PAE Incorporated (PAE) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
PAE Incorporated (PAE) trades at $10.05 with AI Score 48/100 (Grade C). PAE Incorporated provides operational solutions and outsourced services to the U. S. government, allied governments, international organizations, and companies. Sector: Industrials.
Price as of Jul 23, 2026 · Last analyzed: May 10, 2026Analyst Coverage for PAE: PAE does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates PAE against Industrials peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
PAE: 1/3 scored disciplines lean bearish. Dominant signal: Seth Klarman bearish.
How is this calculated? →Why this analysis is different
- A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
PAE Incorporated (PAE) Industrial Operations Profile
PAE Incorporated, a subsidiary of Amentum Government Services Holdings LLC, delivers operational solutions and outsourced services primarily to the U.S. government. With a focus on global mission support and national security, the company offers lifecycle logistics, infrastructure management, and intelligence solutions, operating within the specialty business services sector.
What Is the Investment Thesis for PAE?
PAE Incorporated presents an investment case predicated on its established position as a provider of operational solutions to the U.S. government and its allies. The company's focus on long-term contracts within the government sector provides a degree of revenue stability. However, investors may want to evaluate PAE's relatively low profit margin of 0.6% and high beta of 2.41, indicating higher volatility compared to the market. Growth catalysts include continued demand for outsourced government services and potential expansion into new geographic regions. The company's acquisition by Amentum Government Services Holdings LLC in 2022 may lead to operational synergies and enhanced competitiveness. The company's P/E ratio is 56.11.
Based on FMP financials and quantitative analysis
PAE Key Highlights
- PAE operates through two segments: Global Mission Services and National Security Solutions, providing diverse revenue streams.
- The company's gross margin stands at 22.7%, reflecting its ability to manage costs within its service offerings.
- PAE's services include lifecycle logistics operations, humanitarian and stability operations, and infrastructure management.
- The National Security Solutions segment offers counter-threat solutions, information optimization services, and intelligence solutions.
- PAE was acquired by Amentum Government Services Holdings LLC in February 2022, potentially enhancing its market position.
Who Are PAE's Competitors?
PAE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CTAS Cintas Corporation | $203.25 | +0.94% | $81.3B | 93 |
| RLXXF RELX Plc | $31.84 | -2.18% | $55.6B | 50 |
| TRI Thomson Reuters Corporation | $85.69 | -1.88% | $37.4B | 54 |
| CPRT Copart, Inc. | $27.17 | +0.00% | $25.2B | 89 |
| RBA RB Global, Inc. | $109.16 | -1.22% | $20.3B | 65 |
| ULS UL Solutions Inc. | $86.60 | +0.60% | $17.4B | 80 |
| WOLTF Wolters Kluwer N.V. | $67.00 | -2.98% | $15.1B | 50 |
| ARMK Aramark | $57.00 | +0.66% | $15.0B | 55 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PAE's Key Strengths?
- Strong relationships with government clients.
- Diverse service offerings across multiple segments.
- Expertise in operational solutions and outsourced services.
- Established presence in key markets.
What Are PAE's Weaknesses?
- Low profit margin of 0.6%.
- High beta of 2.41 indicating higher volatility.
- Reliance on government contracts, subject to political and budgetary changes.
- Potential integration challenges following acquisition by Amentum.
What Could Drive PAE Stock Higher?
- Continued demand for outsourced government services.
- Synergies from Amentum acquisition driving efficiency.
- Potential new contract awards in national security sector.
- Expansion into new geographic markets.
What Are the Key Risks for PAE?
- Changes in government spending priorities.
- Intense competition in the government services sector.
- Geopolitical instability affecting operational environments.
- Integration challenges following acquisition by Amentum.
What Are the Growth Opportunities for PAE?
- Expansion of National Security Solutions: The increasing demand for counter-threat and intelligence solutions presents a significant growth opportunity for PAE. As global security threats evolve, governments require advanced services in areas such as intelligence analysis, cybersecurity, and training. PAE can leverage its expertise to secure additional contracts in this high-growth market, potentially expanding its revenue base by 10-15% over the next three years. The market for national security solutions is projected to reach $400 billion by 2028.
- Leveraging Amentum Synergies: As a subsidiary of Amentum Government Services Holdings LLC, PAE can capitalize on synergies in technology, resources, and market access. Amentum's broader portfolio and larger scale can provide PAE with a competitive advantage in bidding for large-scale government contracts. By integrating its operations with Amentum, PAE can streamline processes, reduce costs, and enhance its service offerings, potentially increasing its profitability by 5-7% within the next two years.
- Geographic Expansion: PAE can pursue growth by expanding its operations into new geographic regions. Emerging markets and developing countries often require operational support and infrastructure management services, presenting opportunities for PAE to leverage its expertise. By establishing a presence in these regions, PAE can diversify its revenue streams and reduce its reliance on the U.S. government market. This expansion could contribute to a 8-12% increase in revenue over the next five years.
- Technological Advancement: Investing in advanced technologies such as artificial intelligence, machine learning, and data analytics can enhance PAE's service offerings and improve its operational efficiency. By integrating these technologies into its solutions, PAE can provide more effective and innovative services to its clients, gaining a competitive edge in the market. This technological advancement could lead to a 6-9% improvement in operational efficiency within the next three years.
- Focus on Lifecycle Logistics: PAE's expertise in lifecycle logistics operations, including maintenance and repair of vehicle fleets and aircraft, presents a stable and recurring revenue stream. As governments and organizations seek to optimize their asset management and reduce costs, the demand for lifecycle logistics services is expected to grow. PAE can capitalize on this trend by expanding its service offerings and securing long-term contracts, potentially increasing its revenue from lifecycle logistics by 7-10% over the next four years.
What Opportunities Does PAE Have?
- Expansion into new geographic regions.
- Increased demand for national security solutions.
- Leveraging synergies with Amentum Government Services Holdings LLC.
- Technological advancements to enhance service offerings.
What Threats Does PAE Face?
- Intense competition in the government services sector.
- Changes in government spending and priorities.
- Economic downturns impacting government budgets.
- Geopolitical instability affecting operational environments.
What Are PAE's Competitive Advantages?
- Established relationships with government agencies.
- Expertise in specialized operational solutions.
- Long-term contracts providing revenue stability.
- Acquisition by Amentum Government Services Holdings LLC
What Does PAE Do?
Founded in 1955 and headquartered in Falls Church, Virginia, PAE Incorporated has evolved into a key provider of operational solutions and outsourced services for the United States government, allied governments, international organizations, and commercial entities. The company operates through two primary segments: Global Mission Services and National Security Solutions. The Global Mission Services segment focuses on logistics and stability operations, including lifecycle logistics, humanitarian aid, infrastructure management, and force readiness through vehicle and aircraft maintenance. The National Security Solutions segment delivers counter-threat solutions, information optimization services, and intelligence solutions, encompassing intelligence analysis, mission support, and program management. PAE's services support critical missions worldwide, providing essential support in challenging environments. As of February 15, 2022, PAE operates as a subsidiary of Amentum Government Services Holdings LLC, further solidifying its position in the government services sector.
What Products and Services Does PAE Offer?
- Provides operational solutions to the U.S. government.
- Offers outsourced services to allied governments.
- Supports international organizations with logistics and stability operations.
- Engages in infrastructure management for mission operations.
- Offers force readiness services, including vehicle and aircraft maintenance.
- Provides counter-threat solutions and training support.
- Delivers information optimization services, including business process outsourcing.
- Offers intelligence solutions, including analysis and program management.
How Does PAE Make Money?
- PAE generates revenue through contracts with the U.S. government and other entities.
- The company provides a range of services, including logistics, infrastructure management, and security solutions.
- PAE's business model focuses on long-term contracts and recurring revenue streams.
What Industry Does PAE Operate In?
PAE Incorporated operates within the specialty business services industry, which is characterized by providing outsourced services to government and commercial clients. The industry is influenced by factors such as government spending, geopolitical events, and technological advancements. Competition is intense, with companies vying for contracts based on price, expertise, and past performance. PAE's focus on government services positions it to benefit from continued outsourcing trends, but it must navigate competitive pressures and evolving security requirements.
Who Are PAE's Key Customers?
- United States government agencies
- Allied governments
- International organizations
- Commercial companies
PAE Incorporated (PAE) Valuation Context
Relative to its peer group, PAE's quantitative score of 48/100 is below the peer average of 70/100.
PAE Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Strong relationships with government clients.
- Diverse service offerings across multiple segments.
- Expertise in operational solutions and outsourced services.
- Established presence in key markets.
Bear Case
- Low profit margin of 0.6%.
- High beta of 2.41 indicating higher volatility.
- Reliance on government contracts, subject to political and budgetary changes.
- Potential integration challenges following acquisition by Amentum.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
PAE Latest News
No recent news available for PAE.
PAE Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PAE.
Price Targets
Wall Street price target analysis for PAE.
PAE MoonshotScore
What does this score mean?
The MoonshotScore rates PAE 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Classification
Industry Specialty Business ServicesLeadership: John E. Heller
CEO
John E. Heller has served as CEO of PAE, managing a workforce of approximately 20,000 employees. His career spans leadership roles in the government services and technology sectors. He brings experience in strategic planning, operational execution, and business development. His background includes a blend of technical expertise and management acumen, positioning him to lead PAE in a competitive market.
Track Record: Under John E. Heller's leadership, PAE has focused on delivering operational solutions and outsourced services to government clients. Key milestones include navigating the company through its acquisition by Amentum Government Services Holdings LLC and maintaining its position as a provider of essential services. His tenure has emphasized operational efficiency and strategic alignment with government priorities.
PAE Industrials Stock FAQ
What does the AI Score mean for PAE?
PAE holds an AI Score of 48/100 (Grade: C). This is an educational research signal, not a buy or sell recommendation. PAE Incorporated provides operational solutions and outsourced services to the U.S. government, allied governments, international organizations, and companies. The company operates through its …
What does PAE Incorporated do?
PAE Incorporated specializes in providing operational solutions and outsourced services primarily to the U.S. government, allied governments, and international organizations. The company operates through two segments: Global Mission Services, which focuses on logistics, infrastructure management, and force readiness, and National Security Solutions, which delivers counter-threat, information optimization, and intelligence services.
What do analysts say about PAE stock?
As of February 15, 2022, PAE Incorporated operates as a subsidiary of Amentum Government Services Holdings LLC and is no longer a publicly traded company. Therefore, there are no current analyst ratings or price targets for PAE stock.
What are the main risks for PAE?
PAE faces several risks inherent in the government services sector. These include reliance on government contracts, which are subject to political and budgetary changes. Intense competition from other contractors can put pressure on pricing and margins. Geopolitical instability and security threats can impact operational environments and project execution.
What are the key factors to evaluate for PAE?
PAE Incorporated (PAE) holds an AI score of 48/100 (low). Not financial advice.
How frequently does PAE data refresh on this page?
PAE's price was last updated on Jul 23, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven PAE's recent stock price performance?
PAE Incorporated (PAE) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong relationships with government clients. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider PAE overvalued or undervalued right now?
PAE Incorporated (PAE) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research PAE before investing?
Before investing in PAE Incorporated (PAE), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial data is based on historical information and may not be indicative of future performance.