ASX:CDA

Stock Analysis Report

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Executive Summary

Codan Limited develops rugged and electronics solutions for organizations, mining companies, security and military groups, and governments worldwide. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet and pays a dividend.


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 +/- 6% a week.

Volatility Over Time: CDA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.7%

CDA

1.6%

AU Electronic

0.5%

AU Market


1 Year Return

66.2%

CDA

42.3%

AU Electronic

0.9%

AU Market

Return vs Industry: CDA exceeded the Australian Electronic industry which returned 42.3% over the past year.

Return vs Market: CDA exceeded the Australian Market which returned 0.9% over the past year.


Shareholder returns

CDAIndustryMarket
7 Day1.7%1.6%0.5%
30 Day-14.4%0.8%9.3%
90 Day-0.5%12.0%12.3%
1 Year69.5%66.2%45.6%42.3%4.3%0.9%
3 Year454.8%401.9%150.1%132.4%23.0%7.9%
5 Year1,738.7%1,387.9%189.7%163.5%59.8%27.5%

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

Valuation

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

29.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CDA (A$10.49) is trading above our estimate of fair value (A$7.43)

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 (29.6x) compared to the XO Electronic industry average (29.7x).

PE vs Market: CDA is poor value based on its PE Ratio (29.6x) compared to the Australian market (22.7x).


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 (7.6x) compared to the AU Electronic industry average (4.2x).


Next Steps

Future Growth

How is Codan forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDA's forecast earnings growth (12.1% per year) is above the savings rate (2.3%).

Earnings vs Market: CDA's earnings (12.1% per year) are forecast to grow slower than the Australian market (18.5% per year).

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

Revenue vs Market: CDA's revenue (5.4% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: CDA's revenue (5.4% 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 (26.6%)


Next Steps

Past Performance

How has Codan performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDA has high quality earnings.

Growing Profit Margin: CDA's current net profit margins (18.3%) are higher than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: CDA's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: CDA's earnings growth over the past year (39.6%) exceeds its 5-year average (26.6% per year).

Earnings vs Industry: CDA earnings growth over the past year (39.6%) exceeded the Electronic industry -1.3%.


Return on Equity

High ROE: CDA's Return on Equity (25.9%) is considered high.


Next Steps

Financial Health

How is Codan's financial position?


Financial Position Analysis

Short Term Liabilities: CDA's short term assets (A$157.5M) exceed its short term liabilities (A$70.9M).

Long Term Liabilities: CDA's short term assets (A$157.5M) exceed its long term liabilities (A$33.3M).


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 33.2%.

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


Next Steps

Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CDA's dividend (2.1%) is higher than the bottom 25% of dividend payers in the Australian market (2.07%).

High Dividend: CDA's dividend (2.1%) is low compared to the top 25% of dividend payers in the Australian market (5%).


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 (52.2%), 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 (57.3% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Tech industry.

Management

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

10.7yrs

Average management tenure


CEO

Donald McGurk (58 yo)

10.08yrs

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 ($USD1.08M) is about average for companies of similar size in the Australian market ($USD1.34M).

Compensation vs Earnings: Donald's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Donald McGurk
MD, CEO & Executive Director10.08yrsAU$1.45m0.41%
A$ 7.7m
Michael Barton
CFO & Company Secretary11.25yrsAU$751.21k0.14%
A$ 2.7m
Rory Linehan
Chief Technology Officer & Executive GM of Minetec1.92yrsAU$844.27k0.15%
A$ 2.8m
Peter Charlesworth
Executive General Manager of Minelab & Codan Defense17.92yrsAU$919.23k0.26%
A$ 4.8m
Scott French
Executive General Manager of Land Mobile Radiono dataAU$843.05kno data
Kayi Li
Head of Investor Relationsno datano datano data

10.7yrs

Average Tenure

Experienced Management: CDA's management team is seasoned and experienced (10.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald McGurk
MD, CEO & Executive Director10.08yrsAU$1.45m0.41%
A$ 7.7m
Kathryn Gramp
Independent Non-Executive Director5.08yrsAU$109.85k0.0069%
A$ 131.0k
David Simmons
Independent Chairman5.83yrsAU$201.38k0.048%
A$ 908.9k
Graeme Rodger Barclay
Independent Non-Executive Director5.83yrsAU$100.69k0.022%
A$ 407.3k
Peter Leahy
Independent Non-Executive Director12.25yrsAU$100.69k0.032%
A$ 605.4k

5.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CDA's board of directors are considered experienced (5.8 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 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$1.894b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2003
CODA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2003
CDACHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 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 Equi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 07:03
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.