Codan Limited (CDA) AI Stock Analysis

• Market Cap: AU$5.63B
• Dividend Yield: 0.92%
• Average Volume (3M): 397.06K
• Price to Earnings (P/E): 54.2
• Beta (1Y): 1.32
• 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: 361,820
• 30 Day Avg. Volume: 397,062
• 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$32.85
• Price Target Upside: 6.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.76
• Revenue Forecast (FY): AU$788.65M

• Rating: 59 Neutral
• Price Target: AU$32.00 ▲(3.33% Upside)

Codan Limited's strong financial performance is a key strength, supported by robust revenue growth and profitability. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Codan's products and services, supporting long-term business expansion and market presence.

Cash Generation

Strong cash generation enhances Codan's ability to invest in growth opportunities, service debt, and sustain operations, ensuring financial stability.

Profitability

High profitability margins reflect efficient operations and pricing power, contributing to sustained financial health and competitive advantage.

Negative Factors

Cost Pressures

Rising costs could impact profitability if not managed, potentially affecting Codan's ability to maintain its competitive edge and financial performance.

Increasing Debt

Growing debt levels may strain financial resources and limit flexibility, posing risks to Codan's long-term financial stability if not controlled.

Leverage

While leverage is currently manageable, further increases in debt could challenge Codan's ability to finance growth and meet obligations.

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: Neutral
• Last Price: 30.97
• 50DMA: Negative
• 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 AU:CDA, the sentiment is Neutral. The current price of 30.97 is below the 20-day moving average (MA) of 31.02, below the 50-day MA of 32.54, and above the 200-day MA of 23.18, indicating a neutral trend. The MACD of -0.68 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 76.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€1.87B	22.64	33.65%	4.25%	8.70%	3.11%
OCL	65 Neutral	AU$1.77B	49.85	35.71%	1.26%	5.11%	12.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XRF	61 Neutral	AU$303.14M	28.61	18.05%	2.40%	-1.09%	14.88%
DRO	60 Neutral	$1.74B	235.19	2.19%	―	61.31%	-34.15%
CDA	59 Neutral	AU$5.63B	54.25	20.83%	0.92%	22.48%	27.07%
ZMM	37 Underperform	AU$5.15M	-0.76	-283.40%	―	-74.76%	42.11%

Codan Limited Corporate Events

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.

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.

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.

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.

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.

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.

Codan Limited Prepares for Upcoming AGM and Enhances Shareholder Communication

Codan Limited has announced its upcoming Annual General Meeting (AGM) scheduled for October 22, 2025, where a business update will be provided. Shareholders are encouraged to participate online and submit questions in advance. The company also emphasizes the importance of registering for electronic communications to stay informed about Codan’s developments and manage shareholdings efficiently.

Codan Limited Releases 2025 Corporate Governance Statement

Codan Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is now available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting their commitment to transparency and accountability. This announcement underscores Codan’s dedication to maintaining robust governance practices, potentially enhancing its reputation among stakeholders and reinforcing its industry position.

Codan Limited Releases FY25 Annual Report Emphasizing Innovation

Codan Limited has released its FY25 annual report, highlighting its ongoing commitment to innovation in technology solutions. The report underscores the company’s focus on enhancing its market position by addressing critical problems in challenging environments, which is likely to impact its operations and stakeholder relations positively.

Codan Limited Schedules Hybrid Annual General Meeting for October 2025

Codan Limited has announced its Annual General Meeting scheduled for October 22, 2025, at 11:00 am Adelaide time. The meeting will be held in a hybrid format, allowing shareholders to participate either in person in North Adelaide, South Australia, or virtually via an online platform. Shareholders are encouraged to vote either in advance or during the meeting, and they can submit questions beforehand or during the event. This approach aims to enhance shareholder engagement and ensure smooth participation in the company’s decision-making process.