GrowGeneration Corp. (GRWG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hudson Technologies, Inc.

GigaCloud Technology, Inc.

DXP Enterprises, Inc.

Cricut, Inc.

Distribution Solutions Group, Inc.

Titan Machinery, Inc.

GrowGeneration Corp.

Alta Equipment Group, Inc.

EVI Industries, Inc.

Solo Brands, Inc.

Li-Cycle Holdings Corp.

Why is GrowGeneration Corp. ?

Poor Management Efficiency with a low ROE of 0.85%

The company has been able to generate a Return on Equity (avg) of 0.85% signifying low profitability per unit of shareholders funds
RAW MATERIAL COST(Y) Fallen by -8.13% (YoY)
PRE-TAX PROFIT(Q) Highest at USD -4.97 MM
NET PROFIT(Q) Highest at USD -4.97 MM

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -21.32%, its profits have fallen by -18.6%

High Institutional Holdings at 49.31%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.32% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GrowGeneration Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is GrowGeneration Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

GrowGeneration Corp.

-24.88%

-0.49

79.58%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.83%

EBIT Growth (5y)

-298.33%

EBIT to Interest (avg)

-19.72

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.29

Tax Ratio

0.32%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

49.31%

ROCE (avg)

1.66%

ROE (avg)

0.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.63

EV to EBIT

-0.60

EV to EBITDA

-1.13

EV to Capital Employed

0.38

EV to Sales

0.14

PEG Ratio

Dividend Yield

ROCE (Latest)

-62.56%

ROE (Latest)

-35.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.13% (YoY

PRE-TAX PROFIT(Q)

Highest at USD -4.97 MM

NET PROFIT(Q)

Highest at USD -4.97 MM

EPS(Q)

Highest at USD -0.08

-9What is not working for the Company

NET SALES(HY)

At USD 76.67 MM has Grown at -24.41%

ROCE(HY)

Lowest at -37.31%

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.03 times

Here's what is working for GrowGeneration Corp.

Pre-Tax Profit

Highest at USD -4.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD -4.97 MM has Grown at 49.78%

over average net sales of the previous four periods of USD -9.91 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD -4.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD -4.97 MM has Grown at 49.98%

over average net sales of the previous four periods of USD -9.95 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD -0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -8.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for GrowGeneration Corp.

Net Sales

At USD 76.67 MM has Grown at -24.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Debtors Turnover Ratio

Lowest at 15.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio