Is Cadiz, Inc. overvalued or undervalued?

As of 14 November 2022, the valuation grade for Cadiz, Inc. moved from does not qualify to risky, indicating a shift towards increased caution regarding its financial health. The company appears to be overvalued given its significant negative returns and poor financial ratios. Key metrics include a Price to Book Value of 5.88, an EV to EBIT of -11.41, and an EV to EBITDA of -12.08, all of which suggest substantial financial distress.
In comparison to peers, Cadiz, Inc. has a notably lower EV to EBITDA ratio than FRP Holdings, Inc., which stands at 16.3704, highlighting a stark contrast in valuation. Additionally, both Tejon Ranch Co. and Maui Land & Pineapple Co., Inc. are also categorized as risky, with their EV to EBITDA ratios at -169.6427 and -57.7372, respectively. Despite a strong 1-year stock return of 31.46% compared to the S&P 500's 17.14%, the long-term outlook remains concerning, as evidenced by a 5-year return of -58.03% against the S&P 500's 96.61%.