Cadiz Inc. (CDZI)
Cadiz Inc. is a natural resources development company focused on water resource and agricultural development in California. The company owns significant land in San Bernardino County and cultivates lemons, vegetables, and grains.
Company Overview
Cadiz Inc. pioneers sustainable water solutions and agricultural development in California, leveraging its extensive land holdings and innovative water management strategies to address critical resource needs, though profitability remains a challenge with a negative profit margin of -206.6%.
Investment Thesis
Investing in Cadiz Inc. presents a speculative opportunity predicated on the successful execution of its water conveyance project and subsequent revenue generation. The company's significant land holdings and water rights in a water-scarce region offer substantial long-term value. A key value driver is the potential to monetize its water resources through sales to municipalities and other users. However, the company's negative P/E ratio of -11.27 and a negative profit margin of -206.6% indicate significant financial challenges. The investment thesis hinges on Cadiz securing necessary approvals and funding for its project, transforming it from a developmental stage company to a revenue-generating entity. Investors should closely monitor regulatory developments and project milestones to assess the viability of this investment.
Key Highlights
- Cadiz Inc. owns approximately 35,000 acres of land in the Cadiz and Fenner valleys of eastern San Bernardino County.
- The company also owns approximately 11,000 acres of land in the eastern Mojave Desert portion of San Bernardino County.
- Cadiz is involved in the cultivation of lemons, vegetables, and grains, diversifying its revenue streams.
- The company's gross margin stands at 32.5%, indicating potential for improved profitability with successful project execution.
- Cadiz operates with a beta of 2.05, suggesting higher volatility compared to the overall market.
Competitors
Strengths
- Significant land and water rights in a water-scarce region.
- Potential to develop sustainable water solutions.
- Diversified revenue streams from water and agriculture.
- Strategic location in Southern California.
Weaknesses
- Negative profit margin and P/E ratio.
- Dependence on regulatory approvals for water conveyance project.
- High beta indicating higher volatility.
- Limited financial resources for large-scale infrastructure development.
Catalysts
- Ongoing: Securing regulatory approvals for the water conveyance project.
- Ongoing: Forming strategic partnerships with municipalities.
- Upcoming: Potential grants and funding for infrastructure development.
- Ongoing: Expansion of agricultural operations and crop diversification.
Risks
- Ongoing: Regulatory delays and environmental challenges impacting project timelines.
- Potential: Fluctuations in water demand and pricing.
- Potential: Climate change impacting water availability and agricultural yields.
- Ongoing: Competition from established water utilities with greater financial resources.
- Potential: Inability to secure necessary funding for infrastructure development.
Growth Opportunities
- Expansion of Water Storage Capacity: Cadiz has the opportunity to significantly expand its water storage capacity by developing additional groundwater storage facilities on its land holdings. This expansion could increase its ability to supply water to Southern California, addressing critical water needs and generating substantial revenue. The market for water storage is growing, driven by the need to manage water resources effectively in the face of climate change and increasing demand. Timeline: Ongoing.
- Development of Renewable Energy Projects: Cadiz can leverage its extensive land holdings to develop renewable energy projects, such as solar farms, to generate additional revenue streams and reduce its carbon footprint. The renewable energy market is experiencing rapid growth, driven by government incentives and increasing demand for clean energy sources. This diversification could enhance Cadiz's financial stability and sustainability profile. Timeline: 3-5 years.
- Strategic Partnerships with Municipalities: Forming strategic partnerships with municipalities in Southern California to supply water and provide water management services can secure long-term revenue streams and establish Cadiz as a reliable water provider. Many municipalities are seeking innovative solutions to address water scarcity challenges, creating a significant market opportunity for Cadiz. Timeline: Ongoing.
- Expansion of Agricultural Operations: Cadiz can expand its agricultural operations by cultivating additional crops and implementing sustainable farming practices. This expansion could increase its revenue from agricultural products and enhance its brand as a responsible land manager. The market for sustainably grown agricultural products is growing, driven by consumer demand for environmentally friendly food. Timeline: 1-2 years.
- Securing Grants and Funding for Infrastructure Development: Cadiz can actively pursue grants and funding opportunities from government agencies and private organizations to support the development of its water infrastructure projects. These funds can help accelerate project timelines and reduce the company's reliance on debt financing. Numerous grants are available for water infrastructure projects, reflecting the importance of water resource management. Timeline: Ongoing.
Opportunities
- Expansion of water storage capacity.
- Development of renewable energy projects.
- Strategic partnerships with municipalities.
- Expansion of agricultural operations.
Threats
- Regulatory hurdles and environmental opposition.
- Competition from established water utilities.
- Climate change impacting water availability.
- Fluctuations in agricultural commodity prices.
Competitive Advantages
- Unique land and water rights in a water-scarce region.
- Strategic location in Southern California with high demand for water.
- Potential to develop sustainable water solutions that address critical needs.
- Established agricultural operations providing a diversified revenue stream.
About
Founded in 1983 and headquartered in Los Angeles, California, Cadiz Inc. operates as a natural resources development company with a focus on water resource and agricultural activities. The company's primary asset is its ownership of approximately 35,000 acres of land in the Cadiz and Fenner valleys, along with 11,000 acres in the eastern Mojave Desert, all within San Bernardino County. Cadiz's core business revolves around developing and managing these water resources, aiming to provide a sustainable water supply to Southern California. In addition to its water resource initiatives, Cadiz engages in agricultural activities, including the cultivation of lemons and seasonal plantings of vegetables and grains. The company's evolution has been marked by its efforts to gain approval for its water conveyance project, which seeks to capture and store groundwater for beneficial use. Despite facing regulatory hurdles and environmental opposition, Cadiz continues to pursue its vision of becoming a key player in California's water management landscape. The company's current market position is characterized by its unique land and water rights, positioning it as a potential solution to water scarcity challenges in the region.
What They Do
- Owns and manages approximately 35,000 acres of land in the Cadiz and Fenner valleys.
- Owns and manages approximately 11,000 acres of land in the eastern Mojave Desert.
- Engages in water resource development activities.
- Cultivates lemons on its properties.
- Plants vegetables and grains seasonally.
- Aims to provide a sustainable water supply to Southern California through its water conveyance project.
Business Model
- Developing and managing water resources on its land holdings.
- Selling water to municipalities and other users.
- Cultivating and selling agricultural products.
- Seeking revenue from renewable energy projects on its land.
Industry Context
Cadiz Inc. operates within the regulated water industry, a sector characterized by increasing demand due to population growth and climate change, particularly in arid regions like Southern California. The industry is heavily regulated, with stringent environmental and permitting requirements. Competitors include companies like American States Water Co (ARTNA), Consolidated Water Co. (CWCO), and Global Water Resources (GWRS), which focus on water and wastewater treatment and distribution. Cadiz differentiates itself through its unique land and water rights, positioning it to potentially capitalize on the growing need for sustainable water solutions. The market for water resources is expanding, driven by the need for reliable and cost-effective water supplies.
Key Customers
- Municipalities in Southern California seeking reliable water supplies.
- Agricultural companies and distributors purchasing lemons, vegetables, and grains.
- Potential customers for renewable energy generated on its land.
- Government agencies and organizations interested in sustainable water solutions.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4M | -$8M | $0.00 |
| Q2 2025 | $4M | -$9M | $0.00 |
| Q1 2025 | $3M | -$11M | $0.00 |
| Q4 2024 | $5M | -$10M | $0.00 |
Source: Company filings
Chart & Info
Price Chart
Cadiz Inc. (CDZI) stock price: $5.40 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in Cadiz's long-term strategy, indicating that key stakeholders believe in the company's potential.
- •Community sentiment has shifted positively, with discussions highlighting the company's sustainable water solutions as increasingly relevant amid climate concerns.
- •Analysts have noted the strategic partnerships Cadiz is forming, which could enhance its operational capabilities and market reach.
- •The growing emphasis on water scarcity solutions positions Cadiz as a critical player in an essential sector, attracting interest from environmentally-conscious investors.
Why Bear
- •Concerns over regulatory hurdles related to water rights could impact Cadiz's operations and long-term viability, creating uncertainty among investors.
- •Recent social sentiment reflects skepticism about the company's ability to execute its ambitious plans, with some community members voicing doubts.
- •Market perception has been tempered by broader economic conditions, leading to cautious sentiment around companies in the environmental sector like Cadiz.
- •Increased competition in the water resource management space may pose challenges for Cadiz, potentially diluting its market share and investor enthusiasm.
Latest News
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Dave O'Hara Joins Cadiz Board of Directors
PR Newswire · Feb 4, 2026
Technical Analysis
Rationale
AI-generated technical analysis for CDZI including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for CDZI.
Make a Prediction
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Current price: $5.40
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CDZI.
Price Targets
Wall Street price target analysis for CDZI.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 5/100
Revenue growth data is currently unavailable for this company.
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Gross Margin 6/100
Gross margin of 32.5% is acceptable but leaves limited room for R&D and marketing investment.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates CDZI's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Cadiz Inc. do?
Cadiz Inc. is a natural resources development company focused on water resource and agricultural activities in California. The company owns significant land in San Bernardino County, where it manages water resources and cultivates lemons, vegetables, and grains. Its primary goal is to develop a sustainable water supply for Southern California through its water conveyance project, which aims to capture and store groundwater for beneficial use. Cadiz seeks to monetize its water resources by selling water to municipalities and other users, while also generating revenue from its agricultural operations.
Is CDZI stock a good buy?
CDZI stock presents a speculative investment opportunity with high risk and potentially high reward. The company's significant land and water rights in a water-scarce region offer substantial long-term value, but its negative P/E ratio of -11.27 and negative profit margin of -206.6% indicate significant financial challenges. The investment thesis hinges on Cadiz securing necessary approvals and funding for its water conveyance project. Investors should carefully consider their risk tolerance and closely monitor regulatory developments and project milestones before investing in CDZI.
What are the main risks for CDZI?
The main risks for Cadiz Inc. include regulatory hurdles and environmental opposition to its water conveyance project, which could delay or prevent its completion. Fluctuations in water demand and pricing, as well as climate change impacting water availability and agricultural yields, also pose significant risks. Additionally, competition from established water utilities with greater financial resources and the potential inability to secure necessary funding for infrastructure development could hinder the company's growth and profitability. These factors contribute to the stock's high beta of 2.05, indicating higher volatility.
Is CDZI a good stock to buy?
Whether CDZI is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the CDZI MoonshotScore?
The MoonshotScore for CDZI is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is CDZI data updated?
CDZI stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to CDZI is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for CDZI?
Growth catalysts for Cadiz Inc. (CDZI) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Cadiz Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are CDZI's main competitors?
Cadiz Inc. (CDZI) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether CDZI has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about CDZI?
Wall Street analyst coverage for CDZI includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is CDZI's market cap?
Market capitalization (market cap) for CDZI is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows CDZI's current market cap alongside enterprise value and other valuation metrics.
How has CDZI stock performed recently?
CDZI's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing CDZI's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in CDZI?
Key risk categories for CDZI include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures CDZI's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling CDZI?
Insider trading activity for CDZI tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is CDZI a good stock for beginners?
Cadiz Inc. (CDZI) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is CDZI for first-time investors?
Every stock carries risk, including Cadiz Inc. (CDZI). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like CDZI.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data may be outdated.
- Future performance depends heavily on regulatory approvals and project execution.