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

• Market Cap: $5.56M
• Dividend Yield: N/A
• Average Volume (3M): 352.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -16.60%
• EPS Growth: 96.72%
• Country: US
• Employees: 98
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): -6.58
• Shares Outstanding: 2,924,932
• 10 Day Avg. Volume: 907,390
• 30 Day Avg. Volume: 352,057
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.70
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 14.25
• Enterprise Value/Ebitda: -2.11
• 1Y Price Target: $1.50
• Price Target Upside: -21.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: $1.50 ▼(-21.05% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and high leverage, which are major risks. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative profitability. While the earnings call highlighted some strategic positives, they are overshadowed by current financial difficulties.

Positive Factors

International Revenue Growth

The significant growth in international revenue indicates successful expansion into global markets, enhancing the company's market position and revenue diversification.

Strategic Focus on High-Margin Categories

By concentrating on high-margin products, the company aims to improve profitability and operational efficiency, which could lead to better financial performance over time.

Expansion of Product Lines

The expansion of product lines into new retail locations enhances brand visibility and market penetration, potentially driving sustained revenue growth.

Negative Factors

Declining Revenue

The decline in revenue reflects challenges in maintaining sales momentum, which could impact financial stability and growth prospects if not addressed.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities or weather economic downturns.

Negative Profitability

Sustained negative profitability indicates operational inefficiencies and high costs, posing a risk to long-term financial health and shareholder value.

Edible Garden AG , Inc. Business Overview & Revenue Model

Company Description

Edible Garden AG, Inc. (EDBL) is a sustainable agriculture company focused on producing high-quality, locally grown, and organic produce. The company operates primarily in the agriculture sector, specializing in hydroponic and vertical farming techniques to cultivate a variety of leafy greens, herbs, and other vegetables. Edible Garden aims to provide fresh, healthy food options while promoting environmentally responsible farming practices and reducing the carbon footprint associated with traditional agriculture.

How the Company Makes Money

Edible Garden AG generates revenue through the sale of its organic produce to grocery chains, restaurants, and food service companies. The company leverages its innovative farming methods to produce crops year-round, thus ensuring a consistent supply of fresh products. Key revenue streams include direct sales to retailers, partnerships with local farms and co-ops, and potential subscription services for consumers seeking regular deliveries of fresh produce. Additionally, Edible Garden may explore opportunities for strategic partnerships with larger agricultural entities and distributors to expand its market reach and enhance operational efficiency.

Edible Garden AG , Inc. Financial Statement Overview

Summary

Edible Garden AG, Inc. faces significant financial challenges with declining revenues, high leverage, and negative profitability. The company struggles with operational inefficiencies and cash flow issues, posing risks to financial stability and growth prospects.

Income Statement

The income statement shows declining revenue with a negative growth rate of -8.35% TTM, indicating challenges in maintaining sales. Gross profit margin decreased to 11.72% TTM, and net profit margin is significantly negative at -101.53% TTM, reflecting substantial losses. EBIT and EBITDA margins are also deeply negative, suggesting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.79 TTM, indicating significant leverage and potential financial risk. Return on equity is negative at -460.61% TTM, highlighting poor returns for shareholders. The equity ratio is low, suggesting limited equity financing and potential solvency concerns.

Cash Flow

Cash flow analysis shows negative free cash flow growth of -10.94% TTM, indicating worsening cash generation. The operating cash flow to net income ratio is negative, suggesting cash flow issues. Free cash flow to net income ratio is slightly positive, but overall cash flow remains a concern due to persistent negative operating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.32M	13.86M	14.05M	11.55M	10.51M	9.44M
Gross Profit	1.44M	2.31M	822.00K	364.00K	648.00K	1.35M
EBITDA	-9.77M	-8.67M	-8.22M	-9.38M	-4.10M	-2.83M
Net Income	-12.51M	-11.05M	-10.19M	-12.45M	-5.54M	-3.71M
Balance Sheet
Total Assets	21.81M	11.91M	6.66M	6.96M	3.99M	4.48M
Cash, Cash Equivalents and Short-Term Investments	2.82M	3.53M	510.00K	110.00K	31.00K	5.00K
Total Debt	2.85M	3.80M	4.46M	6.45M	8.29M	4.15M
Total Liabilities	20.22M	7.82M	6.94M	9.14M	11.10M	6.55M
Stockholders Equity	1.59M	4.09M	-288.00K	-2.18M	-7.11M	-2.08M
Cash Flow
Free Cash Flow	-9.90M	-8.82M	-9.55M	-11.22M	-4.23M	-2.15M
Operating Cash Flow	-9.63M	-8.52M	-8.53M	-9.19M	-4.08M	-2.03M
Investing Cash Flow	-258.00K	-303.00K	-1.02M	-2.03M	-151.00K	623.00K
Financing Cash Flow	10.52M	11.84M	9.95M	11.30M	4.25M	1.40M

Edible Garden AG , Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.9 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 1.92, and below the 200-day MA of 3.07, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 4.67 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SDOT	57 Neutral	$6.99M	0.95	17.52%	―	4.42%	―
LOCL	57 Neutral	$67.48M	―	-2448.28%	―	39.74%	16.76%
AQB	43 Neutral	$6.36M	―	-53.80%	―	―	―
SANW	42 Neutral	$923.13K	―	-59.79%	―	-45.02%	-7.27%
EDBL	41 Neutral	$5.56M	―	-146.28%	―	-16.60%	96.72%

Edible Garden AG , Inc. Corporate Events

Edible Garden AG Amends Preferred Stock Voting Rights

On May 14, 2025, Edible Garden AG, Inc. issued Series B Preferred Stock to Streeterville Capital, LLC as part of acquiring sustainable aquaculture assets in Fort Dodge, Iowa. The company recently amended the voting rights of this stock to comply with Nasdaq standards, allowing the holder to vote with a number of shares equal to the lesser of 1,305,483 shares or 9.99% of the company’s outstanding common stock.

Edible Garden AG Ends Acquisition Talks with Narayan

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.

Edible Garden AG Inc. Secures $3.5 Million Funding

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.