Codan Limited
Codan Limited Fundamental Analysis
Codan Limited (CODAF) shows moderate financial fundamentals with a PE ratio of 55.72, profit margin of 16.88%, and ROE of 23.78%. The company generates $0.8B in annual revenue with strong year-over-year growth of 22.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CODAF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCODAF demonstrates superior asset utilization.
Valuation Score
ModerateCODAF shows balanced valuation metrics.
Growth Score
ExcellentCODAF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCODAF maintains a strong and stable balance sheet.
Profitability Score
ExcellentCODAF achieves industry-leading margins.
Key Financial Metrics
Is CODAF Expensive or Cheap?
P/E Ratio
CODAF trades at 55.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CODAF's PEG of 1.59 indicates fair valuation.
Price to Book
The market values Codan Limited at 12.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 37.78 times EBITDA. This signals the market has high growth expectations.
How Well Does CODAF Make Money?
Net Profit Margin
For every $100 in sales, Codan Limited keeps $16.88 as profit after all expenses.
Operating Margin
Core operations generate 20.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.78 in profit for every $100 of shareholder equity.
ROA
Codan Limited generates $14.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Codan Limited produces operating cash flow of $160.35M, showing steady but balanced cash generation.
Free Cash Flow
Codan Limited generates strong free cash flow of $150.77M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.83 in free cash annually.
FCF Yield
CODAF converts 2.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
55.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How CODAF Stacks Against Its Sector Peers
| Metric | CODAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 55.72 | 35.62 | Worse (Expensive) |
| ROE | 23.78% | 1161.00% | Weak |
| Net Margin | 16.88% | -126170.00% (disorted) | Strong |
| Debt/Equity | 0.33 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 1.78 | 5.83 | Neutral |
| ROA | 14.10% | -308589.00% (disorted) | Strong |
CODAF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Codan Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.32%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
59.37%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
38.53%
Industry Style: Growth, Innovation, High Beta
High Growth