MONTREAL - CAE Inc . (NYSE: NYSE:CAE) (TSX: CAE), a global leader in digital simulation and training solutions, has announced a leadership transition within its Defense & Security business unit. Jason Goodfriend has been appointed Interim Group President, Defense & Security, effective immediately.
Goodfriend steps into the role succeeding Daniel Gelston, who will continue to serve CAE in a supporting role until May 2024. Gelston's tenure has been acknowledged by CAE for his vision and leadership contributions. Goodfriend, who is based in Chantilly, Virginia, has been with CAE since January 2023, previously holding the position of Chief Operating Officer for the Defense & Security unit. His appointment is part of CAE's ongoing organizational adjustments aimed at enhancing execution and performance.
Bringing over two decades of experience from both government service and private sector defense companies, Goodfriend is recognized for his leadership and profit and loss management expertise. His background includes significant roles at BAE Systems (LON:BAES) Inc., and Akima, LLC, and he is also noted for his distinguished service as a U.S. Army veteran.
The company is actively searching for a permanent Group President, considering a pool of highly qualified internal and external candidates with strong track records in the defense industry.
Additionally, CAE has recently appointed Srini Dixit as the Chief Financial Officer for the Defense & Security business unit. Dixit joined the company in March 2024 and possesses a robust background in structural engineering, international business management, and financial leadership. His previous experience includes serving as Vice President Finance and CFO of RTX's Raytheon (NYSE:RTN) Air Power strategic business and holding various financial leadership roles at Lockheed Martin Corporation (NYSE:LMT).
CAE, headquartered in Montreal, Canada, operates with a global presence, employing more than 13,000 individuals across approximately 250 sites in over 40 countries. The company is recognized for its cutting-edge simulation training and critical operations support solutions across various sectors, including aviation and defense.
InvestingPro Insights
As CAE Inc. undergoes a pivotal leadership transition, the company's financial metrics and market performance remain a key focus for investors. CAE, with a market capitalization of $6.37 billion USD, is navigating through a challenging market environment. The company's P/E ratio stands at 30.81, reflecting investor expectations of future earnings potential. However, CAE's adjusted P/E ratio for the last twelve months as of Q3 2024 is slightly lower at 25.79, which may indicate a more favorable earnings outlook relative to its current share price.
InvestingPro data shows that CAE has experienced robust revenue growth of 20.66% over the last twelve months leading up to Q3 2024, a testament to the company's resilient business model and market demand for its simulation and training solutions. Moreover, the company's EBITDA growth during the same period was an impressive 32.79%, underscoring its operational efficiency and ability to translate top-line growth into earnings before interest, taxes, depreciation, and amortization.
One of the InvestingPro Tips that stands out for CAE is the company's low PEG ratio of 0.56, which suggests that the stock may be undervalued based on its earnings growth rate. This could be an attractive point for investors looking for growth at a reasonable price. Additionally, CAE is expected to be profitable this year, according to analysts, which aligns with the company's positive financial trajectory.
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