GrowGeneration (GRWG) AI Stock Analysis

• Market Cap: $66.04M
• Dividend Yield: N/A
• Average Volume (3M): 383.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.20
• 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: 457,029
• 30 Day Avg. Volume: 383,397
• 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: 3.74
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 6.02
• Enterprise Value/Ebitda: -1.89
• 1Y Price Target: $1.88
• Price Target Upside: 69.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $1.00 ▼(-9.91%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. (GRWG) is a leading specialty retailer focused on the hydroponics and organic gardening industry. The company operates a chain of retail hydroponic and organic gardening stores across the United States, catering to commercial and home growers. GrowGeneration offers a wide range of products, including organic nutrients and soils, advanced lighting technology, hydroponic and aquaponics equipment, and other gardening supplies. The company aims to serve the growing needs of the cannabis industry, as well as other agricultural markets, by providing high-quality products and expert advice.

How the Company Makes Money

GrowGeneration makes money primarily through the sale of hydroponic and organic gardening products via its retail stores and online platform. The company's key revenue streams include the sale of nutrients and soils, lighting products, hydroponic systems, and various gardening tools and accessories. GrowGeneration benefits from its expansive network of retail locations, which allows it to reach a broad customer base, including commercial cannabis cultivators and individual home gardeners. Additionally, the company engages in strategic partnerships with leading manufacturers and suppliers in the hydroponics industry to offer a comprehensive range of products. GrowGeneration's revenue is further supported by its focus on providing educational resources and personalized customer service, which helps to build customer loyalty and drive repeat business.

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: 1.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.11 is below the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.09, and below the 200-day MA of 1.51, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 13.06 is Positive, 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 *	61 Neutral	AU$2.78B	25.51	5.01%	5.34%	2.63%	-29.95%
GRWG	49 Neutral	$66.04M	―	-36.21%	―	-18.56%	-4.95%
ISPO	49 Neutral	$54.37M	―	8.84%	―	-16.42%	88.30%
VRA	45 Neutral	$60.06M	―	-36.91%	―	-24.95%	-2349.32%
DLTH	45 Neutral	$75.91M	―	-27.53%	―	-4.21%	-292.04%
TLYS	44 Neutral	$36.18M	―	-47.54%	―	-8.79%	-15.17%
GROV	39 Underperform	$41.46M	―	-180.03%	―	-19.83%	22.76%

GrowGeneration Corporate Events

GrowGeneration Holds Annual Shareholders Meeting, Elects Directors

On June 19, 2025, GrowGeneration Corp. held its Annual Meeting of Shareholders remotely, with 62.78% of outstanding shares present. During the meeting, five directors were elected to the board, executive compensation was approved, and Grant Thornton LLP was appointed as the independent auditor for the fiscal year ending December 31, 2025.

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 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.