Coda Octopus Group, Inc. (NASDAQ:CODA) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CODA, it is a company with strong financial health as well as a buoyant growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Coda Octopus Group here.
Flawless balance sheet with exceptional growth potential
CODA is an attractive stock for growth-seeking investors, with an expected earnings growth of 61% in the upcoming year. This growth in the bottom-line is bolstered by an impressive top-line expansion of 58% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. CODA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. CODA’s has produced operating cash levels of 0.36x total debt over the past year, which implies that CODA’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Coda Octopus Group, I’ve put together three relevant factors you should look at:
- Historical Performance: What has CODA’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is CODA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CODA is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CODA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.