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Coda Octopus Group Inc (CODA)
NASDAQ:CODA
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Coda Octopus Group
(NASDAQ:CODA)
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Rating:72Outperform
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 (CODA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$90.10M
Dividend YieldN/A
Average Volume (3M)72.48K
Price to Earnings (P/E)26.4
Beta (1Y)0.51
Revenue Growth29.34%
EPS Growth13.81%
CountryUS
Employees103
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.11
Shares Outstanding11,248,867
10 Day Avg. Volume75,114
30 Day Avg. Volume72,484
Financial Highlights & Ratios
PEG Ratio1.46
Price to Book (P/B)1.79
Price to Sales (P/S)4.69
P/FCF Ratio51.21
Enterprise Value/Market Cap0.65
Enterprise Value/Revenue2.40
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda13.42
Forecast
1Y Price Target
$10.00Price Target Upside24.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Coda Octopus Group Business Overview & Revenue Model
Company DescriptionCoda Octopus Group (CODA) is a technology company specializing in the development and manufacture of real-time 3D sonar solutions and underwater technologies. The company operates primarily in the marine and defense sectors, providing innovative products such as the Echoscope, a 3D imaging sonar system, and various other advanced engineering solutions aimed at enhancing underwater operations and safety.
How the Company Makes MoneyCoda 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 Earnings Call Summary
Earnings Call Date:Sep 15, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 02, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in revenue and technological advancements, particularly in the Marine Technology business and the launch of the NANO GEN Series. However, the Marine Engineering business faced challenges with a notable revenue decline and decreased gross margins. Overall, the call conveyed a sense of optimism for future growth despite current challenges.Q3-2025 Updates
Positive Updates
Significant Revenue Increase
Revenue for the third quarter of 2025 increased by 29%, reaching $7.1 million compared to $5.5 million in the third quarter of 2024.
Marine Technology Business Growth
The Marine Technology business generated $4.0 million in revenue, a 30.7% increase from the previous year, with hardware sales increasing by 103.6%.
Launch of NANO GEN Series Sonars
Coda Octopus launched its ultra-small form factor 3D imaging sonars, NANO GEN Series, designed for small underwater vehicles and divers, with successful trials and strong market interest.
DAVD Untethered System Milestones
Successfully delivered 16 DAVD Untethered Systems to U.S. Special Forces and completed international deliveries, marking significant progress in fleet evaluation and operational deployment.
Cash Position and No Debt
As of July 31, 2025, the company had $26.2 million in cash and cash equivalents, an increase of $3.7 million from October 31, 2024, and no debt.
Negative Updates
Marine Engineering Business Revenue Decline
Revenue for the Marine Engineering business decreased by 33.2% due to delays in contract awards, impacting overall performance.
Gross Margin Decrease
Consolidated gross margin decreased to 68.3% from 73.9% in the third quarter of 2024, reflecting a shift in sales mix and increased costs.
Underutilization of Rental Assets
Rental assets were significantly underutilized, impacting gross profit margins due to changes in U.S. policy affecting offshore renewable projects.
Company Guidance
During the third quarter fiscal 2025 earnings call, Coda Octopus Group reported a 29% increase in revenue compared to the third quarter of 2024, with total revenue reaching $7.1 million. The Marine Technology business, which generated 56.4% of net revenue, saw a 30.7% increase, while hardware sales rose by 103.6% to $2.7 million. However, the Marine Engineering business experienced a 33.2% decrease in revenue due to delays in contract awards. The newly acquired Precision Acoustics Limited contributed 20.6% to net revenue. Gross profit margin decreased to 68.3% from 73.9% in the previous year, impacted by changes in sales mix and underutilization of rental assets. The company highlighted the successful launch of the Echoscope PIPE NANO GEN Series and progress in the DAVD technology, anticipating significant growth in the defense and underwater robotics markets. Operating income slightly decreased to $1.38 million, while net income remained stable at $1.28 million. The company remains debt-free with $26.2 million in cash and continues to focus on its growth strategy and M&A pipeline.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.76
Positive
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.68
Positive
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.82
Very Positive
| 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
Neutral
8.01
Price Trends
7.81
Positive
7.62
Positive
7.51
Positive
Market Momentum
0.12
Positive
49.39
Neutral
48.42
Neutral
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 8.01 is below the 20-day moving average (MA) of 8.13, above the 50-day MA of 7.81, and above the 200-day MA of 7.51, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 48.42 is Neutral, 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 | $208.89M | 17.87 | 20.60% | ― | 72.82% | 80.22% | |
73 Outperform | $90.43M | 17.58 | 0.10% | ― | 21.00% | 20.18% | |
72 Outperform | $90.10M | 26.37 | 6.23% | ― | 29.34% | 13.81% | |
59 Neutral | $60.62M | 151.12 | 0.82% | ― | -17.36% | -94.28% | |
49 Neutral | $33.10M | -34.23 | -3.90% | ― | -14.35% | -105.66% | |
49 Neutral | $196.96M | -0.38 | -114.94% | ― | -84.19% | 55.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Coda Octopus Group Corporate Events
Business Operations and Strategy
Coda Octopus Updates Corporate Strategy Presentation
Neutral
Nov 15, 2024
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.
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.