Review of CAE Inc.

FEB 20, 2024 - CAE acts as a software company that provides digital training in the form of software-based simulation training and critical operations support solutions. CAE is a decent value play given the high backlog the company carries, in addition to being relatively stable financially. Improvements in the defense and security segment's margins is a potential internal catalyst for earnings growth which would significantly improve the company’s bottom line, but this may be a goal that takes longer to materialize.We are maintaining our rating of a “B+” on the back of these factors.

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Q: I am wondering what Canadian companies are poised to benefit from an increase in spending on armaments by Western governments, in response to rising tensions across the world. Mining stocks could be of interest, but I'm mainly wondering about manufacturing companies.

Read Answer Asked by William on February 28, 2024

Q: Why is CAE struggling. With a large backlog and with little competition in its sector shouldn't it be profitable? Is there a management problem? Where do you see it going in the future? Buy or sell?
As well, what is your opinion of ATS going forward?
Thanks for your continued expertise Stephen

Read Answer Asked by Stephen on February 21, 2024

Q: Looking to deploy some cash and I'm considering either CAE or Open Text in light of their recent share price declines.
Which one of the two would you consider to have the most potential for share price appreciation over the next 3-5 years, and why?
Appreciate your thoughts, Rick

Read Answer Asked by Richard on February 16, 2024