Cadiz Inc. (NASDAQ:CDZI) shareholders have seen a 70% drop in share price over the past five years, despite a 64% revenue growth during the same period. The company made a loss in the last twelve months, and its balance sheet strength is crucial to consider. Shareholders are down 9.3% for the year, but the market is up 19%. Two warning signs for Cadiz include a loss in the last twelve months and a decline in share price over the long term.
Cadiz Inc. (NASDAQ:CDZI), a provider of water solutions in the United States, has seen a significant drop in its share price over the past five years, despite reporting a 64% revenue growth during the same period. The company's stock has experienced a 70% decline, while the broader market has seen a 19% increase [1]. Despite this, the company has been losing money, with a loss of $0.14 earnings per share in the recent quarter [2].
The company's revenue growth is a positive sign, but it has not translated into profitability. Cadiz reported a negative net margin of 296.15% and a negative return on equity of 107.34% in the recent quarter [2]. This indicates that the company's expenses are significantly higher than its revenue, which is a critical concern for investors.
One of the key factors to consider is the company's balance sheet strength. Cadiz has a debt-to-equity ratio of 1.90, which is relatively high compared to industry peers. This indicates that the company has a significant amount of debt on its balance sheet, which could be a concern for investors [2].
Additionally, the company has seen a decline in its share price over the long term, which is a warning sign for investors. The stock has a 52-week low of $2.13 and a 52-week high of $5.68 [2]. This indicates that the stock has been trading at a lower level compared to its historical highs.
In conclusion, while Cadiz Inc. has seen revenue growth, it has not been able to translate this into profitability. The company's balance sheet strength is a concern for investors, and the long-term decline in share price is a warning sign. Investors should carefully consider these factors before making investment decisions.
References:
[1] https://www.marketbeat.com/earnings/reports/2025-8-12-cadiz-inc-stock/
[2] https://www.marketbeat.com/instant-alerts/filing-american-assets-investment-management-llc-increases-position-in-cadiz-inc-nasdaqcdzi-2025-07-31/
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