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CAE

CAE
47
Aerospace & Defense · Industrials
Price
$25.18
+0.35 (+1.41%)
Market Cap
$8.10B
Exchange
New York Stock Exchange
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Jul 25, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+3.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 312.9M (2022) → 322.2M (2026)

CAE Inc. is a global entity dedicated to delivering advanced simulation-based training and vital operational assistance. The company structures its diverse operations into three primary business segments: Civil Aviation, Defense and Security, and Healthcare. Its Civil Aviation division offers an extensive suite of training solutions for various aviation professionals, including flight, cabin, maintenance, and ground personnel, across commercial, business, and helicopter sectors. This segment also manufactures cutting-edge flight simulation training devices, provides initial pilot (ab initio) instruction, and offers crew placement services. Furthermore, it supplies integrated digital platforms for crew management, training operations, and optimization software. The Defense and Security segment is focused on providing crucial training and mission support capabilities for military forces engaged in multi-domain operations. Its services also cater to original equipment manufacturers (OEMs), governmental bodies, and public safety organizations. Within the Healthcare segment, CAE develops comprehensive educational and training systems. These offerings include simulations for interventional procedures and imaging, structured curricula, audiovisual debriefing tools, platforms for managing simulation centers, and lifelike patient simulators. These resources are utilized by a broad range of clients, from healthcare students and clinical professionals to hospital and university simulation centers, medical and nursing schools, paramedic services, military medical units, professional societies, public health agencies, and OEMs. Founded in 1947, the company was originally known as CAE Industries Ltd. before officially adopting the name CAE Inc. in 1993. Its corporate headquarters are located in Saint-Laurent, Canada.

Winston Score History

Politician Trades

2 trades / 12mo

1 Congressional buy and 1 sell on CAE in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-47.6% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$95M/ year

Declining (-23% vs prior year)

1.9% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Cash Position

Cash flow positive

$1.4B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

CAE is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
30.2%
Modest — 30.2% gross margin
Operating Margin
15.2%
Healthy — 15.2% operating margin
ROCE
2.6%
Weak — 2.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+4.5%
Slow sales growth (4.5% YoY)
EPS YoY
-23.0%
Earnings shrinking (-23.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
243%
Turns 243% of profit into real cash
FCF Margin
9.4%
Modest free cash flow (9.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.48
Conservative — low debt load (0.48)
Interest Cover
3.24x
Tight — interest eats into profit (3.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
26.0x
Growth-priced — P/E 26.0

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+8.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (26.0 → 17.1)

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Dividends

Not applicable for this business.
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