Cadiz Inc. Depositary Shares (CDZIP)

FairStock Score: 23/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn money and trade at a sensible price. Cadiz is not yet that. It runs water supply, storage, conveyance, wastewater treatment, and filtration, plus grain crops, but the filed figures show chronic losses. In fiscal 2025, revenue was $16.3 million and net income was -$34.2 million; in fiscal 2024, revenue was $9.6 million and net income was -$31.1 million; in fiscal 2023, revenue was $2.0 million and net income was -$31.4 million. The latest quarter, fiscal Q2 2026 ended 2026-06-30, had revenue of $979,000 and net income of -$11.4 million. That is a business consuming capital, not compounding it. Any moat would have to come from its land and water resources or filtration offerings, but the numbers show no earnings power. Financial health is poor: FairStock's calculations show debt-to-equity of 25.72, Altman Z-Score 0.55, Piotroski F-Score 1/9, ROE -183.13%, ROCE -12.89%, and trailing free cash flow of -$31.2 million. At the 2026-10-13 close of $20.85, the P/B is 347.50 and P/E is -25.12; the market cap of $1.8 billion stands against $16.3 million of fiscal 2025 revenue. The 10.09% dividend yield is not supported by earnings or free cash flow in the data. Growth from $2.0 million revenue in fiscal 2023 to $16.3 million in fiscal 2025 is not enough to offset the losses. The Lynch category is 'none' because losses occurred in each of the last four years. Graham would demand a margin of safety; here the price rests on future promises, not present value.

In plain English: Cadiz provides water solutions such as water storage, water delivery, wastewater treatment, and filtration, and also grows grain crops. The business is not profitable and has lost money heavily, with small revenue compared to its size. At $20.85 on 2026-10-13, the shares look expensive relative to those weak numbers, even though it pays a large distribution.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer