CAE Inc. (CAE.TO) stock analysis

In our weekly check, CAE Inc. is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 19 pass, warnings: 4, red flags: 1.

About CAE Inc.

CAE Inc. is an Industrials company (Aerospace & Defense) based in Canada, listed on TSX as CAE.TO.

What our checks show for CAE.TO

Red flags

• The stock has fallen as much as 65% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 2.3% a year of growth in revenue.
• The net margin is only 5.8%: little room if costs rise.
• Recovering from its deepest fall took about 1.6 years.
• Return on capital (ROCE) is only 7.9%.

Strengths

• The net margin rose by 1.5 points over 5 years, to 5.8%.
• Operating cash flow is 3.04x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 28.2% a year over the next years.
• Analysts expect the net margin to improve by 4.7 points from today's 5.8%.
• Free cash flow is 11.7% of revenue: cash for dividends, buybacks or growth.
• Pay in shares is only 2.9% of free cash flow.

Next earnings report: 2026-11-11

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Questions

What grade does CAE Inc. (CAE.TO) have?

In our weekly check, CAE Inc. is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 19 pass, warnings: 4, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CAE.TO stock?

This week's biggest flags for CAE Inc.: Deep past fall, Weak revenue forecast, Thin margins. In total 5 of 24 checks show a warning or a red flag.

What does CAE Inc. do?

CAE Inc. is an Industrials company (Aerospace & Defense) based in Canada, listed on TSX as CAE.TO.

When does CAE Inc. report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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