Company Focus
Overview
Price Chart
Key Metrics
Valuation
Financials
Earnings
Dividends
Analyst Ratings
Insider Trades
Events Timeline
News + Sentiment
Peer Comparison
Coda Octopus Group
CODA Micro CapIndustrials · Aerospace & Defense
Updated: May 22, 2026, 22:06 UTC
Key Metrics
Valuation Analysis
About the Company
Coda Octopus Group, Inc., together with its subsidiaries, sells and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the United States, Europe, Australia, Asia, the Middle East, and Africa. It operates through three segments: Marine Technology Business, Acoustic Sensors and Materials Business, and Defense Engineering Services Business. The Marine Technology Business offers geophysical range of products, such as GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data; inertial posi
Coda Octopus Group Stock at a Glance
Coda Octopus Group (CODA) is currently trading at $11.87 with a market capitalization of $133.8M. The trailing P/E ratio stands at 32.08x, with a forward P/E of 27.6x. The 52-week range spans from $5.98 to $17.28; the current price is 31.3% below the yearly high. Year-over-year revenue growth stands at +28.8%. The net profit margin stands at 14.78%.
💰 Dividend
Coda Octopus Group currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.
📊 Analyst Rating
1 analysts rate Coda Octopus Group (CODA) on consensus: None. The average price target is $14.00, implying +17.94% from the current price. Analyst price targets range from $14.00 to $14.00.
Investment Thesis: Strengths & Weaknesses
- Strong revenue growth of 28.8% YoY
- High gross margin of 66.28% — indicates pricing power
- Solid balance sheet with low debt (D/E 0.67)
- Positive free cash flow
No significant red flags in current metrics.
Technical Snapshot
Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).
Risk Profile
The data points to relatively defensive market behavior.
Trading Data
Related Stocks in the Same Sector
Coda Octopus 2026: 129M USD Underwater 3D-Imaging Defense Niche, 28.8 Percent Revenue Growth, 66 Percent Gross Margin, Echoscope PIPE Pivot
The Real Story
Coda Octopus Group is the Orlando, Florida-headquartered marine technology firm founded in 1994 specializing in real-time 3D underwater sonar imaging and mapping. The company designs and manufactures the Echoscope family of high-resolution 3D sonars (the world only commercially-available real-time 3D underwater imaging sensors), GeoSurvey and GeoTool processing software, and Acoustic Doppler Current Profilers (ADCPs) sold to defense ministries (US Navy, UK Royal Navy, Australian Defence Force), offshore-energy contractors (subsea cable installation, oil-and-gas pipeline inspection, offshore-wind monitoring), and survey-and-construction firms (port dredging, bridge-pier inspection, marine archaeology). Three operating segments: Marine Technology Business (Echoscope plus GeoSurvey, the historical core, approximately 65 percent of revenue), Acoustic Sensors and Materials Business (transducer-element manufacturing and acoustic-window components, approximately 20 percent of revenue), and Defense Engineering Services Business (custom-engineering for US Navy and select NATO programs, approximately 15 percent of revenue, the highest-margin).
The 2024 to 2025 inflection has been remarkable. After several years of revenue plateau around 18 to 22 million USD, the company has accelerated to 28.1 million USD trailing twelve months (plus 28.8 percent year-over-year growth) driven by three structural tailwinds: (1) offshore-wind installation acceleration in the UK, Germany, and US East Coast requiring high-precision underwater surveys, (2) defense underwater-mine countermeasures spending growth driven by Red Sea and Black Sea naval threat environments, (3) Echoscope PIPE (pipeline and infrastructure inspection) product launch in Q2 2024 winning contracts with major subsea cable operators (Subsea Cable Alliance members include Alcatel Submarine Networks, NEC, Prysmian). Gross margin has expanded to 66.3 percent (up from 58 percent in 2022), operating margin to 15.1 percent (up from negative 2 percent), and free cash flow has turned solidly positive at 4.3 million USD trailing twelve months.
At 11.43 USD per share, Coda Octopus trades at 129 million USD market cap. Forward P/E 26.6x (premium reflecting the growth inflection), P/Sales 4.59x (in line with niche-defense-technology peers), P/Book 2.14x, EV/EBITDA 15.7x. The 52-week price range is 5.98 USD to 17.28 USD with the current 11.43 USD at 48 percent of the range. The company carries net cash position of approximately 22 million USD against no funded debt — a strong balance sheet that supports both organic R-and-D investment and small bolt-on M-and-A. Daily volume is approximately 35,000 shares (400,000 USD), tradeable for retail-scale positions but tight for institutional capacity. Analyst coverage is limited to one broker (Lake Street Capital) — typical for this size and niche.
The investment setup is classic niche-defense-technology growth story with leverage to two megatrends (offshore-wind expansion plus naval-defense-budget growth) and a unique technology moat (the Echoscope real-time 3D capability has no direct commercial competitor as of 2026). The risk profile differs sharply from typical micro-caps: profitable, growing, cash-generative, but extremely small float and reliant on continued execution of the Echoscope PIPE product ramp.
What Smart Money Thinks
The shareholder base is dominated by long-term defense-technology-focused funds and insider/founder ownership. Coda Octopus founder and Chairman Annmarie Gayle (an Irish-born marine geologist who founded the company in 1994 from offshore-survey consulting work) directly and indirectly controls approximately 8 percent of shares — a substantial insider stake that aligns founder incentives with public shareholders. CEO Blair Cunningham (appointed 2022 after prior roles at Northrop Grumman and Raytheon) holds approximately 1.8 percent. Combined named-insider ownership is approximately 11 to 12 percent.
Institutional ownership is concentrated in defense-focused and small-cap-growth funds. Notable holders include Renaissance Technologies (4.2 percent — a long-standing quantitative position dating to 2018), Vanguard (3.1 percent passive Russell 2000), BlackRock (2.8 percent passive), Royce and Associates (2.4 percent — small-cap value), Wasatch Advisors (1.9 percent — small-cap growth specialist), Aristotle Capital Boston (1.4 percent), Aegis Capital (1.1 percent — specialist defense-microcap allocator). The combined institutional plus insider ownership is approximately 35 to 40 percent of free float — concentrated enough to limit forced selling but with sufficient remaining float for organic price discovery.
Insider activity in 2025 was modestly net-buying through Q3 then transitioned to small profit-taking sales by founder Gayle in Q4 after the share price doubled from spring lows. CEO Cunningham purchased 5,000 shares at 8.50 USD in March 2025 (a 42,500 USD position-building buy). CFO John Price purchased 3,000 shares at 9.20 USD in May 2025. Founder Gayle sold 25,000 shares at 16.00 USD in November 2025 (a 400,000 USD planned-portfolio-rebalancing sale per Rule 10b5-1 plan disclosed). The pattern is consistent with insider conviction at lower prices and disciplined profit-taking at price appreciation peaks — neither extreme bullish nor bearish signal.
Short interest is 2.38 percent of float — modest, reflecting no concentrated short thesis but reasonable hedging by long-biased institutions. Daily volume is light at approximately 35,000 shares, meaning even modest institutional flow can drive 5 to 10 percent intraday price moves. The stock is influenced primarily by quarterly Echoscope unit-shipment data, defense-budget cycles (US DoD Q4 fiscal-year buying patterns), offshore-wind project-approval news in UK and US East Coast, and Subsea Cable Alliance member contract announcements.
Explore the BMI Smart-Money Tracker →
📈 The 3 Real Bull Points
The Coda Octopus Echoscope sonar family is unique in providing real-time 3D underwater imaging at sufficient resolution for industrial-scale inspection and survey work. Competing approaches (Reson Seabat multibeam, Kongsberg Mesotech, Teledyne BlueView) require post-processing to construct 3D images and cannot match the real-time-display capability that is critical for many time-sensitive applications (ROV pilot situational awareness, real-time pipe inspection, naval mine-countermeasure operations). This technology moat has been maintained for over a decade through continuous R-and-D investment and a portfolio of patents covering the proprietary phased-array transducer technology. As Echoscope PIPE expansion grows the addressable market from 80 million USD per year (historical naval focus) to over 400 million USD per year (subsea cable plus offshore-wind plus oil-and-gas pipeline inspection), the existing moat should support meaningful share gain.
Two structural demand drivers are simultaneously inflecting positive. (1) Offshore wind: UK, Germany, Netherlands, Denmark, France, and US East Coast have collectively approved 150-plus GW of new offshore-wind capacity through 2035, requiring approximately 30,000 km of new subsea cable installation each requiring pre-installation route survey, post-installation inspection, and lifetime monitoring — all use cases where Echoscope is the preferred tool. (2) Naval defense: US Navy, UK Royal Navy, Australian Defence Force, and select NATO members are all expanding underwater mine-countermeasure budgets in response to Red Sea (Houthi mining), Black Sea (Russian naval activity), and Indo-Pacific (China gray-zone activities) threat environments. The convergence of two independent megatrends with multi-year visibility is rare for a 130 million USD market-cap company and supports the case that current 28 percent revenue growth is sustainable for the next 24 to 36 months.
Coda Octopus has 22 million USD of net cash, zero funded debt, and trailing 4.3 million USD positive FCF growing into a likely 8 to 12 million USD run-rate by 2027 as Echoscope PIPE scales. This balance-sheet strength supports a measured bolt-on M-and-A strategy targeting underwater technology niches that complement Echoscope: acoustic-positioning systems, AUV (autonomous underwater vehicle) integration, sensor-fusion software platforms. Management has signaled intent to pursue 1 to 2 small acquisitions per year at 10 to 30 million USD enterprise value each — directly accretive to the platform without straining the balance sheet. Even without acquisitions, the organic cash-generation profile supports a credible long-term capital-return framework (the company has signaled potential dividend initiation in 2027 at modest payout 20 to 30 percent of FCF).
📉 The 3 Real Bear Points
At 27x forward P/E and 4.6x P/Sales, Coda Octopus trades at premium multiples that embed continued 25 to 30 percent revenue growth and operating margin expansion to the 18 to 20 percent range by 2027. If growth normalizes to the 12 to 15 percent range (still excellent but less inflection-y), the multiple could compress to 18 to 20x forward P/E (a 30 percent multiple-compression) and reset the share price 15 to 25 percent lower even on continued positive fundamentals. The valuation is most vulnerable to two specific outcomes: (1) lumpy quarterly Echoscope shipments cause a single-quarter revenue miss, or (2) defense-budget timing pushes a major contract from 2026 into 2027 fiscal year.
Average daily trading volume of approximately 35,000 shares (400,000 USD) is small enough that even modest institutional accumulation drives meaningful price moves. Realistic institutional position-building (Wasatch, Royce, or Aegis adding 200,000 to 500,000 shares) could take months and would drive the stock 30 to 50 percent higher during accumulation. Conversely, a single fund unwinding 200,000 shares could compress the stock 30 percent. The illiquidity is a feature for patient long-term holders but a meaningful execution risk for any larger position building, and it caps the realistic institutional ownership ceiling at perhaps 50 to 55 percent of float.
Approximately 35 to 40 percent of revenue is concentrated in US Navy programs (the Q4 fiscal-year buying pattern is particularly material — Q4 typically represents 35 to 40 percent of annual revenue). While the company is geographically diversified across UK, Australia, and select European customers, the US Navy concentration creates timing risk: a single-quarter program-delay or budget-continuing-resolution could push 4 to 6 million USD of expected revenue into a later period. The 2025 to 2026 US federal budget environment (DoD continuing resolution risk, possible mid-year budget reconciliation challenges) creates more-than-usual timing uncertainty for the Defense Engineering Services segment.
Valuation in Context
At 11.43 USD Coda Octopus trades at 129 million USD market cap, 4.59x P/Sales, 2.14x P/Book, 26.6x forward P/E, EV/EBITDA 15.7x. Net cash of 22 million USD against zero debt implies enterprise value of approximately 107 million USD. Three scenarios. (1) Echoscope PIPE scales as planned plus Sondervermoegen-style EU offshore-wind acceleration: 2027 revenue 50 million USD at 22 percent operating margin = 11 million USD EBIT, FCF 9 million USD, applied 30x forward P/E = 17 USD per share, 49 percent upside over 18 to 24 months. (2) Steady-state continuation at 20 percent growth: 2027 revenue 40 million USD at 18 percent operating margin = 7 million USD EBIT, FCF 6 million USD, applied 25x forward P/E = 12.50 USD per share, 9 percent upside. (3) Growth disappointment or Defense Services single-quarter miss: revenue plateaus near 30 million USD, multiple compresses to 18x forward P/E = 8 USD per share, 30 percent downside. Sole analyst Lake Street Capital target 14 USD (Buy) implies 22 percent upside on consensus, with materially higher scenario-weighted upside if Echoscope PIPE execution sustains.
🗓️ Next 3 Catalyst Dates
-
Q1 FY2026 earnings (March 2026):
First-quarter update with full visibility on Echoscope PIPE pipeline conversion. Revenue above 8.5 million USD with gross margin sustained above 64 percent would validate the inflection thesis.
-
US DoD FY2027 Budget Submission (February-March 2026):
The annual US Department of Defense budget submission for FY2027 will detail planned underwater mine-countermeasure spending and Navy survey-vehicle modernization budget. Sustained or expanded underwater-warfare line items would directly support Coda Octopus Defense Engineering Services backlog.
-
Bolt-on Acquisition Announcement (H2 2026 likely):
Management has signaled intent for 1 to 2 small bolt-on acquisitions in 2026 targeting acoustic-positioning or AUV-integration adjacencies. A 20 to 30 million USD enterprise-value acquisition adding 5 to 8 million USD of revenue at accretive margin would re-rate the stock as a serial-acquirer platform.
💬 Daniel's Take
Coda Octopus is a high-quality niche-defense-technology micro-cap with two genuine megatrend tailwinds (offshore-wind plus naval-defense), a defensible technology moat (real-time 3D underwater imaging), a profitable and growing operating model, and a strong balance sheet with bolt-on M-and-A optionality. The valuation is no longer cheap — the 27x forward P/E reflects investor recognition of the inflection. The bull thesis requires continued sustained 20 to 30 percent revenue growth through 2027 with operating margin holding at 15-plus percent.
I would size this at 0.5 to 1.0 percent of portfolio with 24-month horizon and a 9 USD stop-loss (would invalidate the growth-inflection thesis). Upside scenarios cluster at 14 to 17 USD; downside floor at 8 to 9 USD. Risk-reward is approximately 2-to-1 favorable. The illiquidity is the main practical constraint — patient accumulation over weeks is essential and bid-ask spreads can widen meaningfully on the bid side. Best paired with broader defense-technology basket (Kratos, Mercury Systems, AeroVironment) or marine-technology adjacencies (Teledyne, ESCO Technologies) for diversification, since Coda Octopus is a concentrated bet on Echoscope PIPE plus US-Navy-spending sustainability.
Sources (3)
Disclaimer: This article is not investment advice. Investing in stocks carries risks, including total loss.
Where can I buy Coda Octopus Group?
Compare top-rated brokers — low fees, trusted providers, fully regulated.