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Edible Garden AG , Inc. (EDBL)
NASDAQ:EDBL
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Edible Garden AG , Inc.
(NASDAQ:EDBL)
Rating:54Neutral
Price Target:
$5.00
▲( 38.89% Upside)
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)
Market Cap
$5.96M
Dividend YieldN/A
Average Volume (3M)3.10M
Price to Earnings (P/E)―
Beta (1Y)2.52
Revenue Growth-8.72%
EPS Growth94.96%
CountryUS
Employees98
SectorConsumer Defensive
Sector Strength69
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)-2.47
Shares Outstanding1,655,264
10 Day Avg. Volume9,152,297
30 Day Avg. Volume3,096,132
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)1.74
Price to Sales (P/S)0.00
P/FCF Ratio-0.37
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit1.52
Enterprise Value/Ebitda-0.11
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 considerable financial challenges, including declining revenues, consistent losses, and negative equity. While there are some improvements in cash flows and debt management, the overall financial health remains weak, posing significant risks to stability and growth prospects.Income Statement
Edible Garden AG, Inc. has shown inconsistent revenue growth over recent years, with a decline in the latest period. The gross profit margin remains low, and the company is facing substantial losses, as evidenced by a negative net profit margin and EBIT margin. The persistent negative EBITDA indicates ongoing operational challenges.30
Negative
Balance Sheet
The balance sheet highlights significant financial instability with a negative stockholders' equity in recent years, indicating potential solvency issues. Although the debt-to-equity ratio has improved due to reduced liabilities, the overall equity ratio remains concerning due to negative equity.25
Negative
Cash Flow
Cash flow analysis reveals negative free cash flow, though there is a slight improvement in the latest year. Operating cash flow remains negative, and the ratio of operating cash flow to net income indicates inefficiencies in cash generation relative to reported earnings.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.86M | 14.05M | 11.55M | 10.51M | 9.44M | Gross Profit |
| 2.31M | 822.00K | 364.00K | 648.00K | 1.35M | EBIT |
| -9.28M | -9.87M | -9.00M | -4.96M | -3.80M | EBITDA |
| -8.67M | -8.22M | -9.38M | -4.10M | -3.09M | Net Income Common Stockholders |
| -14.92M | -10.19M | -15.90M | -6.16M | -3.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.53M | 510.00K | 110.00K | 31.00K | 5.00K | Total Assets |
| 11.91M | 6.66M | 6.96M | 3.99M | 4.48M | Total Debt |
| 3.80M | 4.46M | 6.36M | 8.29M | 4.15M | Net Debt |
| 273.00K | 3.95M | 6.25M | 8.26M | 4.15M | Total Liabilities |
| 8.05M | 6.94M | 9.14M | 11.10M | 6.55M | Stockholders Equity |
| 4.09M | -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 | -151.00K | 623.00K | Financing Cash Flow |
| 11.84M | 9.95M | 11.30M | 4.25M | 1.40M |
Edible Garden AG , Inc. Technical Analysis
Positive
3.60
Price Trends
2.38
Positive
4.00
Positive
8.33
Negative
Market Momentum
0.27
Negative
83.90
Negative
62.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDBL, the sentiment is Positive. The current price of 3.6 is above the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.38, and below the 200-day MA of 8.33, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 83.90 is Negative, neither overbought nor oversold. The STOCH value of 62.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDBL.
Edible Garden AG , Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $8.88B | 14.67 | 4.78% | 173.89% | 3.39% | 2.18% | |
58 Neutral | $7.77M | 1.21 | 26.62% | ― | 16.65% | ― | |
54 Neutral | $5.96M | ― | -580.71% | ― | -8.72% | 94.96% | |
44 Neutral | $11.09M | ― | -59.79% | ― | -45.02% | -7.27% | |
43 Neutral | $3.19M | ― | -53.80% | ― | -46.91% | -174.16% | |
34 Underperform | $24.45M | ― | -2448.28% | ― | 41.44% | -1.20% |
* Consumer Defensive Sector Average
Performance Comparison
EDBL
Edible Garden AG , Inc.
4.99
-52.51
-91.32%
SANW
S&W Seed Company
5.00
-1.46
-22.60%
AQB
AquaBounty Technologies
0.90
-1.01
-52.88%
SDOT
Sadot Group
1.20
-1.75
-59.32%
LOCL
Local Bounti Corporation
2.14
-0.73
-25.44%
Edible Garden AG , Inc. Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 56.52%|
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. Corporate Events
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
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.