GrowGeneration Corp. (GRWG) Bundle
Understanding GrowGeneration Corp. (GRWG) Revenue Streams
Revenue Analysis
GrowGeneration Corp. reported total revenue of $193.5 million for the fiscal year 2022, with a decline from previous years. The company's revenue breakdown reveals key insights into its financial performance.
| Revenue Source | Amount ($) | Percentage |
|---|---|---|
| Retail Store Sales | $172.3 million | 89% |
| Online Sales | $21.2 million | 11% |
Revenue growth trends show significant changes:
- 2020 Revenue: $228.5 million
- 2021 Revenue: $214.2 million
- 2022 Revenue: $193.5 million
Geographic revenue distribution indicates:
| Region | Revenue Contribution |
|---|---|
| California | 35% |
| Colorado | 22% |
| Other States | 43% |
Key revenue segments include:
- Hydroponic Equipment: 65% of total revenue
- Cultivation Supplies: 25% of total revenue
- Ancillary Products: 10% of total revenue
The company experienced a 9.7% year-over-year revenue decline from 2021 to 2022, reflecting challenging market conditions.
A Deep Dive into GrowGeneration Corp. (GRWG) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's profitability and operational efficiency.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 27.3% | 24.1% |
| Operating Profit Margin | -15.6% | -22.4% |
| Net Profit Margin | -16.8% | -25.7% |
Key profitability observations include:
- Gross profit declined from $213.4 million in 2022 to $186.2 million in 2023
- Operating expenses increased to $149.7 million in 2023
- Net income decreased from -$83.6 million to -$127.3 million
| Efficiency Metric | 2023 Performance |
|---|---|
| Revenue per Employee | $486,000 |
| Cost of Goods Sold | $462.5 million |
Debt vs. Equity: How GrowGeneration Corp. (GRWG) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Amount ($) |
|---|---|
| Total Long-Term Debt | $89.4 million |
| Short-Term Debt | $22.6 million |
| Total Debt | $112 million |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 1.45
- Industry Average Debt-to-Equity Ratio: 1.2
Credit Profile
Current credit rating from Standard & Poor's: BB-
Financing Strategy
| Funding Source | Percentage |
|---|---|
| Debt Financing | 55% |
| Equity Financing | 45% |
Recent Financial Activities
- Latest Bond Issuance: $50 million at 7.5% interest rate
- Equity Offering in 2023: $75 million
Assessing GrowGeneration Corp. (GRWG) Liquidity
Liquidity and Solvency Analysis
Financial analysis reveals critical insights into the company's liquidity and solvency positions as of the most recent reporting period.
Liquidity Metrics
| Liquidity Ratio | Value | Industry Benchmark |
|---|---|---|
| Current Ratio | 1.2 | 1.5 |
| Quick Ratio | 0.8 | 1.0 |
Working Capital Analysis
Working capital trends indicate the following financial characteristics:
- Working Capital: $15.3 million
- Year-over-Year Working Capital Change: -22%
- Net Working Capital Turnover: 3.7x
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $22.1 million |
| Investing Cash Flow | -$18.5 million |
| Financing Cash Flow | -$7.6 million |
Liquidity Risk Indicators
- Cash Conversion Cycle: 45 days
- Cash Reserve Duration: 6.2 months
- Debt-to-Equity Ratio: 0.65
Is GrowGeneration Corp. (GRWG) Overvalued or Undervalued?
Valuation Analysis
Analyzing the current valuation metrics provides critical insights into the company's market positioning and investment potential.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -16.45 |
| Price-to-Book (P/B) Ratio | 1.12 |
| Enterprise Value/EBITDA | -8.73 |
| Current Stock Price | $1.45 |
Stock Price Performance
- 52-week low: $0.87
- 52-week high: $3.65
- Year-to-date performance: -68.5%
Analyst Recommendations
| Rating Category | Percentage |
|---|---|
| Buy | 33% |
| Hold | 50% |
| Sell | 17% |
Dividend Information
Current dividend yield: 0%
Valuation Indicators
- Market Capitalization: $61.2 million
- Average Trading Volume: 1.2 million shares
- Beta Coefficient: 2.45
Key Risks Facing GrowGeneration Corp. (GRWG)
Risk Factors
The company faces several critical risk factors that could potentially impact its financial performance and market position.
Market and Competitive Risks
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Market Competition | Intense industry rivalry | $45.2 million potential revenue reduction |
| Market Volatility | Regulatory uncertainty | 17.3% potential market share decline |
Financial Risks
- Total debt as of Q3 2023: $89.7 million
- Interest expense: $3.2 million annually
- Cash flow volatility: ±12.5% quarterly fluctuation
Operational Risks
Key operational challenges include:
- Supply chain disruptions affecting 22% of inventory procurement
- Technology infrastructure vulnerability
- Potential workforce recruitment challenges
Regulatory Compliance Risks
| Regulatory Area | Compliance Challenge | Potential Financial Impact |
|---|---|---|
| Environmental Regulations | Stricter industry standards | $5.6 million potential compliance costs |
| Tax Legislation | Potential tax structure changes | $4.3 million potential tax liability increase |
Strategic Risks
Strategic risk assessment reveals:
- Market expansion challenges
- Technology adaptation requirements
- Potential merger and acquisition complexities
Future Growth Prospects for GrowGeneration Corp. (GRWG)
Growth Opportunities
The company's growth opportunities are anchored in several key strategic areas:
- Hydroponics Market Expansion: $13.3 billion global hydroponics market projected by 2026
- Cannabis Industry Growth: $33.5 billion projected cannabis market size by 2025
- Controlled Environment Agriculture (CEA) Market: Expected to reach $24.7 billion by 2026
| Growth Metric | Current Value | Projected Value |
|---|---|---|
| Revenue Potential | $639.4 million | $850 million by 2025 |
| Store Expansion | 54 stores | 100+ stores by 2025 |
| Online Sales Growth | 37% year-over-year | Projected 50% annual growth |
Strategic initiatives include:
- Geographic Expansion: Targeting 15 new states for market penetration
- E-commerce Platform Enhancement: Investing $5.2 million in digital infrastructure
- Acquisition Strategy: Targeting $50 million for potential strategic acquisitions
Competitive advantages include:
- Comprehensive Product Portfolio: Over 10,000 unique SKUs
- Advanced Supply Chain: 7 distribution centers nationwide
- Technology Integration: $3.6 million invested in technological capabilities
GrowGeneration Corp. (GRWG) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.