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Highlights

  • Codan share price up 56.76% over the past 12 months, far outperforming the ASX 200’s 7.15% gain.

  • First-half FY25 revenue rose 15%, with communications division revenue up 22% year-on-year.

  • Broker consensus targets further growth, with a 6% upside potential and continued dividend payouts.

Codan Ltd (ASX:CDA) has emerged as a standout performer on the ASX 200, delivering a stellar 56.76% gain in the past 12 months, closing Wednesday at AU$16.82 per share. This impressive rally places the tech and communications specialist leagues ahead of the broader S&P/ASX 200 Index (ASX: XJO), which managed a comparatively modest 7.15% return over the same period.

Investors have not only enjoyed significant capital gains, but Codan also currently trades with a 1.5% fully franked trailing dividend yield, adding income to its growth profile.

The company’s standout performance has prompted bullish commentary from market watchers. Andrew Wielandt of DP Wealth Advisory believes Codan could continue to outperform into 2026, citing itsfundamentals and a promising outlook. Speaking to The Bull, Wielandt stated:

"Codan is a technology company involved in metal detection and communications... Revenue of AU$305.6 million in the first half of fiscal year 2025 was up 15% on the prior corresponding period. The communications business was the key driver of the group result."

He also noted that Codan shares are currently trading at a price-to-earnings (P/E) ratio of approximately 34, which he views as "undemanding" given the company’s earnings momentum and positive sector outlook.

Wielandt pointed to Codan's brighter guidance for its communications segment for the full year, reinforcing his buy recommendation. The consensus broker target of AU$17.90 per share implies a 6% potential upside, not accounting for upcoming dividend distributions.

Codan’s strong financials were reinforced in its half-year FY25 results released on 21 February, which showed significant year-on-year growth. Highlights included:

  • A 21% increase in EBIT, reaching AU$65.8 million.

  • A 21% rise in NPAT, up to AU$46.1 million.

  • Communications division revenue of AU$187 million, up 22% YoY and beating the management’s forecast range of 10%–15%.

The company rewarded shareholders with an interim dividend of 12.5 cents per share, fully franked, reflecting a 19% increase from the previous year’s interim payout.

Commenting on the results, Codan CEO Alf Ianniello said:

“Our focus remains on strengthening the business and laying the foundation for long-term, profitable growth... We are pleased with the progress being made in Communications as this business continues to strengthen with an orderbook of AU$247 million, up 35% versus the prior corresponding period.”