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CDA

CodanASX:CDA Stock Report

Market Cap

AU$2.3b

7D

-1.8%

1Y

13.4%

Updated

27 Sep, 2021

Data

Company Financials +
CDA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends3/6

CDA Overview

Codan Limited develops technology solutions for United Nations organizations, mining companies, security and military groups, government departments, individuals, and small-scale miners.

Codan Competitors

General Dynamics

NYSE:GD

US$55.2b

L3Harris Technologies

NYSE:LHX

US$44.8b

Motorola Solutions

NYSE:MSI

US$40.4b

Telefonaktiebolaget LM Ericsson

OM:ERIC B

kr339.3b

Price History & Performance

Summary of all time highs, changes and price drops for Codan
Historical stock prices
Current Share PriceAU$12.91
52 Week HighAU$9.20
52 Week LowAU$19.43
Beta0.62
1 Month Change-14.33%
3 Month Change-28.40%
1 Year Change13.45%
3 Year Change304.70%
5 Year Change696.91%
Change since IPO856.30%

Recent News & Updates

Aug 21
Codan's (ASX:CDA) Upcoming Dividend Will Be Larger Than Last Year's

Codan's (ASX:CDA) Upcoming Dividend Will Be Larger Than Last Year's

The board of Codan Limited ( ASX:CDA ) has announced that it will be increasing its dividend on the 10th of September...

Aug 13
Returns On Capital Are A Standout For Codan (ASX:CDA)

Returns On Capital Are A Standout For Codan (ASX:CDA)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Jul 06
Calculating The Fair Value Of Codan Limited (ASX:CDA)

Calculating The Fair Value Of Codan Limited (ASX:CDA)

How far off is Codan Limited ( ASX:CDA ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

CDAAU ElectronicAU Market
7D-1.8%0.5%-0.8%
1Y13.4%72.7%25.3%

Return vs Industry: CDA underperformed the Australian Electronic industry which returned 72.7% over the past year.

Return vs Market: CDA underperformed the Australian Market which returned 25.3% over the past year.

Price Volatility

Is CDA's price volatile compared to industry and market?
CDA volatility
CDA Beta0.62
Industry Beta1.01
Market Beta1

Stable Share Price: CDA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CDA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1959450Donald McGurkhttps://www.codan.com.au

Codan Limited develops technology solutions for United Nations organizations, mining companies, security and military groups, government departments, individuals, and small-scale miners. The company operates through Communications Equipment and Metal Detection segments. The Communications segment designs, develops, manufactures, and markets communication equipment that consists MIMO MESH; DTC radio solutions for the wireless transmission of video and other data applications; and Zetron communications solutions.

Codan Fundamentals Summary

How do Codan's earnings and revenue compare to its market cap?
CDA fundamental statistics
Market CapAU$2.34b
Earnings (TTM)AU$90.35m
Revenue (TTM)AU$437.05m

25.8x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CDA income statement (TTM)
RevenueAU$437.05m
Cost of RevenueAU$193.91m
Gross ProfitAU$243.14m
ExpensesAU$152.79m
EarningsAU$90.35m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.50
Gross Margin55.63%
Net Profit Margin20.67%
Debt/Equity Ratio7.9%

How did CDA perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

54%

Payout Ratio

Valuation

Is Codan undervalued compared to its fair value and its price relative to the market?

24.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CDA (A$12.91) is trading below our estimate of fair value (A$17.09)

Significantly Below Fair Value: CDA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CDA is poor value based on its PE Ratio (25.8x) compared to the Australian Electronic industry average (20.2x).

PE vs Market: CDA is poor value based on its PE Ratio (25.8x) compared to the Australian market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: CDA is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: CDA is overvalued based on its PB Ratio (7.7x) compared to the AU Electronic industry average (4.5x).


Future Growth

How is Codan forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDA's forecast earnings growth (12.3% per year) is above the savings rate (1.9%).

Earnings vs Market: CDA's earnings (12.3% per year) are forecast to grow faster than the Australian market (11.9% per year).

High Growth Earnings: CDA's earnings are forecast to grow, but not significantly.

Revenue vs Market: CDA's revenue (13.2% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: CDA's revenue (13.2% 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 (29.3%)


Past Performance

How has Codan performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDA has high quality earnings.

Growing Profit Margin: CDA's current net profit margins (20.7%) are higher than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: CDA's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: CDA's earnings growth over the past year (41.6%) exceeds its 5-year average (22.8% per year).

Earnings vs Industry: CDA earnings growth over the past year (41.6%) underperformed the Electronic industry 178.2%.


Return on Equity

High ROE: CDA's Return on Equity (29.7%) is considered high.


Financial Health

How is Codan's financial position?


Financial Position Analysis

Short Term Liabilities: CDA's short term assets (A$156.9M) exceed its short term liabilities (A$142.5M).

Long Term Liabilities: CDA's short term assets (A$156.9M) exceed its long term liabilities (A$57.4M).


Debt to Equity History and Analysis

Debt Level: CDA's debt to equity ratio (7.9%) is considered satisfactory.

Reducing Debt: CDA's debt to equity ratio has reduced from 14.4% to 7.9% over the past 5 years.

Debt Coverage: CDA's debt is well covered by operating cash flow (547.1%).

Interest Coverage: CDA's interest payments on its debt are well covered by EBIT (130.6x coverage).


Balance Sheet


Dividend

What is Codan current dividend yield, its reliability and sustainability?

2.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CDA's dividend (2.09%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.31%).

High Dividend: CDA's dividend (2.09%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


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 (53.9%), 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 well covered by earnings (50% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.0yrs

Average management tenure


CEO

Donald McGurk (59 yo)

10.83yrs

Tenure

AU$1,515,242

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 ($USD1.10M) is about average for companies of similar size in the Australian market ($USD1.33M).

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 (12 years average tenure).


Board Members

Experienced Board: CDA's board of directors are considered experienced (6.6 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.


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 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$2.335b
  • Shares outstanding: 180.88m
  • Website: https://www.codan.com.au

Number of Employees


Location

  • Codan Limited
  • Technology Park
  • 2 Second Avenue
  • Mawson Lakes
  • South Australia
  • 5095
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 15:38
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.