OTCPK:CODA.F

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 12.94% per year

Earnings have grown 33.2% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet average dividend payer.


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: CODA.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CODA.F

-2.3%

US Electronic

0.06%

US Market


1 Year Return

n/a

CODA.F

7.7%

US Electronic

19.4%

US Market

Return vs Industry: Insufficient data to determine how CODA.F performed against the US Electronic industry.

Return vs Market: Insufficient data to determine how CODA.F performed against the US Market.


Shareholder returns

CODA.FIndustryMarket
7 Day0%-2.3%0.06%
30 Day0%-6.2%1.1%
90 Day0.7%1.1%8.9%
1 Yearn/a8.8%7.7%21.9%19.4%
3 Year188.1%188.1%34.4%30.8%48.9%39.3%
5 Year521.4%521.4%66.6%58.5%71.9%53.1%

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

No news available

Valuation

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

31.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CODA.F ($4.35) is trading above our estimate of fair value ($3.95)

Significantly Below Fair Value: CODA.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CODA.F is poor value based on its PE Ratio (31.9x) compared to the Electronic industry average (19.6x).

PE vs Market: CODA.F is poor value based on its PE Ratio (31.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: CODA.F is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: CODA.F is overvalued based on its PB Ratio (6.9x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CODA.F's forecast earnings growth (12.9% per year) is above the savings rate (1.7%).

Earnings vs Market: CODA.F's earnings (12.9% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: CODA.F's revenue (10.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: CODA.F's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CODA.F's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has Codan performed over the past 5 years?

33.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CODA.F has high quality earnings.

Growing Profit Margin: CODA.F's current net profit margins (16.9%) are lower than last year (18.1%).


Past Earnings Growth Analysis

Earnings Trend: CODA.F's earnings have grown significantly by 33.2% per year over the past 5 years.

Accelerating Growth: CODA.F's earnings growth over the past year (9.8%) is below its 5-year average (33.2% per year).

Earnings vs Industry: CODA.F earnings growth over the past year (9.8%) underperformed the Electronic industry 14.6%.


Return on Equity

High ROE: CODA.F's Return on Equity (21.6%) 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: CODA.F's short term assets (A$102.5M) exceed its short term liabilities (A$53.8M).

Long Term Liabilities: CODA.F's short term assets (A$102.5M) exceed its long term liabilities (A$9.3M).


Debt to Equity History and Analysis

Debt Level: CODA.F is debt free.

Reducing Debt: CODA.F has no debt compared to 5 years ago when its debt to equity ratio was 49.8%.

Debt Coverage: CODA.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CODA.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CODA.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CODA.F's debt is covered by short term assets.


Next Steps

Dividend

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

1.72%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: CODA.F's dividend (1.72%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CODA.F's dividend (1.72%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: CODA.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: CODA.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.3%), CODA.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CODA.F's dividends in 3 years are forecast to be covered by earnings (57.7% 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 ($USD822.37K) is below average for companies of similar size in the US market ($USD2.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Donald McGurk
MD, CEO & Executive Director9.3yrsAU$1.23m0.34% A$3.3m
Michael Barton
CFO & Company Secretary10.4yrsAU$642.12k0.15% A$1.5m
Rory Linehan
Chief Technology Officer1.1yrsAU$731.49k0.086% A$841.1k
Peter Charlesworth
Executive General Manager of Minelab & Codan Defence17.1yrsAU$817.98k0.30% A$3.0m
S. Sangster
Executive General Manager of Tactical Communications0yrsAU$689.78k0.00021% A$2.1k
Kayi Li
Head of Investor Relations0yrsno datano data

9.8yrs

Average Tenure

Experienced Management: CODA.F's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald McGurk
MD, CEO & Executive Director9.3yrsAU$1.23m0.34% A$3.3m
Kathryn Gramp
Independent Non-Executive Director4.3yrsAU$106.99k0.0056% A$54.6k
David Simmons
Independent Chairman5yrsAU$196.15k0.048% A$472.4k
Graeme Rodger Barclay
Independent Non-Executive Director5yrsAU$98.08k0.022% A$211.7k
Peter Leahy
Independent Non-Executive Director11.4yrsAU$98.08k0.032% A$314.7k

5.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CODA.F'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: CODA.F 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: CODA.F
  • Exchange: OTCPK
  • Founded: 1959
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: AU$1.467b
  • Listing Market Cap: AU$981.560m
  • 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:48
End of Day Share Price2019/12/04 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.