Grove Collaborative Holdings (GROV) AI Stock Analysis

• Market Cap: $45.77M
• Dividend Yield: N/A
• Average Volume (3M): 89.91K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -21.54%
• EPS Growth: 40.62%
• Country: US
• Employees: 339
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Household & Personal Products
• EPS (TTM): -0.76
• Shares Outstanding: 40,152,720
• 10 Day Avg. Volume: 53,156
• 30 Day Avg. Volume: 89,912
• 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: 1.66
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.70
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.50
• Price Target Upside: 119.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

GROV's overall stock score reflects significant financial difficulties, with declining revenues and negative profitability as key concerns. Technical indicators suggest bearish momentum, while the negative P/E ratio indicates potential overvaluation. Despite some positive aspects from recent earnings, including debt elimination and strategic acquisitions, long-term sustainability and growth remain in question. The stock faces ongoing challenges which weigh heavily on its overall attractiveness.

Positive Factors

Acquisitions

Recent acquisitions of Grab Green and 8Greens should help incrementally add sales.

Customer Growth

Management's initiatives are bearing fruit with increased orders per active customer and average spending per customer growing.

Debt Reduction

The acquisition signals GROV's improving balance sheet as they reduce their debt and look to become more consistently profitable.

Negative Factors

Brick & Mortar Performance

Sales were pressured by weaker-than-expected brick & mortar performance, leading to management announcing the winddown of their B&M business by early 2025, which represented less than 4% of total sales.

Financial Guidance

Management lowered their FY24 guidance to $200M to $205M due to weaker-than-anticipated B&M weakness which impacted 3Q and expected to continue in 4Q.

Gross Margins

Gross margins in the quarter deleveraged primarily from increased promotional activity.

Grove Collaborative Holdings Business Overview & Revenue Model

Company Description

Grove Collaborative Holdings (GROV) is a leading e-commerce company that specializes in providing sustainable, eco-friendly household and personal care products. The company operates within the consumer goods sector, focusing on offering a wide range of environmentally friendly products, including cleaning supplies, personal care items, and wellness products. Grove Collaborative is committed to sustainability, ensuring that all of its products are ethically sourced and packaged in recyclable or reusable materials.

How the Company Makes Money

Grove Collaborative makes money primarily through direct-to-consumer sales via its online platform. The company generates revenue by selling its own line of branded products, as well as products from other eco-friendly brands. A significant portion of its income is derived from subscription services, where customers can sign up for regular deliveries of their preferred products, ensuring a steady and predictable revenue stream. Additionally, Grove Collaborative benefits from partnerships with various environmentally conscious brands, expanding its product offerings and attracting a wider customer base. The company's focus on sustainability and eco-friendly products aligns with increasing consumer demand for environmentally responsible choices, further driving its revenue growth.

Grove Collaborative Holdings Financial Statement Overview

Summary

Grove Collaborative Holdings faces substantial financial challenges, with declining revenues, negative profitability, and a precarious balance sheet. Despite some positive operating cash flow recently, the overall financial health is concerning, necessitating strategic improvements.

Income Statement

The company has shown a consistent decline in revenue over the years, with a significant drop from $383.7M in 2021 to $203.4M in 2024. Gross profit margins have been relatively stable but are overshadowed by negative EBIT and net income margins, indicating ongoing operational challenges. Net profit margin remains negative, reflecting continued losses.

Balance Sheet

The balance sheet shows a negative stockholders' equity in 2024, highlighting financial instability. The debt-to-equity ratio is undefined due to negative equity, signaling potential leverage risks. The equity ratio is also negative, indicating more liabilities than assets, which could pose long-term sustainability issues.

Cash Flow

Operating cash flow is consistently negative, although there is a slight improvement in free cash flow from 2023 to 2024. However, the company has faced significant cash flow challenges, with financing cash flows largely negative, indicating potential difficulties in raising capital.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
203.43M	259.28M	321.53M	383.69M	364.27M
	Gross Profit
109.35M	137.36M	154.65M	188.50M	176.00M
	EBIT
-12.28M	-31.45M	-140.98M	-128.85M	-66.49M
	EBITDA
-4.79M	-21.29M	-72.26M	-125.65M	-62.50M
	Net Income Common Stockholders
-27.42M	-43.23M	-87.72M	-135.90M	-72.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.63M	86.41M	81.08M	78.38M	176.52M
	Total Assets
65.01M	150.74M	174.04M	182.47M	269.72M
	Total Debt
14.59M	89.56M	81.09M	90.51M	58.23M
	Net Debt
-5.04M	3.14M	8.00K	12.14M	-118.29M
	Total Liabilities
48.79M	132.62M	147.51M	150.83M	121.44M
	Stockholders Equity
16.22M	18.12M	26.53M	31.64M	148.28M
Cash Flow		Free Cash Flow
-11.51M	-10.98M	-100.48M	-132.86M	-88.48M
	Operating Cash Flow
-9.75M	-7.99M	-96.26M	-127.09M	-83.66M
	Investing Cash Flow
-1.62M	-2.98M	-4.22M	-5.77M	-4.82M
	Financing Cash Flow
-59.19M	9.86M	118.09M	34.71M	228.17M

Grove Collaborative Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.14
• 50DMA: Negative
• 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 GROV, the sentiment is Neutral. The current price of 1.14 is above the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.39, and below the 200-day MA of 1.40, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 67.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GROV.

Grove Collaborative Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UG	71 Outperform	$36.80M	11.32	27.94%	8.74%	11.91%	25.93%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
MTEX	60 Neutral	$19.60M	7.80	26.08%	―	-10.68%	―
EWCZ	58 Neutral	$185.84M	15.20	14.07%	―	-1.86%	25.97%
NUS	57 Neutral	$305.84M	―	-19.90%	3.88%	-12.04%	-1796.38%
GROV	43 Neutral	$45.77M	―	-159.69%	―	-21.54%	40.62%
SKIN	41 Neutral	$143.63M	―	-52.34%	―	-16.00%	69.61%

Grove Collaborative Holdings Corporate Events

Grove Collaborative Reports 2024 Financial Results and Strategic Acquisitions

On March 11, 2025, Grove Collaborative Holdings announced its financial results for the fourth quarter and full year of 2024, highlighting sequential revenue growth and positive operating cash flow for the first time since early 2022. The company also completed a $72 million voluntary repayment of term debt and reported positive Adjusted EBITDA for the full year, marking significant milestones in its turnaround strategy. The acquisition of 8Greens and Grab Green reflects Grove’s strategic focus on sustainability and innovation. Despite a year-over-year revenue decline due to reduced advertising spend, the company remains optimistic about its trajectory, aiming for year-over-year net revenue growth by the fourth quarter of 2025.

Grove Collaborative Holdings Appoints Tom Siragusa as Interim CFO

Grove Collaborative Holdings announced changes in its executive team, with Tom Siragusa appointed as interim CFO and other key roles effective February 16, 2025. This follows the agreed termination of Sergio Cervantes as CFO on that date, with a separation agreement providing him with financial and stock compensation, subject to certain conditions.