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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#519
Positioning
Market Dominance
Manufacturing
Electrical Equipment
$7.8B
Marc Parent
CAE Inc. designs, manufactures, and supplies simulation equipment and training solutions to defense and security markets. The company's Civil Aviation Training Solutions segment provides training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation. It has a strategic partnership with Volocopter GmbH to develop, certify, and deploy a pilot training program.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = CAE ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CAE CAE INC | 62 | 71 | 81 | 59 | 27.1x | 4.3x | 33.9% | 14.8% | 27.5% | 12.0% | 8.8% | 4.5% | 0.0% | 72.0x | $7.8B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
CAE INC (CAE) receives a "Hold" rating with a composite score of 61.8/100. It ranks #519 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Headcount
13.0K
HQ Base
ST-LAURENT, Quebec
In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for CAE.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 71 | 81 | -10DRAG |
| MOMENTUM | 59 | 58 | +1NEUTRAL |
| VALUATION | 81 | 86 | -5NEUTRAL |
| INVESTMENT | 41 | 76 | -35DRAG |
| STABILITY | 81 | 86 | -5NEUTRAL |
| SHORT INT | 42 | 38 | +4NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 12.7% vs WACC 8.7% (spread +4.0%)
GM 28% vs sector 44%, OM 12% vs sector 3%
Capital turnover 1.47x, R&D intensity 2.6%
Rev growth 4%, 8yr history
Interest coverage 2.6x, Net debt/EBITDA 3.3x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate CAE INC (CAE) as a Hold with a composite score of 61.8/100 at a current price of $29.09. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
CAE INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 61.8/100 places it at rank #519 in our full universe.
No Moat
Medium
Standard
Undervalued
Returns on equity of 33.9% exceed cost of capital.
Value factor score of 81 suggests attractive pricing.
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
CAE INC represents a hold based on multi-factor quantitative performance.
Our model assigns CAE INC a Hold rating, with a composite score of 61.8/100 and 3 out of 5 stars. Ranked #519 of 7,333 stocks, CAE presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
CAE earns a quality score of 71/100, indicating above-average business quality. The company reports a return on equity of 33.9% (sector avg: -1.9%), gross margins of 27.5% (sector avg: 44.1%), net margins of 8.8% (sector avg: 1.0%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
CAE carries a solid value score of 81/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 27.12x, an EV/EBITDA of 4.35x, a P/B ratio of 2.84x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 41/100, CAE exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 4.5% vs. a sector average of 6.7% and a return on assets of 14.8% (sector: 0.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
CAE demonstrates moderate momentum with a score of 59/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 4.5% year-over-year, while a beta of 0.90 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
CAE shows good financial stability with a score of 81/100. Key stability metrics include a beta of 0.90 and a debt-to-equity ratio of 72.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 42/100 for CAE suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 72.00x). With a $7.8B market cap (mid-cap), CAE INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
CAE INC is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #519 of 7,333 overall (93rd percentile). Key comparisons include ROE of 33.9% exceeding the -1.9% sector median and operating margins of 12.0% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While CAE currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Investment (41) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 62% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 1886% BELOW SECTOR MEDIAN
Gross Margin 37% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
CAE Inc. (NYSE:CAE) is one of the best stocks for beginners with little money in 2026. On February 12, CAE released its FQ3 2026 earnings report, with total revenue reaching $1.25 billion, which was a 2% increase year-over-year. The standout performer was the Defense segment, which saw a 14% revenue jump and a 38% increase […]
'The highest priority is to deliver defence capabilities to the Canadian Armed Forces,' CEO says
Joby Aviation announced significant progress toward commercializing urban air mobility by installing CAE flight simulators at its Marina, California pilot training facility. The company is preparing for commercial launches targeted for late 2026 and plans to double manufacturing capacity by 2027. CEO JoeBen Bevirt will speak at CES 2026 about physical AI and software-defined mobility. Joby stock has climbed over 50% in the past six months.
CAE Inc (CAE) reports robust growth in its defense segment, while facing revenue declines and utilization challenges in its civil segment.