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

• Market Cap: $5.29M
• Dividend Yield: N/A
• Average Volume (3M): 217.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: -16.60%
• EPS Growth: 96.72%
• Country: US
• Employees: 98
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Agricultural Farm Products
• EPS (TTM): -6.58
• Shares Outstanding: 2,924,932
• 10 Day Avg. Volume: 478,330
• 30 Day Avg. Volume: 217,653
• 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: 3.89
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 14.25
• Enterprise Value/Ebitda: -2.11
• 1Y Price Target: $2.00
• Price Target Upside: 10.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $2.00 ▲(10.50% Upside)

Edible Garden AG, Inc. faces significant financial challenges with declining revenues, high leverage, and negative profitability, which are the most impactful factors on the stock score. Technical analysis indicates bearish momentum, further weighing on the score. Although the company has made strategic moves to focus on high-margin categories and secured additional funding, these positives are overshadowed by current financial and operational difficulties.

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. Business Overview & Revenue Model

Company Description

Edible 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 Money

Edible 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. 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: 1.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 1.81 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.33, and below the 200-day MA of 3.53, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 29.64 is Positive, neither overbought nor oversold. The STOCH value of 11.03 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 *	63 Neutral	$20.52B	14.80	-2.68%	3.09%	1.95%	-4.76%
SDOT	56 Neutral	$8.93M	1.47	17.52%	―	4.42%	―
LOCL	44 Neutral	$50.44M	―	-2448.28%	―	39.74%	16.76%
AQB	43 Neutral	$4.54M	―	-53.80%	―	-46.91%	-174.16%
SANW	42 Neutral	$699.86K	―	-59.79%	―	-45.02%	-7.27%
EDBL	41 Neutral	$5.29M	―	-146.28%	―	-16.60%	96.72%
AGRI	―	$3.29M	―	-206.56%	―	―	―

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.