OTCPK:GRWC

Stock Analysis Report

Executive Summary

Grow Capital, Inc. operates as a real estate purchaser, developer, and manager of specific use industrial properties in the United States.

Rewards

Earnings have grown 22.4% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Makes less than USD$1m in revenue ($376K)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GRWC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.9%

GRWC

0.1%

US Real Estate

0.6%

US Market


1 Year Return

50.9%

GRWC

19.7%

US Real Estate

24.6%

US Market

Return vs Industry: GRWC exceeded the US Real Estate industry which returned 17.2% over the past year.

Return vs Market: GRWC exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

GRWCIndustryMarket
7 Day-7.9%0.1%0.6%
30 Day-18.1%0.2%3.0%
90 Day13.0%13.1%10.6%
1 Year50.9%50.9%20.7%19.7%27.3%24.6%
3 Year-85.4%-85.4%36.8%33.4%50.5%40.8%
5 Year-99.0%-99.0%19.4%15.3%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Grow Capital undervalued compared to its fair value and its price relative to the market?

25.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GRWC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GRWC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GRWC is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: GRWC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GRWC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GRWC is overvalued based on its PB Ratio (25.8x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

How is Grow Capital forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.5%

Forecasted Real Estate 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 Grow Capital 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 GRWC’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 Grow Capital's filings and announcements here.
  • Explore growth companies in the Real Estate industry.

Past Performance

How has Grow Capital performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRWC is currently unprofitable.

Growing Profit Margin: GRWC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GRWC is unprofitable, but has reduced losses over the past 5 years at a rate of 22.4% per year.

Accelerating Growth: Unable to compare GRWC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GRWC is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-25%).


Return on Equity

High ROE: GRWC has a negative Return on Equity (-133.78%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grow Capital's financial position?


Financial Position Analysis

Short Term Liabilities: GRWC's short term assets ($339.7K) do not cover its short term liabilities ($681.3K).

Long Term Liabilities: GRWC's short term assets ($339.7K) do not cover its long term liabilities ($678.8K).


Debt to Equity History and Analysis

Debt Level: GRWC's debt to equity ratio (87.7%) is considered high.

Reducing Debt: Insufficient data to determine if GRWC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: GRWC has a high level of physical assets or inventory.

Debt Coverage by Assets: GRWC's debt is not covered by short term assets (assets are 0.5x debt).


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.

Stable Cash Runway: GRWC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: GRWC has less than a year of cash runway if free cash flow continues to grow at historical rates of 2.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GRWC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GRWC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GRWC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GRWC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GRWC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.0yrs

Average board tenure


CEO

Jonathan Bonnette (40yo)

1yrs

Tenure

0

Mr. Jonathan Bonnette has been President, Chief Executive Officer and Director of Grow Condos, Inc. since July 1, 2018. From 2006 through 2014 he worked for United First Financial, a company which he cofou ...


Board Age and Tenure

1.0yrs

Average Tenure

Experienced Board: GRWC's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$100,00030 Apr 19
Carl Sanko
EntityIndividual
Role
Member of the Board of Directors
Secretary & Director
Shares1,666,667
Max PriceUS$0.06

Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Management Team

  • Carl Sanko (64yo)

    Secretary & Director

    • Tenure: 5yrs
    • Compensation: US$58.44k
  • Trevor Hall (41yo)

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Jonathan Bonnette (40yo)

    President

    • Tenure: 1yrs

Board Members

  • Carl Sanko (64yo)

    Secretary & Director

    • Tenure: 5yrs
    • Compensation: US$58.44k
  • Jonathan Bonnette (40yo)

    President

    • Tenure: 1yrs
  • James Olson

    Chairman of the Board

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Grow Capital, Inc.
  • Ticker: GRWC
  • Exchange: OTCPK
  • Founded: 1999
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: US$30.057m
  • Shares outstanding: 171.67m
  • Website: https://www.growcapitalinc.com

Number of Employees


Location

  • Grow Capital, Inc.
  • 2485 Village View Drive
  • Suite 180
  • Henderson
  • Nevada
  • 89074
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRWCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 2014

Biography

Grow Capital, Inc. operates as a real estate purchaser, developer, and manager of specific use industrial properties in the United States. It provides condo style turn-key grow facilities to support cannabis growers. The company is also involved in the development, lease, ownership, and provision of investment sales opportunities for commercial industrial properties focused in the cannabis production arena. In addition, it offers tenants the option to lease, lease to purchase, or buy the condo warehouse units. Further, the company operates Lake Selmac resort that offers fishing, swimming, boating, RV parking, tent camping, and cabin accommodation facilities. The company was formerly known as Grow Condos, Inc. and changed its name to Grow Capital, Inc. in April 2019. Grow Capital, Inc. was incorporated in 1999 and is headquartered in Henderson, Nevada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/26 00:13
End of Day Share Price2019/07/25 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


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.