NasdaqCM:CODA

Stock Analysis Report

Executive Summary

Coda Octopus Group, Inc., together with its subsidiaries, develops and sells underwater technologies and equipment for imaging, mapping, defense, and survey applications in the United States, Europe, and Australia.

Rewards

Trading at 59.8% below its fair value

Earnings are forecast to grow 16.78% per year

Earnings grew by 634.1% over the past year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($78M)



Snowflake Analysis

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has Coda Octopus Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CODA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

CODA

-2.1%

US Electronic

-1.4%

US Market


1 Year Return

27.0%

CODA

18.8%

US Electronic

14.5%

US Market

Return vs Industry: CODA exceeded the US Electronic industry which returned 18.8% over the past year.

Return vs Market: CODA exceeded the US Market which returned 14.5% over the past year.


Shareholder returns

CODAIndustryMarket
7 Day4.0%-2.1%-1.4%
30 Day-1.2%-1.5%1.3%
90 Day-21.6%8.5%4.6%
1 Year27.0%27.0%20.1%18.8%17.1%14.5%
3 Year344.6%344.6%44.5%40.4%45.1%35.7%
5 Year789.3%789.3%78.5%69.7%67.1%48.6%

Price Volatility Vs. Market

How volatile is Coda Octopus Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Coda Octopus Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CODA ($7.47) is trading below our estimate of fair value ($18.59)

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


Price To Earnings Ratio

PE vs Industry: CODA is good value based on its PE Ratio (9.6x) compared to the Electronic industry average (20.5x).

PE vs Market: CODA is good value based on its PE Ratio (9.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CODA is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: CODA is overvalued based on its PB Ratio (2.8x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Coda Octopus Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CODA's forecast earnings growth (16.8% per year) is above the savings rate (1.7%).

Earnings vs Market: CODA's earnings (16.8% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: CODA's revenue (17% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: CODA's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CODA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Coda Octopus Group performed over the past 5 years?

26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CODA has high quality earnings.

Growing Profit Margin: CODA's current net profit margins (33.1%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: CODA's earnings have grown significantly by 26.7% per year over the past 5 years.

Accelerating Growth: CODA's earnings growth over the past year (634.1%) exceeds its 5-year average (26.7% per year).

Earnings vs Industry: CODA earnings growth over the past year (634.1%) exceeded the Electronic industry 53.7%.


Return on Equity

High ROE: CODA's Return on Equity (28.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Coda Octopus Group's financial position?


Financial Position Analysis

Short Term Liabilities: CODA's short term assets ($23.1M) exceed its short term liabilities ($3.6M).

Long Term Liabilities: CODA's short term assets ($23.1M) exceed its long term liabilities ($839.8K).


Debt to Equity History and Analysis

Debt Level: CODA's debt to equity ratio (4.1%) is considered satisfactory.

Reducing Debt: CODA's debt to equity ratio has reduced from 713.5% to 4.1% over the past 5 years.

Debt Coverage: CODA's debt is well covered by operating cash flow (610.3%).

Interest Coverage: CODA's interest payments on its debt are well covered by EBIT (63.8x coverage).


Balance Sheet

Inventory Level: CODA has a high level of physical assets or inventory.

Debt Coverage by Assets: CODA's debt is covered by short term assets (assets are 19.6x debt).


Next Steps

Dividend

What is Coda Octopus Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CODA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CODA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CODA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CODA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CODA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Coda Octopus Group's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

Annmarie Gayle (52yo)

8.3yrs

Tenure

US$230,000

Compensation

Ms. Annmarie Gayle, LL.B, LLM has been the Chief Executive Officer of Coda Octopus Group, Inc. since September 2011 and as its Chairman of the Board since March 2017. Ms. Gayle served as Senior Vice Presid ...


CEO Compensation Analysis

Compensation vs Market: Annmarie's total compensation ($USD230.00K) is below average for companies of similar size in the US market ($USD508.62K).

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


Management Age and Tenure

8.3yrs

Average Tenure

52yo

Average Age

Experienced Management: CODA's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

63yo

Average Age

Experienced Board: CODA's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$63,46830 Jul 19
G. Runnels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,864
Max PriceUS$13.05
SellUS$191,25001 Jul 19
G. Runnels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$12.75
SellUS$823,65019 Jun 19
Sandy Hills B.V.
EntityCompany
Shares57,000
Max PriceUS$14.45
SellUS$1,568,60017 Jun 19
Sandy Hills B.V.
EntityCompany
Shares110,000
Max PriceUS$14.26
SellUS$321,95721 May 19
Bryan Ezralow
EntityIndividual
Shares21,885
Max PriceUS$14.72
SellUS$1,260,65420 May 19
Bryan Ezralow
EntityIndividual
Shares78,094.5
Max PriceUS$18.43
SellUS$39720 May 19
Bryan Ezralow
EntityIndividual
Shares20.5
Max PriceUS$19.38
SellUS$161,08920 May 19
J Emerson
EntityIndividual
Shares10,943
Max PriceUS$14.72
SellUS$161,08920 May 19
Emerson Partners
EntityCompany
Shares10,943
Max PriceUS$14.72
SellUS$197,75014 May 19
J Emerson
EntityIndividual
Shares13,000
Max PriceUS$15.21
SellUS$187,59714 May 19
Emerson Partners
EntityCompany
Shares12,317
Max PriceUS$15.23
SellUS$715,93510 May 19
J Emerson
EntityIndividual
Shares43,224
Max PriceUS$18.22
SellUS$95,86010 May 19
Emerson Partners
EntityCompany
Shares6,245
Max PriceUS$15.35
SellUS$78,87510 May 19
Emerson Partners
EntityCompany
Shares4,328
Max PriceUS$18.22
SellUS$9,16705 Apr 19
Sandy Hills B.V.
EntityCompany
Shares890
Max PriceUS$10.30
SellUS$391,55103 Apr 19
Sandy Hills B.V.
EntityCompany
Shares38,600
Max PriceUS$10.19
SellUS$52,57201 Apr 19
Sandy Hills B.V.
EntityCompany
Shares5,200
Max PriceUS$10.11
SellUS$19,99029 Mar 19
Sandy Hills B.V.
EntityCompany
Shares1,902
Max PriceUS$10.51
SellUS$138,15127 Mar 19
Sandy Hills B.V.
EntityCompany
Shares12,765
Max PriceUS$11.00
SellUS$289,97825 Mar 19
Sandy Hills B.V.
EntityCompany
Shares25,603
Max PriceUS$11.45
SellUS$7,193,29014 Dec 18
Forest Manor N.V.
EntityCompany
Shares1,251,007
Max PriceUS$5.75

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.7%.


Management Team

  • Blair Cunningham (50yo)

    President of Technology

    • Tenure: 14.9yrs
    • Compensation: US$190.09k
  • Annmarie Gayle (52yo)

    CEO & Chairman

    • Tenure: 8.3yrs
    • Compensation: US$230.00k
  • Mike Midgley (66yo)

    Chief Financial Officer

    • Tenure: 6.9yrs
    • Compensation: US$211.56k

Board Members

  • Annmarie Gayle (52yo)

    CEO & Chairman

    • Tenure: 8.3yrs
    • Compensation: US$230.00k
  • Mary Losty (59yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$10.00k
  • Mike Hamilton (71yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$26.67k
  • G. Runnels (63yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$2.50k
  • Joseph Plumb (76yo)

    Independent Director

    • Tenure: 0.3yrs

Company Information

Coda Octopus Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Coda Octopus Group, Inc.
  • Ticker: CODA
  • Exchange: NasdaqCM
  • Founded: 1994
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$78.048m
  • Shares outstanding: 10.69m
  • Website: https://www.codaoctopusgroup.com

Number of Employees


Location

  • Coda Octopus Group, Inc.
  • 3300 S Hiawassee Road
  • Suite 104-105
  • Orlando
  • Florida
  • 32835
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CODANasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDSep 2004

Biography

Coda Octopus Group, Inc., together with its subsidiaries, develops and sells underwater technologies and equipment for imaging, mapping, defense, and survey applications in the United States, Europe, and A ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:56
End of Day Share Price2019/12/05 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.