Codan Limited (CDA) AI Stock Analysis

• Market Cap: AU$6.71B
• Dividend Yield: 0.97%
• Average Volume (3M): 387.50K
• Price to Earnings (P/E): 64.6
• Beta (1Y): 1.45
• 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: 181,868,840
• 10 Day Avg. Volume: 342,565
• 30 Day Avg. Volume: 387,502
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$34.74
• Price Target Upside: -5.82% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: AU$41.00 ▲(11.14% Upside)

The score is driven primarily by strong financial performance (growth, profitability, and cash generation). Technicals remain supportive due to a clear uptrend, but overbought indicators raise near-term risk. Valuation is the main drag given the very high P/E and modest dividend yield.

Positive Factors

Revenue Growth

Consistent 14.25% top-line growth indicates durable demand across Communications, Tracking and Metal Detection divisions. Sustained revenue expansion supports scale advantages, continued R&D investment and stronger contract competitiveness, bolstering multi-quarter resilience.

Profitability / Margins

High gross margin (56.18%) and healthy net margin (15.35%) reflect differentiated products and pricing power in niche markets. Strong margins provide a buffer versus cost shocks, fund reinvestment and support durable return on capital if product leadership and mix persist.

Cash Generation

Robust free cash flow growth (+45.34%) and near-par conversion (FCF/net income ~0.94) show efficient conversion of earnings to cash. Strong cash generation enhances financial flexibility for capex, R&D and debt servicing, reducing reliance on external funding over the medium term.

Negative Factors

Rising Debt / Leverage

Although D/E of 0.31 is moderate, the reported increase in total debt reduces financial headroom. Continued debt growth would amplify interest and refinancing exposure, constrain capital allocation and increase vulnerability to rate or margin shocks over several quarters.

Margin Pressure

A slight decline in EBITDA margin alongside emerging cost and financing pressures signals potential structural margin headwinds. If input costs or pricing pressure persist, sustained margin erosion would depress free cash flow and limit reinvestment and shareholder return capacity.

Customer / Contract Concentration

Heavy reliance on defense and government contracts concentrates revenue and ties sales to procurement cycles and public budgets. This creates cyclicality and longer sales timelines, making medium-term revenue visibility sensitive to policy, budget shifts and geopolitical changes.

Codan Limited Business Overview & Revenue Model

Company Description

Codan Limited develops technology solutions for United Nations organizations, mining companies, security and military groups, government departments, individuals, and small-scale miners. It operates through Communications and Metal Detection segments. The Communications segment designs, develops, manufactures, and markets communication equipment that consists of MIMO MESH; DTC radio solutions for the wireless transmission of video and other data applications; and Zetron communications solutions. The Metal Detection segment designs, develops, manufactures, and markets metal detection equipment, such as handheld metal detecting technologies for recreational, gold mining, demining, and military markets. The company sells its products through a network of dealers, distributors, and agents in Australia, Canada, Denmark, the United Kingdom, the United States, Brazil, India, Ireland, Mexico, Singapore, the United Arab Emirates, and internationally. Codan Limited was incorporated in 1959 and is headquartered in Mawson Lakes, Australia.

How the Company Makes Money

Codan Limited generates revenue through multiple key streams, including the sale of its communication systems, tracking solutions, and metal detection equipment. The Communications division, which includes tactical radio systems for defense and public safety agencies, represents a significant portion of the company's revenue, often enhanced by government contracts and international sales. The Tracking division offers asset tracking solutions for various industries, contributing to recurring revenue through service and maintenance agreements. Additionally, the Metal Detection division, popular among recreational and professional gold prospectors, generates income from both product sales and aftermarket services. Codan also benefits from strategic partnerships with government agencies and private sector clients, which help secure long-term contracts and projects. Overall, the combination of product sales, service agreements, and strategic collaborations underpins Codan's financial performance.

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: 36.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 36.89 is above the 20-day moving average (MA) of 29.84, above the 50-day MA of 31.36, and above the 200-day MA of 24.72, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 78.25 is Negative, neither overbought nor oversold. The STOCH value of 89.83 is Negative, 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
DDR	76 Outperform	€1.85B	22.31	33.65%	4.29%	8.70%	3.11%
CDA	70 Outperform	AU$6.71B	64.62	20.83%	0.97%	22.48%	27.07%
DRO	67 Neutral	AU$3.67B	496.30	2.19%	―	61.31%	-34.15%
XRF	67 Neutral	AU$304.57M	28.74	18.05%	2.31%	-1.09%	14.88%
OCL	65 Neutral	AU$1.60B	44.82	35.71%	1.27%	5.11%	12.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ZMM	37 Underperform	AU$5.29M	-0.76	-283.40%	―	-74.76%	42.11%

Codan Limited Corporate Events

Codan Flags Strong FY26 First-Half on Metal Detection and Communications Growth

Codan Limited has flagged a strong first half for FY26, guiding to preliminary group revenue of about $394 million, up 29% year on year, and underlying net profit after tax of at least $70 million, a 52% increase, driven by standout performance in metal detection and continued strength in communications. Metal detection revenue is expected to reach roughly $168 million, up around 46% on the back of robust gold detector demand in Africa and double‑digit growth in recreational markets, while the communications segment is set to deliver about $222 million in revenue, a 19% rise that aligns with the upper end of Codan’s targeted growth range, underscoring the company’s momentum across both divisions ahead of its detailed results release in February 2026.

The most recent analyst rating on (AU:CDA) stock is a Hold with a A$32.00 price target. To see the full list of analyst forecasts on Codan Limited stock, see the AU:CDA Stock Forecast page.

Codan Limited Announces Cessation of Performance Rights

Codan Limited announced the cessation of 7,244 performance rights due to unmet conditions, impacting its issued capital. This development may affect the company’s financial structuring and stakeholder interests, highlighting a potential reevaluation of performance metrics and conditions for future securities.

The most recent analyst rating on (AU:CDA) stock is a Hold with a A$32.00 price target. To see the full list of analyst forecasts on Codan Limited stock, see the AU:CDA Stock Forecast page.

Codan Limited Updates Director’s Interest in Securities

Codan Limited has announced a change in the director’s interest notice, specifically regarding Alfonzo Ianniello’s performance rights. The change involves the issuance of additional performance rights under the Codan Share Rights Plan Rules, increasing his total holdings. This adjustment reflects the company’s ongoing efforts to align management incentives with shareholder interests, potentially impacting the company’s governance and stakeholder confidence.

The most recent analyst rating on (AU:CDA) stock is a Hold with a A$37.00 price target. To see the full list of analyst forecasts on Codan Limited stock, see the AU:CDA Stock Forecast page.

Codan Limited Issues Unquoted Performance Rights to Employees

Codan Limited has announced the issuance of 33,948 unquoted performance rights under an employee incentive scheme, with restrictions on transfer until a specified period. This move is part of 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 Hold with a A$37.00 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 33,948 performance rights under an employee incentive scheme, which are unquoted and subject to transfer restrictions. This move is part of Codan’s strategy to incentivize employees, potentially impacting its operational efficiency and aligning employee interests with company performance.

The most recent analyst rating on (AU:CDA) stock is a Hold with a A$37.00 price target. To see the full list of analyst forecasts on Codan Limited stock, see the AU:CDA Stock Forecast page.

Codan Limited Successfully Passes All Resolutions at 2025 AGM

Codan Limited announced that all resolutions at its 2025 Annual General Meeting were successfully passed, reflecting strong support from shareholders. The approval of key resolutions, including the adoption of the remuneration report and the re-election of a director, indicates continued confidence in the company’s strategic direction and leadership.

The most recent analyst rating on (AU:CDA) stock is a Buy with a A$33.00 price target. To see the full list of analyst forecasts on Codan Limited stock, see the AU:CDA Stock Forecast page.

Codan Limited Reports Strong FY25 Performance and Strategic Growth Initiatives

Codan Limited reported a successful financial year in FY25, with a 22% growth in group revenues and significant increases in EBIT and NPAT. The Communications business, including Zetron and DTC, saw a 26% rise in revenues, while Minelab achieved a 16% increase in revenue, driven by high gold prices and expanded distribution channels. The company remains committed to its three-pillar strategy focusing on business development, core business strengthening, and capital allocation for growth, highlighted by the acquisition of Kägwerks, enhancing its position in the U.S. defense ecosystem.

The most recent analyst rating on (AU:CDA) stock is a Buy with a A$33.00 price target. To see the full list of analyst forecasts on Codan Limited stock, see the AU:CDA Stock Forecast page.