Executive Summary
Codan Limited develops rugged and electronics solutions for organizations, mining companies, security and military groups, and governments worldwide. More Details
Rewards
Risk Analysis
No risks detected for CDA from our risk checks.
Snowflake Analysis
Flawless balance sheet with outstanding track record.
Similar Companies
Share Price & News
How has Codan's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CDA is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: CDA's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
7.2%
CDA
3.1%
AU Electronic
2.6%
AU Market
1 Year Return
192.3%
CDA
124.3%
AU Electronic
37.1%
AU Market
Return vs Industry: CDA exceeded the Australian Electronic industry which returned 128.8% over the past year.
Return vs Market: CDA exceeded the Australian Market which returned 35.6% over the past year.
Shareholder returns
| CDA | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.2% | 3.1% | 2.6% |
| 30 Day | 13.5% | 4.1% | 4.4% |
| 90 Day | 42.9% | 20.9% | 3.6% |
| 1 Year | 197.3%192.3% | 129.7%124.3% | 41.3%37.1% |
| 3 Year | 663.3%597.1% | 208.9%188.4% | 36.2%19.8% |
| 5 Year | 1,773.8%1,446.4% | 266.8%235.7% | 67.4%34.6% |
Long-Term Price Volatility Vs. Market
How volatile is Codan's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Is Codan Limited's (ASX:CDA) 1.2% Dividend Worth Your Time?2 weeks ago | Simply Wall St
A Look At The Intrinsic Value Of Codan Limited (ASX:CDA)1 month ago | Simply Wall St
Codan (ASX:CDA) Knows How To Allocate Capital EffectivelyValuation
Is Codan undervalued compared to its fair value and its price relative to the market?
41.01x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDA (A$17.01) is trading above our estimate of fair value (A$15.19)
Significantly Below Fair Value: CDA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CDA is poor value based on its PE Ratio (41x) compared to the XO Electronic industry average (31x).
PE vs Market: CDA is poor value based on its PE Ratio (41x) compared to the Australian market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: CDA is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: CDA is overvalued based on its PB Ratio (11.5x) compared to the AU Electronic industry average (3.4x).
Future Growth
How is Codan forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
17.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDA's forecast earnings growth (17.1% per year) is above the savings rate (2%).
Earnings vs Market: CDA's earnings (17.1% per year) are forecast to grow faster than the Australian market (15.4% per year).
High Growth Earnings: CDA's earnings are forecast to grow, but not significantly.
Revenue vs Market: CDA's revenue (19.5% per year) is forecast to grow faster than the Australian market (5.8% per year).
High Growth Revenue: CDA's revenue (19.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CDA's Return on Equity is forecast to be high in 3 years time (31.9%)
Past Performance
How has Codan performed over the past 5 years?
24.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDA has high quality earnings.
Growing Profit Margin: CDA's current net profit margins (20.1%) are higher than last year (17.2%).
Past Earnings Growth Analysis
Earnings Trend: CDA's earnings have grown significantly by 24.4% per year over the past 5 years.
Accelerating Growth: CDA's earnings growth over the past year (38.4%) exceeds its 5-year average (24.4% per year).
Earnings vs Industry: CDA earnings growth over the past year (38.4%) exceeded the Electronic industry 10%.
Return on Equity
High ROE: CDA's Return on Equity (28%) is considered high.
Financial Health
How is Codan's financial position?
Financial Position Analysis
Short Term Liabilities: CDA's short term assets (A$184.7M) exceed its short term liabilities (A$76.4M).
Long Term Liabilities: CDA's short term assets (A$184.7M) exceed its long term liabilities (A$33.2M).
Debt to Equity History and Analysis
Debt Level: CDA is debt free.
Reducing Debt: CDA has no debt compared to 5 years ago when its debt to equity ratio was 35.1%.
Debt Coverage: CDA has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CDA has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Codan current dividend yield, its reliability and sustainability?
1.29%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CDA's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.99%).
High Dividend: CDA's dividend (1.29%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).
Stability and Growth of Payments
Stable Dividend: CDA's dividend payments have been volatile in the past 10 years.
Growing Dividend: CDA's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51.8%), CDA's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CDA's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.0yrs
Average management tenure
CEO
Donald McGurk (58 yo)
10.42yrs
Tenure
AU$1,453,306
Compensation
Mr. Donald S. McGurk, HNC (Mech Eng), MBA, FAICD, Harvard AMP, has been the Chief Executive Officer and Managing Director of Codan Limited since November 2010 and has been its Executive Director since May ...
CEO Compensation Analysis
Compensation vs Market: Donald's total compensation ($USD1.11M) is about average for companies of similar size in the Australian market ($USD1.26M).
Compensation vs Earnings: Donald's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: CDA's management team is seasoned and experienced (11 years average tenure).
Board Members
Experienced Board: CDA's board of directors are considered experienced (6.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Codan Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Codan Limited
- Ticker: CDA
- Exchange: ASX
- Founded: 1959
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: AU$3.070b
- Shares outstanding: 180.51m
- Website: https://www.codan.com.au
Number of Employees
Location
- Codan Limited
- Technology Park
- 2 Second Avenue
- Mawson Lakes
- South Australia
- 5095
- Australia
Listings
Biography
Codan Limited develops rugged and electronics solutions for organizations, mining companies, security and military groups, and governments worldwide. It operates through three segments: Communications Equi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 08:29 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.