Another market leader ready for growth

Article Excerpt

CAE INC. $13 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.5 million; Market cap: $3.4 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) is the world’s leading maker of flight simulators for commercial airlines, with 70% of the market. It also makes simulators for military clients. The company began training pilots for its customers in 2001 and now has over 100 flight schools in 30 countries. Strong recovery after recession The recession cut flight simulator demand, pushing down CAE’s revenue by 8.2%, from $1.7 billion in 2009 to $1.5 billion in 2010 (fiscal years end March 31). As the global economy recovered, CAE’s revenue rebounded to $1.6 billion in 2011 and reached $2.1 billion in 2013. The sales decline during the recession cut CAE’s earnings by 16.5%, from $0.79 a share (or a total of $200.5 million) in 2009 to $0.66 a share (or $168.6 million) in 2010. Total earnings recovered to…