GrowGeneration Corp.
$1.61
-6.4%GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. It engages in the marketing and distribution of nutrients, growing media, advanced indoor and greenhouse lighting, environmental control systems, vertical benching, and accessories for hydroponic gardening, as well as other indoor and outdoor growing products. The company serves commercial and urban cultivators growing specialty crops, including organics, greens, and plant-based medicines. As of March 01, 2022, it operated a chain of 63 stores, which includes 23 in California, 8 in Colorado, 7 in Michigan, 5 in Maine, 6 in Oklahoma, 4 in Oregon, 3 in Washington, 2 in Nevada, 1 in Arizona, 1 in Rhode Island, 1 in Florida, 1 in Massachusetts, and 1 in New Mexico, as well as growgeneration.com, an online superstore for cultivators. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -4.0).
Valuation inputs: P/E -4.0, earnings yield N/A, momentum -6.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -24.7%, ROIC -19.1%).
Profitability stack: net margin -14.9%, ROE -24.7%, ROIC -19.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +33.7%, momentum -6.4%, net margin -14.9%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
GrowGeneration Corp. Market vs Earnings Trajectory
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GrowGeneration Corp. Fair Value Envelope
GrowGeneration Corp. Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
GrowGeneration Corp. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
GrowGeneration Corp. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
GrowGeneration Corp. Street Expectations Map
Wall Street analysts project that GRWG stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 4.17, with estimates ranging from a low of 3.50 to a high of 5.00.
The consensus 1-year price target stands at 4.17, with estimates ranging from a low of 3.50 to a high of 5.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
GrowGeneration Corp. Insider Positioning
During the last 12 months, insiders have purchased $321K and sold $213K worth of GRWG shares, resulting in $107K of net buying activity.
3 Months
64.1K
99.35K
0
0.00
+99K
+$99K
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
133.3K
221.33K
126.8K
213.32K
+8K
+$8K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Aiello Stephen
Director
$221K
Lampert Darren
Director, Officer: Ceo
$99K
Top Sellers
Lampert Darren
Director, Officer: Ceo
$213K
Insider Activity Analysis
Net Insider Sentiment
Moderately bullish with $107K net buying. Insiders show cautious optimism through measured share purchases.
Buy/Sell Ratio
Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
2 insider buyers vs. 1 sellers. More insiders buying than selling indicates positive sentiment.
Insider Activity Insight
Sustained buying momentum: Consistent net buying over multiple quarters suggests insiders maintain conviction in the company's prospects. This is particularly meaningful if buying continued through market volatility.
grwg Dividend History
Learning Layer
Related Guides
Build conviction on GRWG by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.