TSX

CAE Inc.

CAE.TO•Industrials•Aerospace & Defense
Current Price
$35.02
Today's Change
+1.80%
Market Cap
$11.27B
Volume
634.46K

💡 Quick Take

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.

Based on 26 data points⚠️Not financial advice

📊 Key Metrics

52 Week High$47.65
52 Week Low$31.42
Avg Volume960.13K
Beta1.02
Shares Outstanding321.85M

🔥 Valuation

Market Cap$11.27B
Enterprise Value$13.74B
P/E Ratio39.22
EV/EBITDA14.83x
Dividend Yield0.00%

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🚩 Red Flags

🟠

High Debt Load

Debt of $3.2B is 5.7x the company's cash position of $568.7M.

🌟 Opportunities

🚀

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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