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Coda Octopus Group Inc (CODA)
NASDAQ:CODA
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Coda Octopus Group
(NASDAQ:CODA)
Rating:72Outperform
Price Target:―
Coda Octopus Group (CODA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$89.41M
Dividend YieldN/A
Average Volume (3M)55.48K
Price to Earnings (P/E)26.3
Beta (1Y)0.47
Revenue Growth15.63%
EPS Growth64.98%
CountryUS
Employees103
SectorIndustrials
Sector Strength94
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.08
Shares Outstanding11,232,514
10 Day Avg. Volume55,961
30 Day Avg. Volume55,475
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)1.69
Price to Sales (P/S)0.00
P/FCF Ratio17.55
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit4.69
Enterprise Value/Ebitda4.07
Forecast
1Y Price Target
$10.00Price Target Upside30.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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:Jun 16, 2025
(Q2-2025)
| % Change Since: -1.16%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and promising developments in new technology launches and market expansion. However, these positives were tempered by challenges such as decreased operating income, higher costs from exchange rate fluctuations, and increased operating expenses.Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue increased by 31.8% in Q2 2025 compared to Q2 2024, with the Marine Technology business revenue up by 10%.
Strong Performance in Asia
Hardware sales to Asia rose by approximately 105%, contributing significantly to overall revenue growth.
Launch of NanoGen Series
The upcoming launch of the NanoGen series, compact 3D sonars designed for smaller underwater vehicles, presents new market opportunities.
Increase in Marine Engineering Business
Revenue from the Marine Engineering business increased by 2.3%, with gross profit margin rising from 50.7% to 55.5%.
Introduction of Precision Acoustics Limited
The newly acquired business unit contributed 18.5% to consolidated revenue and 13.4% to operating income.
Growth in DAVD Orders
DAVD orders exceeded $1.5 million in Q2 2025, indicating growing adoption of the technology.
Negative Updates
Decreased Operating Income and Margins
Operating income decreased by 19.5% due to higher commission costs and lower gross profit margins.
Impact of Exchange Rates
The weakening of the US dollar against the British pound and Danish kroner increased operating costs.
Underutilization of Rental Assets
Rental assets were significantly underutilized, impacting gross profit margins due to lower rental income.
Increased Operating Expenses
Total operating expenses increased to $3.4 million, up from $2.4 million in Q2 2024, partly due to exchange rate impacts and new business integration.
Company Guidance
During the second quarter of fiscal 2025, Coda Octopus Group reported a revenue increase of 31.8% compared to the previous year, totaling $7 million. The Marine Technology business, the core segment of the company, contributed $3.9 million, marking a 10% increase. Despite this growth, operating income decreased by 19.5% to $1.1 million, largely due to lower gross profit margins, which dropped from 70.2% to 64.1%. This decline was attributed to higher commission costs from increased hardware sales in Asia, coupled with lower rental asset utilization. The newly acquired Acoustic Sensors and Materials business contributed significantly, accounting for 18.5% of the total consolidated revenue. Additionally, the Marine Engineering business saw a modest revenue increase of 2.3%, with improved gross margins rising to 55.5%. The company's operating expenses rose to $3.4 million, influenced by the inclusion of Precision Acoustics and currency exchange fluctuations. Looking ahead, Coda Octopus is optimistic about its upcoming NanoGen series of 3D sonars, poised to capture emerging opportunities in the underwater vehicle markets. The DAVD system also showed promise, with orders worth $1.5 million in the second quarter, alongside ongoing trials for its untethered variant.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.32M | 19.35M | 22.23M | 21.33M | 20.04M |
| Gross Profit | 14.17M | 13.03M | 15.19M | 14.77M | 12.73M |
| EBITDA | 4.44M | 4.09M | 5.74M | 6.23M | 4.27M |
| Net Income | 3.65M | 3.12M | 4.30M | 4.95M | 3.34M |
Balance Sheet | |||||
| Total Assets | 57.54M | 51.84M | 46.93M | 45.47M | 38.04M |
| Cash, Cash Equivalents and Short-Term Investments | 22.48M | 24.45M | 22.93M | 17.75M | 15.13M |
| Total Debt | 413.17K | 0.00 | 0.00 | 63.56K | 573.11K |
| Total Liabilities | 4.42M | 3.41M | 3.54M | 4.42M | 3.64M |
| Stockholders Equity | 53.13M | 48.43M | 43.38M | 41.05M | 34.40M |
Cash Flow | |||||
| Free Cash Flow | 1.86M | 259.54K | 6.17M | 2.31M | 3.44M |
| Operating Cash Flow | 2.45M | 2.39M | 6.73M | 3.27M | 4.43M |
| Investing Cash Flow | -4.42M | -1.52M | -556.56K | -964.20K | -998.34K |
| Financing Cash Flow | -15.63K | -17.96K | -91.90K | 139.32K | 162.41K |
Coda Octopus Group Technical Analysis
Neutral
7.64
Price Trends
7.52
Positive
7.03
Positive
7.70
Negative
Market Momentum
0.07
Positive
46.48
Neutral
29.77
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 7.64 is below the 20-day moving average (MA) of 8.10, above the 50-day MA of 7.52, and below the 200-day MA of 7.70, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 29.77 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $270.75M | 25.01 | 22.77% | ― | 58.67% | 70.38% | |
74 Outperform | $89.18M | 18.19 | 25.69% | ― | 21.77% | 36.36% | |
72 Outperform | $89.41M | 26.28 | 6.40% | ― | 15.63% | 64.98% | |
65 Neutral | €9.31B | 16.45 | 3.99% | 2.99% | 2.81% | -19.06% | |
64 Neutral | $68.92M | 47.59 | 3.10% | ― | -29.61% | -78.85% | |
62 Neutral | $44.72M | 24.23 | 7.62% | ― | -7.34% | -88.84% | |
51 Neutral | $184.59M | ― | -95.46% | ― | -34.33% | 52.30% |
* Industrials Sector Average
Performance Comparison
CODA
Coda Octopus Group
7.64
1.09
16.64%
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3.40
1.00
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Innovative Solutions And Support
15.36
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162.56%
SPCE
Virgin Galactic Holdings
4.32
-2.40
-35.71%
OPXS
Optex Systems Holdings
12.59
4.80
61.62%
VTSI
VirTra
6.20
-2.48
-28.57%
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.