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Upturn AI SWOT - About
CAE 
CAE Inc. (CAE)
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Upturn Advisory Summary
04/01/2025: CAE (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -41.33% | Avg. Invested days 27 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 7.89B USD | Price to earnings Ratio - | 1Y Target Price 31.91 |
Price to earnings Ratio - | 1Y Target Price 31.91 | ||
Volume (30-day avg) 519411 | Beta 1.93 | 52 Weeks Range 15.95 - 27.62 | Updated Date 04/2/2025 |
52 Weeks Range 15.95 - 27.62 | Updated Date 04/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.52 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -4.71% | Operating Margin (TTM) 19.92% |
Management Effectiveness
Return on Assets (TTM) 3.38% | Return on Equity (TTM) -4.81% |
Valuation
Trailing PE - | Forward PE 25.51 | Enterprise Value 10148995780 | Price to Sales(TTM) 1.73 |
Enterprise Value 10148995780 | Price to Sales(TTM) 1.73 | ||
Enterprise Value to Revenue 3.2 | Enterprise Value to EBITDA 44 | Shares Outstanding 319793984 | Shares Floating 270388881 |
Shares Outstanding 319793984 | Shares Floating 270388881 | ||
Percent Insiders 0.16 | Percent Institutions 78.28 |
Analyst Ratings
Rating 3.46 | Target Price 22.35 | Buy 5 | Strong Buy 1 |
Buy 5 | Strong Buy 1 | ||
Hold 6 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
CAE Inc.
Company Overview
History and Background
CAE Inc. was founded in 1947 in Canada. Initially known as Canadian Aviation Electronics, it focused on flight simulation technology. Over the decades, CAE expanded into various simulation and training solutions for aviation, healthcare, and defense industries.
Core Business Areas
- Civil Aviation: Provides training solutions, including flight simulators and pilot training, to airlines, business aviation operators, and aviation training organizations globally.
- Defense & Security: Offers simulation and training systems for military and security forces across air, land, and naval domains.
- Healthcare: Develops and delivers healthcare simulation and training solutions to improve patient safety and healthcare professional performance.
Leadership and Structure
CAE operates with a global management team led by the CEO. It has a board of directors overseeing governance. The company is structured around its core business segments, each with its own leadership.
Top Products and Market Share
Key Offerings
- Full-Flight Simulators (FFS): CAE is a leading provider of Full-Flight Simulators for commercial and military aircraft. It holds a significant market share globally, estimated to be around 30-35%. Competitors include L3Harris Technologies, Textron (Aviation), and FlightSafety International.
- Pilot Training Services: CAE offers comprehensive pilot training services, from ab initio programs to type rating courses. The number of pilots they train annually is significant, with revenues in the hundreds of millions of dollars. Competitors include FlightSafety International, and independent flight schools.
- Healthcare Simulation Solutions: CAE Healthcare provides a range of patient simulators and clinical training tools. Market share is smaller but growing; it's estimated at approximately 10-15%. Competitors include Laerdal Medical, Gaumard Scientific, and Kyoto Kagaku.
Market Dynamics
Industry Overview
The simulation and training market is growing, driven by increasing demand for safety, efficiency, and cost-effectiveness across various sectors, including aviation, defense, and healthcare. Technological advancements, such as virtual reality and augmented reality, are also shaping the industry.
Positioning
CAE is a global leader in simulation and training solutions, known for its advanced technology, comprehensive service offerings, and strong customer relationships. It has a competitive advantage due to its scale, global reach, and diverse portfolio.
Total Addressable Market (TAM)
The total addressable market is estimated to be in the tens of billions of dollars annually, across aviation, defense, and healthcare. CAE is well-positioned to capture a significant portion of this market due to its diverse offerings and global reach.
Upturn SWOT Analysis
Strengths
- Global presence and brand reputation
- Diversified portfolio across multiple industries
- Advanced technology and innovation
- Strong customer relationships
- Recurring revenue streams from training services
Weaknesses
- Exposure to cyclical industries (e.g., aviation)
- High capital expenditure for simulator development
- Integration challenges with acquired companies
- Dependence on government contracts (Defense)
- Reliance on third party software
Opportunities
- Growing demand for simulation and training in emerging markets
- Expansion into new sectors (e.g., autonomous vehicles)
- Adoption of virtual reality and augmented reality technologies
- Increasing outsourcing of training services
- Development of AI powered solutions
Threats
- Economic downturns impacting demand for training services
- Intense competition from established and emerging players
- Technological disruptions and obsolescence
- Geopolitical risks and defense budget cuts
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- LHX
- TXT
- NOC
Competitive Landscape
CAE has advantages in terms of its global reach, diversified portfolio, and strong brand reputation. However, competitors may have strengths in specific market segments or technologies.
Major Acquisitions
Sabena Flight Academy
- Year: 2020
- Acquisition Price (USD millions): 100
- Strategic Rationale: Expanded CAE's pilot training capacity and geographical reach in Europe.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by expansion in aviation, defense, and healthcare sectors. Growth rates have varied depending on economic conditions and market trends.
Future Projections: Future projections are based on analyst estimates and depend on factors such as industry growth, market share gains, and strategic initiatives. Specific growth rates would be derived from analyst reports.
Recent Initiatives: Recent initiatives include investments in new technologies, expansion into emerging markets, and strategic acquisitions to strengthen its market position.
Summary
CAE is a leading player in the simulation and training industry, with a strong global presence and a diversified portfolio. Its strengths lie in its advanced technology and recurring revenue streams. However, CAE faces challenges related to economic cycles, competition, and technological changes. CAE should continue to invest in innovation and strategic acquisitions to maintain its market leadership and capitalize on future growth opportunities.
Similar Companies
BA
The Boeing Company
BA
The Boeing Company
GD
General Dynamics Corporation
GD
General Dynamics Corporation
LHX
L3Harris Technologies Inc
LHX
L3Harris Technologies Inc
TXT
Textron Inc
TXT
Textron Inc
Sources and Disclaimers
Data Sources:
- Company website
- Industry reports
- Analyst estimates
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It should not be considered financial advice. Market data changes quickly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About CAE Inc.
Exchange NYSE | Headquaters Saint-Laurent, QC, Canada | ||
IPO Launch date 1996-01-10 | President, CEO & Director Mr. Marc Parent CM | ||
Sector Industrials | Industry Aerospace & Defense | Full time employees 13000 | Website https://www.cae.com |
Full time employees 13000 | Website https://www.cae.com | ||
CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment operates as a training and simulation provider that delivers platform-independent solutions to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.
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