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Debt of $3.2B is 5.7x the company's cash position of $568.7M.
Operating cash flow surged 313.4% YoY, indicating strong cash generation capability.
Excellent operating cash flow margin of 24.5% indicates high-quality earnings.
Operating cash flow of $1226.3M exceeds net income by 281%, indicating high-quality earnings with strong cash conversion.
Free cash flow increased 313.4% YoY, enhancing capital allocation optionality.
Strong free cash flow margin of 24.5% provides substantial resources for dividends, buybacks, or reinvestment.
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Based on 2027-Q1 (June 30, 2026)