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Codan Limited
(Sydney:CDA)
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Rating:80Outperform
Price Target:
AU$56.00
▲(41.24% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by high-quality financial performance (strong margins, de-risked balance sheet, and markedly stronger cash generation) and constructive technical momentum (price above major moving averages with positive MACD). These positives are partly offset by expensive valuation (high P/E and low yield) and execution risks highlighted on the earnings call (supply-chain constraints and short order visibility), though guidance and order-book growth remain supportive.
Positive Factors
Accelerating revenue and margin expansion
FY26's broad-based growth and margin expansion indicate stronger demand, favorable mix and operating leverage. If sustained, this can fund engineering investment and strengthen competitiveness, although continued execution is needed.
Negative Factors
Supply-chain and short-cycle execution risk
Component shortages could delay fulfilment, constrain sales and raise costs during periods of strong demand. Short unmanned-program visibility also makes revenue timing lumpy and limits confidence in extending recent growth rates.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue and margin expansion
FY26's broad-based growth and margin expansion indicate stronger demand, favorable mix and operating leverage. If sustained, this can fund engineering investment and strengthen competitiveness, although continued execution is needed.
Read all positive factors
Codan Limited (CDA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$7.91B
Dividend Yield0.72%
Average Volume (3M)387.50K
Price to Earnings (P/E)52.2
Beta (1Y)1.23
Revenue Growth29.77%
EPS Growth68.86%
CountryAU
Employees1,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.96
Shares Outstanding181,875,320
10 Day Avg. Volume342,565
30 Day Avg. Volume387,502
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)13.17
Price to Sales (P/S)9.16
P/FCF Ratio33.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$48.76Price Target Upside22.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.1
Revenue Forecast (FY)AU$956.59M
Codan Limited Business Overview & Revenue Model
Company Description
Codan Limited designs and develops sophisticated technological solutions for a diverse clientele, including global organizations like the United Nations, various mining enterprises (from large-scale operations to individual prospectors), security ...
How the Company Makes Money
Codan makes money mainly by selling hardware products and related accessories across its two core divisions. (1) Minelab generates revenue from the sale of metal detectors and complementary accessories to consumer and professional users, distribut...
Codan Limited Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance: substantial revenue growth (+30%), pronounced margin expansion (EBIT/NPAT +67%/+69%, NPAT margin to 20%), robust cash generation (net cash $36m) and strategic progress across businesses (DTC unmanned momentum, ADI acquisition, Zetron contract wins, Minelab product-led growth with +42% revenue and 45% margin). Management acknowledged reinvestment-driven expense increases and flagged supply-chain and short visibility risks (4–6 months) plus localized geopolitical/regulatory headwinds (tariffs, some African regions inactive). Overall the positive results, healthy order book (+50% YoY), and strong balance sheet materially outweigh the execution and supply risks highlighted.Positive Updates
Group Revenue Growth
Group revenue grew 30% year-on-year to $875 million, driven by strong organic demand across Communications (unmanned systems) and Minelab (gold detectors) and a full year contribution from Kagwerks.
Negative Updates
Rising Operating Expenses
Expenses increased due to targeted investments in go-to-market resources, product launch costs, systems and higher performance-related remuneration, partially offset by margin expansion but representing reinvestment pressure.
Read all updates
Q4-2026 Updates
Positive
Negative
Group Revenue Growth
Group revenue grew 30% year-on-year to $875 million, driven by strong organic demand across Communications (unmanned systems) and Minelab (gold detectors) and a full year contribution from Kagwerks.
Read all positive updates
Company Guidance
Guidance from the call: Codan is targeting group FY‑27 revenue growth in the order of 20% (subject to electronic supply‑chain constraints), with Communications expecting the first half of FY‑27 to “significantly exceed” the prior‑year first half and a long‑term Communications sales growth target of 10–15% p.a.; Communications finished FY‑26 at $506.2m (up 22%), $156m segment profit (up 45%) and 31% margin (from 26%), with a $380m order book (+50% YoY, +29% vs Dec‑25); DTC unmanned revenue more than doubled to ≈$215m with ~4–6 months visibility; Group FY‑26 metrics to note underpinning the guidance: revenue $875m (+30%), EBIT and NPAT up 67% and 69%, NPAT margin 20% (+5ppt), net cash $36m (improvement of $124m vs net debt $88m at 31‑Dec‑25), $250m undrawn facility plus $150m accordion, $78m engineering spend (~9% of revenue) and a fully franked FY‑26 dividend of $0.485 per share (+70%); Minelab is tracking well into FY‑27 after FY‑26 revenue $362m (+42%), segment profit $162.4m (+65%), margin 45% (from 39%), H2 run‑rate ~$32m/month (+15% vs H1) and Africa revenue ≈$184m (+60%).Codan Limited Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 874.97M | 674.23M | 550.46M | 456.47M | 506.14M |
| Gross Profit | 466.15M | 378.75M | 305.23M | 218.59M | 253.06M |
| EBITDA | 287.22M | 155.64M | 147.10M | 120.64M | 162.65M |
| Net Income | 175.18M | 103.49M | 81.39M | 67.77M | 100.74M |
Balance Sheet | |||||
| Total Assets | 908.93M | 904.80M | 768.71M | 693.30M | 590.93M |
| Cash, Cash Equivalents and Short-Term Investments | 50.73M | 39.73M | 19.70M | 23.66M | 22.61M |
| Total Debt | 57.42M | 160.74M | 141.05M | 125.39M | 82.24M |
| Total Liabilities | 300.51M | 380.98M | 321.78M | 286.97M | 222.98M |
| Stockholders Equity | 608.42M | 523.83M | 447.39M | 406.70M | 368.28M |
Cash Flow | |||||
| Free Cash Flow | 240.53M | 138.02M | 55.67M | 30.51M | 17.56M |
| Operating Cash Flow | 249.34M | 146.64M | 106.45M | 79.88M | 51.72M |
| Investing Cash Flow | -63.30M | -98.06M | -87.96M | -53.93M | -19.75M |
| Financing Cash Flow | -174.07M | -28.66M | -22.43M | -25.45M | -32.68M |
Codan Limited Technical Analysis
Positive
39.65
Price Trends
42.43
Positive
40.45
Positive
36.96
Positive
Market Momentum
0.58
Negative
55.65
Neutral
76.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CDA, the sentiment is Positive. The current price of 39.65 is below the 20-day moving average (MA) of 41.39, below the 50-day MA of 42.43, and above the 200-day MA of 36.96, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 76.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CDA.
Codan Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$7.91B | 52.20 | 23.78% | 0.89% | 29.77% | 68.86% | |
79 Outperform | AU$266.05M | 25.51 | 17.50% | 2.63% | 8.35% | -0.81% | |
73 Outperform | AU$1.43B | 111.67 | 28.89% | ― | 1038.95% | ― | |
62 Neutral | AU$1.57B | 63.78 | 5.01% | ― | 3.78% | -9.98% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | AU$49.90M | -1.83 | -64.64% | 4.99% | -63.89% | -609.31% | |
50 Neutral | AU$3.54M | 3.08 | 26.81% | 285.71% | -17.34% | ― |
* Technology Sector Average
AU:CDA
Codan Limited
48.88
22.97
88.64%
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AU:BCC
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<0.01
2.56%
Codan Limited Corporate Events
Codan Releases FY26 Sustainability Report Under New Climate Disclosure Standards
Aug 20, 2026
Codan Limited has released its Sustainability Report for the full year ended 30 June 2026, prepared in line with Chapter 2M of the Corporations Act 2001 and the AASB S2 climate-related disclosure standards.The publication underscores Codan’s...
Codan’s FY26 Profit Surges on Strong Communications and Gold Detector Demand
Aug 20, 2026
Codan posted a robust FY26 result, with group revenue rising 30% to $875 million and net profit after tax jumping 69% to $175.2 million, lifting EBIT margin to 27.9% and supporting a 70% increase in fully franked dividends. Strong performances fro...
Codan posts 30% revenue jump and lifts dividend after strong FY26
Aug 20, 2026
Codan Limited reported a strong financial performance for the year ended 30 June 2026, with revenue from ordinary activities rising 30% to A$874.97 million. Net profit after tax attributable to members increased 69% to A$175.18 million, reflecting...
Codan Highlights Growth Strategy at Canaccord Boston Conference
Aug 11, 2026
Codan Limited has released its presentation for the Canaccord Boston Growth Conference to the Australian Securities Exchange, signalling an active engagement with investors and the broader capital market. The board-authorised disclosure underscore...
Codan Limited Announces Lapse of Performance Rights
Aug 6, 2026
Codan Limited has reported the lapse of 5,120 performance rights, which have ceased after the specified conditions were not met or became incapable of being satisfied. The cessation marginally reduces the company’s potential future issued ca...
Codan sets 20 August date for FY26 results and investor webinar
Aug 5, 2026
Codan Limited has announced it will release its full-year financial results for the period ended 30 June 2026 on 20 August 2026. The timing of the disclosure will be closely watched by investors given the company’s focus on mission-critical ...
Codan Completes Acquisition of U.S. Anti-Jamming Specialist Adaptive Dynamics
Jul 31, 2026
Codan Limited has completed the acquisition of U.S.-based Adaptive Dynamics, Inc., a specialist in anti-jamming and interference mitigation technologies for mission-critical communications and Assured Positioning Navigation and Timing applications...
Codan Reports Lapse of 2,467 Performance Rights After Unmet Conditions
Jul 3, 2026
Codan Limited has reported the lapse of 2,467 performance rights, recorded under the ASX code CDAAI, after the conditions attached to these conditional rights were not met or became incapable of being satisfied as of 12 June 2026. The cessation sl...
Codan performance rights lapse clarifies incentive capital structure
Jul 2, 2026
Codan Limited has notified the market of the lapse of 8,743 performance rights, which have ceased because the conditions attached to those rights were not met or have become incapable of being satisfied as at 30 June 2026. The cessation of these c...
Codan director Heith Mackay-Cruise increases indirect shareholding
Jun 29, 2026
Codan Limited has disclosed a change in the shareholding of director Heith Mackay-Cruise, reflecting increased indirect ownership through his superannuation fund account. The purchase was executed on-market via MC Investment Nominees Pty Ltd, whic...
Codan Director Trims Shareholding to Cover Personal Liabilities
Jun 2, 2026
Codan Limited has disclosed a change in the shareholding of director Alfonzo Ianniello, who has reduced his directly associated ordinary shareholding while maintaining his existing performance rights. The transaction was conducted through on-marke...
Codan moves to bolster defence communications with Adaptive Dynamics IP acquisition
May 22, 2026
Codan Limited has agreed, via its subsidiary DTC Communications, to acquire the intellectual property of U.S.-based Adaptive Dynamics, an engineering firm specialising in anti-jamming, interference mitigation and Assured Positioning, Navigation an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.