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Edible Garden AG , Inc. (EDBL)
NASDAQ:EDBL
RESEARCH TOOLSreports
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Edible Garden AG , Inc.
(NASDAQ:EDBL)
38Underperform
Positive Factors
Acquisition
The pending acquisition of Narayan offers substantial cross-selling potential to bolster Edible's bottom line.
Product Strategy
The company's shift toward higher-margin opportunities, such as the upcoming launch of its Sports Nutrition line in Meijer and PriceSmart, is seen as a positive, margin-enhancing move.
Negative Factors
Capital Raise Impact
Significant dilution from the recent capital raise is a primary reason for lowering the 12-month price target to $0.50, from $12.00.
Price Target Reduction
The reduction of the 12-month price target to $8.00 is due to lower estimates and potential dilution from capital raises.
Revenue Uncertainty
Recent product transitions and rationalization efforts introduce near-term uncertainty around revenue and margin visibility.
Edible Garden AG , Inc. (EDBL) vs. S&P 500 (SPY)
Market Cap
$3.25M
Dividend YieldN/A
Average Volume (3M)103.66K
Price to Earnings (P/E)―
Beta (1Y)3.19
Revenue Growth-1.37%
EPS Growth79.50%
CountryUS
Employees116
SectorConsumer Defensive
Sector Strength94
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)-398.24
Shares Outstanding1,436,734
10 Day Avg. Volume111,814
30 Day Avg. Volume103,661
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.22
Price to Cash Flow (P/CF)-0.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
Edible Garden AG , Inc. Business Overview & Revenue Model
Company DescriptionEdible Garden AG, Inc. (EDBL) is a company that operates in the agricultural sector, primarily focusing on the production and distribution of fresh, organically grown produce. The company is dedicated to sustainable farming practices, leveraging innovative technologies to cultivate a variety of herbs and vegetables. Edible Garden AG aims to provide consumers with healthy, non-GMO food options while minimizing environmental impact.
How the Company Makes MoneyEdible Garden AG, Inc. generates revenue through the sale of its fresh produce to retailers, wholesalers, and directly to consumers. The company's key revenue streams include partnerships with grocery chains and food distributors, which enable it to reach a broad market. Additionally, Edible Garden AG may explore direct-to-consumer sales channels, such as online marketplaces, to further enhance its earnings. The company's commitment to sustainability and organic farming practices can also attract partnerships with eco-conscious brands and organizations, contributing to its revenue growth.
Edible Garden AG , Inc. Financial Statement Overview
Summary
Edible Garden AG, Inc. faces significant financial challenges with persistent losses, negative equity, and weak cash flow. Despite some revenue growth and improved gross profit margin, the overall financial health remains precarious, relying heavily on external funding.Income Statement
The company's revenue has shown moderate growth over the years, with a recent uptick in TTM (Trailing-Twelve-Months) revenue growth of 0.14%. However, the company is struggling with profitability, as indicated by negative EBIT and net profit margins, and consistently negative net income. Gross profit margin has improved to 18.27% in TTM, reflecting better cost management, but overall profitability remains a concern.45
Neutral
Balance Sheet
The balance sheet indicates financial instability, with negative stockholders' equity as of the last annual report and a debt-to-equity ratio that cannot be calculated due to negative equity. The equity ratio improved to 36.76% in TTM, suggesting a better asset-to-equity balance. However, the company's high liabilities relative to assets are a significant risk factor.30
Negative
Cash Flow
The company has consistently negative free cash flow, though the cash flow from financing activities suggests reliance on external funding. There has been a minor improvement in operating cash flow relative to net income, but the overall cash flow position remains weak, highlighting liquidity challenges and potential sustainability issues.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 14.07M | 14.05M | 11.55M | 10.51M | 9.44M | 5.63M | Gross Profit |
| 2.57M | 822.00K | 364.00K | 648.00K | 1.35M | 1.27M | EBIT |
| -8.80M | -9.87M | -9.00M | -4.96M | -3.80M | -4.02M | EBITDA |
| -8.06M | -8.22M | -9.38M | -4.10M | -3.09M | -3.37M | Net Income Common Stockholders |
| -12.21M | -10.19M | -15.90M | -6.16M | -3.71M | -3.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.00K | 510.00K | 110.00K | 31.00K | 5.00K | 5.00K | Total Assets |
| 0.00 | 6.66M | 6.96M | 3.99M | 4.48M | 8.22M | Total Debt |
| 0.00 | 4.46M | 6.36M | 8.29M | 4.15M | 2.58M | Net Debt |
| 5.00K | 3.95M | 6.25M | 8.26M | 4.15M | 2.58M | Total Liabilities |
| 0.00 | 6.94M | 9.14M | 11.10M | 6.55M | 4.01M | Stockholders Equity |
| 4.21M | -288.00K | -2.18M | -7.11M | -2.08M | 4.21M |
| Cash Flow | Free Cash Flow | ||||
| -8.91M | -9.55M | -11.22M | -4.23M | -2.15M | -3.73M | Operating Cash Flow |
| -8.51M | -8.53M | -9.19M | -4.08M | -2.03M | -3.52M | Investing Cash Flow |
| -399.00K | -1.02M | -2.03M | -151.00K | 623.00K | 3.51M | Financing Cash Flow |
| 8.55M | 9.95M | 11.30M | 4.25M | 1.40M | 3.71M |
Edible Garden AG , Inc. Technical Analysis
Negative
2.26
Price Trends
3.99
Negative
4.70
Negative
13.26
Negative
Market Momentum
-0.30
Negative
39.72
Neutral
45.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDBL, the sentiment is Negative. The current price of 2.26 is below the 20-day moving average (MA) of 2.67, below the 50-day MA of 3.99, and below the 200-day MA of 13.26, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 45.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDBL.
Edible Garden AG , Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $12.74B | 39.04 | 3.67% | 5.25% | -3.15% | -65.38% | |
62 Neutral | $20.22B | 13.99 | -16.14% | 3.22% | 1.15% | 3.41% | |
53 Neutral | $783.78M | ― | -8.05% | 8.98% | -3.06% | -124.82% | |
46 Neutral | $2.95B | ― | 4.98% | 5.13% | 3.61% | 94.27% | |
45 Neutral | $58.06M | ― | -12.88% | ― | 17.71% | -10.34% | |
43 Neutral | $57.09M | ― | -33.74% | ― | -16.39% | -9.08% | |
38 Underperform | $3.25M | ― | -580.71% | ― | -1.37% | 79.50% |
* Consumer Defensive Sector Average
Performance Comparison
EDBL
Edible Garden AG , Inc.
2.26
-164.74
-98.65%
CAG
Conagra Brands
26.68
-3.12
-10.47%
CRESY
Cresud Sociedad
10.60
1.75
19.77%
SMG
Scotts Miracle-Gro Company
51.41
-20.73
-28.74%
GRWG
GrowGeneration
0.96
-1.70
-63.91%
VFF
Village Farms International
0.52
-0.76
-59.38%
Edible Garden AG , Inc. Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -34.87% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
Edible Garden showed strong progress with significant growth in gross profit and strategic realignment benefits, including the expansion of the core herb business and exciting product launches. However, the company faced challenges with a flat overall revenue and increased net loss. The potential acquisition of Narayan Group and retail expansion are promising, but financial pressures remain.Highlights
Significant Gross Profit Growth
Gross profit for 2024 grew by 181.3%, and gross margin nearly tripled from 5.9% to 16.7%, showcasing the strength of Edible Garden's core business and strategic plans.
Core Herb Business Expansion
The core herb business revenue grew by $1.7 million or 16.3% year-over-year, highlighting the strength of Edible Garden's focused approach.
Strategic Realignment Benefits
Strategic decisions to exit lower margin product lines resulted in improved profitability and operational efficiency, with cost of goods sold decreasing by $1.7 million or 12.7%.
Exciting Product Launches and Innovations
New products like Kick Sports Nutrition and Squeezables were launched, with Kick Sports Nutrition debuting on Amazon, targeting active lifestyle consumers.
Acquisition Plans for Narayan Group
Signing a non-binding letter of intent to acquire Narayan Group, a European producer, marking a potential transformative move for Edible Garden's strategic growth.
Retail Footprint Growth
Expansion of retail partnerships across the US, strengthening the presence in key consumer markets and supporting the demand for organic, locally sourced products.
Inclusion in the 2024 FoodTech 500
Recognized in the top 50 of the 2024 FoodTech 500, highlighting Edible Garden's leadership in food, technology, and environmental responsibility.
Lowlights
Revenue Decline Due to Strategic Exits
Total revenue for 2024 remained relatively flat with a slight decrease of 1.4% due to strategic exits from lower margin product lines like lettuce and floral.
Increased Net Loss
Net loss for 2024 was $11.1 million, an increase from $10.2 million in 2023, primarily due to higher SG&A expenses and interest costs.
Fourth Quarter Gross Profit Challenges
Gross profit in Q4 2024 was barely profitable due to increased labor costs and other factors, affecting the quarter's financial performance.
Company Guidance
During the Edible Garden AG Incorporated 2024 Fourth Quarter Business Update Conference Call, CEO Jim Krass highlighted significant developments and financial metrics. The company achieved a 181.3% increase in gross profit and improved its gross margin from 5.9% to 16.7% in 2024. This growth was driven by a strategic refocus on the core herb business, resulting in a 16.3% revenue increase in this segment, amounting to $1.7 million. The company's total revenue for the year was $13.9 million, slightly down from $14 million in 2023, due to the exit from lower-margin lettuce and floral categories. SG&A expenses rose by 15.8% to $11.6 million, partly due to higher legal and severance costs. Despite a net loss of $11.1 million for the year, the company strengthened its balance sheet and improved liquidity, setting the stage for profitability in 2025. The proposed acquisition of Narayan Group, a European producer of organic products, is expected to enhance margins and expand international presence. The company also launched new products, including Kick Sports Nutrition and Squeezables, contributing to a diversified, high-margin portfolio.Edible Garden AG , Inc. Corporate Events
Delistings and Listing Changes
Edible Garden AG Faces Nasdaq Delisting Challenge
Negative
Oct 30, 2024
Edible Garden AG Incorporated faces potential delisting from Nasdaq after failing to maintain a minimum $1 bid price for its stock. The company has appealed and requested a hearing to contest the delisting, while its stock and warrants continue to trade under the symbols ‘EDBL’ and ‘EDBLW.’ The outcome remains uncertain, with no guarantee of regaining compliance with Nasdaq’s listing standards.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.