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Coda Octopus Group
(NASDAQ:CODA)
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Rating:65Neutral
Price Target:
$10.00
▼(-24.64% Downside)
Action:Reiterated
Date:06/16/26
The score is supported primarily by strong margins, excellent cash conversion, and a debt-free profile, reinforced by a generally positive earnings call with meaningful product milestones. These strengths are tempered by weak technicals (downtrend vs. moving averages, negative MACD) and uncertainty from revenue volatility and timing/procurement risks.
Positive Factors
High profitability & margins
Sustained high gross and operating margins reflect rich product mix (specialized sonar hardware, software and services) and disciplined cost control. These margins support durable profitability, allowing reinvestment in R&D, higher cash conversion and resilience across project cycles.
Negative Factors
Revenue volatility and declines
Large swings in top-line driven by project and procurement timing, and heavy hardware sale variability, reduce predictability for revenue and investment planning. This structural volatility complicates scaling fixed costs and undermines multi-quarter revenue visibility for program growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & margins
Sustained high gross and operating margins reflect rich product mix (specialized sonar hardware, software and services) and disciplined cost control. These margins support durable profitability, allowing reinvestment in R&D, higher cash conversion and resilience across project cycles.
Read all positive factors
Coda Octopus Group Key Performance Indicators (KPIs)
Any
Revenue By Segment
Shows how much revenue each business segment generates, indicating which areas are most successful and how the company diversifies its income streams.
Shows how much revenue each business segment generates, indicating which areas are most successful and how the company diversifies its income streams.
Data provided by:
The Fly
The FlyCoda Octopus Group (CODA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$108.30M
Dividend YieldN/A
Average Volume (3M)175.82K
Price to Earnings (P/E)22.1
Beta (1Y)0.73
Revenue Growth22.81%
EPS Growth43.49%
CountryUS
Employees103
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.43
Shares Outstanding11,280,754
10 Day Avg. Volume331,317
30 Day Avg. Volume175,822
Financial Highlights & Ratios
PEG Ratio2.29
Price to Book (P/B)1.98
Price to Sales (P/S)4.33
P/FCF Ratio19.06
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue3.67
Enterprise Value/Gross Profit5.49
Enterprise Value/Ebitda12.58
Forecast
1Y Price Target
$14.00Price Target Upside5.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.46
Revenue Forecast (FY)$28.97M
Coda Octopus Group Business Overview & Revenue Model
Company Description
Coda Octopus Group, Inc., alongside its subsidiary entities, specializes in the design and distribution of advanced underwater technologies and specialized equipment. These innovations serve critical applications such as 3D imaging, detailed mappi...
How the Company Makes Money
Coda Octopus makes money primarily by selling marine survey and imaging products and related services to government/defense and commercial marine customers. Key revenue streams include: (1) Product sales of sonar and subsea imaging hardware (e.g.,...
Coda Octopus Group Earnings Call Summary
Earnings Call Date:Jun 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 16, 2026
Earnings Call Sentiment Positive
Overall the call presents a positive operational and financial picture: strong profit and margin expansion, improved cash position with no debt, meaningful product milestones (DAVID Approved for Navy Use) and initial NanoGen traction, and solid growth in the defense services and acoustics revenue. These positives are tempered by a pronounced decline in the Marine Technology revenue (notably hardware sales), geopolitical headwinds impacting Middle East/Asia demand, margin compression in the acoustics segment due to sales mix, and timing uncertainties around some defense procurements and product evaluations. On balance, the favorable profitability, cash strength and strategic technology milestones outweigh the near-term revenue and regional demand challenges.Positive Updates
Improved Profitability and Margins
Net income rose to $1.7M (Q2 FY26) from $0.9M (Q2 FY25), an increase of ~88.9%, and diluted EPS increased to $0.15 from $0.08 (+87.5%). Operating income increased 64.8% to $1.8M and operating margin expanded to 26.0% from 15.5% (+10.5 percentage points). Consolidated gross profit increased to $4.6M from $4.5M and consolidated gross margin improved to 66.3% from 64.1% (+2.2 percentage points).
Negative Updates
Consolidated Revenue Slight Decline
Total consolidated net revenue decreased modestly by 1.6% to $6.9M (from $7.0M in Q2 FY25), reflecting uneven end-market demand.
Read all updates
Q2-2026 Updates
Positive
Negative
Improved Profitability and Margins
Net income rose to $1.7M (Q2 FY26) from $0.9M (Q2 FY25), an increase of ~88.9%, and diluted EPS increased to $0.15 from $0.08 (+87.5%). Operating income increased 64.8% to $1.8M and operating margin expanded to 26.0% from 15.5% (+10.5 percentage points). Consolidated gross profit increased to $4.6M from $4.5M and consolidated gross margin improved to 66.3% from 64.1% (+2.2 percentage points).
Read all positive updates
Company Guidance
Management's forward guidance focused on commercializing DAVID and scaling NanoGen/Echoscope integrations: with the DAVID untethered now Approved for Navy Use (unlocking fielding of 20 previously issued untethered systems) management expects related orders to be received in Q3 FY26 (orders to be placed directly, no IDIQ anticipated), said the small initial NanoGen order delivered in Q2 was included in Q2 revenue and could "scale rapidly" if post‑integration evaluations succeed, and reiterated FY26 objectives to secure broader DAVID adoption by a foreign navy and Echoscope adoption on new autonomous AI‑enabled platforms; they also continue an active M&A push (two deals in due diligence, aiming to close in FY26) as part of a strategy to pivot marine technology toward multi‑year, program‑based recurring revenue. As context for that guidance, Q2 FY26 results were $6.9M total revenue (‑1.6% y/y) with marine tech $2.8M (‑26.8%), defense $2.5M (+37.9%), acoustics $1.5M (+17.5%), gross profit $4.6M (66.3% margin), operating income $1.8M (26% margin), net income $1.7M ($0.15 diluted), cash $30.6M and no debt.Coda Octopus Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.95M | 26.56M | 20.32M | 19.35M | 22.23M | 21.33M |
| Gross Profit | 18.68M | 17.66M | 14.17M | 13.03M | 15.19M | 14.77M |
| EBITDA | 8.15M | 6.90M | 4.44M | 4.09M | 5.88M | 6.20M |
| Net Income | 4.94M | 4.13M | 3.65M | 3.12M | 4.30M | 4.95M |
Balance Sheet | ||||||
| Total Assets | 67.34M | 64.49M | 57.54M | 51.84M | 46.93M | 45.47M |
| Cash, Cash Equivalents and Short-Term Investments | 2.05M | 28.68M | 22.48M | 24.45M | 22.93M | 17.75M |
| Total Debt | 384.60K | 394.93K | 413.17K | 0.00 | 0.00 | 63.56K |
| Total Liabilities | 5.92M | 6.38M | 4.42M | 3.41M | 3.54M | 4.42M |
| Stockholders Equity | 61.41M | 58.12M | 53.13M | 48.43M | 43.38M | 41.05M |
Cash Flow | ||||||
| Free Cash Flow | 5.95M | 6.04M | 1.86M | 259.54K | 6.17M | 2.31M |
| Operating Cash Flow | 7.15M | 7.21M | 2.45M | 2.39M | 6.73M | 3.27M |
| Investing Cash Flow | -1.08M | -1.20M | -4.42M | -1.52M | -556.56K | -964.20K |
| Financing Cash Flow | -13.67K | 0.00 | -15.63K | -17.96K | -91.90K | 139.32K |
Coda Octopus Group Technical Analysis
Negative
13.27
Price Trends
11.50
Negative
12.21
Negative
10.73
Negative
Market Momentum
-0.70
Positive
37.34
Neutral
16.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CODA, the sentiment is Negative. The current price of 13.27 is above the 20-day moving average (MA) of 10.90, above the 50-day MA of 11.50, and above the 200-day MA of 10.73, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 37.34 is Neutral, neither overbought nor oversold. The STOCH value of 16.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $108.30M | 22.14 | 8.33% | ― | 22.81% | 43.49% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $89.09M | 21.51 | 0.06% | ― | 10.02% | -16.48% | |
52 Neutral | $117.97M | -3.15 | -258.01% | ― | ― | -299.00% | |
49 Neutral | $36.97M | -15.65 | -5.07% | ― | -26.36% | -260.65% | |
43 Neutral | $84.33M | -5.38 | -119.17% | ― | -19.76% | -0.17% |
* Industrials Sector Average
CODA
Coda Octopus Group
9.60
1.42
17.36%
OPXS
Optex Systems Holdings
12.80
1.31
11.40%
VTSI
VirTra
3.27
-3.80
-53.75%
VWAV
VisionWave Holdings
4.34
-10.66
-71.07%
HOVR
New Horizon Aircraft
1.91
0.20
11.70%
SPAI
Safe Pro Group, Inc.
4.09
1.34
48.73%
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.