Codan Limited (CDA) AI Stock Analysis

• Market Cap: $5.47B
• Dividend Yield: 0.95%
• Average Volume (3M): 468.15K
• Price to Earnings (P/E): 52.5
• Beta (1Y): 1.06
• Revenue Growth: 22.48%
• EPS Growth: 27.07%
• Country: AU
• Employees: 450
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.32
• Shares Outstanding: 181,864,260
• 10 Day Avg. Volume: 357,257
• 30 Day Avg. Volume: 468,151
• PEG Ratio: 1.33
• Price to Book (P/B): 6.99
• Price to Sales (P/S): 5.43
• P/FCF Ratio: 26.55
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 5.62
• Enterprise Value/Gross Profit: 10.01
• Enterprise Value/Ebitda: 24.35
• 1Y Price Target: $27.81
• Price Target Upside: -7.48% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: AU$33.00 ▲(9.78% Upside)

Codan Limited's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. Technical analysis indicates positive momentum, although the stock is nearing overbought levels. The high P/E ratio suggests potential overvaluation, which is a concern for investors.

Positive Factors

Negative Factors

Codan Limited Business Overview & Revenue Model

Company Description

Codan Limited (CDA) is an Australian company that specializes in the design, manufacture, and marketing of electronic solutions for various sectors. The company's core products include metal detection technologies, communications solutions, and mining technology. Codan operates through three main segments: Communications, Metal Detection, and Tracking Solutions, delivering innovative products that are used in a wide range of industries such as security, defense, humanitarian, and resource exploration.

How the Company Makes Money

Codan Limited generates revenue primarily through the sale of its diverse range of electronic products and services. The company's key revenue streams are derived from its three main segments. In the Communications segment, Codan provides radio communication systems for critical communications, which are used by government, military, and commercial entities worldwide. The Metal Detection segment is a significant contributor to revenue, offering products for recreational, security, and humanitarian demining applications. The Tracking Solutions segment offers technology for mining productivity and safety, leveraging partnerships with mining companies to enhance operational efficiency. Codan's ability to innovate and adapt its technologies to meet the needs of various industries is a substantial factor in its earnings, alongside strategic acquisitions and partnerships that expand its market reach and product offerings.

Codan Limited Financial Statement Overview

Summary

Codan Limited exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is solid with manageable leverage, and cash flow generation is robust, supporting future growth and stability. Minor concerns include cost pressures and increasing debt.

Income Statement

Codan Limited has demonstrated strong revenue growth with a 14.25% increase in the latest year, indicating robust demand for its products. The company maintains healthy profitability with a gross profit margin of 56.18% and a net profit margin of 15.35%. EBIT and EBITDA margins are also solid at 21.74% and 23.08%, respectively, reflecting efficient operations. However, the slight decline in EBITDA margin compared to the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet of Codan Limited is stable, with a manageable debt-to-equity ratio of 0.31, indicating prudent leverage. The return on equity stands at 19.76%, showcasing effective utilization of shareholder funds. The equity ratio is healthy, suggesting a strong capital structure. However, the increase in total debt over the years requires monitoring to ensure it remains sustainable.

Cash Flow

Codan Limited's cash flow is robust, with a significant 45.34% growth in free cash flow, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.76 and free cash flow to net income ratio of 0.94 indicate efficient conversion of earnings into cash. The company has improved its free cash flow position significantly, which is a positive sign for future investments and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	674.23M	674.23M	550.46M	456.47M	506.14M	437.05M
Gross Profit	378.75M	378.75M	305.23M	218.59M	253.06M	216.90M
EBITDA	155.64M	155.64M	147.10M	120.64M	162.65M	159.32M
Net Income	103.49M	103.49M	81.39M	67.77M	100.74M	90.35M
Balance Sheet
Total Assets	904.80M	904.80M	768.71M	693.30M	590.93M	502.85M
Cash, Cash Equivalents and Short-Term Investments	39.73M	39.73M	19.70M	23.66M	22.61M	22.36M
Total Debt	160.74M	160.74M	141.05M	125.39M	82.24M	56.12M
Total Liabilities	380.98M	380.98M	321.78M	286.97M	222.98M	199.24M
Stockholders Equity	523.83M	523.83M	447.39M	406.70M	368.28M	303.72M
Cash Flow
Free Cash Flow	36.43M	138.02M	55.67M	30.51M	17.56M	108.35M
Operating Cash Flow	40.24M	146.64M	106.45M	79.88M	51.72M	131.30M
Investing Cash Flow	-64.27M	-98.06M	-87.96M	-53.93M	-19.75M	-182.72M
Financing Cash Flow	31.50M	-28.66M	-22.43M	-25.45M	-32.68M	-19.00M

Codan Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 30.06 is below the 20-day moving average (MA) of 30.34, above the 50-day MA of 25.80, and above the 200-day MA of 18.82, indicating a neutral trend. The MACD of 1.18 indicates Positive momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 3.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CDA.

Codan Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XRF	77 Outperform	307.43M	29.01	0.00%	2.08%	-1.09%	14.88%
OCL	74 Outperform	1.97B	56.20	0.00%	1.07%	5.11%	12.91%
CDA	73 Outperform	$5.47B	52.51	20.83%	0.95%	22.48%	27.07%
DDR	72 Outperform	1.77B	21.59	31.51%	4.50%	8.70%	3.11%
DRO	62 Neutral	2.90B	408.64	-0.42%	―	61.31%	-34.15%
ZMM	39 Underperform	6.62M	-0.76	0.00%	―	-74.76%	42.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Codan Limited Corporate Events

Codan Limited Issues New Performance Rights to Employees

Codan Limited has announced the issuance of 208,717 performance rights under its employee incentive scheme, which are not quoted on the ASX due to transfer restrictions. This move is likely aimed at motivating and retaining talent within the company, potentially enhancing its operational efficiency and market competitiveness.

The most recent analyst rating on (AU:CDA) stock is a Buy with a A$18.43 price target. To see the full list of analyst forecasts on Codan Limited stock, see the AU:CDA Stock Forecast page.

Codan Limited Issues Performance Rights to Employees

Codan Limited announced the issuance of 204,706 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s strategy to incentivize and retain talent, potentially impacting its operational efficiency and market competitiveness.

The most recent analyst rating on (AU:CDA) stock is a Buy with a A$15.34 price target. To see the full list of analyst forecasts on Codan Limited stock, see the AU:CDA Stock Forecast page.