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GRWG

GrowGeneration NasdaqCM:GRWG Stock Report

Last Price

US$3.79

Market Cap

US$230.2m

7D

-9.3%

1Y

-92.3%

Updated

01 Jul, 2022

Data

Company Financials +
GRWG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health6/6
Dividends0/6

GRWG Stock Overview

GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States.

GrowGeneration Competitors

Price History & Performance

Summary of all time highs, changes and price drops for GrowGeneration
Historical stock prices
Current Share PriceUS$3.79
52 Week HighUS$52.80
52 Week LowUS$3.42
Beta2.98
1 Month Change-24.05%
3 Month Change-58.94%
1 Year Change-92.27%
3 Year Change19.18%
5 Year Change99.47%
Change since IPO64.78%

Recent News & Updates

Apr 20

GrowGeneration: Gearing Up For A Strong 2023

GrowGeneration stock has lost 83% of its share value in the previous 12 months. The company is expecting headwinds to halt its rapid growth in 2022 but is expecting to perform strongly in 2023. With the cannabis market on a strong expected growth trajectory, the Hydroponics industry and GrowGen will both heavily benefit in the long run. The company's accretive earnings, strong fundamentals, and positive industry outlook make me bullish on the stock.

Shareholder Returns

GRWGUS Specialty RetailUS Market
7D-9.3%-7.9%-2.5%
1Y-92.3%-32.6%-21.2%

Return vs Industry: GRWG underperformed the US Specialty Retail industry which returned -33.3% over the past year.

Return vs Market: GRWG underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is GRWG's price volatile compared to industry and market?
GRWG volatility
GRWG Average Weekly Movement14.6%
Specialty Retail Industry Average Movement8.9%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: GRWG is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: GRWG's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2008660Darren Lamperthttps://www.growgeneration.com

GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. It engages in the marketing and distribution of nutrients, growing media, advanced indoor and greenhouse lighting, environmental control systems, vertical benching, and accessories for hydroponic gardening, as well as other indoor and outdoor growing products. The company serves commercial and urban cultivators growing specialty crops, including organics, greens, and plant-based medicines.

GrowGeneration Fundamentals Summary

How do GrowGeneration's earnings and revenue compare to its market cap?
GRWG fundamental statistics
Market CapUS$230.22m
Earnings (TTM)US$1.46m
Revenue (TTM)US$414.23m

157.5x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRWG income statement (TTM)
RevenueUS$414.23m
Cost of RevenueUS$299.23m
Gross ProfitUS$115.00m
Other ExpensesUS$113.54m
EarningsUS$1.46m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.024
Gross Margin27.76%
Net Profit Margin0.35%
Debt/Equity Ratio0.04%

How did GRWG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is GRWG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GRWG?

Other financial metrics that can be useful for relative valuation.

GRWG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA13.4x
PEG Ratio1.6x

Price to Sales Ratio vs Peers

How does GRWG's PS Ratio compare to its peers?

GRWG PS Ratio vs Peers
The above table shows the PS ratio for GRWG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.9x
LL LL Flooring Holdings
0.3x4.5%US$290.3m
TTSH Tile Shop Holdings
0.4x4.1%US$167.8m
FND Floor & Decor Holdings
1.9x16.1%US$6.9b
ELA Envela
1.2x13.0%US$189.8m
GRWG GrowGeneration
0.6x16.0%US$230.2m

Price-To-Sales vs Peers: GRWG is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.9x).


Price to Earnings Ratio vs Industry

How does GRWG's PE Ratio compare vs other companies in the US Specialty Retail Industry?

Price-To-Sales vs Industry: GRWG is expensive based on its Price-To-Sales Ratio (0.6x) compared to the US Specialty Retail industry average (0.4x)


Price to Sales Ratio vs Fair Ratio

What is GRWG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GRWG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: GRWG is expensive based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Share Price vs Fair Value

What is the Fair Price of GRWG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GRWG ($3.79) is trading below our estimate of fair value ($4.09)

Significantly Below Fair Value: GRWG is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: GRWG is poor value based on its PEG Ratio (1.6x)


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Future Growth

How is GrowGeneration forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


101.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRWG's forecast earnings growth (101.2% per year) is above the savings rate (1.9%).

Earnings vs Market: GRWG's earnings (101.2% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: GRWG's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GRWG's revenue (16% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: GRWG's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GRWG's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has GrowGeneration performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


68.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GRWG has a large one-off loss of $700.0K impacting its March 31 2022 financial results.

Growing Profit Margin: GRWG's current net profit margins (0.4%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: GRWG has become profitable over the past 5 years, growing earnings by 68.5% per year.

Accelerating Growth: GRWG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GRWG had negative earnings growth (-89.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (40.3%).


Return on Equity

High ROE: GRWG's Return on Equity (0.4%) is considered low.


Discover strong past performing companies

Financial Health

How is GrowGeneration's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GRWG's short term assets ($194.5M) exceed its short term liabilities ($36.6M).

Long Term Liabilities: GRWG's short term assets ($194.5M) exceed its long term liabilities ($40.6M).


Debt to Equity History and Analysis

Debt Level: GRWG has more cash than its total debt.

Reducing Debt: GRWG's debt to equity ratio has reduced from 3.5% to 0.04% over the past 5 years.

Debt Coverage: GRWG's debt is well covered by operating cash flow (1625.9%).

Interest Coverage: GRWG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is GrowGeneration current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GRWG has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Darren Lampert (61 yo)

8.25yrs

Tenure

US$2,040,132

Compensation

Mr. Darren Lampert co-founded GrowGeneration Pueblo, Corp., (a/k/a, EasyLife, Corp., GrowGeneration Corp.) in March 6, 2014 and has been its Chief Executive Officer since March 6, 2014. Mr. Lampert began h...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD2.04M) is about average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Darren's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: GRWG's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: GRWG's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

Company Information

GrowGeneration Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: GrowGeneration Corp.
  • Ticker: GRWG
  • Exchange: NasdaqCM
  • Founded: 2008
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Implied Market Cap: US$230.220m
  • Shares outstanding: 60.74m
  • Website: https://www.growgeneration.com

Number of Employees


Location

  • GrowGeneration Corp.
  • 5619 DTC Parkway
  • Suite 900
  • Greenwood Village
  • Colorado
  • 80111
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.