Edible Garden AG Inc (NASDAQ: EDBL)

Sector: Consumer Defensive Industry: Farm Products CIK: 0001809750
Market Cap 973,145.12
P/B 0.08
P/E -0.03
P/S 0.08
ROIC (Qtr) -123.30
Div Yield % 0.00
Rev 1y % (Qtr) 9.02
Total Debt (Qtr) 3.43 Mn
Debt/Equity (Qtr) 0.27
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About

Edible Garden AG Inc., a prominent player in the controlled environment agriculture (CEA) farming industry, is publicly traded under the ticker symbol EDBL. The company is dedicated to sustainable and organic food production, operating facilities that comply with stringent food safety and handling standards, including Primus GFS, USDA, and non-GMO Project certifications. Edible Garden's operations span across the Northeast, Midwest, and Mid-Atlantic regions of the United States. The company's core business revolves around its eponymous brand, Edible...

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Investment thesis

Bull case

  • Strong tangible asset base of 19.82M provides 5.78x coverage of total debt 3.43M, indicating robust asset backing and low credit risk.
  • Tangible assets of 19.82M provide robust 250.94x coverage of other current liabilities 79000, indicating strong asset backing.
  • Strong cash position of 828000 provides 10.48x coverage of other current liabilities 79000, indicating excellent liquidity.
  • Strong tangible asset base of 19.82M provides 64.36x coverage of intangibles 308000, indicating robust asset quality.
  • Operating cash flow of (10.90M) exceeds working capital of (1.25M) by 8.73x, showing strong operational efficiency.

Bear case

  • The company's operating cash flow of (10.90M) shows concerning coverage of stock compensation expenses of 106000, with a -102.80 ratio indicating potential earnings quality issues.
  • Free cash flow of (11.55M) provides weak coverage of capital expenditures of 657000, with a -17.59 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (13M) show weak coverage of depreciation charges of 2.11M, with a -6.17 ratio indicating high capital intensity and potential reinvestment needs.
  • Debt issuance of (2.17M) significantly exceeds working capital of (1.25M), which is 1.74x, indicating potentially unsustainable leverage for operational funding.
  • Cash position of 828000 provides weak coverage of payables of 3.70M, which is 0.22x, indicating potential working capital stress and supplier relationship risks.

Peer comparison

Companies in the Farm Products
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ADM Archer-Daniels-Midland Co 33.15 Bn 30.75 0.41 9.76 Bn
2 TSN Tyson Foods, Inc. 21.32 Bn 106.61 0.39 8.36 Bn
3 BG Bunge Global SA 15.29 Bn 238.98 0.33 17.78 Bn
4 CALM Cal-Maine Foods Inc 3.98 Bn 1,160.43 2.88 0.00 Bn
5 FDP Fresh Del Monte Produce Inc 2.34 Bn 23.44 0.67 0.34 Bn
6 DOLE Dole plc 1.56 Bn 105.27 0.17 1.33 Bn
7 VITL Vital Farms, Inc. 1.26 Bn 20.76 1.77 0.06 Bn
8 AGRO Adecoagro S.A. 0.87 Bn 37.23 0.63 1.61 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.05 0.83
EV to Cash from Ops. EV/CFO -0.09 2.92
EV to Debt EV to Debt 0.29 3.55
EV to EBIT EV/EBIT -0.08 0.40
EV to EBITDA EV/EBITDA -0.09 -24.51
EV to Free Cash Flow [EV/FCF] EV/FCF -0.09 1.40
EV to Market Cap EV to Market Cap 1.03 3.04
EV to Revenue EV/Rev 0.08 0.77
Price to Book Value [P/B] P/B 0.08 0.54
Price to Earnings [P/E] P/E -0.03 89.91
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -2.06 -21.77
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 42.88
Dividend per Basic Share Div per Share (Qtr) 0.00 0.97
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.76
Interest Coverage Int. cover (Qtr) -8.72 -31.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -64.66 -1,577.17
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -62.60 86.77
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 11.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -15.96 -87.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.37 -202.55
EBIT Growth (1y) % EBIT 1y % (Qtr) -15.96 -99.71
EBT Growth (1y) % EBT 1y % (Qtr) -18.66 -133.79
EPS Growth (1y) % EPS 1y % (Qtr) 105.35 -151.42
FCF Growth (1y) % FCF 1y % (Qtr) -29.63 135.44
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -60.39 -28.83
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.62 1.37
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.12
Cash Ratio Cash Ratio (Qtr) 0.14 0.98
Current Ratio Curr Ratio (Qtr) 0.80 2.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.27 -1.90
Interest Cover Ratio Int Coverage (Qtr) -8.72 -31.98
Times Interest Earned Times Interest Earned (Qtr) -8.72 -31.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -86.80 691.86
EBIT Margin % EBIT Margin % (Qtr) -103.56 650.76
EBT Margin % EBT Margin % (Qtr) -115.44 644.45
Gross Margin % Gross Margin % (Qtr) 8.10 -69.17
Net Profit Margin % Net Margin % (Qtr) -224.60 644.34