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Arcadia Biosciences (RKDA)
NASDAQ:RKDA
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Arcadia Biosciences
(NASDAQ:RKDA)
51Neutral
Positive Factors
Earnings
Q4’24 results were ahead of expectations behind Zola coconut water growth of 124% via an 86% distribution increase.
Mergers and Acquisitions
Arcadia's current valuation levels are considered materially depressed relative to a post-merger fair value, making it an attractive option for special situation and/or merger arbitrage investors.
Resource Potential
An independent study estimated 956M gross technically available boe, indicating substantial resource potential for the site.
Negative Factors
Distribution
Zola's 80% distribution expansion in 2024 to approximately 3,000 stores is providing considerable visibility for year-over-year growth.
Valuation
The valuation reflects a considerable discount to transaction comps, suggesting a favorable position for Arcadia investors.
Arcadia Biosciences (RKDA) vs. S&P 500 (SPY)
Market Cap
$4.01M
Dividend YieldN/A
Average Volume (3M)4.67K
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth-6.20%
EPS Growth64.07%
CountryUS
Employees9
SectorHealthcare
Sector Strength62
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)-5.16
Shares Outstanding1,367,040
10 Day Avg. Volume4,774
30 Day Avg. Volume4,665
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.82
Price to Cash Flow (P/CF)-0.60
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 Target
$12.00Price Target Upside349.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Arcadia Biosciences Business Overview & Revenue Model
Company DescriptionArcadia Biosciences (RKDA) is a publicly traded agricultural biotechnology company focused on developing and commercializing high-value crop improvements to enhance productivity and quality. The company operates in the agriculture sector, specializing in the genetic modification of crops to improve their nutritional value, stress tolerance, and yield. Arcadia's core products and services include proprietary seeds and traits that enhance the nutritional quality and environmental sustainability of crops such as wheat, soybean, and hemp.
How the Company Makes MoneyArcadia Biosciences generates revenue primarily through the sale of its proprietary seeds and agricultural traits. The company licenses its technology to other agricultural firms, enabling them to produce crops with enhanced features such as improved nutritional content, resistance to pests and disease, and better adaptability to environmental stresses. Arcadia also forms strategic partnerships and collaborations with other agribusinesses and research institutions to co-develop and commercialize new technologies. Additionally, the company may engage in the sale of agricultural products derived from its proprietary crops. Revenue streams are further supported by government grants and research funding aimed at advancing agricultural innovation.
Arcadia Biosciences Financial Statement Overview
Summary
Arcadia Biosciences is facing financial challenges, particularly with profitability and cash flow generation. Revenue has declined, and the company remains unprofitable, although it has managed to maintain a strong equity position with minimal debt. The company needs to address its operational efficiency and cash flow management to improve its financial stability.Income Statement
Arcadia Biosciences has faced challenges in maintaining revenue growth and profitability. The revenue decreased slightly from $5.33 million in 2023 to $5.045 million in 2024, indicating a revenue decline of approximately 5.35%. The gross profit margin improved slightly, but the company remains unprofitable with a negative net income for the year ending 2024. EBIT and EBITDA margins are also negative, indicating operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a moderate level of financial stability with a debt-to-equity ratio of 0.025, indicating low leverage. However, the return on equity remains negative due to consistent net losses. The equity ratio is 46%, indicating a solid equity position relative to total assets.55
Neutral
Cash Flow
Arcadia Biosciences experienced substantial free cash flow challenges, with negative free cash flow growth. Operating cash flow to net income ratio is negative, reflecting cash flow difficulties. However, cash flow from investing activities was positive, indicating some level of investment recovery.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.27M | 5.04M | 5.33M | 9.96M | 6.78M | 8.03M | Gross Profit |
| 2.11M | 2.08M | 2.03M | 154.00K | -1.93M | 2.83M | EBIT |
| -6.06M | -3.65M | -13.87M | -19.40M | -35.53M | -21.59M | EBITDA |
| -9.46M | -3.65M | -13.58M | -13.65M | -23.27M | -5.44M | Net Income Common Stockholders |
| -5.83M | -7.04M | -13.98M | -15.61M | -16.13M | -6.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.83M | 4.24M | 11.64M | 20.64M | 28.68M | 25.67M | Total Assets |
| 9.54M | 13.52M | 19.70M | 28.92M | 43.92M | 47.35M | Total Debt |
| 14.56M | 155.00K | 1.01M | 2.02M | 3.29M | 9.35M | Net Debt |
| 11.73M | -4.09M | -5.51M | -18.63M | -25.39M | -4.69M | Total Liabilities |
| 26.84M | 7.29M | 7.00M | 8.02M | 12.72M | 18.80M | Stockholders Equity |
| -17.30M | 6.22M | 12.84M | 21.03M | 31.09M | 27.73M |
| Cash Flow | Free Cash Flow | ||||
| -11.63M | -9.64M | -15.30M | -14.05M | -26.88M | -32.55M | Operating Cash Flow |
| -11.56M | -9.63M | -15.29M | -13.98M | -25.87M | -30.22M | Investing Cash Flow |
| 4.88M | 7.34M | -4.34M | 1.42M | 16.61M | 17.28M | Financing Cash Flow |
| -84.75M | 9.00K | 5.51M | 4.52M | 21.90M | 20.56M |
Arcadia Biosciences Technical Analysis
Negative
2.67
Price Trends
4.03
Negative
4.39
Negative
3.72
Negative
Market Momentum
-0.28
Negative
32.18
Neutral
27.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RKDA, the sentiment is Negative. The current price of 2.67 is below the 20-day moving average (MA) of 3.22, below the 50-day MA of 4.03, and below the 200-day MA of 3.72, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 32.18 is Neutral, neither overbought nor oversold. The STOCH value of 27.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RKDA.
Arcadia Biosciences Risk Analysis
Arcadia Biosciences disclosed 25 risk factors in its most recent earnings report. Arcadia Biosciences reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arcadia Biosciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $3.74M | ― | -68.97% | ― | -47.53% | 0.67% | |
51 Neutral | $4.01M | ― | -60.76% | ― | -6.20% | 64.07% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
47 Neutral | $4.11M | ― | -240.09% | ― | 97.84% | 82.99% | |
41 Neutral | $3.60M | ― | -103.63% | ― | -100.00% | 28.48% | |
35 Underperform | $3.89M | ― | -285.35% | ― | 674.14% | 89.05% | |
34 Underperform | $3.73M | ― | -91.62% | ― | ― | 48.81% |
* Healthcare Sector Average
Performance Comparison
RKDA
Arcadia Biosciences
2.80
0.71
33.97%
EVOK
Evoke Pharma
2.59
-4.67
-64.33%
SONN
Sonnet BioTherapeutics Holdings
1.31
-14.53
-91.73%
TTNP
Titan Pharmaceuticals
3.93
-2.96
-42.96%
XYLO
Xylo Technologies Ltd
5.28
-1.79
-25.32%
GLTO
Galecto
3.23
-15.02
-82.30%
Arcadia Biosciences Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -19.09% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant growth in Zola coconut water sales and successful business restructuring, signaling a positive trajectory for Arcadia. However, the decline in GLA oil sales and increased SG&A costs pose challenges. Overall, the positive aspects of Zola's performance and business refocusing outweigh the negatives.Highlights
Zola Revenue Growth
Zola revenues increased 124% in Q4 2024 compared to the same period last year. For the full year, Zola sales increased by 46%, driven by significant distribution gains and an 86% growth in retail distribution.
Cash Management and Profitability
Operating cash use decreased by 30% in the second half of 2024 compared to the first half, indicating improved cash management. Gross margins were reported at 41.3% for the year, aligning with previous guidance.
Successful Business Restructuring
Arcadia successfully restructured its business by exiting underperforming Body Care brands and monetizing a portion of its wheat intellectual property portfolio, resulting in a leaner company focused on Zola coconut water products.
Strong Category Performance
Zola's growth outpaced the coconut water category by more than 2:1, with the category growing 18.5% while Zola increased by 38.5% for the full year.
Lowlights
GLA Oil Sales Decline
GLA oil sales declined by 60% in the second half of 2024 and by 49% for the full year, as Arcadia sold through the remaining inventory and exited this product line.
Increased SG&A and Transaction Costs
SG&A expenses increased to $9.6 million for 2024, up from $8.2 million in 2023, including $2 million of transaction-related costs due to the sale of GoodWheat assets and the pending transaction with Roosevelt Resources.
Company Guidance
During the Arcadia Biosciences Fourth Quarter and Full Year 2024 Financial Results and Business Highlights Conference Call, the company provided guidance illustrating a successful year. Arcadia reported full-year revenues slightly over $5 million, with a gross profit of $2.1 million and gross margins of 41.3%. Despite a higher than anticipated quarterly run rate for R&D and SG&A expenses due to unforeseen transaction-related fees, the company demonstrated significant momentum. Zola coconut water products showcased impressive growth, with sales increasing 46% for the year and 124% in the fourth quarter alone compared to the previous year. This was achieved through expanded distribution, adding over 1,600 new stores, and growing retail distribution by 86%. Zola's growth outpaced the coconut water category by more than double, with gross margins consistent in the low to mid-30% range. Despite challenges, Arcadia maintained strong cash management, reducing operating cash use by 30% in the second half of 2024 compared to the first half, and ended the year with $4.2 million in cash. The call also mentioned ongoing efforts to monetize the remaining wheat intellectual property portfolio and provided updates on a pending transaction with Roosevelt Resources expected to conclude by the end of Q2 2025.Arcadia Biosciences Corporate Events
M&A TransactionsBusiness Operations and Strategy
Arcadia Biosciences Plans Merger with Roosevelt Resources
Neutral
Dec 11, 2024
Arcadia Biosciences announced a proposed all-stock business combination with Roosevelt Resources, a Texas-based partnership. This transaction aims to enhance their operational capabilities, with potential impacts on their market positioning and stakeholder interests. The companies held a webcast to discuss the transaction, which involves significant risks and uncertainties that could affect the final outcome. The success of the deal depends on several factors, including shareholder approvals and integration challenges.
M&A TransactionsBusiness Operations and Strategy
Arcadia Biosciences Merges with Roosevelt Resources
Positive
Dec 6, 2024
Arcadia Biosciences and Roosevelt Resources have agreed to merge in an all-stock deal, making Roosevelt the majority shareholder. This strategic move aims to capitalize on Roosevelt’s vast oil and gas assets, particularly its carbon capture and storage project in Texas. The merger promises to enhance shareholder value and streamline operations, with Roosevelt’s experienced management leading the combined entity. The transaction is expected to close by Q1 2025, pending regulatory and shareholder approvals.
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.