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Operations: The company's revenue is derived from two main segments: Civil Aviation, which accounts for CA$2.68 billion, and Defense and Security, contributing CA$1.88 billion.

Estimated Discount To Fair Value: 47.7%

CAE is trading well below its estimated fair value of CA$64.69, suggesting it could be undervalued based on cash flows. The company has secured significant contracts, including a long-term agreement with General Atomics and a strategic partnership for Canada's Future Fighter Lead-in Training program. Despite high debt levels, CAE's earnings are forecast to grow significantly at 81.57% annually, surpassing the Canadian market growth rate and potentially enhancing future cash flows.

• The growth report we've compiled suggests that CAE's future prospects could be on the up.

• Delve into the full analysis health report here for a deeper understanding of CAE.

Savaria

Overview: Savaria Corporation offers accessibility solutions for the elderly and physically challenged across Canada, the United States, Europe, and internationally with a market cap of CA$1.22 billion.

Operations: The company's revenue is primarily derived from two segments: Patient Care, which contributes CA$193.88 million, and Accessibility (including Adapted Vehicles), which accounts for CA$673.88 million.

Estimated Discount To Fair Value: 44.9%

Savaria is trading at a significant discount, 44.9% below its estimated fair value of CA$30.94, highlighting potential undervaluation based on cash flows. The company reported sales of CA$867.76 million for 2024 and net income growth to CA$48.51 million, reflecting robust financial health despite large one-off items impacting results. Analysts forecast annual earnings growth of 22.4%, outpacing the Canadian market, with revenue expected to rise by 5-8% in fiscal 2025 driven by strategic initiatives.

• Insights from our recent growth report point to a promising forecast for Savaria's business outlook.

• Navigate through the intricacies of Savaria with our comprehensive financial health report here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TSX:ATRL TSX:CAE and TSX:SIS.

This article was originally published by Simply Wall St.

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