IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
7.5%
Sector: -1.4%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, Coda Octopus Group, Inc. (CODA) receives a "Hold" rating with a composite score of 52.6/100, ranked #1157 out of 4446 stocks. Key factor scores: Quality 50/100, Value 55/100, Momentum 71/100. This is quantitative analysis only — not investment advice.
Coda Octopus Group, Inc. (CODA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Coda Octopus Group, Inc. Do?
Coda Octopus Group, Inc., together with its subsidiaries, develops and sells underwater technologies and equipment for 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. It sells technology solutions to the subsea and underwater markets. The company's solutions include geophysical systems, a geophysical data acquisition systems, processing, and analysis software that are used primarily by survey companies, offshore renewable companies, research institutions, and salvage companies; GNSS-aided navigation systems; Echoscope and Echoscope PIPE used for real time monitoring of cable installations for offshore wind projects; and diver augmented vision display system. It offers CodaOctopus GeoSurvey products, such as hardware and software solutions for field acquisition of sidescan sonar and sub-bottom profiler; and CodaOctopus DA4G productivity suite of software that automates the tasks of analyzing, annotating, and mosaicing complex data sets. It markets its products under the CodaOctopus brand name. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida. Coda Octopus Group, Inc. (CODA) is classified as a micro-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Annmarie M. Gayle and employs approximately 80 people. With a market capitalization of $131M, CODA is one of the notable companies in the Technology sector.
Coda Octopus Group, Inc. (CODA) Stock Rating — Hold (April 2026)
As of April 2026, Coda Octopus Group, Inc. receives a Hold rating with a composite score of 52.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CODA ranks #1,157 out of 4,446 stocks in our coverage universe. Within the Technology sector, Coda Octopus Group, Inc. ranks #117 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CODA Stock Price and 52-Week Range
Coda Octopus Group, Inc. (CODA) currently trades at $12.22. The stock lost $0.16 (1.3%) in the most recent trading session. The 52-week high for CODA is $17.28, which means the stock is currently trading -29.3% from its annual peak. The 52-week low is $5.76, putting the stock 112.2% above its annual trough. Recent trading volume was 84K shares, suggesting relatively thin trading activity.
Is CODA Overvalued or Undervalued? — Valuation Analysis
Coda Octopus Group, Inc. (CODA) carries a value factor score of 55/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 30.13x, compared to the Technology sector average of 45.27x — a discount of 33%. The price-to-book ratio stands at 2.27x, versus the sector average of 3.16x. The price-to-sales ratio is 5.33x, compared to 1.06x for the average Technology stock. On an enterprise value basis, CODA trades at 24.68x EV/EBITDA, versus 12.79x for the sector.
Overall, CODA's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Coda Octopus Group, Inc. Profitability — ROE, Margins, and Quality Score
Coda Octopus Group, Inc. (CODA) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 7.5%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 6.8% versus the sector average of -1.0%.
On a margin basis, Coda Octopus Group, Inc. reports gross margins of 68.0%, compared to 50.9% for the sector. The operating margin is 18.3% (sector: -0.5%). Net profit margin stands at 18.0%, versus -1.5% for the average Technology stock. Revenue growth is running at 32.7% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CODA Debt, Balance Sheet, and Financial Health
Coda Octopus Group, Inc. has a debt-to-equity ratio of 11.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 8.86x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $33M.
CODA has a beta of 0.66, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Coda Octopus Group, Inc. is 46/100, reflecting average volatility within the normal range for its sector.
Coda Octopus Group, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Coda Octopus Group, Inc. reported revenue of $25M and earnings per share (EPS) of $0.37. Net income for the quarter was $4M. Gross margin was 68.0%. Operating income came in at $5M.
In FY 2025, Coda Octopus Group, Inc. reported revenue of $27M and earnings per share (EPS) of $0.37. Net income for the quarter was $4M. Gross margin was 66.5%. Revenue grew 30.7% year-over-year compared to FY 2024. Operating income came in at $5M.
In Q3 2025, Coda Octopus Group, Inc. reported revenue of $7M and earnings per share (EPS) of $0.11. Net income for the quarter was $1M. Gross margin was 68.3%. Revenue grew 29.0% year-over-year compared to Q3 2024. Operating income came in at $1M.
In Q2 2025, Coda Octopus Group, Inc. reported revenue of $7M and earnings per share (EPS) of $0.08. Net income for the quarter was $908,762. Gross margin was 64.1%. Revenue grew 31.8% year-over-year compared to Q2 2024. Operating income came in at $1M.
Over the past 8 quarters, Coda Octopus Group, Inc. has demonstrated a growth trajectory, with revenue expanding from $5M to $25M. Investors analyzing CODA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CODA Dividend Yield and Income Analysis
Coda Octopus Group, Inc. (CODA) does not currently pay a dividend. This is common among smaller companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
CODA Momentum and Technical Analysis Profile
Coda Octopus Group, Inc. (CODA) has a momentum factor score of 71/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 47/100 reflects moderate short selling activity.
CODA vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Coda Octopus Group, Inc. (CODA) ranks #117 out of 584 stocks based on the Blank Capital composite score. This places CODA in the top quartile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing CODA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CODA vs S&P 500 (SPY) comparison to assess how Coda Octopus Group, Inc. stacks up against the broader market across all factor dimensions.
CODA Next Earnings Date
No upcoming earnings date has been announced for Coda Octopus Group, Inc. (CODA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CODA? — Investment Thesis Summary
Coda Octopus Group, Inc. presents a balanced picture with arguments on both sides. Price momentum is positive at 71/100, suggesting the trend favors buyers.
In summary, Coda Octopus Group, Inc. (CODA) earns a Hold rating with a composite score of 52.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CODA stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
Coda Octopus Group, Inc. (CODA) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Coda Octopus Group, Inc. receives a Hold rating, reflecting a balanced view of its strong financial performance and growth potential against valuation concerns and inherent risks in its niche market. While the company exhibits impressive profitability metrics and revenue growth compared to its sector, its current valuation suggests limited upside potential, warranting a cautious approach. The primary takeaway is that Coda Octopus is a fundamentally sound company operating in a specialized market, but investors should carefully consider valuation and potential risks before initiating or increasing positions.
The company's focus on underwater 3D imaging and mapping technologies provides a degree of specialization, but its reliance on specific industries and projects introduces volatility. The Hold rating acknowledges the company's strengths, including its robust balance sheet and superior margins, while also recognizing the need for sustained growth and the potential for competitive pressures to impact future performance. Investors should monitor the company's ability to maintain its growth trajectory and manage its operational risks effectively.
Business Strategy & Overview
Coda Octopus Group operates through two segments: Marine Engineering Business and Marine Technology Business, focusing on developing and selling underwater technologies and equipment for 3D imaging, mapping, defense, and survey applications. The company's core strategy revolves around providing specialized solutions to the subsea and underwater markets, including geophysical systems, GNSS-aided navigation systems, and diver augmented vision display systems. A key product is the Echoscope, used for real-time monitoring of cable installations for offshore wind projects, highlighting the company's focus on high-growth sectors like renewable energy.
The company's geographic reach spans the Americas, Europe, Australia, Asia, the Middle East, and Africa, indicating a diversified market presence. Coda Octopus markets its products under the CodaOctopus brand name, emphasizing brand recognition and quality. The company's strategy also includes offering software solutions like CodaOctopus GeoSurvey and CodaOctopus DA4G, which automate the analysis and processing of complex data sets, enhancing the value proposition for its customers.
Coda Octopus's strategic positioning within the underwater technology market allows it to cater to specific needs in sectors such as offshore renewables, defense, and survey. By focusing on niche applications and providing specialized solutions, the company aims to differentiate itself from larger competitors. The product pipeline likely includes enhancements to existing products and the development of new technologies to address emerging market demands. The company's ability to innovate and adapt to changing industry requirements will be crucial for maintaining its competitive edge.
The industry context for Coda Octopus involves increasing demand for underwater imaging and mapping technologies driven by factors such as offshore energy exploration, infrastructure development, and environmental monitoring. The growth of the offshore wind industry, in particular, presents significant opportunities for the company's Echoscope technology. However, the industry is also subject to cyclical trends and regulatory changes, which could impact demand for the company's products and services. Coda Octopus's success depends on its ability to capitalize on these opportunities while mitigating potential risks.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
32.7%
Sector: 14.2%
+130% VS SCTR
Economic Moat Analysis
Coda Octopus Group possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's specialized technology, particularly its Echoscope real-time 3D sonar, creates a degree of differentiation and brand recognition within its niche market. This technology requires significant expertise and development, creating a barrier to entry for potential competitors. The company's proprietary software solutions, such as CodaOctopus GeoSurvey and DA4G, further enhance its competitive advantage by providing integrated solutions for data acquisition and analysis.
Switching costs also contribute to the company's narrow moat. Customers who have invested in Coda Octopus's systems and software may face costs and disruptions associated with switching to alternative solutions. The learning curve associated with new technologies and the need to integrate them into existing workflows can create inertia, making customers less likely to switch unless there is a significant cost or performance advantage offered by a competitor. This stickiness provides Coda Octopus with a degree of pricing power and customer retention.
However, the company's moat is not wide due to the relatively small size of its market and the potential for competition from larger, more diversified technology companies. While Coda Octopus has a strong position in certain niche applications, its overall market share is limited. The company's reliance on specific industries and projects also introduces volatility, as demand for its products and services can fluctuate depending on market conditions and project timelines. This lack of scale and diversification limits the company's ability to achieve significant cost advantages or network effects.
Furthermore, the technology landscape in the underwater imaging and mapping market is constantly evolving, with new innovations and competitors emerging regularly. Coda Octopus must continue to invest in research and development to maintain its technological edge and prevent its products from becoming obsolete. The company's ability to innovate and adapt to changing market demands will be crucial for sustaining its narrow moat over the long term. Without continuous innovation, the moat could erode as competitors develop comparable or superior technologies.
Financial Health & Profitability
Coda Octopus Group exhibits strong financial health, characterized by robust revenue growth, high margins, and a solid balance sheet. The company's TTM revenue of $26.56 million represents a significant increase compared to $20.32 million in FY2024 and $19.35 million in FY2023, indicating a strong growth trajectory. This growth is further supported by the company's impressive gross margin of 68.0% and operating margin of 18.3%, both significantly higher than the sector averages of 51.2% and -0.5%, respectively. The net margin of 18.0% also outperforms the sector average of -1.5%, highlighting the company's superior profitability.
The company's balance sheet is exceptionally strong, with total cash of $33.10 million and no debt. This provides Coda Octopus with significant financial flexibility to invest in research and development, pursue acquisitions, or return capital to shareholders. The current ratio of 8.86 indicates a high level of liquidity, ensuring the company can meet its short-term obligations. The absence of debt also reduces financial risk and provides a competitive advantage compared to companies with higher leverage.
However, the company's free cash flow (FCF) generation has been inconsistent. While the TTM FCF is $3.22 million, FY2024 saw a negative FCF of $-6.21 million. This inconsistency warrants further investigation to understand the underlying drivers and ensure sustainable cash flow generation in the future. The quarterly financial history reveals a consistent trend of positive net income and strong gross margins, but the lack of FCF data for recent quarters makes it difficult to assess the company's cash flow performance accurately.
Overall, Coda Octopus's financial health is strong, supported by robust revenue growth, high margins, and a debt-free balance sheet. However, investors should closely monitor the company's free cash flow generation to ensure it remains positive and sustainable. The company's ability to maintain its strong financial performance will be crucial for supporting its growth initiatives and delivering long-term value to shareholders. The high cash balance provides a safety net, but consistent FCF generation is essential for long-term sustainability.
Valuation Assessment
Coda Octopus Group's valuation presents a mixed picture. The company's P/E ratio of 32.1x is lower than the sector average of 45.3x, suggesting that the stock may be undervalued relative to its peers. However, the P/E ratio should be considered in the context of the company's growth rate and future prospects. The EV/EBITDA ratio of 6.2x is significantly lower than the sector average of 13.0x, further indicating potential undervaluation. This suggests that the company's enterprise value is low relative to its earnings before interest, taxes, depreciation, and amortization.
However, the market capitalization of $133.85 million should be considered in relation to the company's revenue of $26.56 million and net income of $4.13 million. While the company's revenue growth of 32.7% is impressive, the current valuation may already reflect expectations for continued growth. The company's ROE of 7.5% is positive but not exceptionally high, suggesting that the company's returns on equity are moderate. The lack of detailed FCF data for recent quarters makes it difficult to assess the company's FCF yield accurately, which is a key metric for valuation.
Given the company's strong financial performance and growth potential, a fair valuation would likely be somewhere between its current levels and the sector averages. The company's superior margins and debt-free balance sheet justify a premium valuation compared to its peers. However, the company's reliance on specific industries and projects introduces volatility, which should be factored into the valuation. The current valuation appears to be fair, reflecting the company's strengths and weaknesses.
Overall, Coda Octopus Group's valuation is reasonable but not significantly undervalued. The company's strong financial performance and growth potential are offset by its reliance on specific industries and projects. Investors should carefully consider the company's growth prospects and potential risks before making an investment decision. A more attractive entry point may be warranted if the company's stock price declines due to market volatility or company-specific factors. The Hold rating reflects this balanced view of the company's valuation.
Risk & Uncertainty
Coda Octopus Group faces several specific, idiosyncratic risks that could impact its business and financial performance. One of the primary risks is its reliance on specific industries and projects, particularly in the offshore energy and defense sectors. A slowdown in these industries or the cancellation of major projects could significantly reduce demand for the company's products and services. This concentration risk makes the company vulnerable to cyclical trends and economic downturns in these sectors.
Competition is another significant risk. While Coda Octopus has a narrow moat based on its specialized technology and switching costs, the underwater imaging and mapping market is constantly evolving, with new competitors and technologies emerging regularly. Larger, more diversified technology companies could enter the market and offer competing solutions, potentially eroding the company's market share and pricing power. The company must continue to invest in research and development to maintain its technological edge and prevent its products from becoming obsolete.
Regulatory changes and environmental concerns could also impact the company's business. Stricter regulations on offshore energy exploration and infrastructure development could increase costs and reduce demand for the company's products and services. Environmental concerns related to underwater noise pollution and the impact of sonar technology on marine life could also lead to restrictions on the use of the company's products. The company must comply with all applicable regulations and address environmental concerns to maintain its license to operate.
Finally, the company's small size and limited diversification make it vulnerable to operational risks. A disruption in its supply chain, a product recall, or a cybersecurity breach could have a significant impact on its financial performance. The company must implement robust risk management practices to mitigate these operational risks and ensure business continuity. The lack of diversification also means that the company's financial performance is highly dependent on the success of its existing products and services.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCoda Octopus's strong revenue growth and high margins, significantly exceeding sector averages, indicate a competitive advantage and potential for continued outperformance.
BULL VIEWThe company's debt-free balance sheet and substantial cash reserves provide financial flexibility for strategic investments and potential acquisitions, driving future growth.
BULL VIEWIncreasing demand for underwater imaging and mapping technologies in the offshore wind and defense sectors positions Coda Octopus for sustained growth in its niche market.
The Bear Case
BEAR VIEWCoda Octopus's reliance on specific industries and projects exposes it to significant cyclical risk and potential revenue volatility.
BEAR VIEWThe company's narrow moat and small size make it vulnerable to competition from larger, more diversified technology companies.
BEAR VIEWThe current valuation already reflects expectations for continued growth, limiting upside potential and increasing the risk of a correction if growth slows.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CODA and 4,400+ other equities.
Coda Octopus Group, Inc. exhibits a 109% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.8%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
68.0%
Sector: 50.9%
Operating Margin
Core business profitability
18.3%
Sector: -0.5%
Net Margin
Bottom-line profitability
18.0%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
