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Arcadia Biosciences (RKDA)
NASDAQ:RKDA
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Arcadia Biosciences
(NASDAQ:RKDA)
Rating:55Neutral
Price Target:
$4.00
▼( -6.54% Downside)
Positive Factors
Earnings
Q4’24 results were ahead of expectations behind Zola coconut water growth of 124% via an 86% distribution increase.
Growth Potential
Zola’s 80% distribution expansion in 2024 to approximately 3,000 stores is providing considerable visibility for year-over-year growth.
Merger and Acquisition
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.
Negative Factors
Monetization Challenges
Management noted they continue to seek further monetization of legacy ag biotech IP and expect a series of transactions to unwind this portfolio.
Valuation Concerns
The current valuation of the combined entity implies a $45M market cap versus Roosevelt’s $300M-$500M proven reserve value.
Arcadia Biosciences (RKDA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.85M
Dividend YieldN/A
Average Volume (3M)15.36K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth-2.81%
EPS Growth72.03%
CountryUS
Employees9
SectorHealthcare
Sector Strength41
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)1.90
Shares Outstanding1,367,040
10 Day Avg. Volume12,441
30 Day Avg. Volume15,356
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.85
Price to Sales (P/S)0.00
P/FCF Ratio-0.55
Enterprise Value/Market Cap0.21
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.61
Enterprise Value/Ebitda-0.03
Forecast
1Y Price Target
$12.00Price Target Upside180.37% 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 maintained 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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.04M | 5.33M | 9.96M | 6.78M | 8.03M | Gross Profit |
| 2.08M | 2.03M | 154.00K | -1.93M | 2.83M | EBIT |
| -3.65M | -13.87M | -19.40M | -35.53M | -21.59M | EBITDA |
| -7.50M | -13.58M | -13.65M | -23.27M | -5.44M | Net Income Common Stockholders |
| -7.04M | -13.98M | -15.61M | -16.13M | -6.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.24M | 11.64M | 20.64M | 28.68M | 25.67M | Total Assets |
| 13.52M | 19.70M | 28.92M | 43.92M | 47.35M | Total Debt |
| 155.00K | 1.01M | 2.02M | 3.29M | 9.35M | Net Debt |
| -4.09M | -5.51M | -18.63M | -25.39M | -4.69M | Total Liabilities |
| 7.29M | 7.00M | 8.02M | 12.72M | 18.80M | Stockholders Equity |
| 6.22M | 12.84M | 21.03M | 31.09M | 27.73M |
| Cash Flow | Free Cash Flow | |||
| -9.64M | -15.30M | -14.05M | -26.88M | -32.55M | Operating Cash Flow |
| -9.63M | -15.29M | -13.98M | -25.87M | -30.22M | Investing Cash Flow |
| 7.34M | -4.34M | 1.42M | 16.61M | 17.28M | Financing Cash Flow |
| 9.00K | 5.51M | 4.52M | 21.90M | 20.56M |
Arcadia Biosciences Technical Analysis
Positive
4.28
Price Trends
3.43
Positive
4.04
Positive
3.81
Positive
Market Momentum
0.21
Negative
62.05
Neutral
85.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RKDA, the sentiment is Positive. The current price of 4.28 is above the 20-day moving average (MA) of 3.95, above the 50-day MA of 3.43, and above the 200-day MA of 3.81, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 85.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $5.85M | ― | -7.89% | ― | -2.81% | 72.03% | |
54 Neutral | $4.25M | ― | -28.99% | ― | -67.77% | 66.19% | |
53 Neutral | $5.14B | 3.03 | -44.09% | 2.83% | 16.75% | -0.06% | |
48 Neutral | $3.58M | ― | -714.96% | ― | 978.39% | 69.65% | |
46 Neutral | $5.61M | ― | -108.77% | ― | 97.84% | 82.99% | |
34 Underperform | $3.99M | ― | -105.70% | ― | -100.00% | 28.48% | |
29 Underperform | $3.95M | ― | -91.32% | ― | ― | 48.81% |
* Healthcare Sector Average
Performance Comparison
RKDA
Arcadia Biosciences
4.28
1.04
32.10%
EVOK
Evoke Pharma
3.76
-1.46
-27.97%
SONN
Sonnet BioTherapeutics Holdings
1.13
-11.83
-91.28%
TTNP
Titan Pharmaceuticals
4.36
-2.00
-31.45%
XYLO
Xylo Technologies Ltd
5.27
-0.59
-10.07%
GLTO
Galecto
2.99
-12.59
-80.81%
Arcadia Biosciences Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -0.47%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in Zola's revenue and successful monetization of intellectual property, alongside effective cost management. However, concerns were raised about declining gross margins, a decrease in cash reserves, and uncertainties surrounding the legacy business exit. Despite these challenges, the overall sentiment leans positive due to notable achievements and strategic progress.Q1-2025 Updates
Positive Updates
Zola Revenue Growth
Zola coconut water revenue grew 90% year-over-year, driven by a 70% increase in new distribution and a 76% increase in scan data sales.
Strong Financial Performance
The company reported a 22% increase in total revenues compared to the same period last year, with Zola being the primary driver.
Cost Management
Operating expenses reduced by 16% year-over-year and gross margins remained strong at 43%.
Monetization of Intellectual Property
The company received $750,000 in cash from a transaction involving its soy patents, eliminating a $1,000,000 contingent liability.
Pending Combination with Roosevelt Resources
The business combination with Roosevelt Resources is progressing and is on track to be completed around August 15.
Negative Updates
Gross Margin Decline
Gross margin decreased from 52% in Q1 2024 to 43% in Q1 2025.
Cash Position Decrease
The company's cash position decreased from $4,200,000 at the start of the year to $3,200,000 at the end of Q1.
Patent and Legacy Business Uncertainty
Uncertainty remains regarding the commercial value of the remaining tomato patent and the complete exit from the legacy AgTech business.
Company Guidance
During the Arcadia Biosciences, Inc. first-quarter 2025 conference call, the company provided significant guidance on various metrics. Zola, their coconut water brand, saw a 90% year-over-year revenue increase, driven by a 70% rise in new distribution. The sell-through sales grew 76% based on Nielsen data, significantly outpacing the 24% growth in the coconut water category. Operating expenses were reduced by 16% despite incurring nearly half a million dollars in transaction-related fees. Gross margins remained strong, exceeding 30% for the ninth consecutive quarter, although the gross margin rate decreased from 52% in Q1 2024 to 43% in Q1 2025. The company also highlighted the strategic monetization of its intellectual property, resulting in a $750,000 cash gain and a $1,000,000 reduction in liabilities. Additionally, the pending business combination with Roosevelt Resources is progressing, with an anticipated completion around mid-August, and a fixed equity share ratio of 90-10 between Roosevelt partners and Arcadia stockholders was established to provide ownership certainty.Arcadia Biosciences Corporate Events
M&A TransactionsLegal ProceedingsBusiness Operations and Strategy
Arcadia Biosciences Faces Payment Default from Above Food
Negative
May 16, 2025
On May 14, 2024, Arcadia Biosciences and its subsidiary sold certain assets of its GoodWheat business to Above Food Corp. and transferred $2 million in cash as part of an Asset Purchase Agreement. In return, Arcadia received a promissory note for $6 million, with payments scheduled over three years. However, as of May 14, 2025, Above Food Corp. failed to make the first payment, leading to a potential default situation. Arcadia is considering actions to enforce its rights under the agreement. Additionally, Arcadia is involved in a proposed all-stock transaction with Roosevelt Resources, which involves the exchange of shares and is subject to regulatory approval.
The most recent analyst rating on (RKDA) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Arcadia Biosciences stock, see the RKDA 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.