Coda Octopus Group Inc (CODA)
NASDAQ:CODA
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Coda Octopus Group
(NASDAQ:CODA)
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Rating:73Outperform
Price Target:
$14.50
▲(25.54% Upside)
Action:ReiteratedDate:03/19/26
The score is driven primarily by strong financial resilience (very low leverage, solid margins, and strong cash generation) and a generally positive earnings-call trajectory (growth, product milestones, and defense mix shift). These positives are tempered by mixed near-term technical signals (below the 20-day average) and a relatively high P/E with no dividend yield provided, alongside execution/timing risks highlighted on the call.
Positive Factors
Conservative Balance Sheet
Extremely low leverage and a sizeable equity base create durable financial flexibility. The debt-free posture and cash buffer reduce insolvency risk, allow the company to fund M&A or absorb lumpy defense contract timing, and support multi‑year investment without external financing.
Negative Factors
Margin Compression
The addition of lower‑margin businesses and a change in sales mix have compressed consolidated margins. If this mix persists, operating leverage and sustainable profitability could be structurally lower than prior peak cycles, limiting margin recovery despite revenue growth.
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Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage and a sizeable equity base create durable financial flexibility. The debt-free posture and cash buffer reduce insolvency risk, allow the company to fund M&A or absorb lumpy defense contract timing, and support multi‑year investment without external financing.
Read all positive factors
Coda Octopus Group (CODA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$130.24M
Dividend YieldN/A
Average Volume (3M)42.91K
Price to Earnings (P/E)32.2
Beta (1Y)0.63
Revenue Growth29.34%
EPS Growth13.81%
CountryUS
Employees103
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.08
Shares Outstanding11,276,152
10 Day Avg. Volume47,056
30 Day Avg. Volume42,912
Financial Highlights & Ratios
PEG Ratio2.30
Price to Book (P/B)1.98
Price to Sales (P/S)4.33
P/FCF Ratio19.06
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue3.57
Enterprise Value/Gross Profit5.39
Enterprise Value/Ebitda13.76
Forecast
1Y Price Target
$14.00Price Target Upside21.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.51
Revenue Forecast (FY)$30.32M
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...
How the Company Makes Money
Coda Octopus makes money primarily by selling marine technology products and solutions used in subsea survey and imaging workflows. Key revenue streams include: (1) Product sales of its sonar imaging systems (notably real-time 3D imaging sonar) an...
Coda Octopus Group Key Performance Indicators (KPIs)
Coda Octopus Group Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 17, 2026
Earnings Call Sentiment Positive
The call reflects a positive operational and strategic trajectory: strong top-line growth (+30.7% revenue), improved absolute profitability (higher gross profit, operating income, and EPS), successful M&A integration, product launches (Nanogen) and completion of the DAVID hardening program with initial deliveries. Near-term challenges remain, including margin compression from a lower-margin acquisition and underutilized rental assets, increased operating costs, and timing uncertainty tied to defense budgets and product approvals (ANU). Overall the company appears to be transitioning toward higher-defense-content, program-based revenue with a solid cash position to pursue further M&A, but execution and timing of defense contracts and approvals will determine near-term revenue cadence.Positive Updates
Strong Consolidated Revenue Growth
Total revenue of $26.6M in FY2025 vs $20.3M in FY2024, an increase of 30.7%.
Negative Updates
Consolidated Gross Margin Compression
Consolidated gross margin declined to 66.5% in FY2025 from 69.8% in FY2024 (down 3.3 percentage points), driven in part by the lower-margin acoustic sensors and materials business (accounting for ~2 percentage points of the decline) and a change in sales mix.
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Q4-2025 Updates
Positive
Negative
Strong Consolidated Revenue Growth
Total revenue of $26.6M in FY2025 vs $20.3M in FY2024, an increase of 30.7%.
Read all positive updates
Company Guidance
Management's guidance centers on near‑term defense program decisions in early 2026 with initial deliveries expected in FY2026 (subject to contract awards) and the Nanogen series and DAVID untethered system serving as the primary catalysts—DAVID’s ANU approval is expected around Q2 with revenues back‑weighted to Q3–Q4, and management expects DAVID to exceed FY2025’s $3.7 million (though they gave no firm FY2026 target and cautioned revenues will be lumpy). They also plan to pivot the marine business toward multi‑year, program‑based recurring sales, pursue M&A (seeking another acquisition in FY2026) funded from $28.7 million cash and no debt, and convert successful trials into production contracts; for context FY2025 totals were $26.6M revenue (+30.7% YoY), marine tech $13.2M (Echoscope 71.9% / DAVID 28.1% of marine revenue), acoustic sensors 20.4% of consolidated revenue, defense engineering $7.9M, gross profit $17.7M (66.5% margin), operating income $4.5M (17.1% margin), and net income $4.1M ($0.37 diluted EPS).Coda Octopus Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.06M | 26.56M | 20.32M | 19.35M | 22.23M | 21.33M |
| Gross Profit | 18.60M | 17.66M | 14.17M | 13.03M | 15.19M | 14.77M |
| EBITDA | 7.28M | 6.90M | 4.44M | 4.09M | 5.88M | 6.20M |
| Net Income | 4.15M | 4.13M | 3.65M | 3.12M | 4.30M | 4.95M |
Balance Sheet | ||||||
| Total Assets | 65.62M | 64.49M | 57.54M | 51.84M | 46.93M | 45.47M |
| Cash, Cash Equivalents and Short-Term Investments | 30.45M | 28.68M | 22.48M | 24.45M | 22.93M | 17.75M |
| Total Debt | 402.33K | 394.93K | 413.17K | 0.00 | 0.00 | 63.56K |
| Total Liabilities | 5.44M | 6.38M | 4.42M | 3.41M | 3.54M | 4.42M |
| Stockholders Equity | 60.19M | 58.12M | 53.13M | 48.43M | 43.38M | 41.05M |
Cash Flow | ||||||
| Free Cash Flow | 6.91M | 6.04M | 1.86M | 259.54K | 6.17M | 2.31M |
| Operating Cash Flow | 8.05M | 7.21M | 2.45M | 2.39M | 6.73M | 3.27M |
| Investing Cash Flow | -1.17M | -1.20M | -4.42M | -1.52M | -556.56K | -964.20K |
| Financing Cash Flow | 0.00 | 0.00 | -15.63K | -17.96K | -91.90K | 139.32K |
Coda Octopus Group Technical Analysis
Neutral
11.55
Price Trends
12.63
Negative
10.84
Positive
9.49
Positive
Market Momentum
-0.21
Positive
40.83
Neutral
8.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CODA, the sentiment is Neutral. The current price of 11.55 is below the 20-day moving average (MA) of 13.69, below the 50-day MA of 12.63, and above the 200-day MA of 9.49, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 8.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $130.24M | 32.24 | 6.23% | ― | 29.34% | 13.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $50.06M | 183.19 | 0.55% | ― | -23.87% | -109.71% | |
50 Neutral | $92.68M | 101.30 | 19.39% | ― | 21.60% | 35.00% | |
45 Neutral | $60.18M | -2.61 | -356.97% | ― | ― | ― | |
43 Neutral | $84.73M | -5.98 | -280.16% | ― | ― | ― |
* Industrials Sector Average
CODA
Coda Octopus Group
11.55
5.39
87.50%
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HOVR
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1.36
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SPAI
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45.85%
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.