Coda Octopus Group (CODA) AI Stock Analysis

• Market Cap: $93.25M
• Dividend Yield: N/A
• Average Volume (3M): 66.58K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.47
• Revenue Growth: 29.34%
• EPS Growth: 13.81%
• Country: US
• Employees: 103
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.11
• Shares Outstanding: 11,248,867
• 10 Day Avg. Volume: 112,190
• 30 Day Avg. Volume: 66,580
• PEG Ratio: 1.46
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 4.69
• P/FCF Ratio: 51.21
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 3.64
• Enterprise Value/Ebitda: 13.42
• 1Y Price Target: $10.00
• Price Target Upside: 20.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ―

Coda Octopus Group's overall stock score reflects its strong financial performance, particularly in cash flow and profitability, despite challenges in revenue consistency and balance sheet stability. The technical analysis suggests potential short-term stability, while the earnings call reveals promising strategic initiatives. Valuation remains moderate, offering a reasonable entry point for investors considering the company's growth prospects.

Coda Octopus Group Business Overview & Revenue Model

Company Description

Coda Octopus Group, Inc., together with its subsidiaries, develops and sells underwater technologies and equipment for 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. It sells technology solutions to the subsea and underwater markets. The company's solutions include geophysical systems, a geophysical data acquisition systems, processing, and analysis software that are used primarily by survey companies, offshore renewable companies, research institutions, and salvage companies; GNSS-aided navigation systems; Echoscope and Echoscope PIPE used for real time monitoring of cable installations for offshore wind projects; and diver augmented vision display system. It offers CodaOctopus GeoSurvey products, such as hardware and software solutions for field acquisition of sidescan sonar and sub-bottom profiler; and CodaOctopus DA4G productivity suite of software that automates the tasks of analyzing, annotating, and mosaicing complex data sets. It markets its products under the CodaOctopus brand name. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.

How the Company Makes Money

Coda Octopus Group makes money through the sale of its proprietary 3D sonar technology and underwater solutions primarily to the marine, oil and gas, and defense industries. The company's key revenue streams include product sales, engineering services, and software licenses. Additionally, CODA benefits from strategic partnerships with defense contractors and maritime companies, which help expand its market reach and drive sales. The company also engages in research and development to continually innovate and expand its product offerings, ensuring a steady demand for its cutting-edge technology solutions.

Coda Octopus Group Financial Statement Overview

Summary

Coda Octopus Group demonstrates strong profitability and cash flow management, with efficient cost controls and a healthy conversion of profits into cash. However, recent revenue fluctuations and erratic balance sheet data suggest potential challenges in maintaining asset stability and growth momentum. The zero debt position strengthens financial stability but requires careful monitoring of asset and equity trends.

Income Statement

Coda Octopus Group shows a strong gross profit margin of 67.98% and a healthy net profit margin of 18.65% in TTM, indicating efficient cost management and profitability. Revenue growth is modest at 3.68% compared to the prior period, but the company maintains a robust EBIT margin of 17.52% and an EBITDA margin of 20.49%, reflecting operational efficiency. However, the revenue decline from 2022 to 2023 poses a concern for consistent growth.

Balance Sheet

The balance sheet demonstrates zero debt, leading to a favorable debt-to-equity ratio of 0, which reduces financial risk. However, the TTM data indicates some instability with total assets and stockholders' equity reduced to minimal values, possibly due to incomplete or inaccurately reported data. The previous year's equity ratio of 92.34% highlights strong equity capitalization, yet the current asset base reduction raises concerns about asset management.

Cash Flow

Coda Octopus Group exhibits solid cash flow management with a free cash flow growth of 670.42% in the TTM period. The operating cash flow to net income ratio of 0.86 and a free cash flow to net income ratio of 0.72 indicate efficient conversion of income into cash, enhancing liquidity. Stability in cash generation supports the company's operational and investment activities, although caution is needed in maintaining such high growth levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.35M	20.32M	19.35M	22.23M	21.33M	20.04M
Gross Profit	16.05M	14.17M	13.03M	15.19M	14.77M	12.73M
EBITDA	4.35M	4.44M	4.09M	5.74M	6.23M	4.27M
Net Income	3.43M	3.65M	3.12M	4.30M	4.95M	3.34M
Balance Sheet
Total Assets	179.52K	57.54M	51.84M	46.93M	45.47M	38.04M
Cash, Cash Equivalents and Short-Term Investments	0.00	22.48M	24.45M	22.93M	17.75M	15.13M
Total Debt	0.00	413.17K	0.00	0.00	63.56K	573.11K
Total Liabilities	0.00	4.42M	3.41M	3.54M	4.42M	3.64M
Stockholders Equity	0.00	53.13M	48.43M	43.38M	41.05M	34.40M
Cash Flow
Free Cash Flow	5.44M	1.86M	259.54K	6.17M	2.31M	3.44M
Operating Cash Flow	6.30M	2.45M	2.39M	6.73M	3.27M	4.43M
Investing Cash Flow	-5.48M	-4.42M	-1.52M	-556.56K	-964.20K	-998.34K
Financing Cash Flow	-2.33K	-15.63K	-17.96K	-91.90K	139.32K	162.41K

Coda Octopus Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CODA, the sentiment is Positive. The current price of 8.29 is above the 20-day moving average (MA) of 8.03, above the 50-day MA of 7.82, and above the 200-day MA of 7.53, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 56.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CODA.

Coda Octopus Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISSC	75 Outperform	200.96M	17.19	20.60%	―	72.82%	80.22%
OPXS	73 Outperform	87.32M	16.98	0.10%	―	21.00%	20.18%
CODA	72 Outperform	$93.25M	27.30	6.23%	―	29.34%	13.81%
VTSI	59 Neutral	60.51M	150.84	0.82%	―	-17.36%	-94.28%
CVU	49 Neutral	33.23M	-34.37	-3.90%	―	-14.35%	-105.66%
SPCE	44 Neutral	189.47M	-0.36	-114.94%	―	-84.19%	55.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Coda Octopus Group Corporate Events

Coda Octopus Updates Corporate Strategy Presentation

Coda Octopus Group, Inc. has updated its corporate presentation, sharing key insights that could impact investor decisions. The revised presentation, available on their website, is part of a broader effort to inform stakeholders about the company’s strategic direction and operational highlights. This update is crucial for those tracking the company’s performance and future prospects in the financial markets.