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Upturn AI SWOT - About
HYFM 
Hydrofarm Holdings Group Inc (HYFM)
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Upturn Advisory Summary
04/01/2025: HYFM (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit -70.65% | Avg. Invested days 17 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 9.09M USD | Price to earnings Ratio - | 1Y Target Price 7 |
Price to earnings Ratio - | 1Y Target Price 7 | ||
Volume (30-day avg) 30134 | Beta 2.03 | 52 Weeks Range 1.83 - 12.00 | Updated Date 04/2/2025 |
52 Weeks Range 1.83 - 12.00 | Updated Date 04/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -14.51 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -35.06% | Operating Margin (TTM) -39.18% |
Management Effectiveness
Return on Assets (TTM) -5.15% | Return on Equity (TTM) -25.94% |
Valuation
Trailing PE - | Forward PE 9.94 | Enterprise Value 152066773 | Price to Sales(TTM) 0.05 |
Enterprise Value 152066773 | Price to Sales(TTM) 0.05 | ||
Enterprise Value to Revenue 0.8 | Enterprise Value to EBITDA -11.25 | Shares Outstanding 4614280 | Shares Floating 3489133 |
Shares Outstanding 4614280 | Shares Floating 3489133 | ||
Percent Insiders 22.13 | Percent Institutions 22.9 |
Analyst Ratings
Rating 3 | Target Price 0.7 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold 2 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Hydrofarm Holdings Group Inc
Company Overview
History and Background
Hydrofarm Holdings Group, Inc. was founded in 1977. It has grown through acquisitions and organic growth to become a leading independent distributor and manufacturer of hydroponics equipment and supplies.
Core Business Areas
- Hydroponics Equipment: Distribution and manufacture of horticultural products, including lighting, nutrients, growing media, and climate control solutions.
- Controlled Environment Agriculture (CEA): Provides solutions for controlled environment agriculture, encompassing indoor farming technologies.
Leadership and Structure
Steve Mueller is the CEO. The company operates with a functional organizational structure, with departments focused on sales, marketing, operations, and finance.
Top Products and Market Share
Key Offerings
- Lighting Solutions: LED grow lights and other lighting equipment. Market share in specific lighting categories is estimated to be around 15-20%. Competitors include Gavita (acquired by Scotts Miracle-Gro), Fluence Bioengineering, and other LED manufacturers.
- Nutrients: Hydroponic nutrients and additives. Market share is estimated around 10-15%. Competitors include Advanced Nutrients, General Hydroponics (owned by Hawthorne Gardening, Scotts Miracle-Gro), and Botanicare.
- Growing Media: Various growing mediums like coco coir, rockwool, and peat moss. Market share is estimated around 5-10%. Competitors include Riococo Worldwide, Grodan, and various smaller brands.
Market Dynamics
Industry Overview
The hydroponics and controlled environment agriculture industry is experiencing growth, driven by increasing demand for locally sourced and sustainable food production, as well as the expansion of the cannabis industry. However, recent market corrections in the cannabis industry have impacted growth rates.
Positioning
Hydrofarm is a leading independent distributor and manufacturer, positioning itself as a one-stop shop for hydroponics and CEA solutions. Its competitive advantages include a broad product portfolio, established distribution network, and brand recognition.
Total Addressable Market (TAM)
The global hydroponics market is projected to reach USD 16.58 billion by 2028. Hydrofarm is positioned to capture a significant share of this market, however the cannabis sector corrections have significantly impacted their growth projections.
Upturn SWOT Analysis
Strengths
- Broad product portfolio
- Established distribution network
- Strong brand recognition
- Extensive product selection
Weaknesses
- Exposure to the volatile cannabis market
- High debt levels
- Dependence on acquisitions for growth
- Inventory management challenges
Opportunities
- Expansion into new geographic markets
- Development of innovative products
- Growing demand for sustainable agriculture
- Increasing adoption of CEA technologies
Threats
- Increased competition
- Fluctuations in commodity prices
- Changes in regulations
- Economic downturns affecting consumer spending
Competitors and Market Share
Key Competitors
- SMG
- GDRX
- CRON
Competitive Landscape
Hydrofarm competes on product breadth, distribution, and brand. Its advantages include its independent status, while its disadvantages include its debt load and exposure to the cannabis market.
Major Acquisitions
Aurora Innovations
- Year: 2021
- Acquisition Price (USD millions): 131
- Strategic Rationale: Expansion of nutrient offerings and market share.
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- Year: 2021
- Acquisition Price (USD millions): 60
- Strategic Rationale: Enhanced manufacturing capacity and cost efficiencies.
Growth Trajectory and Initiatives
Historical Growth: Hydrofarm experienced rapid growth through acquisitions and organic sales, particularly during the peak of the cannabis boom. This growth has slowed significantly with market corrections.
Future Projections: Future growth is projected to be moderate, dependent on the overall health of the hydroponics industry and the company's ability to manage its debt and integrate acquisitions.
Recent Initiatives: Recent initiatives include cost-cutting measures, debt reduction efforts, and focusing on core product lines.
Summary
Hydrofarm is a leading player in the hydroponics industry, but it faces challenges due to its high debt levels, exposure to the volatile cannabis market, and inconsistent profitability. While the company possesses a broad product portfolio and strong distribution network, its financial performance has been significantly impacted by recent market corrections. Future success depends on effectively managing debt, integrating acquisitions, and adapting to evolving market conditions. Recovery depends on factors out of their control.
Similar Companies
CRON
Cronos Group Inc
CRON
Cronos Group Inc
GDRX
Goodrx Holdings Inc
GDRX
Goodrx Holdings Inc
SMG
Scotts Miracle-Gro Company
SMG
Scotts Miracle-Gro Company
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Investor Presentations
- Industry Reports
- Analyst Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor. Market share estimates are approximate and subject to change. Data may be delayed.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Hydrofarm Holdings Group Inc
Exchange NASDAQ | Headquaters Shoemakersville, PA, United States | ||
IPO Launch date 2020-12-10 | CEO - | ||
Sector Industrials | Industry Farm & Heavy Construction Machinery | Full time employees 286 | Website https://www.hydrofarm.com |
Full time employees 286 | Website https://www.hydrofarm.com | ||
Hydrofarm Holdings Group, Inc., together with its subsidiaries, engages in the manufacturing and distribution of controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. The company provides agricultural lighting devices, indoor climate control equipment, and nutrients, as well as plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment. It is also involved in the distribution of CEA equipment and supplies comprising nutrients and fertilizers; grow light systems; horticulture benches and racking systems; heating, ventilation, and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, chillers, and filters; and various growing media typically made from soil, peat, rock wool or coconut fiber, and others. The company offers its products to specialty hydroponic retailers, commercial resellers and greenhouse builders, garden centers, hardware stores, and e-commerce retailers under the Active Air, Active Aqua, Aurora Peat Products, HEAVY 16, House & Garden, Gaia Green Organics, Grotek, Innovative Growers Equipment, Mad Farmer, Phantom, PHOTOBIO, Procision, Roots Organics, Growtainer, and SunBlaster brands. It serves its products through a range of commercial and home gardening equipment and supplies retailers. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.
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