NasdaqGM:CDZI

Stock Analysis Report

Executive Summary

Cadiz Inc. operates as a land and water resource development company in the United States.

Rewards

Trading at 95.4% below its fair value

Earnings are forecast to grow 93.84% per year

Risk Analysis

Makes less than USD$1m in revenue ($441K)

Has less than 1 year of cash runway

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential and slightly overvalued.

Share Price & News

How has Cadiz's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CDZI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CDZI

1.4%

US Water Utilities

0.03%

US Market


1 Year Return

16.2%

CDZI

25.0%

US Water Utilities

18.6%

US Market

Return vs Industry: CDZI underperformed the US Water Utilities industry which returned 25% over the past year.

Return vs Market: CDZI underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

CDZIIndustryMarket
7 Day0%1.4%0.03%
30 Day-0.2%4.0%1.7%
90 Day-2.8%0.9%5.7%
1 Year16.2%16.2%27.4%25.0%21.1%18.6%
3 Year11.8%11.8%66.4%56.8%45.6%36.2%
5 Year9.5%9.5%142.3%117.3%71.1%52.3%

Price Volatility Vs. Market

How volatile is Cadiz's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cadiz undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CDZI ($11.46) is trading below our estimate of fair value ($246.69)

Significantly Below Fair Value: CDZI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CDZI is unprofitable, so we can't compare its PE Ratio to the Water Utilities industry average.

PE vs Market: CDZI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CDZI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CDZI has negative assets, so we can't compare its PB Ratio to the US Water Utilities industry average.


Next Steps

Future Growth

How is Cadiz forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

93.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDZI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CDZI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CDZI's is expected to become profitable in the next 3 years.

Revenue vs Market: CDZI's revenue (93.3% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: CDZI's revenue (93.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CDZI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cadiz performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDZI is currently unprofitable.

Growing Profit Margin: CDZI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CDZI is unprofitable, and losses have increased over the past 5 years at a rate of -7.6% per year.

Accelerating Growth: Unable to compare CDZI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CDZI is unprofitable, making it difficult to compare its past year earnings growth to the Water Utilities industry (3.1%).


Return on Equity

High ROE: CDZI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cadiz's financial position?


Financial Position Analysis

Short Term Liabilities: CDZI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CDZI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CDZI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CDZI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: CDZI has a high level of physical assets or inventory.

Debt Coverage by Assets: CDZI has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CDZI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CDZI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Cadiz's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CDZI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CDZI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CDZI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CDZI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CDZI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Cadiz's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average board tenure


CEO

Scott Slater (61yo)

6.8yrs

Tenure

US$600,000

Compensation

Mr. Scott S. Slater has been the Chief Executive Officer and President of Cadiz Inc. since February 1, 2013 and April 12, 2011, respectively. Mr. Slater manages the day-to-day operation of Cadiz and its pr ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD600.00K) is below average for companies of similar size in the US market ($USD1.71M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Board Age and Tenure

5.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CDZI's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$8,800,00015 Jul 19
Water Asset Management, LLC
EntityCompany
Shares800,000
Max PriceUS$11.00
SellUS$1,092,24012 Dec 18
Water Asset Management, LLC
EntityCompany
Shares111,000
Max PriceUS$9.84
BuyUS$1,096,68012 Dec 18
Water Asset Management, LLC
EntityCompany
Shares111,000
Max PriceUS$9.88

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.


Management Team

  • Keith Brackpool (61yo)

    Founder & Chairman

    • Tenure: 18.6yrs
    • Compensation: US$619.94k
  • Tim Shaheen (59yo)

    CFO & Secretary

    • Tenure: 11.1yrs
    • Compensation: US$662.59k
  • Courtney Degener

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Scott Slater (61yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$600.00k

Board Members

  • Murray Hutchison (80yo)

    Independent Director

    • Tenure: 22.5yrs
    • Compensation: US$50.00k
  • Keith Brackpool (61yo)

    Founder & Chairman

    • Tenure: 18.6yrs
    • Compensation: US$619.94k
  • Stephen Courter (64yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: US$50.00k
  • Richard Nevins (71yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$50.00k
  • Winston Hickox (76yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$50.00k
  • Geoffrey Grant (58yo)

    Lead Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$50.00k
  • Scott Slater (61yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$600.00k
  • Jeffrey Brown (58yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$27.50k
  • Maria Echaveste

    Independent Director

    • Tenure: 0.4yrs
  • Carolyn Webb de Macías

    Independent Director

    • Tenure: 0.4yrs

Company Information

Cadiz Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cadiz Inc.
  • Ticker: CDZI
  • Exchange: NasdaqGM
  • Founded: 1983
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$308.388m
  • Shares outstanding: 27.00m
  • Website: https://www.cadizinc.com

Number of Employees


Location

  • Cadiz Inc.
  • 550 South Hope Street
  • Suite 2850
  • Los Angeles
  • California
  • 90071
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDZINasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 1985
2ZCDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1985
0HS4LSE (London Stock Exchange)YesCommon StockGBUSDMay 1985

Biography

Cadiz Inc. operates as a land and water resource development company in the United States. It engages in the water resource, and land and agricultural development activities in San Bernardino County proper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:46
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.