Executive Summary
Codan Limited develops rugged and electronics solutions for organizations, mining companies, security and military groups, and governments worldwide.
Rewards
PE ratio (26.4x) is below the Electronic industry average (33.2x)
Risk Analysis
No risks detected for CDA from our risk checks.
Snowflake Analysis
Flawless balance sheet with proven 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.6%
CDA
-0.8%
AU Electronic
0.7%
AU Market
1 Year Return
155.8%
CDA
100.0%
AU Electronic
15.8%
AU Market
Return vs Industry: CDA exceeded the Australian Electronic industry which returned 100% over the past year.
Return vs Market: CDA exceeded the Australian Market which returned 15.8% over the past year.
Shareholder returns
| CDA | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.6% | -0.8% | 0.7% |
| 30 Day | 1.4% | 1.4% | 0.4% |
| 90 Day | 22.6% | 10.2% | 6.5% |
| 1 Year | 165.5%155.8% | 104.8%100.0% | 21.0%15.8% |
| 3 Year | 313.2%260.5% | 116.5%100.8% | 37.4%19.1% |
| 5 Year | 949.1%734.7% | 211.3%177.9% | 50.7%17.1% |
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
6 days ago | Simply Wall St
Shareholders Are Raving About How The Codan (ASX:CDA) Share Price Increased 758%2 weeks ago | Simply Wall St
Codan Limited (ASX:CDA) Is Employing Capital Very Effectively4 weeks ago | Simply Wall St
A Look At The Intrinsic Value Of Codan Limited (ASX:CDA)Valuation
Is Codan undervalued compared to its fair value and its price relative to the market?
26.42x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDA (A$7.93) is trading above our estimate of fair value (A$7.22)
Significantly Below Fair Value: CDA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CDA is good value based on its PE Ratio (26.4x) compared to the Electronic industry average (33.2x).
PE vs Market: CDA is poor value based on its PE Ratio (26.4x) compared to the Australian market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: CDA is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: CDA is overvalued based on its PB Ratio (6.2x) compared to the AU Electronic industry average (3.5x).
Next Steps
Future Growth
How is Codan forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
8.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDA's forecast earnings growth (8.3% per year) is above the savings rate (1.1%).
Earnings vs Market: CDA's earnings (8.3% per year) are forecast to grow slower than the Australian market (9.2% per year).
High Growth Earnings: CDA's earnings are forecast to grow, but not significantly.
Revenue vs Market: CDA's revenue (7.1% per year) is forecast to grow faster than the Australian market (4.2% per year).
High Growth Revenue: CDA's revenue (7.1% 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 (23.1%)
Next Steps
Past Performance
How has Codan performed over the past 5 years?
29.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDA has high quality earnings.
Growing Profit Margin: CDA's current net profit margins (17.2%) are lower than last year (18.2%).
Past Earnings Growth Analysis
Earnings Trend: CDA's earnings have grown significantly by 29.5% per year over the past 5 years.
Accelerating Growth: CDA's earnings growth over the past year (12.5%) is below its 5-year average (29.5% per year).
Earnings vs Industry: CDA earnings growth over the past year (12.5%) exceeded the Electronic industry -74%.
Return on Equity
High ROE: CDA's Return on Equity (23.6%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Codan's financial position?
Financial Position Analysis
Short Term Liabilities: CDA's short term assets (A$119.1M) exceed its short term liabilities (A$55.7M).
Long Term Liabilities: CDA's short term assets (A$119.1M) exceed its long term liabilities (A$37.9M).
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 47.8%.
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
Inventory Level: CDA has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if CDA's debt is covered by short term assets.
Next Steps
Dividend
What is Codan's current dividend yield, its reliability and sustainability?
1.77%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CDA's dividend (1.77%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).
High Dividend: CDA's dividend (1.77%) is low compared to the top 25% of dividend payers in the Australian market (5.42%).
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 reasonably low payout ratio (30%), CDA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CDA's dividends in 3 years are forecast to be covered by earnings (51% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.8yrs
Average management tenure
CEO
Donald McGurk (57yo)
9.3yrs
Tenure
AU$1,229,034
Compensation
Mr. Donald S. McGurk, HNC(Mech Eng), MBA, FAICD, Harvard AMP has been the Chief Executive Officer and Managing Director of Codan Limited since November 2010. Mr. McGurk has been Executive Director of Codan ...
CEO Compensation Analysis
Compensation vs Market: Donald's total compensation ($USD820.50K) is about average for companies of similar size in the Australian market ($USD931.92K).
Compensation vs Earnings: Donald's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 9.3yrs | AU$1.23m | 0.34% A$4.9m | |
| CFO & Company Secretary | 10.4yrs | AU$642.12k | 0.15% A$2.2m | |
| Chief Technology Officer | 1.1yrs | AU$731.49k | 0.086% A$1.2m | |
| Executive General Manager of Minelab & Codan Defence | 17.1yrs | AU$817.98k | 0.30% A$4.3m | |
| Executive General Manager of Tactical Communications | 0yrs | AU$689.78k | 0.00021% A$3.0k | |
| Head of Investor Relations | 0yrs | no data | no data |
9.8yrs
Average Tenure
Experienced Management: CDA's management team is seasoned and experienced (9.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 9.3yrs | AU$1.23m | 0.34% A$4.9m | |
| Independent Non-Executive Director | 4.3yrs | AU$106.99k | 0.0056% A$79.4k | |
| Independent Chairman | 5yrs | AU$196.15k | 0.048% A$687.0k | |
| Independent Non-Executive Director | 5yrs | AU$98.08k | 0.022% A$307.9k | |
| Independent Non-Executive Director | 11.4yrs | AU$98.08k | 0.032% A$457.6k |
5.0yrs
Average Tenure
62.5yo
Average Age
Experienced Board: CDA's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CDA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
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$1.427b
- Shares outstanding: 179.99m
- Website: https://www.codan.com.au
Number of Employees
Location
- Codan Limited
- Technology Park
- 2 Second Avenue
- Mawson Lakes
- South Australia
- 5095
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CDA | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Nov 2003 |
| CODA.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 2003 |
| CDA | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Nov 2003 |
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 Equipment, Metal Detection, and Tracking Solutions. The company designs, develops, manufactures, and markets communications equipment for tactical and land mobile radios. It also designs, develops, manufactures, and markets metal detection equipment, including handheld metal detecting technologies for recreational, gold mining, and demining markets. In addition, the company engages in the design, manufacture, maintenance, and support of a range of electronic products and associated software for the mining sector. It provides tracking solutions, which enable real-time monitoring and control of mining operations, for underground hard-rock mines. Further, the company offers manufacturing and support services to the Australian defense industry. It serves its customers through a network of dealers, distributors, and agents. Codan Limited was founded in 1959 and is headquartered in Mawson Lakes, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 10:33 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.