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Codan Limited (AU:CDA)
ASX:CDA
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Codan Limited (CDA) AI Stock Analysis

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AU:CDA

Codan Limited

(Sydney:CDA)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
AU$45.00
▲(13.49% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial performance and a constructive earnings outlook with firm guidance and order-book support. Offsetting these positives are weak-to-neutral near-term technical momentum and a stretched valuation (high P/E and low yield), which meaningfully temper the overall rating.
Positive Factors
Strong revenue and profit expansion
Material top-line and profitability expansion in H1 reflects durable product-led demand across Minelab and Communications. Strong organic growth and favourable mix produced operating leverage, indicating sustainable earnings power and structural demand visibility into the next reporting periods.
Negative Factors
Rising operating expenses
Elevated opex linked to shared-service buildouts, incentive pay and product launches can persist as the company scales, compressing operating leverage. If revenue momentum slows, sustained higher operating cost levels pose a multi-quarter risk to margin sustainability and free cash flow conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and profit expansion
Material top-line and profitability expansion in H1 reflects durable product-led demand across Minelab and Communications. Strong organic growth and favourable mix produced operating leverage, indicating sustainable earnings power and structural demand visibility into the next reporting periods.
Read all positive factors

Codan Limited (CDA) vs. iShares MSCI Australia ETF (EWA)

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
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
Strong overall fundamentals supported by solid income statement performance (revenue growth and healthy margins), a stable balance sheet with manageable leverage, and robust cash generation (notably strong free cash flow growth). Key watch-outs are mild margin pressure and rising debt levels that warrant monitoring.
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue762.12M674.23M550.46M456.47M506.14M437.05M
Gross Profit412.57M378.75M305.23M218.59M253.06M216.90M
EBITDA189.73M155.64M147.10M120.64M162.65M159.32M
Net Income128.62M103.49M81.39M67.77M100.74M90.35M
Balance Sheet
Total Assets912.27M904.80M768.71M693.30M590.93M502.85M
Cash, Cash Equivalents and Short-Term Investments21.78M39.73M19.70M23.66M22.61M22.36M
Total Debt184.06M160.74M141.05M125.39M82.24M56.12M
Total Liabilities354.38M380.98M321.78M286.97M222.98M199.24M
Stockholders Equity557.89M523.83M447.39M406.70M368.28M303.72M
Cash Flow
Free Cash Flow150.79M138.02M55.67M30.51M17.56M108.35M
Operating Cash Flow160.37M146.64M106.45M79.88M51.72M131.30M
Investing Cash Flow-64.45M-98.06M-87.96M-53.93M-19.75M-182.72M
Financing Cash Flow-100.93M-28.66M-22.43M-25.45M-32.68M-19.00M

Codan Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price39.65
Price Trends
50DMA
42.43
Positive
100DMA
40.45
Positive
200DMA
36.96
Positive
Market Momentum
MACD
0.58
Negative
RSI
55.65
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
AU$268.92M25.4417.50%2.63%8.35%-0.81%
73
Outperform
AU$7.90B67.2823.78%0.89%29.14%43.52%
65
Neutral
AU$1.43B119.5728.89%1038.95%
62
Neutral
AU$1.61B63.345.01%3.78%-9.98%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
55
Neutral
AU$50.23M-1.81-64.64%4.99%-63.89%-609.31%
50
Neutral
AU$3.54M3.1526.81%285.71%-17.34%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CDA
Codan Limited
48.88
22.97
88.64%
AU:SEN
Senetas Corporation Limited
3.00
1.39
85.87%
AU:ELS
Elsight Ltd.
6.31
4.59
266.86%
AU:MAQ
Macquarie Telecom Group Limited
61.64
-6.35
-9.34%
AU:XRF
XRF Scientific Limited
1.87
-0.34
-15.38%
AU:BCC
Beam Communications Holdings Limited
0.04
<0.01
2.56%

Codan Limited Corporate Events

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.Date of analysis: Aug 04, 2026