Cadiz (CDZI) AI Stock Analysis

• Market Cap: $214.28M
• Dividend Yield: N/A
• Average Volume (3M): 713.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 382.57%
• EPS Growth: 5.98%
• Country: US
• Employees: 25
• Sector: Utilities
• Sector Strength: 90
• Industry: Regulated Water
• EPS (TTM): -0.53
• Shares Outstanding: 81,785,010
• 10 Day Avg. Volume: 643,097
• 30 Day Avg. Volume: 713,885
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 46.67
• Price to Cash Flow (P/CF): -12.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 504.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Cadiz is experiencing revenue growth and has secured a significant investment for a key project, which are positive developments. However, ongoing operational losses, negative profitability, and weak technical indicators offset these positives. The stock's valuation is unattractive due to negative earnings and lack of dividends, which affects its overall appeal.

Cadiz Business Overview & Revenue Model

Company Description

Cadiz Inc., together with its subsidiaries, operates as a natural resources development company in the United States. It engages in the water resource and agricultural development activities in San Bernardino County properties. The company owns approximately 35,000 acres of land in the Cadiz and Fenner valleys of eastern San Bernardino County; and approximately 11,000 acres of land in the eastern Mojave Desert portion of San Bernardino County. It is also involved in the cultivation of lemons, and spring and fall plantings of vegetables and grains. Cadiz Inc. was founded in 1983 and is headquartered in Los Angeles, California.

How the Company Makes Money

Cadiz Inc. generates revenue primarily through its water resource management operations. The company aims to monetize its water assets by developing and operating sustainable water supply and storage projects. Key revenue streams include leasing water rights to municipalities and other entities seeking reliable water sources. Additionally, Cadiz engages in agricultural activities on its land holdings, contributing to its income. The company's earnings are significantly influenced by regulatory approvals, water demand in California, and its ability to establish strategic partnerships with local government entities and private organizations for water infrastructure projects.

Cadiz Financial Statement Overview

Summary

Cadiz is in the midst of a turnaround with notable revenue growth, but persistent losses and negative profitability margins pose significant challenges. Although the company has made progress in reducing its debt, financial stability is still a concern due to ongoing cash flow deficits and negative equity returns. Continued efforts in improving cash flow and managing expenses are crucial for future financial health.

Income Statement

Cadiz has shown significant revenue growth, with revenue increasing from $1,501,000 in 2022 to $9,608,000 in 2023, indicating a positive growth trajectory. However, the company's profitability metrics are concerning, with negative EBIT and EBITDA margins, and a consistently negative net profit margin, reflecting ongoing operational losses. The company faces challenges in achieving profitability.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio improved as total debt decreased to $29,182,000 from $61,215,000 in 2022, demonstrating efforts to manage leverage. However, the equity ratio remains low, and the return on equity is negative due to losses, indicating financial instability. The company's financial structure is still under pressure, but there are signs of debt reduction.

Cash Flow

Cadiz's cash flow situation is challenging. The operating cash flow remains negative, and while there is a slight improvement in free cash flow compared to previous years, it is still negative, indicating ongoing cash burn. The company is heavily reliant on financing activities to cover its cash needs, which could be unsustainable in the long term.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.54M	9.61M	1.99M	1.50M	564.00K	541.00K
	Gross Profit
-793.00K	2.31M	-896.00K	-566.00K	126.00K	541.00K
	EBIT
-22.07M	-23.25M	-20.94M	-16.56M	-17.51M	-11.75M
	EBITDA
-20.67M	-23.25M	-24.49M	-15.89M	-17.90M	-23.59M
	Net Income Common Stockholders
-29.27M	-31.12M	-31.45M	-24.83M	-30.31M	-35.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.17M	17.29M	4.50M	10.00M	10.96M	7.29M
	Total Assets
47.87M	134.49M	107.37M	110.79M	112.49M	74.36M
	Total Debt
37.70M	29.18M	61.22M	70.39M	68.72M	95.83M
	Net Debt
31.53M	11.89M	56.71M	60.39M	57.76M	88.54M
	Total Liabilities
39.73M	100.53M	67.41M	76.56M	71.88M	99.66M
	Stockholders Equity
8.14M	33.96M	39.97M	34.22M	40.61M	-25.30M
Cash Flow		Free Cash Flow
-24.63M	-22.47M	-26.71M	-21.98M	-38.18M	-19.16M
	Operating Cash Flow
-21.68M	-21.53M	-20.92M	-18.60M	-15.27M	-13.43M
	Investing Cash Flow
-2.49M	-1.18M	-5.79M	-4.12M	-23.47M	-9.84M
	Financing Cash Flow
14.20M	35.51M	17.57M	16.65M	51.18M	14.87M

Cadiz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDZI, the sentiment is Negative. The current price of 2.48 is below the 20-day moving average (MA) of 2.86, below the 50-day MA of 3.73, and below the 200-day MA of 3.67, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 31.39 is Neutral, neither overbought nor oversold. The STOCH value of 57.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDZI.

Cadiz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARTNA	76 Outperform	$355.35M	17.52	8.69%	3.44%	9.20%	18.90%
PCYO	75 Outperform	$237.39M	17.03	11.12%	―	58.77%	116.91%
GWRS	66 Neutral	$285.71M	43.70	12.03%	2.90%	-0.63%	-28.00%
CWCO	63 Neutral	$381.47M	23.81	9.01%	1.71%	-25.66%	-5.11%
Sector *	63 Neutral	$9.19B	11.97	6.86%	4.40%	4.23%	-11.24%
YORW	61 Neutral	$504.35M	24.74	8.99%	2.45%	5.53%	-14.72%
CDZI	41 Neutral	$214.28M	―	-84.24%	―	382.57%	5.98%

Cadiz Corporate Events

Cadiz Secures Major Investment for Mojave Water Project

On March 3, 2025, Cadiz Inc. entered into a Letter of Agreement with a lead investor to invest up to $175 million in the Mojave Groundwater Storage Company, LLC, a new entity created for the construction and operation of Cadiz’s groundwater banking project in the Mojave Desert. This agreement marks a significant milestone for Cadiz, as it expects to secure up to $401 million in equity capital from various investors, including Native American Tribes, to fund the project. The LOA outlines that Cadiz will contribute assets such as pipeline ownership and water storage rights to the new entity, while retaining certain rights and contracts. The agreement is not binding until definitive agreements are executed, and it is subject to shareholder approval and other conditions.