CAE Inc (CAE-T)
245 watching
TSE:CAE
21.19
0.42
(1.94%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Sep 30, 2022, 8:00 pm
0
BUY on WEAKNESS
Allan Tong’s Discover Picks CAE has some things going for it. Fingers crossed, the Covid pandemic looks like it is truly behind us. There's been a boom in travel that shows no sign of abating. Airlines need pilots. Period. Given geopolitical tensions triggered by Russia, defence budgets are on the rise, and certainly not shrinking. Expect defence dollars to trickle onto CAE's bottom line. Also, the company's order backlog jumped 26% between Q1-2022 and Q1-2023, amounting to over $10.026 billion.
Caveats: A recession could slow down business, but demand from defence could buffer that. Also, CAE trades at a high beta of 1.93. Read 2 Stocks on Sale: CAE and Paypal for our full analysis.
transportation equip & components
$21.780
Unknown
BUY
One of the better managed companies in Canada. Diversified into flight training. Huge demand coming for pilot training. US defense training simulators. May be impacted by a recession, but a good, long-term buy at these levels. Fears of less government spending are misplaced, given world turmoil.
transportation equip & components
BUY
CAE Inc (CAE) stock declined 32.07% on the month and 26.32% YTD.
It is a technology company which digitalizes the physical world by deploying simulation training and critical operations support solutions.
On the positive side, the order backlog increased 26% to $10.026 billion.
This is a solid long-established global operation which should deliver results in future to support a higher stock price.
transportation equip & components
PAST TOP PICK
(A Top Pick Sep 22/21, Down 36%) Stumbled, especially last quarter. Higher costs, staff shortages, supply chain issues. Still compelling on price to growth at 26x 2023 earnings with an anticipated 27% growth rate. Defense areas should stabilize earnings, making it less cyclical. He'll be adding.
transportation equip & components
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Consolidator in the industry.
Strong industry tailwinds such as aircraft traffic.
Recovering in the post-pandemic environment.
EPS expected to grow by 50% in 2022.
transportation equip & components
WATCH
Best in the world at flight simulators and training pilots. Covid hurt revenues. Airlines are now in hiring mode. It's been beaten down and he's looking at it. Good long-term industry. Simulator applications for medical industry.
transportation equip & components
DON'T BUY
Trades at high 82x PE They bought a US defence business a year ago. Their latest quarter shows much-lower profits from their defence business. At least short term, this impacts their earnings. She wants to see some stability and how this acquisition shakes out over time.
transportation equip & components
BUY
Allan Tong’s Discover Picks This has helped push expectations to the skies as CAE trades at 88.9x, compared to 70.49x at the end of June this year. That’s a touch lower than 92.29x in September 2021. That said, the forward PE all this time has ranged between 24-39x, so the street keeps expecting a lower PE, but doesn’t get it. Meanwhile, CAE has beaten earnings once in the last four quarters, met in another and missed two others. Call it a patchy earnings record, but we can cut the company some slack since they reported in the period of Omicron and lockdowns. Read 3 Long-Term Stocks to Buy and Hold for our full analysis.
transportation equip & components
BUY
Has been buying shares in the company for the past 12 months.
Current share price presenting buying opportunity.
Expecting training to increase in flying business with increase in travel demand.
Expecting share price to recover
transportation equip & components
TOP PICK
Latest quarter had disappointing news on the defense side. This provides an opportunity to invest in one of Canada's star companies. Leader in their field. Recent contract with Quantas, potential for $30-40M annual revenue. Inflation does impact their fixed-price defense contracts. No dividend. (Analysts’ price target is $36.04)
transportation equip & components
TOP PICK
Strong business, high barriers to entry. About 30% market share of aviation training. Good global footprint, high quality customers. Good tech platform. Airline challenges provide tailwinds. 25-30% estimated earnings growth for next 3 years. In troubled times, still preserved its clean balance sheet, maintained stable margins. Buy here, well rewarded over 2 years. No dividend. (Analysts’ price target is $40.29)
transportation equip & components
BUY
Owns stock in company - gives good exposure to recovering travel industry.
A lot of debt on balance sheet a result of pandemic.
Profitably and margins will improve.
Balance sheet will be safe as debt is termed out into the future.
Will continue to own stock in the company.
transportation equip & components
TOP PICK
Right now, he wants safety. This fits. Strong recovery in air travel, with renewed focus on defense. Future is bright. In a market selloff, this may not get hit as hard. Wants to see management revisit dividend in next 12-24 months. No dividend. (Analysts’ price target is $40.30)
transportation equip & components
BUY
Prudently paying down debt from recent acquisitions. Free cashflow poised to move upwards when the world normalizes. Business continues to improve fundamentally. Dividend could come back, but perhaps not this year. Ventilator division won't be a driver going forward. Likes business jet exposure. Entering a long cycle of pilot training. Should revisit highs in near future.
transportation equip & components
COMMENT
Starting to grow business from military and healthcare side.
Healthcare side has long runway for growth.
Must be patient with this stock and will see better share price.
transportation equip & components
CAE Inc(CAE-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 10
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 11
CAE Inc(CAE-T) Frequently Asked Questions
What is CAE Inc stock symbol?
CAE Inc is a Canadian stock, trading under the symbol CAE-T on the Toronto Stock Exchange (CAE-CT). It is usually referred to as TSX:CAE or CAE-T
Is CAE Inc a buy or a sell?
In the last year, 11 stock analysts published opinions about CAE-T. 10 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for CAE Inc.
Is CAE Inc a good investment or a top pick?
CAE Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for CAE Inc.
Why is CAE Inc stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is CAE Inc worth watching?
11 stock analysts on Stockchase covered CAE Inc In the last year. It is a trending stock that is worth watching.
What is CAE Inc stock price?
On 2022-09-30, CAE Inc (CAE-T) stock closed at a price of $21.19.
