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Codan Limited
(Sydney:CDA)
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Rating:83Outperform
Price Target:
AU$75.00
▲(50.24% Upside)
Action:Reiterated
Date:09/30/26
The score is driven primarily by strong financial performance (high margins, improved cash generation, and very low leverage) and a highly constructive earnings outlook (guidance for ~20% growth supported by a much larger order book). Technicals also support the case with strong trend/momentum, though near-overbought signals add some short-term risk. The main constraint on the score is valuation: the P/E is very high, increasing sensitivity to any slowdown or execution/supply-chain issues.
Positive Factors
Sustained growth and order visibility
Strong revenue growth across Communications and Minelab, combined with a substantially larger order book, supports continued demand over the next several quarters. This provides a durable base for FY-27 expansion and reduces reliance on isolated product or contract wins.
Negative Factors
Electronic supply-chain constraints
Supply constraints could limit Codan’s ability to convert demand and its large order book into reported revenue on schedule. Delayed fulfilment may also create uneven results, increase execution complexity, and pressure margins if component availability or costs remain difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained growth and order visibility
Strong revenue growth across Communications and Minelab, combined with a substantially larger order book, supports continued demand over the next several quarters. This provides a durable base for FY-27 expansion and reduces reliance on isolated product or contract wins.
Read all positive factors
Codan Limited (CDA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$12.28B
Dividend Yield0.72%
Average Volume (3M)919.19K
Price to Earnings (P/E)69.1
Beta (1Y)1.16
Revenue Growth29.77%
EPS Growth68.86%
CountryAU
Employees1,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.96
Shares Outstanding182,321,990
10 Day Avg. Volume913,450
30 Day Avg. Volume919,191
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$66.52Price Target Upside33.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.48
Revenue Forecast (FY)AU$1.11B
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 | 184.30M | 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
49.92
Price Trends
50.42
Positive
46.30
Positive
40.97
Positive
Market Momentum
5.32
Negative
75.58
Negative
65.05
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 49.92 is below the 20-day moving average (MA) of 58.38, below the 50-day MA of 50.42, and above the 200-day MA of 40.97, indicating a bullish trend. The MACD of 5.32 indicates Negative momentum. The RSI at 75.58 is Negative, neither overbought nor oversold. The STOCH value of 65.05 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | AU$12.28B | 69.10 | 30.04% | 0.72% | 29.77% | 68.86% | |
79 Outperform | AU$239.37M | 25.92 | 16.42% | 2.72% | 8.35% | -0.81% | |
67 Neutral | AU$3.37M | 0.25 | 269.93% | 394.87% | -29.24% | ― | |
65 Neutral | AU$885.95M | 54.34 | 16.66% | ― | 570.70% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | AU$1.31B | 39.39 | 5.72% | 3.36% | 5.50% | -7.85% | |
57 Neutral | AU$40.95M | 94.59 | 1.06% | 13.44% | 4.73% | ― |
* Technology Sector Average
AU:CDA
Codan Limited
67.35
34.20
103.20%
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Codan Limited Corporate Events
Codan flags profit surge on conflict-driven radio demand and strong Minelab sales
Sep 28, 2026
Codan Limited has reported a surge in demand for its Communications segment in the first half of FY27, driven by unprecedented orders for unmanned systems and exceptionally strong demand from conflict regions. The company expects Communications re...
Codan releases FY26 annual report to market
Sep 17, 2026
Codan Limited has released its FY26 annual report to the Australian Securities Exchange, providing the market with its latest full‑year financial and operational disclosure. The publication marks a key regulatory and transparency milestone f...
Codan Ramps Up Digital Engagement Ahead of October AGM
Sep 17, 2026
Codan Limited has urged shareholders to register for investor alerts via its website and to use the Computershare Investor Centre platform to manage their holdings and receive key documents electronically. The company is reinforcing a shift toward...
Codan Files 2026 Corporate Governance Statement with ASX
Sep 17, 2026
Codan Limited has lodged its corporate governance statement for the year ended 30 June 2026, making it available on its website in accordance with ASX Listing Rules. The document details Codan’s compliance with the ASX Corporate Governance C...
Codan sets hybrid AGM and expands options for shareholder participation
Sep 17, 2026
Codan Limited has scheduled its 2026 annual general meeting for 11.00am Adelaide time on Tuesday, 20 October, to be conducted as a hybrid event at The Courtside Room in North Adelaide and via a dedicated virtual meeting platform. Shareholders are ...
Codan Added to S&P/ASX 100 in September Index Rebalance
Sep 4, 2026
Codan Limited, a diversified Australian technology and manufacturing group, produces communications equipment, metal detectors, and electronic solutions for mining, security, defense, and infrastructure markets. Its products serve both domestic an...
Codan Issues New NED Rights as Part of Board Remuneration
Sep 1, 2026
Codan Limited has notified the market of the issue of 3,896 unquoted equity securities in the form of NED Rights, with an issue date of September 2, 2026. The issuance of these rights, which relate to non-executive directors, signals ongoing use o...
Codan Updates Market on Director Heith Mackay-Cruise’s New NED Rights
Sep 1, 2026
Codan Limited has disclosed a change in director Heith Mackay-Cruise’s interests, reporting the issue of 1,855 non-executive director (NED) rights under the company’s share rights plan. His existing holdings of ordinary shares remain u...
Codan Updates Market on Director Kathryn Gramp’s New Equity Rights
Sep 1, 2026
Codan Limited has disclosed a change in the interests of non-executive director Kathryn Joy Gramp, who has been issued 742 NED Rights under the company’s Share Rights Plan Rules at a deemed value of $49.3125. Following the issue, Gramp’...
Codan seeks ASX quotation for 353,489 new ordinary shares
Aug 28, 2026
Codan Limited has applied for quotation of 353,489 new ordinary fully paid shares on the Australian Securities Exchange, with an issue date of 28 August 2026. The additional securities, arising from the exercise or conversion of existing instrumen...
Codan Seeks ASX Quotation for New Employee Incentive Shares
Aug 28, 2026
Codan Limited has applied for quotation on the ASX of 93,189 new ordinary fully paid shares issued under an employee incentive scheme, with the securities dated 28 August 2026. The move modestly increases the company’s quoted share capital a...
Codan Sets October AGM and Deadline for Director Nominations
Aug 25, 2026
Codan Limited has scheduled its Annual General Meeting for 20 October 2026, in line with Australian Securities Exchange requirements and its own constitution. The meeting will include an item of business on the election of directors, highlighting ...
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...
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.