CAE

Aerospace & Defense · Industrials

Price

$24.91

-0.08 (-0.32%)

Market Cap

$8.01B

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Exceptional

Stability

Good

Valuation

Good

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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)

Winston Score History

The full picture

CAE Inc. is a Canadian company that makes flight simulators and training systems for pilots and military crews. Its main products are full-motion cockpit simulators that look and feel exactly like real aircraft, plus the training programs that go along with them. CAE serves commercial airlines, business jet operators, and defense forces around the world, making it one of the largest flight simulation companies on the planet.

CAE earns money by selling simulators to airlines and governments, and also by running its own network of training centers where pilots pay to practice. It operates in over 35 countries, with major customers in North America, Europe, and the Middle East. The company's deep library of simulator models and long-term training contracts give it a strong competitive position that is hard for new rivals to copy. The key growth driver is rising global demand for pilots, but a slowdown in airline expansion or defense budget cuts could pressure revenue.

Politician Trades

3 trades / 12mo

1 Congressional buy and 2 sells on CAE in the last 12 months.

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Growth Profile

For growth stock investors

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

C$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

Insider Activity

9.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

C$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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

29.2%

Modest — 29.2% gross margin

Profit after running costs

Operating Margin

6.2%

Modest — 6.2% operating margin

Return on the money invested

ROCE

7.3%

Weak — 7.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+5.5%

Slow sales growth (+5.5% YoY)

Profit growth

EPS YoY

-31.0%

Earnings shrinking (-31.0% YoY)

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

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

331%

Turns 331% of profit into real cash

Spare cash per sale

FCF Margin

14.6%

Converts sales into free cash efficiently (14.6%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.59

Conservative — low debt load (0.59)

Covers its interest

Interest Cover

2.99x

Tight — interest eats into profit (3.0x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

28.0x

Growth-priced — P/E 28.0

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

Cheaper or dearer next year

P/E vs Forward

+3.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (28.0 → 24.7)

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Dividends

Not applicable for this business.

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