Coda Octopus Group Inc. Common stock (CODA)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Generates $4 million in annual free cash flow (3.2% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 16.0 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 28.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 81% margin of safety—limited downside protection

AI Analysis

Coda Octopus Group Inc. Common stock is a micro-cap industrials company valued at $136 million. The business generates $28 million in annual revenue with a 3.3% net margin and $4 million in free cash flow. From a quality standpoint, Coda shows Altman Z-Score of 16.0 confirms fortress-level solvency and modest 7% ROE. On valuation, the stock is trading at a premium 33.3x earnings, with trades above its Graham Number with a negative 81% margin. Growth dynamics show revenue growing at 28.8% and profit growth of 1.9%. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Coda's 29% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $4 million in annual free cash flow (3.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 33x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer