CAE Inc. Ordinary Shares (CAE)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with durable economics and a price that leaves room for error. CAE's training and simulation franchise sounds sticky—approvals, simulators, and airline/defense relationships can create switching costs. But the numbers, as of the 2026-10-13 close at $23.46, do not yet show a high-return compounder. FairStock's calculations put the P/E at 36.66 and P/B at 1.95, while EPS is $0.64. Return on equity is 5.64% and return on capital employed is 3.53%, both modest. The latest filed quarterly result — fiscal Q2 2026 — showed revenue of $1.2B, net income of $31.0M, and a 2.64% net margin. Revenue growth is 6.81%, but profit growth is -45.80%, so margins are under pressure. Debt to equity of 0.59 is manageable but not trivial. Free cash flow is a bright spot: $689.6M trailing twelve months, an 8.5% FCF yield. Still, the Graham Number of $15.57 implies the price carries a -50.67% margin of safety by that conservative yardstick. The Piotroski F-Score is 5/9 and Altman Z-Score is 1.26, suggesting only middling financial strength and some distress risk. FairStock's score is 36/100. The Lynch category is 'none' because there are only 0 years of filed results and it needs 3. In sum, CAE has a promising franchise and real cash generation, but current returns, profit trend, and valuation make it a watch-list name rather than a bargain.

In plain English: CAE provides training and simulation for aviation and defense. The company is profitable, but profit has been falling and returns on the money invested in the business are low. At the recent price, the shares look expensive compared with earnings and accounting value, even though the company produces solid cash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer