GrowGeneration (GRWG) AI Stock Analysis

• Market Cap: $67.83M
• Dividend Yield: N/A
• Average Volume (3M): 393.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.16
• Revenue Growth: -18.56%
• EPS Growth: -4.95%
• Country: US
• Employees: 289
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): -0.16
• Shares Outstanding: 59,495,766
• 10 Day Avg. Volume: 402,389
• 30 Day Avg. Volume: 393,442
• PEG Ratio: <0.01
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -251.46
• Enterprise Value/Market Cap: 3.64
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 6.02
• Enterprise Value/Ebitda: -1.89
• 1Y Price Target: $1.88
• Price Target Upside: 64.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $1.00 ▼(-12.28%Downside)

GrowGeneration's overall stock score reflects its significant financial challenges, including declining revenues and net losses. While strategic shifts towards proprietary brands and digital sales provide some optimism, macroeconomic uncertainties and a weak valuation outlook weigh heavily on the score.

GrowGeneration Business Overview & Revenue Model

Company Description

GrowGeneration Corp. is a leading specialty retail chain focused on the supply of hydroponic and organic gardening products. The company caters to commercial and home growers, offering a wide range of products including nutrients, lighting, and other cultivation supplies. GrowGeneration operates multiple retail locations across the United States and serves as a key supplier within the agricultural and horticultural sectors.

How the Company Makes Money

GrowGeneration makes money primarily through the sale of hydroponic and organic gardening products. Its revenue model is centered around its retail stores, which are strategically located in major agricultural markets across the United States. The company generates revenue by selling a comprehensive catalog of products such as growing mediums, advanced lighting technology, hydroponic systems, nutrients, and other cultivation supplies. Additionally, GrowGeneration enhances its revenue through partnerships with leading manufacturers and vendors, ensuring a diverse and high-quality product offering. The company also benefits from the increasing legalization and expansion of the cannabis cultivation industry, which drives demand for its products and services.

GrowGeneration Financial Statement Overview

Summary

GrowGeneration faces significant challenges with declining revenue, persistent net losses, and negative cash flows. While the company retains a relatively stable equity base, increasing leverage and operational inefficiencies pose risks.

Income Statement

GrowGeneration has experienced a decline in revenue over the past two years, dropping from $422 million in 2021 to $176 million in the TTM period. The company's gross profit margin has decreased from 28% in 2021 to 23% in the TTM period. Additionally, net profit margins have been negative, with the company reporting consecutive net losses. Despite a positive EBIT in 2021, EBIT and EBITDA margins have turned negative, indicating operational challenges.

Balance Sheet

The balance sheet reflects a stable equity ratio, with stockholders' equity representing 68% of total assets in the TTM period. However, the debt-to-equity ratio has increased slightly, suggesting a rise in leverage. The company maintains a reasonable liquidity position, but declining assets and equity from 2021 to the TTM period indicate potential risks.

Cash Flow

Cash flow statements show negative operating cash flow in the TTM period, a reversal from positive figures in earlier years. Free cash flow remains negative, with no significant improvement in growth rates. The operating cash flow to net income ratio is challenging due to consistent net losses, suggesting cash flow issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
176.68M	188.87M	225.88M	278.17M	422.49M	193.37M
	Gross Profit
41.06M	43.72M	61.26M	70.26M	118.24M	51.05M
	EBIT
-52.02M	-51.97M	-49.84M	-38.31M	15.00M	8.44M
	EBITDA
-31.09M	-30.30M	-29.76M	-149.48M	27.87M	11.03M
	Net Income Common Stockholders
-50.05M	-49.51M	-46.50M	-163.75M	12.79M	5.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.58M	56.45M	64.97M	71.91M	81.17M	177.91M
	Total Assets
164.23M	174.35M	239.09M	293.44M	459.34M	354.73M
	Total Debt
34.83M	37.03M	42.47M	48.84M	45.56M	12.72M
	Net Debt
2.09M	9.56M	12.71M	8.79M	4.19M	-165.19M
	Total Liabilities
53.07M	54.26M	65.69M	77.05M	88.05M	37.74M
	Stockholders Equity
111.16M	120.09M	173.40M	216.40M	371.29M	317.00M
Cash Flow		Free Cash Flow
-3.81M	-3.78M	-5.28M	-948.00K	-13.58M	-4.64M
	Operating Cash Flow
-1.95M	-1.80M	1.42M	11.95M	5.16M	-213.79K
	Investing Cash Flow
9.89M	5.73M	-11.40M	-11.57M	-139.32M	-45.83M
	Financing Cash Flow
-6.25M	-6.21M	-313.00K	-1.69M	-2.38M	210.98M

GrowGeneration Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRWG, the sentiment is Negative. The current price of 1.14 is below the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.07, and below the 200-day MA of 1.53, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 47.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRWG.

GrowGeneration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
GRWG	49 Neutral	$67.83M	―	-36.21%	―	-18.56%	-4.95%
ISPO	49 Neutral	$48.52M	―	8.84%	―	-16.42%	88.30%
TLYS	44 Neutral	$34.67M	―	-47.54%	―	-8.79%	-15.17%
VRA	44 Neutral	$49.72M	―	-36.91%	―	-24.95%	-2349.32%
DLTH	42 Neutral	$68.77M	―	-27.53%	―	-4.21%	-292.04%
GROV	39 Underperform	$46.29M	―	-180.03%	―	-19.83%	22.76%

GrowGeneration Corporate Events

GrowGeneration Acquires Viagrow to Boost Market Reach

On June 9, 2025, GrowGeneration Corp. announced the acquisition of Viagrow, a domestic supplier of gardening and hydroponic equipment, to expand its presence in the home gardening and big box retail sectors. This strategic move aims to diversify GrowGen’s revenue streams and enhance its proprietary brand portfolio, strengthening its leadership in the controlled environment agriculture industry. The acquisition is expected to be accretive to gross margins in FY2025 and will enhance the company’s e-commerce performance and national retail partnerships, broadening its market reach and sales opportunities.

The most recent analyst rating on (GRWG) stock is a Hold with a $2.25 price target. To see the full list of analyst forecasts on GrowGeneration stock, see the GRWG Stock Forecast page.

GrowGeneration Reports Q1 2025 Financial Results

On May 8, 2025, GrowGeneration Corp announced its financial results for the first quarter of 2025, revealing net sales of $35.7 million, a decline from the previous year due to the consolidation of 19 retail locations. Despite a net loss of $9.4 million, the company reported an improved gross profit margin of 27.2% and a significant increase in proprietary brand sales. The company is transitioning to a regional fulfillment center model and focusing on customer acquisition and proprietary brand penetration, while withdrawing its full-year 2025 outlook due to macroeconomic uncertainties.