Coda Octopus Group, Inc. (CODA)
Valuation Overview•Is Coda Octopus Group, Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
High-quality fundamentals with a strong composite quality score of 76/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
CODA demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($28M) and minimal debt risk.
The company demonstrates solid revenue growth (6.1% 3Y CAGR) however, earnings have severely contracted over the same period. The company maintains healthy operational efficiency with a 20.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $6.9M | +30.7% | +6.1% | +5.8% | +3.3% | |
| EBITDA | $2.1M | — | +1.1% | — | — | |
| Net Income | $1.7M | +13.3% | -1.3% | — | +14.5% | |
| EPS (Diluted) | $0.15 | +15.6% | -0.9% | +4.3% | +8.7% | |
| Free Cash Flow | $1.4M | +224.7% | -0.7% | +11.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 66.8% | 67.9% | 68.2% | 66.7% |
| Operating Margin | 20.0% | 16.3% | 17.9% | 19.4% |
| Net Margin | 17.7% | 16.5% | 18.4% | 19.9% |
| FCF Margin | 24.8% | 11.1% | 14.4% | 14.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.13 | $0.15 | +15.4% | ||
| Q1'26 | $0.06 | $0.08 | +33.3% | ||
| Q1'26 | $0.07 | $0.09 | +28.6% | ||
| Q3'25 | $0.09 | $0.11 | +22.2% | ||
| Q2'25 | $0.03 | $0.08 | +166.7% | ||
| Q1'25 | $0.03 | $0.08 | +166.7% | ||
| Q1'25 | $0.07 | $0.03 | -57.1% | ||
| Q3'24 | $0.10 | $0.11 | +10.0% |
Total return is +36.6% (1Y), outperforming the benchmark by +11.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +5.2% | -4.2% | — |
| 1Y | +36.6% | +11.6% | — |
| 3YCAGR | +5.5% | -16.8% | — |
| 5YCAGR | +1.2% | -12.7% | — |
| 10YCAGR | +14.2% | +1.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Coda Octopus Group, Inc. (CODA) valuation, health, and returns.
Based on peer relative multiples, Coda Octopus Group, Inc. appears Fair versus peers compared to industry peers.
Coda Octopus Group, Inc. has multiple valuation anchors: Peer Relative Fair Value: $10.48 | Wall Street Analyst Target: $14.00 (implying +40.0% upside). A convergence of these signals offers higher conviction.
Coda Octopus Group, Inc. displays good financial health with a composite quality score of 76/100, supported by a Altman Z-Score of 12.0 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 11.2%.
Coda Octopus Group, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Coda Octopus Group, Inc.'s current growth trajectory is Accelerating. The company achieved +30.7% 1Y revenue growth and +15.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +6.1%.
Wall Street consensus is Buy based on 1 analysts, beating EPS expectations in 75% of recent quarters with a 6-quarter streak. The consensus price target represents a +40.0% change from current levels.
Investment risks for Coda Octopus Group, Inc. include: -44.9% 1-year max drawdown. Volatility risk is characterized by a beta of 1.27x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.