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Hydrofarm Holdings Group, Inc.NasdaqCM:HYFM Stock Report

Market Cap US$4.5m
Share Price
US$0.96
US$6.5
85.2% undervalued intrinsic discount
1Y-72.9%
7D4.4%
1D
Portfolio Value
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Hydrofarm Holdings Group, Inc.

NasdaqCM:HYFM Stock Report

Market Cap: US$4.5m

Hydrofarm Holdings Group (HYFM) Stock Overview

Manufactures and distributes hydroponics equipment and supplies for controlled environment agriculture (CEA) in the United States and Canada. More details

HYFM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health1/6
Dividends0/6

Risk Analysis

Earnings have declined by 19.9% per year over past 5 years

Does not have a meaningful market cap ($4M)

Has less than 1 year of cash runway

Negative shareholders equity

+ 1 more risk

HYFM Community Fair Values

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Hydrofarm Holdings Group, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Hydrofarm Holdings Group
Historical stock prices
Current Share PriceUS$0.96
52 Week HighUS$4.78
52 Week LowUS$0.79
Beta2.32
1 Month Change-4.00%
3 Month Change-11.11%
1 Year Change-72.88%
3 Year Change-89.72%
5 Year Change-99.83%
Change since IPO-99.82%

Recent News & Updates

Recent updates

Analysis Article • Aug 13

Little Excitement Around Hydrofarm Holdings Group, Inc.'s (NASDAQ:HYFM) Revenues As Shares Take 27% Pounding

To the annoyance of some shareholders, Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM ) shares are down a considerable...
Analysis Article • Aug 06

Is It Time To Consider Buying Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)?

While Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM ) might not have the largest market cap around , it received a lot...
Analysis Article • May 31

It Looks Like Hydrofarm Holdings Group, Inc.'s (NASDAQ:HYFM) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights Hydrofarm Holdings Group to hold its Annual General Meeting on 6th of June Salary of US$600.0k is part of...
Analysis Article • May 22

A Look At The Fair Value Of Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)

Key Insights Hydrofarm Holdings Group's estimated fair value is US$0.76 based on 2 Stage Free Cash Flow to Equity...
Analysis Article • Apr 04

Hydrofarm Holdings Group, Inc.'s (NASDAQ:HYFM) Shares Bounce 37% But Its Business Still Trails The Industry

Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM ) shareholders would be excited to see that the share price has had a...
Analysis Article • Mar 08

Time To Worry? Analysts Just Downgraded Their Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) Outlook

The latest analyst coverage could presage a bad day for Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM ), with the...
Analysis Article • Jan 30

Benign Growth For Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) Underpins Its Share Price

When you see that almost half of the companies in the Machinery industry in the United States have price-to-sales...
Seeking Alpha • Jan 29

Hydrofarm: Why I Still Think It Could More Than Double

Summary Hydrofarm stock has decreased since the previous positive perspective article, currently lagging behind other cannabis stocks. The potential delisting by NASDAQ poses a challenge for the company, but a reverse-split could help it meet the minimum price requirement. Despite challenging fundamentals, Hydrofarm has reduced expenses and generated cash flow, with the potential for significant upside in the future. It is a very large position in my model portfolio and could more than double in price in 2024. Read the full article on Seeking Alpha
Analysis Article • Aug 14

Time To Worry? Analysts Are Downgrading Their Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) Outlook

One thing we could say about the analysts on Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM ) - they aren't optimistic...
Analysis Article • Aug 11

Earnings Update: Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) Just Reported And Analysts Are Trimming Their Forecasts

Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM ) missed earnings with its latest second-quarter results, disappointing...
Seeking Alpha • Sep 11

Hydrofarm: Caution Saves The Day

Summary Hydrofarm has seen a massive share price implosion since its public offering. Last year's dealmaking resulted in just a moderate leverage build up following an equity raise, yet sales and earnings power have fallen through the floor. Shares are speculative at best, at very best. About a year ago I concluded that Hydrofarm Holdings (HYFM) was acquiring value, making relative cheap acquisitions to average down from a high valuation. The company is a listed supplier for vertical farming in the cannabis industry which because of this positioning attracted great interest from investors. The company has been awarded very steep valuations as a result and was averaging down by using its expensive stock/as a currency to average down. Some Background Hydrofarm has actually been around for some four decades already, originally being a supplier to the cottage industry, as it has focused on cannabis and controlled environment agriculture as well in more recent times, promising less need for water, less land, fewer chemicals, less carbon emissions and improved crop yields. The company went public at $20 per share late in 2020, only to rise to $47 per share on the first day of trading, pushing up the valuation to $1.5 billion. This valuation was based on a business which reported a 10% increase in sales to $235 million in 2019, as operating losses came in at $27 million, in part being the result of restructuring charges. Even if we exclude these, the 11% gross margins of the business indicate the inherent limited margins of the business. Revenues rose by an impressive 40% in the first nine months of 2020 as the company managed to post operating profits of $10 million that year. Moreover, momentum was accelerating with third quarter sales up 60% to $97 million as operating profits of $5.5 million indicated a $22 million run rate. With established peer Scotts Miracle-Gro (SMG) growing sales at a more spectacular number, being vastly profitable, it actually traded at a lower sales multiple. Hydrofarm quickly became a momentum name and hit the $100 mark early in 2021, yet by August of last year, shares fell back to $50. This came amidst many moving factors as the company called for 20% organic growth in 2021, the timing of which coincided with the peak in the share price. Fourth quarter revenues grew 62% to $87 million and while the company raised the guidance, now seeing 20-25% organic growth outlook for 2021, EBITDA was only seen at $28-31 million, comparing to a $21 million number posted in 2020. In April, the company reached a $78 million deal to acquire Heavy 16 at relative compelling multiples, as Hydrofarm sold nearly 5 million shares at $59 per share in April to fund this deal and future acquisitions. First quarter sales rose 66% to $111 million, with the organic growth guidance hiked to 30-40% and with the EBITDA guidance hiked to $39 million. The funds raised in April were quickly used as the company acquired a $125 million deal for House & Garden and $187 million deal for Aurora Innovations early in the summer. These three deals cost $400 million, added $140 million in sales and $50 million in EBITDA. Trading at $50 in August, the 45 million shares valued the business at $2.2 billion. These deals should create a more than $500 million business with EBITDA seen around 100 million. Factoring in assumed D&A charges, I pegged realistic operating earnings around $50 million, which created a roadmap for earnings of a dollar per share. That was far from a certainty with many factors still having to play out in the short term, amidst many moving parts (related to the many acquisitions). With earnings power (potentially) around a dollar, and shares trading at $50, the valuation was far too rich to create a compelling situation. All Downhill Shares of Hydrofarm ended 2021 around the $25 mark. Since my take last year, the company kept on pursuing acquisitions, which includes an $83 million deal for Greenstar Plant Products in August, as the company updated the pro forma sales outlook to $565-$590 million, yet adjusted EBITDA of $80-$90 million, a bit softer than I anticipated. In October, the company reached a $58 million deal to acquire Innovative Growers Equipment, updating the pro forma outlook bit to account for recent dealmaking. Shares fell to the teens when the company posted its full year results in March of this year. The 2021 results were hard to read into as the company announced many deals during the year and hence the outlook is much more informative. The company guided for 2022 sales between $575 and $615 million, yet adjusted EBITDA is seen at just $63-$74 million, far below the pro forma EBITDA numbers communicated in 2021 and my $100 million estimate based on the dealmaking spree in 2020, indicating the many deals have not lived up to expectations. That was still manageable as net debt only stood around a hundred million, still a manageable amount. With D&A charges trending at $25 million and factoring in a $10 million run-rate in terms of stock-based compensation, adjusted EBIT runs around $30-$40 million. This still resulted in potential earnings power of around half a dollar per share, yet momentum was clearly on the soft side. The problem is that momentum quickly went downhill as the company cut the sales guidance to a midpoint of just $500 million following the first quarter results, with EBITDA seen at a midpoint of $50 million. This is dismal as a soft first quarter made that the company posted real economic losses, resulting in a modest build up in debt as the degree of the revenue shortfall (about $95 million in just three months time) is utterly shocking as shares fell to the mid single digits in response to the results.
Analysis Article • Aug 03

What You Need To Know About The Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) Analyst Downgrade Today

Today is shaping up negative for Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM ) shareholders, with the analysts...
Seeking Alpha • May 12

Hydrofarm In A Turning Point, But We Are Still Not Convinced

Still positive in the long term but not very optimistic in the near term. Despite a favourable inflationary environment, the company is not passing cost increases. Guidance down compared to the Q4/FY 2021 outlook.
Analysis Article • May 11

Estimating The Fair Value Of Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)

In this article we are going to estimate the intrinsic value of Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM ) by...
Analysis Article • Jan 26

An Intrinsic Calculation For Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) Suggests It's 49% Undervalued

How far off is Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM ) from its intrinsic value? Using the most recent financial...
Seeking Alpha • Jan 24

Hydrofarm: Top Player In Sector With Near-Term Vulnerabilities

Hydrofarm grew at a CAGR of 33% from FY17 to FY22, reaching a breakeven point in FY21. CEA industry will continue to grow steadily, especially in a scenario of worsening climate conditions. A FY21 characterized by M&A transactions totalling $615 million and goodwill for $297 million.

Shareholder Returns

HYFMUS MachineryUS Market
7D4.4%2.3%2.2%
1Y-72.9%43.9%24.8%

Return vs Industry: HYFM underperformed the US Machinery industry which returned 43.9% over the past year.

Return vs Market: HYFM underperformed the US Market which returned 24.8% over the past year.

Price Volatility

Is HYFM's price volatile compared to industry and market?
HYFM volatility
HYFM Average Weekly Movement12.9%
Machinery Industry Average Movement6.7%
Market Average Movement7.2%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.1%

Stable Share Price: HYFM's share price has been volatile over the past 3 months compared to the US market.

Volatility Over Time: HYFM's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
1977251Bill Tolerwww.hydrofarm.com

Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes hydroponics equipment and supplies for controlled environment agriculture (CEA) in the United States and Canada. The company provides agricultural lighting devices, indoor climate control equipment, and nutrients, as well as plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment. It is also involved in the distribution of CEA equipment and supplies comprising nutrients and fertilizers; grow light systems; horticulture benches and racking systems; heating, ventilation, and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, chillers, and filters; and various grow media made from soil, peat, rock wool or coconut fiber, and others.

Hydrofarm Holdings Group, Inc. Fundamentals Summary

How do Hydrofarm Holdings Group's earnings and revenue compare to its market cap?
HYFM fundamental statistics
Market capUS$4.46m
Earnings (TTM)-US$290.02m
Revenue (TTM)US$122.24m
0.0x
P/S Ratio
0.0x
P/E Ratio

Is HYFM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
HYFM income statement (TTM)
RevenueUS$122.24m
Cost of RevenueUS$112.07m
Gross ProfitUS$10.17m
Other ExpensesUS$300.19m
Earnings-US$290.02m

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

n/a

Earnings per share (EPS)-60.87
Gross Margin8.32%
Net Profit Margin-237.25%
Debt/Equity Ratio-146.5%

How did HYFM perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/16 21:53
End of Day Share Price 2026/06/16 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Hydrofarm Holdings Group, Inc. is covered by 7 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nicole DeBlaseDeutsche Bank
Andrea TeixeiraJ.P. Morgan
William CarterStifel, Equities Research