Coda Octopus Group Inc

Coda Octopus maintains a strong liquidity position with a current ratio of 15.56, indicating a significant buffer of current assets over current liabilities. The company has no long-term debt and a debt-to-equity ratio of 0.0, suggesting a conservative capital structure. Free cash flow of $1.41 million in the latest period supports operational flexibility, although operating cash flow was negative at -$1.25 million, likely due to working capital changes or investment in operations.

Profitability metrics show a return on equity (ROE) of 2.77% and a return on assets (ROA) of 2.62%, both below the typical thresholds for high-growth technology firms. The gross margin of 70.2% (calculated from gross profit of $3.74 million on revenue of $5.32 million) is strong, but operating margin of 25.4% (operating income of $1.35 million) suggests pressure from operating expenses. These returns are below the median for the Electronic Equipment & Parts industry, which typically sees ROE and ROA in the 5-8% range.

The company's revenue is concentrated in a single business segment focused on underwater robotics and sensor systems, with no disclosed geographic diversification. This concentration increases exposure to sector-specific demand fluctuations and regulatory changes in key markets. No material geographic breakdown is provided in the latest financials, limiting visibility into regional risk exposure.

Growth trajectory appears modest, with no specific revenue growth rates provided in the latest financials. Analysts have assigned a mean price target of $14.00, implying a 16.5% upside from the current market price of $11.93. The mean recommendation of 2.00 (Buy) suggests a cautiously optimistic outlook, though the absence of Strong Buy ratings indicates limited consensus on aggressive growth potential.

Risk factors are minimal in the latest filings, with no immediate liquidity or dilution flags detected. The company has no long-term debt and a low dilution risk score, supported by equal basic and diluted shares outstanding of 11.28 million. No recent equity issuance or ATM/shelf registration activity is reported, and no dilution sources are identified in the 10-K or other filings.

Recent events include the publication of the latest financial results, which show stable revenue and profitability. No material regulatory changes or product launches are disclosed in the latest filings. Analyst coverage remains limited, with only one Buy recommendation and no Strong Buy ratings, suggesting a cautious but not bearish market sentiment.

Operating and net margins significantly exceed the Electronic Equipment & Parts cohort median, indicating best-in-class profitability.

The company maintains a debt-to-equity ratio of zero, providing a strong balance sheet with minimal leverage risk.

Revenue grew 30.7% year-over-year to $26.6 million, demonstrating strong top-line expansion momentum in the latest period.

Free cash flow increased 13.1% year-over-year to $4.3 million, supporting robust cash generation capabilities.

The single analyst consensus price target implies 42.9% upside from the current market price of $9.80.

Net income declined at a 4.4% annual rate over four years, signaling long-term earnings erosion despite recent growth.

Cash conversion ranks in the bottom quartile of the cohort, suggesting inefficiencies in converting earnings to cash.

Revenue dropped 12.9% in fiscal 2024 before recovering, indicating historical volatility in top-line performance.

Institutional ownership is extremely fragmented with only eight holders and negligible top-five concentration weight.

Revenue $6.7M, +28,8% YoY; Operating income +52,6% YoY.

• ▍Revenue $6.7M, +28,8% YoY
• ▍Operating income +52,6% YoY
• ▍Net income +1,9% YoY
• ▍Free cash flow +7,2% YoY
• ▍Net margin 13.9%

Revenue $7.1M, +29,0% YoY; Operating income −0,8% YoY.

• ▍Revenue $7.1M, +29,0% YoY
• ▍Operating income −0,8% YoY
• ▍Net income +0,7% YoY
• ▍Free cash flow −19,6% YoY
• ▍Net margin 18.2%

Revenue $7.0M, +31,8% YoY; Operating income −19,4% YoY.

• ▍Revenue $7.0M, +31,8% YoY
• ▍Operating income −19,4% YoY
• ▍Net income −35,8% YoY
• ▍Free cash flow −17,0% YoY
• ▍Net margin 12.9%

Revenue $5.2M; Operating income $662.0k.

• ▍Revenue $5.2M
• ▍Operating income $662.0k
• ▍Net margin 17.5%

Revenue $5.1M; Operating income $287.6k.

• ▍Revenue $5.1M
• ▍Operating income $287.6k
• ▍Net margin 6.5%

Revenue $5.5M; Operating income $1.4M.

• ▍Revenue $5.5M
• ▍Operating income $1.4M
• ▍Net margin 23.3%

Revenue $5.3M; Operating income $1.4M.

• ▍Revenue $5.3M
• ▍Operating income $1.4M
• ▍Net margin 26.6%

Revenue $20.3M, +5,0% YoY; Operating income +30,8% YoY.

• ▍Revenue $20.3M, +5,0% YoY
• ▍Operating income +30,8% YoY
• ▍Net income +16,7% YoY
• ▍Free cash flow +130,2% YoY
• ▍Net margin 17.9%

Revenue $19.4M, −12,9% YoY; Operating income −45,2% YoY.

• ▍Revenue $19.4M, −12,9% YoY
• ▍Operating income −45,2% YoY
• ▍Net income −27,4% YoY
• ▍Free cash flow −62,9% YoY
• ▍Net margin 16.1%

Revenue $22.2M, +4,2% YoY; Operating income +30,4% YoY.

• ▍Revenue $22.2M, +4,2% YoY
• ▍Operating income +30,4% YoY
• ▍Net income −13,1% YoY
• ▍Free cash flow −8,6% YoY
• ▍Net margin 19.4%

Revenue $21.3M; Operating income $3.8M.

• ▍Revenue $21.3M
• ▍Operating income $3.8M
• ▍Net margin 23.2%