Is CAE Stock a Good Investment?

CAE Investment Advice

CAE

To provide specific investment advice or recommendations on CAE Inc stock, we recommend investors consider the following general factors when evaluating CAE Inc. This will help you to make an informed decision on whether to include CAE in one of your diversified portfolios:

Examine CAE's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research CAE's leadership team and their track record. Good management can help CAE navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Aerospace & Defense space and any emerging trends that could impact CAE's business and its evolving consumer preferences.
Compare CAE's performance and market position to its competitors. Analyze how CAE is positioned in terms of product offerings, innovation, and market share.
Check if CAE pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about CAE's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in CAE Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if CAE Inc is a good investment.

Sell

Buy

Strong Buy

Our investment recommendation module complements current analysts and expert consensus on CAE. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at this time. To make sure CAE is not overpriced, please confirm all CAE Inc fundamentals, including its operating margin, shares owned by institutions, price to sales, as well as the relationship between the shares outstanding and price to earning . Given that CAE Inc has a price to earning of 660.31 X, we suggest you to validate CAE Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the coming quarters given your prevailing risk tolerance and investing horizon.

Market Performance	Good	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine CAE Stock

Researching CAE's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 76.0% of the company shares are held by institutions such as insurance companies. The book value of CAE was currently reported as 13.76. The company has Price/Earnings To Growth (PEG) ratio of 2.45. CAE Inc recorded a loss per share of 0.78. The entity last dividend was issued on the 12th of March 2020. The firm had 2:1 split on the 5th of July 2001.

To determine if CAE is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding CAE's research are outlined below:

	The company reported the last year's revenue of 4.28 B. Reported Net Loss for the year was (296.3 M) with profit before taxes, overhead, and interest of 1.17 B.
	CAE Inc has a strong financial position based on the latest SEC filings
	Over 76.0% of the company shares are held by institutions such as insurance companies
	Latest headline from kalkinemedia.com: Cannindah Resources Identifies Significant Resource Extension Potential at Mt Cannindah

CAE Quarterly Liabilities And Stockholders Equity

10.13 Billion

CAE uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in CAE Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to CAE's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	14th of February 2024 Upcoming Quarterly Report	View
	29th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	29th of May 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of March 2023 Last Financial Announcement	View

Earnings surprises can significantly impact CAE's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises CAE's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2007-02-08	2006-12-31	0.1	0.11	0.01	10
2006-11-09	2006-09-30	0.1	0.11	0.01	10
2006-08-10	2006-06-30	0.09	0.1	0.01	11
2006-05-17	2006-03-31	0.09	0.08	-0.01	11
2005-11-03	2005-09-30	0.06	0.07	0.01	16
2005-02-11	2004-12-31	0.05	0.04	-0.01	20
2004-02-11	2003-12-31	0.08	0.09	0.01	12
1999-02-04	1998-12-31	0.1	0.11	0.01	10

Know CAE's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as CAE is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading CAE Inc backward and forwards among themselves. CAE's institutional investor refers to the entity that pools money to purchase CAE's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Bmo Capital Markets Corp.	2024-06-30	5 M
Earnest Partners Llc	2024-06-30	4.4 M
Morgan Stanley - Brokerage Accounts	2024-06-30	4.4 M
Letko, Brosseau & Associates Inc.	2024-09-30	4.1 M
Norges Bank	2024-06-30	3.8 M
Amvescap Plc.	2024-06-30	3.4 M
Clearbridge Advisors, Llc	2024-09-30	3.2 M
Bank Of Nova Scotia	2024-09-30	2.8 M
1832 Asset Management L.p	2024-09-30	2.3 M
Mackenzie Investments	2024-09-30	25.4 M
Caisse De Depot Et Placement Du Quebec	2024-06-30	24.6 M

Note, although CAE's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

CAE's market capitalization trends

The company currently falls under 'Mid-Cap' category with a total capitalization of 7.37 B.

Market Cap

9.17 Billion

CAE's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.05)	(0.04)
Return On Capital Employed	(0.02)	(0.02)
Return On Assets	(0.03)	(0.03)
Return On Equity	(0.07)	(0.07)

The company has Net Profit Margin of (0.07) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 0.11 %, which entails that for every 100 dollars of revenue, it generated $0.11 of operating income.

Determining CAE's profitability involves analyzing its financial statements and using various financial metrics to determine if CAE is a good buy. For example, gross profit margin measures CAE's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of CAE's profitability and make more informed investment decisions.

Please note, the presentation of CAE's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, CAE's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of CAE's management manipulating its earnings.

Evaluate CAE's management efficiency

CAE Inc has Return on Asset of 0.0279 % which means that on every $100 spent on assets, it made $0.0279 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (0.0737) %, meaning that it generated no profit with money invested by stockholders. CAE's management efficiency ratios could be used to measure how well CAE manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to -0.04. The current year's Return On Capital Employed is expected to grow to -0.02. At present, CAE's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 997 M, whereas Total Current Assets are forecasted to decline to about 1.3 B.

	Last Reported	Projected for Next Year
Book Value Per Share	13.52	14.20
Tangible Book Value Per Share	3.24	1.66
Enterprise Value Over EBITDA	99.00	103.95
Price Book Value Ratio	2.07	3.49
Enterprise Value Multiple	99.00	103.95
Price Fair Value	2.07	3.49
Enterprise Value	11.7 B	12.2 B

Evaluating the management effectiveness of CAE allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The CAE Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.

Beta

1.914

Basic technical analysis of CAE Stock

As of the 28th of November, CAE shows the mean deviation of 1.35, and Coefficient Of Variation of 518.27. CAE Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the entity's future prices. Please confirm CAE Inc variance, maximum drawdown, and the relationship between the coefficient of variation and jensen alpha to decide if CAE Inc is priced fairly, providing market reflects its regular price of 23.33 per share. Given that CAE has jensen alpha of 0.2834, we suggest you to validate CAE Inc's prevailing market performance to make sure the company can sustain itself at some future date.

CAE's Outstanding Corporate Bonds

CAE issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. CAE Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most CAE bonds can be classified according to their maturity, which is the date when CAE Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Dana 575 percent Corp Bond US235822AB96	View
	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	International Game Technology Corp Bond US460599AD57	View
	Morgan Stanley 3971 Corp Bond US61744YAL20	View
	Valero Energy Partners Corp Bond US91914JAA07	View

View All CAE Corporate Bonds

Understand CAE's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing CAE's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1538
	Market Risk Adjusted Performance	0.4427
	Mean Deviation	1.35
	Semi Deviation	1.38
	Downside Deviation	1.78
	Coefficient Of Variation	518.27
	Standard Deviation	2.09
	Variance	4.36
	Information Ratio	0.1305
	Jensen Alpha	0.2834
	Total Risk Alpha	0.064
	Sortino Ratio	0.1529
	Treynor Ratio	0.4327
	Maximum Drawdown	13.14
	Value At Risk	(2.09)
	Potential Upside	2.73
	Downside Variance	3.17
	Semi Variance	1.9
	Expected Short fall	(1.50)
	Skewness	1.78
	Kurtosis	12.04

	Risk Adjusted Performance	0.1538
	Market Risk Adjusted Performance	0.4427
	Mean Deviation	1.35
	Semi Deviation	1.38
	Downside Deviation	1.78
	Coefficient Of Variation	518.27
	Standard Deviation	2.09
	Variance	4.36
	Information Ratio	0.1305
	Jensen Alpha	0.2834
	Total Risk Alpha	0.064
	Sortino Ratio	0.1529
	Treynor Ratio	0.4327
	Maximum Drawdown	13.14
	Value At Risk	(2.09)
	Potential Upside	2.73
	Downside Variance	3.17
	Semi Variance	1.9
	Expected Short fall	(1.50)
	Skewness	1.78
	Kurtosis	12.04

Consider CAE's intraday indicators

CAE intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of CAE stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0111
	Daily Balance Of Power	1.0
	Rate Of Daily Change	1.01
	Day Median Price	23.2
	Day Typical Price	23.24
	Market Facilitation Index	0.26
	Price Action Indicator	0.26
	Period Momentum Indicator	0.26

CAE Corporate Filings

13A	13th of November 2024 An amended filing to the original Schedule 13G	View Verify
	12th of November 2024 Other Reports	View Verify
6K	14th of August 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	30th of May 2024 Other Reports	View Verify

CAE time-series forecasting models is one of many CAE's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary CAE's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

CAE Stock media impact

Far too much social signal, news, headlines, and media speculation about CAE that are available to investors today. That information is available publicly through CAE media outlets and privately through word of mouth or via CAE internal channels. However, regardless of the origin, that massive amount of CAE data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of CAE news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of CAE relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to CAE's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive CAE alpha.

CAE Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards CAE can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

CAE Corporate Directors

Andrew Stevens	Independent Director	Profile
Margaret Billson	Independent Director	Profile
Norton Schwartz	Independent Director	Profile
Alan MacGibbon	Independent Director	Profile

When determining whether CAE Inc is a strong investment it is important to analyze CAE's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CAE's future performance. For an informed investment choice regarding CAE Stock, refer to the following important reports: