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GrowGeneration Corp

GRWG

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GrowGeneration Corp AI Insights

Informational only. Not investment advice.
As of 2025-12-12

Snapshot

  • Operating margin -21.9% TTM vs industry median +3.8% - burning cash while peers profit. OpEx 47% of revenue.[Operating Margin]
  • Gross profit grew 18.9% YoY despite -5.5% revenue decline - cost restructuring gaining traction.[Gross Profit 1Y Growth]
  • P/B 1.2x with tangible book 98M vs 117M market cap - trading near liquidation value with 27M cash.[Price to Book]

Watch Triggers

  • Operating Margin: Improves to -10% or betterWould signal path to profitability; currently -21.9% vs +3.8% industry
  • Total Revenue 1Y Growth: Turns positive (>0%)Revenue declined 3 straight years; growth inflection critical for turnaround
  • Cash and Equivalents: Falls below 15MAt -6.7M FCF burn, would signal <2yr runway without capital raise

Bull Case

Trading at 0.73x P/S vs 0.57x median with 98M tangible book providing downside floor. Zero debt interest burden.

Price to SalesTangible Book ValueInterest Expense

Gross margin expansion (+18.9% GP growth on -5.5% revenue) signals operational turnaround potential.

Gross Profit 1Y GrowthGross MarginTotal Revenue 1Y Growth

Bear Case

Burning 6.7M FCF annually with only 27M cash. Revenue declined 3 consecutive years (-12.6% 3Y CAGR).

Free Cash FlowCash and EquivalentsTotal Revenue 3Y Growth

ROE -32% and ROIC -25% TTM destroying shareholder value. Industry median ROE +8.8%.

Return on EquityReturn on Invested Capital

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
35%

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Forward Thesis

Path to breakeven requires 15-20% revenue growth OR 800bps OpEx reduction

1-3ylow
  • OpEx at 75.5M TTM vs 161M revenue unsustainable
  • Gross margin 25% improving but below 36% industry median
  • Zero interest expense provides runway for restructuring
Operating loss -35.3M TTM on 161M revenueGross profit +18.9% YoY shows cost progressCash 27M with -6.7M FCF = ~4yr runway

Valuation Context

Caveats

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Fundamental company data provided by Morningstar, updated daily.

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