Company Overview
Edible Garden AG Incorporated operates as a controlled environment agriculture farming company that cultivates and offers a diverse array of packaged products. Its product portfolio includes fresh herbs such as cilantro, rosemary, mint, thyme, oregano, bay leaves, chives, sage, dill, and basil, alongside leafy greens like buttercrunch living lettuce, poultry mix, and other specific varieties. The company functions within the Consumer Defensive sector, specifically under the Farm Products industry, which typically suggests a business model focused on providing essential goods with potentially stable demand regardless of economic cycles. With a market capitalization of $753,443, annual revenue of $12.55 million, and an employee base of 98, the firm presents as a micro-cap entity with a relatively small operational footprint. These valuation and revenue figures indicate that the company occupies a niche position in the agricultural market, suggesting it is not yet a dominant player but rather a specialized operator targeting specific segments of the produce supply chain.
Financial Health
The company reported revenue of $12.55 million over the trailing twelve months, yet this top-line figure stands in stark contrast to a net income loss of $28,197,000, revealing a highly inefficient cost structure where expenses significantly outpace earnings before interest and taxes. This discrepancy is further highlighted by an EBITDA of $-11,294,000, indicating that the business is generating negative cash flows from its core operational activities before the deduction of interest and taxes. The free cash flow stands at $-5,794,030, which signifies a lack of financial flexibility, as the company is burning through cash reserves rather than generating surplus liquidity for reinvestment or debt repayment. Margin analysis shows a gross margin of 8.1%, which is relatively healthy for agriculture but is severely eroded by operating and profit margins of -126.3% and -115.4% respectively, demonstrating that overhead costs and operating expenses are exceeding gross profits. On the balance sheet, the company holds $828,000 in cash against total debt of $3.43 million, resulting in a debt-to-equity ratio of 26.55, which characterizes a leveraged financial position where liabilities substantially outweigh equity. Liquidity is constrained, as evidenced by a current ratio of 0.80, meaning current assets are insufficient to cover current liabilities without accessing additional financing or selling long-term assets. Furthermore, the return on equity is -179.1% and the return on assets is -55.3%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently to generate profit.
Valuation Assessment
The trailing twelve-month P/E ratio is 0.00, while the forward P/E is listed as -0.07, implying that the market expects earnings to remain negative in the near future or that the denominator for the valuation metric is not yet available due to losses. The price-to-book ratio is -0.14, a negative figure that indicates the market is pricing the company's equity below the value of its net assets, often seen in distressed or highly speculative situations rather than a standard market premium. Alternative valuation metrics such as the price-to-sales ratio of 0.06 and an EV/EBITDA of -1.62 suggest that traditional valuation multiples are not applicable due to the absence of profitability, pointing instead to a high-risk speculative valuation based on potential future growth or asset liquidation. The stock has exhibited extreme volatility, trading between a 52-week high of $62.90 and a 52-week low of $0.98, with the current price sitting significantly closer to the low end of this range given the massive disparity between the high and low figures. The beta value of 2.19 indicates that the stock's price volatility is more than twice that of the broader market, meaning it experiences amplified price swings during periods of market stress or gains.
Growth & Income
Revenue growth year-over-year stands at 9.0%, while earnings growth is listed as N/A due to the company's negative net income, preventing a direct comparison of efficiency improvements between the top line and the bottom line. Because the company is currently unprofitable, it does not pay dividends, resulting in a dividend yield of N/A and a payout ratio of 0.0%, which means the company reinvests all available capital and cash flow back into operations rather than distributing income to shareholders. The absence of a dividend payout underscores the company's growth stage where capital retention is prioritized over income generation, although the negative earnings growth metric suggests that profitability has not yet been achieved to support such distributions. The overall growth and income profile is characterized by top-line expansion in the single digits coupled with significant operating losses, indicating a high-burn rate business model that relies on future market capture or operational efficiencies to eventually achieve profitability.