GrowGeneration (GRWG) AI Stock Analysis

• Market Cap: $69.57M
• Dividend Yield: N/A
• Average Volume (3M): 559.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.00
• Revenue Growth: -16.39%
• EPS Growth: -9.08%
• Country: US
• Employees: 289
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Specialty Retail
• EPS (TTM): -0.83
• Shares Outstanding: 59,458,015
• 10 Day Avg. Volume: 495,930
• 30 Day Avg. Volume: 559,745
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.63
• Price Target Upside: 124.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

GrowGeneration's overall stock score is influenced by significant financial challenges, including declining revenues and profitability. Short-term technical signals suggest some positive momentum, but long-term indicators and valuation concerns weigh heavily. The company's efforts to restructure and focus on proprietary brands offer potential, but risks remain high with ongoing net losses and margin pressures.

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 financial challenges, with declining revenues and profitability impacting its income statement. While the balance sheet shows manageable leverage, the cash flow statement emphasizes issues with cash generation. These factors combined suggest a need for strategic changes to improve financial health and long-term viability.

Income Statement

GrowGeneration's income statement shows declining revenue and profitability over the past two years. The gross profit margin has decreased due to reduced total revenue and gross profit. The company has faced significant net losses, resulting in negative net profit margins. This trend indicates challenges in maintaining sales and controlling costs, potentially impacting long-term sustainability.

Balance Sheet

The balance sheet reflects a relatively stable equity position, but there is increasing pressure from liabilities. The debt-to-equity ratio remains relatively low, indicating manageable leverage. However, declining stockholders' equity and total assets suggest potential risks in asset management and capital structure stability.

Cash Flow

Cash flow analysis reveals negative free cash flow and operating cash flow, highlighting difficulties in generating cash from operations. The company has struggled to maintain positive cash flows, which could hinder its ability to finance operations and investments without external funding.

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

GrowGeneration Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRWG, the sentiment is Positive. The current price of 1.17 is above the 20-day moving average (MA) of 0.96, above the 50-day MA of 1.08, and below the 200-day MA of 1.70, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 83.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRWG.

GrowGeneration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$6.55B	11.72	3.07%	4.01%	2.66%	-21.27%
GRWG	49 Neutral	$69.57M	―	-33.74%	―	-16.39%	-9.08%
DLTH	46 Neutral	$62.63M	―	-22.43%	―	-3.10%	-381.92%
TLYS	43 Neutral	$45.23M	―	-37.62%	―	-8.61%	-33.30%
GROV	43 Neutral	$45.37M	―	-159.69%	―	-21.54%	40.62%
VRA	41 Neutral	$54.44M	―	-28.34%	―	-20.99%	-976.24%
ISPO	36 Underperform	$42.17M	―	8.84%	―	-14.96%	90.64%

GrowGeneration Corporate Events

GrowGeneration Reports 2024 Financial Results Amid Restructuring

On March 13, 2025, GrowGeneration Corp. announced its financial results for the fourth quarter and full year of 2024, highlighting a net sales decline to $188.9 million due to the consolidation of 19 retail locations and strategic restructuring. Despite a net loss of $49.5 million, the company improved its proprietary brand sales and launched a new B2B e-commerce platform, aiming for profitability and growth in 2025 with expected revenue between $170 million to $180 million.

GrowGeneration Outlines 2025 Strategic Plans in Shareholder Letter

On February 6, 2025, GrowGeneration issued a shareholder letter highlighting its 2024 achievements and outlining its strategic plans for 2025. The company reported significant progress in transforming into a product-driven, B2B-focused organization, increasing proprietary brand sales, and launching a new B2B e-commerce platform. In 2024, GrowGeneration streamlined operations, met its store closure targets, and improved efficiencies, which are expected to reduce expenses by approximately $12 million annually. The company anticipates 2024 net sales between $188 million and $190 million, with a debt-free balance sheet and strong cash position. Looking forward, GrowGeneration aims to expand its proprietary brands and market reach while maintaining operational efficiencies and exploring strategic acquisitions, positioning itself for growth and innovation in 2025.