Codan Limited (CODAF) AI Stock Analysis

• Market Cap: $2.16B
• Dividend Yield: 1.53%
• Average Volume (3M): 66.00
• Price to Earnings (P/E): 32.6
• Beta (1Y): 0.75
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 450
• Sector: Technology
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.33
• Shares Outstanding: 181,570,850
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 66
• PEG Ratio: 3.86
• Price to Book (P/B): 6.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.56
• Price Target Upside: 9.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Positive Factors

Demand

The order book increased substantially, reflecting strong demand and successful integrations of recent acquisitions.

Financial Performance

The result for the six months was better than expected at the EBIT line, with significant sales growth.

Strategic Growth

The company has demonstrated expertise in stimulating its markets with ongoing product releases and successful acquisitions.

Negative Factors

Market Competition

Metal Detection is benefiting from market share gains supported by expansion of distribution points and continued product development.

Military Spending

Tactical Communications is supported by a favourable military spending environment and general industry tailwinds.

Codan Limited Business Overview & Revenue Model

Company Description

Codan Limited develops technology solutions for United Nations organizations, mining companies, security and military groups, government departments, individuals, and small-scale miners. It operates through Communications and Metal Detection segments. The Communications segment designs, develops, manufactures, and markets communication equipment that consists of MIMO MESH; DTC radio solutions for the wireless transmission of video and other data applications; and Zetron communications solutions. The Metal Detection segment designs, develops, manufactures, and markets metal detection equipment, such as handheld metal detecting technologies for recreational, gold mining, demining, and military markets. The company sells its products through a network of dealers, distributors, and agents in Australia, Canada, Denmark, the United Kingdom, the United States, Brazil, India, Ireland, Mexico, Singapore, the United Arab Emirates, and internationally. Codan Limited was incorporated in 1959 and is headquartered in Mawson Lakes, Australia.

How the Company Makes Money

Codan Limited Financial Statement Overview

Summary

Codan Limited exhibits strong financial health with consistent revenue growth and robust profitability margins. The balance sheet shows controlled leverage and solid equity positions, while cash flow performance highlights efficient cash management and conversion. The company is well-positioned in its industry with a stable financial foundation.

Income Statement

Codan Limited demonstrated strong revenue growth, increasing by 20.59% from the previous year. The Gross Profit Margin stands at 55.45% and the Net Profit Margin is at 14.78%, indicating good profitability. EBIT and EBITDA margins were also healthy at 17.42% and 26.73%, respectively, suggesting efficient operations.

Balance Sheet

The company's Debt-to-Equity Ratio increased to 0.32, which remains reasonable but indicates rising leverage. Return on Equity (ROE) was strong at 18.19%, reflecting effective use of equity capital. The Equity Ratio of 58.21% suggests a solid equity base supporting its asset structure.

Cash Flow

Codan Limited's Free Cash Flow grew by 82.43%, showcasing robust cash generation. The Operating Cash Flow to Net Income Ratio was 1.31, reflecting good cash earnings quality. The Free Cash Flow to Net Income Ratio was high at 0.68, indicating effective conversion of earnings into cash flow.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
590.16M	550.46M	456.47M	506.14M	437.05M	348.02M
	Gross Profit
331.54M	305.23M	218.59M	253.06M	216.90M	170.62M
	EBIT
126.23M	95.90M	91.77M	138.05M	140.29M	97.64M
	EBITDA
135.03M	147.10M	120.64M	162.65M	159.32M	118.29M
	Net Income Common Stockholders
89.39M	81.39M	67.77M	100.74M	90.35M	63.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.87M	19.70M	23.66M	22.61M	22.36M	92.83M
	Total Assets
890.14M	768.71M	693.30M	590.93M	502.85M	351.57M
	Total Debt
198.77M	141.05M	125.39M	82.24M	56.12M	30.55M
	Net Debt
170.90M	121.34M	101.73M	59.63M	33.76M	-62.28M
	Total Liabilities
391.90M	321.78M	286.97M	222.98M	199.24M	104.22M
	Stockholders Equity
498.67M	447.39M	406.70M	368.28M	303.72M	247.30M
Cash Flow		Free Cash Flow
94.97M	55.67M	30.51M	17.56M	108.35M	80.99M
	Operating Cash Flow
105.28M	106.45M	79.88M	51.72M	131.30M	103.98M
	Investing Cash Flow
-101.12M	-87.96M	-53.93M	-19.75M	-182.72M	-19.01M
	Financing Cash Flow
-1.03M	-22.43M	-25.45M	-32.68M	-19.00M	-29.98M

Codan Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CODAF		$2.16B	32.56	19.85%	1.53%	―	―
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%
DRSHF		$879.78M	61.25	-0.70%	―	―	―
D0D		€835.04M	16.84	31.26%	5.99%	―	―
OCL	76 Outperform	AU$1.79B	55.79	36.92%	1.39%	7.00%	19.41%
XRF	70 Outperform	AU$224.86M	23.63	18.04%	2.44%	6.00%	10.26%
ZMM	41 Neutral	AU$4.28M	―	-174.80%	―	-50.78%	45.67%