COVID Recovery Stocks: 1 Top Company to Own Today

Accelerating a transformation through acquisitions, CAE Inc. (TSX:CAE)(NYSE:CAE) has consistently acted as a wise steward of capital.

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Accelerating a transformation through acquisitions, CAE (TSX:CAE)(NYSE:CAE) has consistently acted as a wise steward of capital. For the first time in nearly 20 years, CAE completed public and private equity offerings that secured more than $1.5 billion to support the execution of five acquisitions announced over a six-month period including one that represented the largest in CAE’s 74-year history.

Furthering a vision of an end-to-end crew performance optimization ecosystem

With four acquisitions in CAE’s civil segment, CAE has furthered the company’s vision of an end-to-end crew performance optimization ecosystem. Also, the addition of a new military training business in defence will contribute greater balance to the company. These capital allocations appear to have been made with the full support of CAE’s board, align with the company’s high-level growth strategy going forward and position CAE to pursue future expansion opportunities.

Significant efforts to ensure employees remained connected and engaged

Further, CAE views corporate social responsibility (CSR) as central to the company’s values, with people at the heart of the company’s culture. As COVID-19 stretched from weeks to months, CAE’s leadership made significant efforts to ensure employees remained connected and engaged, as everyone adjusted to the new normal. It appears that the dedication, innovation, and indomitable spirit of CAE’s employees were attributes that helped set the organization apart.

Commitment to become carbon neutral in 2021

Recently, CAE delivered on the company’s commitment to become carbon neutral in 2021, becoming the first Canadian aerospace company to achieve this status. This could be the first of many more milestones, as CAE makes progress on the company’s climate journey. To ensure transparency in CAE’s disclosure and incorporate the best practice reporting standards valued by stakeholders, CAE now reports on multiple industrial categories identified by the Sustainability Accounting Standards Board, including resource transformation, aerospace, defence, professional, and commercial services.

Ensured the safety of employees, customers, and suppliers

Despite the recent headwinds, CAE has emerged as a stronger and better company. CAE began the last fiscal year confronting industry reversals unlike any before in the company’s 74-year history. It also appears that CAE was deeply concerned about the rapid global spread of COVID-19 and remained resolute about ensuring the safety of the company’s employees, customers, and suppliers.

Sharp blows to CAE’s biggest business unit

The fact is no one could have foreseen the plummeting 90% drop in global air travel and border closures worldwide, all of which served instant sharp blows to CAE’s biggest business unit. The aftereffects of the pandemic that swept across the defence and healthcare markets, also caused temporary damage to CAE’s operations.

Identified opportunities to apply the company’s innovative skills and agility

In these unsettling circumstances, CAE appears to have swiftly mobilized to take the necessary and immediate measures to secure the company’s stability. While seizing on the first and secondary challenges of COVID-19, CAE identified opportunities to apply the company’s innovative skills and agility in the midst of these disruptions. Also, CAE lent a strong hand to the company’s customers around the world, offering critical support, often gratis or at cost, when faced with this shared crisis of humanity.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. 

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