OTCPK:PHOT

Stock Analysis Report

Executive Summary

GrowLife, Inc. provides farming soil, hydroponics equipment, organic plant nutrients, and other products to specialty grow operations in the United States.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.

Risks

  • GrowLife has significant price volatility in the past 3 months.
  • GrowLife is not covered by any analysts.

Similar Companies

Share Price & News

How has GrowLife's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.7%

OTCPK:PHOT

-0.3%

US Machinery

0.2%

US Market


1 Year Return

-64.0%

OTCPK:PHOT

-8.0%

US Machinery

-0.7%

US Market

PHOT underperformed the Machinery industry which returned -6.7% over the past year.

PHOT underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

PHOTIndustryMarket
7 Day5.7%-0.3%0.2%
30 Day-4.1%-7.9%-2.7%
90 Day-23.3%-2.4%1.6%
1 Year-64.0%-64.0%-6.1%-8.0%1.6%-0.7%
3 Year-37.8%-37.8%35.5%26.7%40.0%30.9%
5 Year-92.8%-92.8%36.8%19.8%53.8%36.8%

Price Volatility Vs. Market

How volatile is GrowLife's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is GrowLife undervalued based on future cash flows and its price relative to the stock market?


In this section, we usually try to help investors determine whether GrowLife is trading at an attractive price based on the cash flow it is expected to produce in the future. But as GrowLife has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of PHOT’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through GrowLife regulatory filings here.
  • Explore potentially undervalued companies in the Capital Goods industry.

Future Growth

How is GrowLife expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as GrowLife has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of PHOT’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access GrowLife's filings and announcements here.
  • Explore growth companies in the Capital Goods industry.

Past Performance

How has GrowLife performed over the past 5 years?

56.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GrowLife does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare GrowLife's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare GrowLife's 1-year growth to the US Machinery industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if GrowLife has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if GrowLife has efficiently used its assets last year compared to the US Machinery industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if GrowLife improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.


Next Steps

Financial Health

How is GrowLife's financial position?


Financial Position Analysis

GrowLife's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

GrowLife's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

GrowLife has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if GrowLife's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

GrowLife has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

GrowLife has less than a year of cash runway based on current free cash flow.

GrowLife has less than a year of cash runway if free cash flow continues to grow at historical rates of 45.9% each year.


Next Steps

Dividend

What is GrowLife's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate GrowLife's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate GrowLife's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as GrowLife has not reported any payouts.

Unable to verify if GrowLife's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as GrowLife has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of GrowLife's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Marco Hegyi (61yo)

3.3yrs

Tenure

US$560,257

Compensation

Mr. Marco Hegyi has been the Chief Executive Officer of Growlife, Inc. since April 1, 2016 and also has been its Chairman of the Board since December 6, 2018. Mr. Hegyi has been the Principal at The Chasm  ...


CEO Compensation Analysis

Marco's remuneration is about average for companies of similar size in United States of America.

Marco's compensation has increased whilst company is loss making.


Management Age and Tenure

3.3yrs

Average Tenure

61yo

Average Age

The tenure for the GrowLife management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

59.5yo

Average Age

The average tenure for the GrowLife board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mark Scott (66yo)

    CFO, Executive VP of M&A

    • Tenure: 2.5yrs
    • Compensation: US$234.16k
  • Marco Hegyi (61yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$560.26k
  • Kara Knell

    Co-Founder and Chief Operating Officer

    • Tenure: 0.0yrs
  • Jim Pare

    Co-Founder and Chief Marketing officer

    • Tenure: 0.0yrs
  • Brandon Parham

    Chief Horticulturist

    • Tenure: 0.0yrs
  • Joe Barnes (47yo)

    Executive Vice-President of Sales & Marketing

    • Tenure: 5.3yrs
    • Compensation: US$208.52k
  • Billy Blackburn

    Executive VP of R&D and Member of Advisory Board

    • Tenure: 2.3yrs
  • Will Scott

    Vice President of Administration

    • Tenure: 1.2yrs
  • Foday Dean

    Corporate Controller

    • Tenure: 0.4yrs

Board Members

  • Mark Scott (66yo)

    CFO, Executive VP of M&A

    • Tenure: 2.5yrs
    • Compensation: US$234.16k
  • Marco Hegyi (61yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$560.26k
  • Thom Kozik (58yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$19.56k
  • Katherine McLain (53yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$57.86k
  • Herk Herghelegiu

    Member of Advisory Board

    • Tenure: 2.3yrs
  • Corey Buffkin

    Member of Advisory Board

    • Tenure: 2.3yrs
  • Billy Blackburn

    Executive VP of R&D and Member of Advisory Board

    • Tenure: 2.3yrs
  • Bill Andreozzi

    Member of Advisory Board

    • Tenure: 2.3yrs

Company Information

GrowLife, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GrowLife, Inc.
  • Ticker: PHOT
  • Exchange: OTCPK
  • Founded:
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: US$21.054m
  • Shares outstanding: 3.76b
  • Website: https://www.growlifeinc.com

Number of Employees


Location

  • GrowLife, Inc.
  • 5400 Carillon Point
  • Kirkland
  • Washington
  • 98033
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHOTOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2012

Biography

GrowLife, Inc. provides farming soil, hydroponics equipment, organic plant nutrients, and other products to specialty grow operations in the United States. Its hydroponics equipment include indoor lighting ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:24
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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 here.