CAE INC. $11 - Toronto symbol CAE

CAE INC. $11 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 259.7 million; Market cap: $2.9 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) received orders for 35 flight simulators in the fiscal year ended March 31, 2013. That’s down slightly from 37 in 2012.

However, CAE continues to win contracts for its pilot-training operations: it now has over 100 flight schools in 30 countries. For example, it recently agreed to build a pilot-training facility for the Kuwait Air Force. Other recent contracts include deals to train pilots for airlines in South America, Turkey and Ireland.

The company probably earned $0.69 a share in fiscal 2013, and the stock trades at 15.9 times that figure. CAE’s fiscal 2014 earnings could rise to $0.79 a share, and the stock trades at a more reasonable 13.9 times that forecast. The $0.20 dividend yields 1.8%.

CAE is a buy.

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