- Adjusted EPS for CAE’s third quarter was C$0.29, matching estimates and showing an increase from C$0.24 year-over-year.
- Revenue rose by 12% to C$1.22 billion, surpassing the estimate of C$1.17 billion.
- Civil revenue saw significant growth, increasing by 21% to C$752.6 million, exceeding the expected C$676.1 million.
- Defence revenue slightly declined by 0.3% to C$470.8 million, falling short of the C$488.6 million estimate.
- The company’s backlog grew by 73% year-over-year, reaching C$20.28 billion.
- Free cash flow more than doubled to C$409.8 million compared to C$190.0 million of the previous year.
- CAE focused on balanced capital allocation and accretive growth investments.
- Total capital expenditure for fiscal 2025 is expected to be approximately $30 million higher than the C$329.8 million spent in fiscal 2024.
- CAE is aiming for a leverage ratio of net debt-to-adjusted EBITDA below 3x by the end of the fiscal year.
- Analyst ratings include 6 buys, 7 holds, and 1 sell.
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A look at CAE Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
CAE Inc. presents a mixed bag in terms of its long-term outlook based on the Smartkarma Smart Scores. The company’s strong momentum score of 5 suggests a positive trend in its market performance. This could indicate that CAE Inc. is experiencing significant growth and investor interest. However, other aspects such as its low dividend and growth scores, rated at 1 and 2 respectively, may raise concerns. These scores hint at potential challenges in terms of dividend payouts and overall growth prospects for the company. Despite these factors, CAE Inc. maintains a decent value score of 3, which could imply that the stock is trading at a reasonable price relative to its fundamentals.
In conclusion, while CAE Inc. shows promising momentum, potential investors should carefully consider its lower scores in areas like dividend, growth, and resilience. With its focus on providing training solutions using simulation technology across various sectors, including civil aviation and defense, CAE Inc. remains an interesting prospect in the market. The overall outlook for the company, as assessed by the Smartkarma Smart Scores, suggests a nuanced perspective requiring a closer evaluation of its financial health and growth strategies.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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