CAE Inc. (CAE) AI Stock Analysis

CAE Inc. provides simulation training and critical operations support solutions globally across three main segments: Civil Aviation, Defense and Security, and Healthcare. The Civil Aviation segment delivers comprehensive training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation sectors, including flight simulation devices and pilot training. The Defense and Security segment provides training and mission support for defense forces, OEMs, and government agencies to enhance multi-domain operations. The Healthcare segment delivers integrated education and training solutions, including interventional simulations, curricula, and patient simulators for medical schools and hospitals.

CAE delivered a 5-year revenue CAGR of 10.6% from FY2021 to FY2026. Annual revenue expanded from $3.37B in FY2022 to $4.93B in FY2026, though annual revenue growth slowed to 4.6% in FY2026. Net income recovered from -$304.0M in FY2024 to $405.3M in FY2025, before moderating to $313.9M in FY2026 with a net margin of 6.4%. Gross margin stood at 27.3% in FY2026, compared to 28.3% in FY2022. For the latest quarter ended June 30, 2026, quarterly revenue grew 6.8% year-over-year, while quarterly earnings fell 46.0% year-over-year.

As of June 30, 2026, CAE held $568.7M in cash and short-term investments against total debt of $3.21B, resulting in net debt of $2.65B. Shareholders' equity was $5.41B, yielding a debt-to-equity ratio of 0.59 and a current ratio of 0.83. During FY2026, operating cash flow reached $873.8M and free cash flow was $585.2M. Capital expenditures totaled $288.5M, while share buybacks were $7.0M. The company reduced its share count by 5.3% over five years.

CAE trades at a trailing P/E of 37.7x and a forward P/E of 27.1x, both higher than the median of its US-listed Industrials peers at 24.8x and 17.2x, respectively. The company's enterprise value is $9.76B, with an EV-to-EBITDA multiple of 13.6x, compared to 13.9x for the peer group. CAE has a price-to-sales ratio of 1.6x and a price-to-book ratio of 2.0x. Over the past year, CAE shares fell 12.2%, lagging the 16.8% return for the S&P 500 (SPY). Over five years, the stock fell 22.9% against an 83.0% gain for the benchmark.

Wall Street analysts hold 5 Strong Buy, 6 Buy, 3 Hold, 0 Sell, and 1 Strong Sell ratings on CAE. The mean price target of $32.72 implies 35.5% upside over the last close of $24.15. For the fiscal year ending March 31, 2027, consensus estimates project EPS of $1.27 and revenue of $5.01B. For the subsequent year, 14 analysts expect EPS to grow 17.1% to $1.48 on revenue of $5.11B. CAE beat EPS expectations in 3 of the last 4 quarters, with next earnings scheduled for November 10, 2026.

This page is an AI-written research summary of CAE Inc. (CAE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: CAE income statement, CAE balance sheet, CAE key metrics, CAE analyst forecast, CAE chart. See the CAE stock overview for the latest quote and news.