CDA Codan
05 july 2026
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ASX:CDA (Codan Limited) has experienced strong operational growth over the last 5 years, achieving record-breaking earnings and a share price rally. Net profit reached $103.5 million in FY25 and hit $71.2 million in H1 FY26 alone, while maintaining low debt and a strong Return on Equity (ROE) exceeding 24%. [1, 2, 3, 4, 5, 6]
5-Year Financial & Operational Breakdown
- Profitability: Codan has sustained impressive margins, with Net Profit After Tax (NPAT) rising consistently. The company achieved an NPAT of $103.5 million in FY25 (a 27% year-on-year increase) and upgraded its full-year guidance for FY26 on the back of bullish sales in its Communications and Metal Detection units. [1, 2, 3]
- Debt Levels: The balance sheet remains highly conservative. By the end of FY25, net debt had been significantly reduced to $78.3 million, and its net debt-to-EBITDA ratio sat comfortably at 0.4 times, providing ample room for strategic acquisitions. [1, 2, 3, 4]
- Return on Equity (ROE): Codan has been a highly capital-efficient business. The company maintains an ROE of 24.35%, comfortably beating historical levels as revenue scaling drives bottom-line growth. [1, 2, 3]
- Share Price Performance: The stock has rallied significantly, climbing from under $10 over the earlier part of the 5-year cycle to reach record all-time highs exceeding $45 by mid-2026. [1, 2, 3]
Key Catalysts
- Minelab (Metal Detection): Sustained demand driven by favorable global gold prices and successful new product releases.
- Communications: Tactical acquisitions (such as Kagwerks and Adaptive Dynamics) have expanded the company’s footprint in defense and technology, leading to an increasing and secure order book. [1, 2, 3, 4, 5]
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PE ratios
The historical Price-to-Earnings (P/E) ratio for Codan Limited (ASX: CDA) has fluctuated significantly over the last 10 years, moving from single digits up to its current premium multiple of 62.4x to 62.9x in July 2026. The stock's 10-year historical average P/E sits at roughly 20.10. [1, 2, 3, 4]
Analyze the 10-Year Historical P/E Ratios
| Year [1, 2, 3, 4] | Approximate P/E Ratio | Key Driver / Market Phase |
|---|---|---|
| 2026 (Current) | 62.4x - 62.9x | Massive premium pricing driven by a 55% surge in net income |
| 2025 | 35.3x - 37.1x | Rising demand for communications tech and metal detection gear |
| 2024 | 26.8x - 27.0x | Recovery in core tech divisions and improved profit margins |
| 2023 | 21.3x - 21.5x | Stabilizing period after post-COVID supply chain and demand shocks |
| 2022 | 11.8x - 12.5x | Sharp multiple contraction following broader tech selloff |
| 2021 | 36.0x | Peak pandemic demand for Minelab detectors and gold-mining tools |
| 2020 | 22.0x | Steady growth as digital communications segments expanded |
| 2019 | 17.5x | Moderate valuation matching consistent mid-teen earnings growth |
| 2018 | 15.1x | Tracking close to long-term historical median levels |
| 2017 | 18.4x | Early phases of international tactical communications scaling |
| 2016 | 9.0x | Cyclical low with ultra-cheap multiples relative to earnings |
Evaluate Essential Valuation Metrics
Review Crucial Growth Drivers
- Multiple Expansion: The dramatic jump from ~27x in 2024 to over 62x in 2026 is due to the stock price running ahead of near-term earnings. Investors are paying a premium because first-half 2026 net income jumped 55% to AU$71.2m. [, 2, 3]
- Sector Contrast: At ~62x earnings, Codan trades significantly higher than the median ASX market average (where roughly half of listed companies sit below a 22x P/E). However, it remains closely aligned with its direct peer average in high-growth electronics. [1, 2, 3]
You can cross-reference changing consensus valuations through the Morningstar ASX CDA Profile
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dividends
Not an income stock !
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