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Edible Garden AG , Inc. (EDBL)
:EDBL
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Edible Garden AG , Inc. (EDBL) AI Stock Analysis

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EDBL

Edible Garden AG , Inc.

(NASDAQ:EDBL)

Rating:48Neutral
Price Target:
$2.50
▼(-4.21%Downside)
Edible Garden AG, Inc. faces significant financial challenges with negative profitability metrics and high leverage, resulting in a low financial performance score. The technical indicators suggest a neutral trend, and valuation metrics are unattractive due to negative earnings. On the positive side, strategic shifts towards higher-margin products and recent funding efforts provide some optimism for future growth. These factors combined result in an overall stock score of 48.
Positive Factors
Acquisition
The pending acquisition of Narayan offers substantial cross-selling potential to bolster Edible's bottom line.
Growth segment
EDBL's nutraceutical products remain a promising high-margin growth segment, and this segment is expected to be a key growth driver in 2025.
Product launch
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 dilution
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 visibility
Recent product transitions and rationalization efforts introduce near-term uncertainty around revenue and margin visibility.

Edible Garden AG , Inc. (EDBL) vs. SPDR S&P 500 ETF (SPY)

Edible Garden AG , Inc. Business Overview & Revenue Model

Company DescriptionEdible Garden AG, Inc. (EDBL) operates within the agricultural technology sector, focusing on the cultivation and distribution of sustainably grown produce. The company specializes in providing fresh, organic, and locally-sourced herbs and vegetables, using advanced controlled environment agriculture techniques to ensure high-quality products year-round. Edible Garden's core offerings include a variety of leafy greens and herbs available to consumers through retail and wholesale channels.
How the Company Makes MoneyEdible Garden AG, Inc. generates revenue primarily through the sale of its fresh produce to grocery stores, supermarkets, and food service providers. The company's key revenue streams include retail sales of packaged herbs and vegetables, as well as bulk sales to food distributors and restaurant chains. By leveraging partnerships with major retailers, Edible Garden ensures widespread distribution of its products, contributing significantly to its earnings. Additionally, the company's focus on sustainable and organic farming practices appeals to the growing market of health-conscious consumers, further driving demand for its offerings.

Edible Garden AG , Inc. Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: 13.48%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in Edible Garden's strategic shift to higher-margin products and sustainability efforts, resulting in improved gross margins and future growth potential. However, challenges remain with a revenue decline due to exiting lower-margin categories and ongoing net losses.
Q1-2025 Updates
Positive Updates
Strategic Transition to Higher-Margin Products
Edible Garden's strategic shift towards higher-margin, shelf-stable products such as Kick. Sport Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Way is gaining traction, contributing to margin expansion and setting the stage for scalable, profitable growth. Non-perishable revenue rose 15% year-over-year.
Gross Profit and Margin Improvement
Gross profit increased 283% year-over-year, nearly quadrupling from Q1 2024, while gross margin improved to 3.2% from 0.7% due to stronger cost control and improved SKU mix.
Acquisition of Natural Shrimp Facility
The $15.5 million acquisition of Natural Shrimp Farms, funded through a mix of preferred equity and institutional investment, strengthens Edible Garden's balance sheet without increasing debt and enhances water efficiency and reduces environmental impact.
Sustainability Achievements
Through initiatives like Walmart's Project Gigaton, Edible Garden helped avoid nearly 11,800 metric tons of virgin plastic in 2024, conserved over 28,000 gallons of diesel, and diverted 103 tons of food through donation programs.
Negative Updates
Revenue Decline
Total revenue declined by $414,000 to $2.7 million in Q1 2025, a decrease of 13.2% compared to Q1 2024, primarily due to the strategic decision to exit lower-margin floral and lettuce categories.
Net Loss
Net loss was $3.3 million for the first 3 months ended March 31, 2025, compared to a net loss of $4 million for the same period in 2024. Despite improvement, the company still reported a significant net loss.
Company Guidance
During the first quarter of 2025, Edible Garden AG Incorporated reported a significant strategic shift towards higher-margin, shelf-stable products, contributing to an improvement in gross margin from 0.7% to 3.2%, and a remarkable 283% year-over-year increase in gross profit. Despite a 13.2% decline in total revenue to $2.7 million, largely due to exiting lower-margin floral and lettuce categories, non-perishable revenue grew by 15%, highlighting the success of brands like Kick. Sport Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Way. The company also launched new retail partnerships with major outlets such as Walmart and ShopRite, enhancing its market presence. A significant milestone was the $15.5 million acquisition of NaturalShrimp Farms, expected to enhance operational capabilities and sustain long-term innovation. This acquisition aligns with Edible Garden's focus on sustainability, as evidenced by its participation in Walmart's Project Gigaton, which avoided nearly 11,800 metric tons of virgin plastic in 2024. The company is optimistic about delivering long-term value, supported by a focused strategy and strengthened operational foundation.

Edible Garden AG , Inc. Financial Statement Overview

Summary
Edible Garden AG, Inc. faces significant financial challenges, marked by deeply negative net profit margins and high leverage. Despite some improvement in gross profit margins, the persistent net losses, negative cash flows, and unfavorable balance sheet indicate financial instability.
Income Statement
45
Neutral
Edible Garden AG, Inc. shows a challenging financial trajectory in the income statement. The TTM (Trailing-Twelve-Months) gross profit margin stands at 17.68%, indicating slight improvement in cost management compared to previous periods. However, the net profit margin remains deeply negative at -77.36%, reflecting ongoing losses. Revenue has decreased by 2.99% from the previous annual report, showing a contraction in business. High negative EBIT and EBITDA margins further emphasize profitability issues.
Balance Sheet
40
Negative
The balance sheet reveals significant financial instability. The debt-to-equity ratio is unfavorable due to negative equity, indicating potential financial distress and high leverage. An equity ratio of 22.47% suggests limited equity financing relative to total assets. Despite a reduction in total debt, the negative stockholders' equity underscores a risky financial position, potentially limiting future financing options.
Cash Flow
50
Neutral
Cash flow analysis highlights severe cash management challenges. The company reports negative free cash flow growth, with TTM free cash flow at -$11.12 million. The operating cash flow to net income ratio is negative, suggesting cash flow issues relative to net income. However, positive financing cash flow indicates reliance on external financing, possibly dilutive, to sustain operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.86M14.05M11.55M10.51M9.44M
Gross Profit2.31M822.00K364.00K648.00K1.35M
EBITDA-8.67M-8.22M-9.38M-4.10M-3.09M
Net Income-11.05M-10.19M-15.90M-6.16M-3.71M
Balance Sheet
Total Assets11.91M6.66M6.96M3.99M4.48M
Cash, Cash Equivalents and Short-Term Investments3.53M510.00K110.00K31.00K5.00K
Total Debt3.80M4.46M6.45M8.29M4.15M
Total Liabilities7.82M6.94M9.14M11.10M6.55M
Stockholders Equity4.09M-288.00K-2.18M-7.11M-2.08M
Cash Flow
Free Cash Flow-8.82M-9.55M-11.22M-4.23M-2.15M
Operating Cash Flow-8.52M-8.53M-9.19M-4.08M-2.03M
Investing Cash Flow-303.00K-1.02M-2.03M-151.00K623.00K
Financing Cash Flow11.84M9.95M11.30M4.25M1.40M

Edible Garden AG , Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.61
Price Trends
50DMA
2.86
Negative
100DMA
2.58
Positive
200DMA
3.89
Negative
Market Momentum
MACD
-0.04
Negative
RSI
45.90
Neutral
STOCH
59.46
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 2.61 is below the 20-day moving average (MA) of 2.63, below the 50-day MA of 2.86, and below the 200-day MA of 3.89, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 59.46 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
£10.64B8.723.35%290.92%-1.40%17.93%
58
Neutral
$7.95M1.0626.62%16.65%
57
Neutral
$64.48M-2448.28%41.44%-1.20%
48
Neutral
$7.21M-580.71%-8.72%94.96%
43
Neutral
$3.09M-53.80%-46.91%-174.16%
41
Neutral
$3.80M-59.79%-45.02%-7.27%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EDBL
Edible Garden AG , Inc.
2.61
-30.39
-92.09%
SANW
S&W Seed Company
1.77
-5.91
-76.95%
AQB
AquaBounty Technologies
0.80
-0.93
-53.76%
SDOT
Sadot Group
1.08
-3.82
-77.96%
LOCL
Local Bounti Corporation
2.97
0.11
3.85%

Edible Garden AG , Inc. Corporate Events

M&A Transactions
Edible Garden AG Ends Acquisition Talks with Narayan
Neutral
Jun 3, 2025

Edible Garden AG Incorporated had previously announced on January 13, 2025, its intention to acquire Narayan d.o.o. and its subsidiaries through a non-binding letter of intent. However, after further evaluation, the company decided not to proceed with the acquisition, and negotiations have been terminated.

The most recent analyst rating on (EDBL) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Edible Garden AG , Inc. stock, see the EDBL Stock Forecast page.

Private Placements and Financing
Edible Garden AG Inc. Secures $3.5 Million Funding
Positive
May 21, 2025

On May 21, 2025, Edible Garden AG Inc. entered into an inducement letter agreement with an institutional investor to exercise existing warrants at a reduced price, in exchange for issuing new five-year warrants. This agreement is expected to generate approximately $3.5 million in gross proceeds for the company, enhancing its financial position and potentially impacting its market operations.

The most recent analyst rating on (EDBL) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Edible Garden AG , Inc. stock, see the EDBL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 26, 2025