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Coda Octopus Group (CODA)
: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
$78.84M
Dividend YieldN/A
Average Volume (3M)25.98K
Price to Earnings (P/E)20.4
Beta (1Y)0.40
Revenue Growth15.63%
EPS Growth64.98%
CountryUS
Employees103
SectorIndustrials
Sector Strength90
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.08
Shares Outstanding11,230,248
10 Day Avg. Volume45,783
30 Day Avg. Volume25,977
Financial Highlights & Ratios
PEG Ratio-1.24
Price to Book (P/B)1.61
Price to Sales (P/S)0.00
P/FCF Ratio11.30
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit3.27
Enterprise Value/Ebitda2.81
Forecast
1Y Price Target
$8.00Price Target Upside13.96% 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:Mar 17, 2025
(Q1-2025)
| % Change Since: 5.72%|
Next Earnings Date:Jun 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and strategic advancements, particularly in engineering and new business acquisitions. However, it also pointed out challenges in the Marine Technology sector due to global policy uncertainties and reduced defense spending. Overall, the positives appear to balance the negatives, with strategic initiatives showing promise for future growth.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue for the first quarter of 2025 increased by 16.8% to $5.2 million compared to $4.5 million in the first quarter of 2024.
Strong Performance of Engineering Business
The Engineering business revenue increased by 77% in the first quarter of 2025.
Contribution of Precision Acoustics Limited
The newly acquired business unit, Precision Acoustics Limited, contributed 25.2% to consolidated revenue and 33.3% to operating income.
DAVD Technology Developments
Received first order for approximately $800,000 for 16 DUS systems under the DAVD program, indicating strong progress and potential for future adoption.
Healthy Financial Position
As of January 31, 2025, the company had $22.54 million in cash and cash equivalents with no debt.
Negative Updates
Decline in Marine Technology Business Revenue
Revenue from the Marine Technology business decreased by 35.8% from $3.5 million to $2.3 million due to weak demand and global policy uncertainties.
Impact of Global Policy Environment
Significant headwinds due to uncertainty around U.S. administration policies, including tariffs and changes in energy and defense spending, affecting demand.
Reduced Defense Spending by U.S.
The new U.S. administration's policy to reduce defense spending by 8% over several years poses potential challenges.
Challenges in Offshore Renewables
Suspension of offshore renewable permits by the U.S. administration led to a decrease in demand for solutions in the Marine Technology business.
Increase in Operating Expenses
Total operating expenses increased to $2.8 million from $2.5 million, largely due to the addition of the new business unit.
Company Guidance
During Coda Octopus Group's first quarter fiscal 2025 earnings call, the company announced a 16.8% increase in total revenue, reaching $5.2 million, compared to $4.5 million in the same period of 2024. The Marine Technology business faced a 35.8% revenue decrease, while the Engineering business saw a 77% increase. The newly acquired Acoustic Sensors & Materials business contributed 25.2% to consolidated revenue and 33.3% to operating income. Gross profit rose to $3.4 million with a margin of 65.8%, slightly down from 69.2% the previous year. Operating expenses increased to $2.8 million. Operating income improved by 19.2% to $0.7 million, and net income grew to $0.91 million, or $0.08 per diluted share. The cash position was strong at $22.54 million with no debt. A major highlight was the $800,000 order for 16 untethered DAVD systems, signaling potential growth in defense applications, despite global policy uncertainties impacting some business sectors.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 | ||||
| 21.06M | 20.32M | 19.35M | 22.23M | 21.33M | 20.04M | Gross Profit |
| 14.32M | 14.17M | 13.03M | 15.19M | 14.77M | 12.73M | EBIT |
| 3.69M | 3.58M | 2.74M | 5.00M | 5.31M | 2.80M | EBITDA |
| 4.65M | 4.44M | 4.09M | 5.74M | 6.23M | 4.27M | Net Income Common Stockholders |
| 3.93M | 3.65M | 3.12M | 4.30M | 4.95M | 3.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 22.54M | 22.48M | 24.45M | 22.93M | 17.75M | 15.13M | Total Assets |
| 56.90M | 57.54M | 51.84M | 46.93M | 45.47M | 38.04M | Total Debt |
| 392.44K | 413.17K | 0.00 | 0.00 | 63.56K | 573.11K | Net Debt |
| -22.15M | -22.07M | -24.45M | -22.93M | -17.68M | -14.56M | Total Liabilities |
| 3.78M | 4.42M | 3.41M | 3.54M | 4.42M | 3.64M | Stockholders Equity |
| 53.11M | 53.13M | 48.43M | 43.38M | 41.05M | 34.40M |
| Cash Flow | Free Cash Flow | ||||
| 2.83M | 367.93K | 259.54K | 6.17M | 2.31M | 3.44M | Operating Cash Flow |
| 3.39M | 2.45M | 2.39M | 6.73M | 3.27M | 4.43M | Investing Cash Flow |
| -5.17M | -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
Positive
7.02
Price Trends
6.67
Positive
7.02
Positive
7.59
Negative
Market Momentum
<0.01
Positive
55.62
Neutral
58.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CODA, the sentiment is Positive. The current price of 7.02 is above the 20-day moving average (MA) of 6.95, above the 50-day MA of 6.67, and below the 200-day MA of 7.59, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CODA.
Coda Octopus Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $69.20M | 13.40 | 25.69% | ― | 21.77% | 36.36% | |
78 Outperform | $212.13M | 20.02 | 22.77% | ― | 58.67% | 70.38% | |
72 Outperform | $78.84M | 20.44 | 7.61% | ― | 15.63% | 64.98% | |
67 Neutral | $70.84M | 48.91 | 3.10% | ― | -29.61% | -78.85% | |
66 Neutral | $4.52B | 12.34 | 5.41% | 3.62% | 4.15% | -12.18% | |
52 Neutral | $37.44M | 20.35 | 7.62% | ― | -7.34% | -88.84% | |
48 Neutral | $132.21M | ― | -95.46% | ― | -34.33% | 52.30% |
* Industrials Sector Average
Performance Comparison
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OPXS
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VTSI
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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.