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Coda Octopus Group
(NASDAQ:CODA)
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Rating:72Outperform
Price Target:
$10.00
▼(-2.06% Downside)
Action:Reiterated
Date:09/15/26
CODA scores well primarily on financial performance (strong margins, debt-free/low leverage, and generally solid cash conversion) and a constructive earnings update highlighting defense-driven growth and program milestones. The overall score is held back by only moderate technical strength (still below the 200-day trend) and a neutral-to-slightly expensive valuation (P/E ~24.2, no dividend yield provided), along with acknowledged lumpiness/geopolitical-driven deferrals and planned higher spending.
Positive Factors
Strong profitability and growth
High gross, operating, and net margins indicate that Coda’s specialized technology can generate meaningful profitability. The sharp TTM revenue acceleration provides additional operating scale, although sustaining that growth will depend on continued program execution and customer adoption.
Negative Factors
Lumpy defense procurement
Long procurement timelines, annual allocations, warehouse replenishment, testing, and customer acceptance can make revenue timing difficult to predict. This lumpy conversion pattern may create uneven quarterly results and complicate resource planning even when underlying defense demand remains attractive.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and growth
High gross, operating, and net margins indicate that Coda’s specialized technology can generate meaningful profitability. The sharp TTM revenue acceleration provides additional operating scale, although sustaining that growth will depend on continued program execution and customer adoption.
Read all positive factors
Coda Octopus Group Key Performance Indicators (KPIs)
Any
Revenue By Segment
Shows how much revenue each business segment generates, indicating which areas are most successful and how the company diversifies its income streams.
Shows how much revenue each business segment generates, indicating which areas are most successful and how the company diversifies its income streams.
Data provided by:
The Fly
The FlyCoda Octopus Group (CODA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$106.74M
Dividend YieldN/A
Average Volume (3M)109.83K
Price to Earnings (P/E)21.8
Beta (1Y)0.80
Revenue Growth17.48%
EPS Growth46.39%
CountryUS
Employees100
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.44
Shares Outstanding11,283,101
10 Day Avg. Volume80,635
30 Day Avg. Volume109,828
Financial Highlights & Ratios
PEG Ratio2.29
Price to Book (P/B)1.98
Price to Sales (P/S)4.33
P/FCF Ratio19.06
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue2.91
Enterprise Value/Gross Profit4.40
Enterprise Value/Ebitda10.24
Forecast
1Y Price Target
$14.00Price Target Upside37.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.48
Revenue Forecast (FY)$28.72M
Coda Octopus Group Business Overview & Revenue Model
Company Description
Coda Octopus Group, Inc., alongside its subsidiary entities, specializes in the design and distribution of advanced underwater technologies and specialized equipment. These innovations serve critical applications such as 3D imaging, detailed mappi...
How the Company Makes Money
Coda Octopus makes money primarily by selling marine technology products and solutions, with revenue generally coming from (1) hardware systems and sensors, (2) associated software/processing and visualization platforms, and (3) services and suppo...
Coda Octopus Group Earnings Call Summary
Earnings Call Date:Sep 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 01, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Revenue and pretax income grew despite geopolitical disruption, defense engineering services delivered strong growth, acoustic sensors and materials also increased revenue, and the company maintained a debt-free balance sheet with $31.7 million of cash. Technology milestones across DAVID, Nano, Echoscope, and VoiceHub 4 supported management's long-term growth strategy. The principal negatives were the 15.2% decline in marine technology revenue, deferred opportunities caused by regional instability, lower consolidated and selected segment gross margins, and the lumpy, longer-term nature of defense procurement.Positive Updates
Consolidated Revenue and Pretax Income Growth
Third-quarter fiscal 2026 consolidated revenue increased 9.2% to $7.7 million from $7.1 million, while pretax income increased 16% to $1.8 million from $1.5 million. Management attributed the growth to strong defense engineering services and acoustic sensors and materials performance, which more than offset lower marine technology revenue.
Negative Updates
Lumpy and Long-Term Defense Procurement Cycles
Management stated that defense engineering revenue will remain lumpy. Sustainment spending is based on annual program allocations, and the timing of replenishing spare-part warehouses can affect demand. Management also emphasized that DAVID, Nano, and other defense opportunities are longer-term programs and that broader procurement depends on deployment, user acceptance testing, and customer procurement processes.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue and Pretax Income Growth
Third-quarter fiscal 2026 consolidated revenue increased 9.2% to $7.7 million from $7.1 million, while pretax income increased 16% to $1.8 million from $1.5 million. Management attributed the growth to strong defense engineering services and acoustic sensors and materials performance, which more than offset lower marine technology revenue.
Read all positive updates
Company Guidance
Management said marine technology activity in Asia and The Middle East is facing “deferral of opportunities” from ongoing uncertainty rather than structural changes, while sustainment revenue “will be lumpy” and the company “cannot project the scale of the opportunity.” SAT trials for an underwater ROV program “will be imminent,” with hopes to conclude it and report it “in the fourth quarter”; the initial opportunity involved 3 systems on the vehicle. The company expects greater visibility into a European Navy customer’s procurement roadmap “later this year” and “closer to the end of the fiscal year,” while spares orders were “exceeding $2.4 million year to date.” Management also said it expects increased R&D efforts and increased SG&A spend, and noted that defense programs are “naturally longer term programs.”Coda Octopus Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.60M | 26.56M | 20.32M | 19.35M | 22.23M | 21.33M |
| Gross Profit | 18.91M | 17.66M | 14.17M | 13.03M | 15.19M | 14.77M |
| EBITDA | 8.13M | 6.90M | 4.44M | 4.09M | 5.88M | 6.20M |
| Net Income | 5.04M | 4.13M | 3.65M | 3.12M | 4.30M | 4.95M |
Balance Sheet | ||||||
| Total Assets | 68.85M | 64.49M | 57.54M | 51.84M | 46.93M | 45.47M |
| Cash, Cash Equivalents and Short-Term Investments | 3.43M | 28.68M | 22.48M | 24.45M | 22.93M | 17.75M |
| Total Debt | 385.38K | 394.93K | 413.17K | 0.00 | 0.00 | 63.56K |
| Total Liabilities | 6.12M | 6.38M | 4.42M | 3.41M | 3.54M | 4.42M |
| Stockholders Equity | 62.73M | 58.12M | 53.13M | 48.43M | 43.38M | 41.05M |
Cash Flow | ||||||
| Free Cash Flow | 5.96M | 6.04M | 1.86M | 259.54K | 6.17M | 2.31M |
| Operating Cash Flow | 7.15M | 7.21M | 2.45M | 2.39M | 6.73M | 3.27M |
| Investing Cash Flow | -1.08M | -1.20M | -4.42M | -1.52M | -556.56K | -964.20K |
| Financing Cash Flow | -13.67K | 0.00 | -15.63K | -17.96K | -91.90K | 139.32K |
Coda Octopus Group Technical Analysis
Negative
10.21
Price Trends
10.33
Negative
10.29
Negative
11.26
Negative
Market Momentum
-0.28
Positive
27.58
Positive
12.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CODA, the sentiment is Negative. The current price of 10.21 is below the 20-day moving average (MA) of 10.30, below the 50-day MA of 10.33, and below the 200-day MA of 11.26, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 27.58 is Positive, neither overbought nor oversold. The STOCH value of 12.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CODA.
Coda Octopus Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $106.74M | 21.82 | 8.32% | ― | 17.48% | 46.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $68.55M | 17.47 | 0.06% | 4.00% | 0.81% | -24.92% | |
48 Neutral | $30.11M | -10.88 | -6.13% | ― | -33.51% | -788.76% | |
46 Neutral | $90.28M | -3.21 | -52.73% | ― | ― | -407.10% | |
39 Underperform | $67.60M | -4.26 | -107.61% | ― | 92.59% | 0.97% |
* Industrials Sector Average
CODA
Coda Octopus Group
9.12
-0.54
-5.59%
OPXS
Optex Systems Holdings
9.56
-7.56
-44.16%
VTSI
VirTra
2.70
-3.23
-54.47%
VWAV
VisionWave Holdings
3.42
-265.18
-98.73%
HOVR
New Horizon Aircraft
1.31
-1.28
-49.42%
SPAI
Safe Pro Group, Inc.
3.18
-3.78
-54.31%
Coda Octopus Group Corporate Events
Executive/Board ChangesShareholder Meetings
Coda Octopus Shareholders Back Board, Auditor, Compensation
Positive
Sep 10, 2026
On September 8, 2026, Coda Octopus Group held its annual meeting of stockholders, where shareholders voted on the election of directors, ratification of the company’s independent auditor, and approval of executive compensation on an advisory...
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.