Hydrofarm Holdings Group (HYFM) AI Stock Analysis

• Market Cap: $21.36M
• Dividend Yield: N/A
• Average Volume (3M): 9.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -19.18%
• EPS Growth: -12.03%
• Country: US
• Employees: 286
• Sector: Industrials
• Sector Strength: 95
• Industry: Agricultural - Machinery
• EPS (TTM): -0.52
• Shares Outstanding: 4,642,957
• 10 Day Avg. Volume: 14,135
• 30 Day Avg. Volume: 9,079
• PEG Ratio: <0.01
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.32
• Enterprise Value/Market Cap: 8.13
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 7.57
• Enterprise Value/Ebitda: -1.92
• 1Y Price Target: $3.50
• Price Target Upside: -23.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $4.50 ▼(-2.17%Downside)

The overall stock score of 53 reflects significant financial challenges faced by Hydrofarm Holdings Group, including declining revenues and negative cash flows. Despite positive technical analysis indicators suggesting potential short-term momentum, the lack of earnings and dividend yield, along with industry challenges, weigh heavily on the stock's attractiveness.

Hydrofarm Holdings Group Business Overview & Revenue Model

Company Description

Hydrofarm Holdings Group (HYFM) is a leading distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture, including indoor and urban gardening. The company offers a comprehensive range of products such as lighting solutions, climate control systems, growing media, and plant nutrients, catering to both commercial and hobbyist growers. Hydrofarm operates primarily in the United States and Canada, serving the burgeoning market for innovative agricultural solutions that enhance crop yield and quality.

How the Company Makes Money

Hydrofarm Holdings Group generates revenue through the sale of hydroponics equipment and supplies. The company's primary revenue streams include the distribution of proprietary and third-party branded products to a wide network of retailers, commercial growers, and other end-users. Hydrofarm collaborates with a variety of vendors and manufacturers to offer a diverse product portfolio, ensuring a steady supply chain and product availability. Additionally, the company benefits from strategic partnerships and acquisitions that expand its product offerings and market reach. Factors such as increasing interest in sustainable agriculture and the growing legal cannabis market have significantly contributed to Hydrofarm's earnings by driving demand for its products.

Hydrofarm Holdings Group Financial Statement Overview

Summary

Hydrofarm Holdings Group is facing financial challenges with declining revenues, persistent losses, and negative cash flow trends. Although the balance sheet reflects moderate leverage, weakening equity ratios highlight the need for strategic changes to improve profitability and cash generation.

Income Statement

Hydrofarm Holdings Group has experienced declining revenues over recent periods, with the TTM showing a further decrease to $176.65 million from $190.29 million the previous year. The gross profit margin in the TTM is 12.99%, which is relatively low for the industry. The company is also facing significant losses, with a net profit margin of -38.76% and a negative EBIT margin of -23.79%, reflecting operational inefficiencies and high costs.

Balance Sheet

The company's balance sheet indicates a modest debt-to-equity ratio of 0.80, which suggests manageable leverage. However, the equity ratio has decreased to 51.14% in the TTM, indicating a potential weakening in asset financing through equity. The return on equity is negative at -32.62%, highlighting challenges in generating returns for shareholders.

Cash Flow

Cash flow performance is concerning, with negative operating cash flow in the TTM and a significant decrease in free cash flow growth. The operating cash flow to net income ratio is unfavorable, indicating insufficient cash generation from operations to cover net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	190.29M	226.58M	344.50M	479.42M	342.20M
Gross Profit	32.13M	37.61M	29.34M	101.49M	63.63M
EBITDA	-19.92M	-17.51M	-229.62M	17.01M	13.69M
Net Income	-66.72M	-64.81M	-285.42M	13.42M	-7.27M
Balance Sheet
Total Assets	426.10M	507.64M	573.56M	891.24M	275.80M
Cash, Cash Equivalents and Short-Term Investments	26.11M	30.31M	21.29M	26.61M	75.18M
Total Debt	169.53M	183.93M	186.07M	167.57M	20.06M
Total Liabilities	202.38M	217.03M	223.68M	256.06M	64.88M
Stockholders Equity	223.72M	290.61M	349.88M	635.18M	210.92M
Cash Flow
Free Cash Flow	-3.22M	2.83M	13.76M	-50.47M	-46.33M
Operating Cash Flow	-324.00K	7.04M	21.99M	-45.07M	-44.83M
Investing Cash Flow	1.67M	-4.17M	-8.49M	-468.18M	546.00K
Financing Cash Flow	-4.78M	6.07M	-20.20M	464.71M	88.14M

Hydrofarm Holdings Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HYFM, the sentiment is Positive. The current price of 4.6 is above the 20-day moving average (MA) of 4.02, above the 50-day MA of 3.74, and below the 200-day MA of 4.80, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 66.68 is Neutral, neither overbought nor oversold. The STOCH value of 80.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HYFM.

Hydrofarm Holdings Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARTW	76 Outperform	$15.53M	10.00	14.17%	―	-14.22%	―
Sector *	71 Outperform	¥268.02B	13.92	8.47%	2.88%	6.35%	13.11%
HYFM	53 Neutral	$21.36M	―	-28.07%	―	-19.18%	-12.03%
UGRO	38 Underperform	$5.59M	―	-146.60%	―	12.08%	25.82%
VAPE	37 Underperform	$7.12M	―	-33.60%	―	-59.43%	2.40%

Hydrofarm Holdings Group Corporate Events

Hydrofarm Holdings Appoints New Board Member, Amends Charter

On June 9, 2025, Hydrofarm Holdings Group, Inc. appointed B. John Lindeman to its board of directors, filling the vacancy left by Richard D. Moss. Concurrently, the company made amendments to its charter, retiring and eliminating references to 7,725,045 shares of Series A Preferred Stock, which were converted into common stock, and reducing the authorized shares of Series A Preferred Stock.

The most recent analyst rating on (HYFM) stock is a Hold with a $0.75 price target. To see the full list of analyst forecasts on Hydrofarm Holdings Group stock, see the HYFM Stock Forecast page.

Hydrofarm Reports Q1 2025 Financial Results Amid Challenges

On May 13, 2025, Hydrofarm Holdings Group announced its first-quarter financial results, highlighting a decrease in net sales to $40.5 million from $54.2 million in the previous year, primarily due to an oversupply in the cannabis industry. Despite the decline in sales and gross profit margins, the company achieved significant cost savings through restructuring and strategic focus on higher-margin proprietary brands, which increased to 55% of sales. The company also reported a net loss of $14.4 million, up from $12.6 million, and withdrew its full-year 2025 outlook due to macroeconomic uncertainties and industry challenges. Hydrofarm remains committed to improving profit margins and strengthening its financial position through continued cost-saving measures and strategic initiatives.

The most recent analyst rating on (HYFM) stock is a Hold with a $0.75 price target. To see the full list of analyst forecasts on Hydrofarm Holdings Group stock, see the HYFM Stock Forecast page.