What is Cadiz Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Cadiz's Probability of Financial Distress (%) is 0.19%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Cadiz's Probability of Financial Distress (%)
For the Utilities - Regulated Water subindustry, Cadiz's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cadiz's Probability of Financial Distress (%) Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Cadiz's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Cadiz's Probability of Financial Distress (%) falls into.
Cadiz Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -6.24 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.19% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Cadiz (CDZI) Business Description
Traded in Other Exchanges
Address
550 South Hope Street, Suite 2850, Los Angeles, CA, USA, 90071
Cadiz Inc is a land and water resource development company in California. Its primary business is to acquire and develop land with water resources for various uses, including groundwater supply, groundwater storage, and agriculture. The company focuses on the development of the Cadiz Valley Water Conservation, Recovery and Storage Project which will capture and conserve native groundwater currently being lost to evaporation from the aquifer system beneath the property of Cadiz and Fenner valleys of eastern San Bernardino County, and deliver it to water providers throughout Southern California. The company operates in two segment- Land and Water Resources and ATEC Water Systems LLC.
Executives
| Susan P Kennedy |
director |
550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071 |
| Winston H Hickox |
director |
C/O THOMAS PROPERTIES GROUP, INC., 515 SOUTH FLOWER STREET, 6TH FLOOR, LOS ANGELES CA 90071 |
| Maria S. Dreyfus |
director |
125 WEST 55TH STREET, 15TH FLOOR, NEW YORK NY 10019 |
| Scott S Slater |
director, officer: Chief Executive Officer |
550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071 |
| Heerema International Group Services Sa |
10 percent owner |
ROUTE DE FLORISSANT 81, GENEVE V8 1206 |
| Kenneth T Lombard |
director |
550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071 |
| Richard Garcia Polanco |
director |
550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071 |
| Stephen E Courter |
director |
C/O CADIZ INC., 550 SOUTH HOPE STREET, 2850, LOS ANGELES X1 90071 |
| Webb De Macias Carolyn D |
director |
304 NORTH ALMANSOR STREET, ALHAMBRA CA 91801 |
| Maria Echaveste |
director |
1511 ARCH STREET, BERKELEY CA 94708 |
| Odey Asset Management Llp |
10 percent owner |
18 UPPER BROOK STREET, LONDON, UNITED KINGDOM X0 W1K 7PU |
| Odey Holdings Ltd |
10 percent owner |
18 UPPER BROOK STREET, LONDON X0 W1K 7PU |
| Odey Robin Crispin William |
10 percent owner |
18 UPPER BROOK STREET, LONDON, UNITED KINGDOM X0 W1K 7PU |
| Odey Asset Management Group Ltd |
10 percent owner |
18 UPPER BROOK STREET, LONDON X0 W1K 7PU |
| Keith Brackpool |
director, officer: Chief Executive Officer |
550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071 |
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