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HYDROFARM HOLDINGS GROUP INC (HYFM) Stock Fundamental Analysis

NASDAQ:HYFM - Nasdaq - US44888K2096 - Common Stock

0.6029  +0.03 (+4.72%)

After market: 0.6001 0 (-0.46%)

Fundamental Rating

1

Overall HYFM gets a fundamental rating of 1 out of 10. We evaluated HYFM against 131 industry peers in the Machinery industry. Both the profitability and financial health of HYFM have multiple concerns. HYFM has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

HYFM had negative earnings in the past year.
HYFM had a negative operating cash flow in the past year.
HYFM had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: HYFM reported negative operating cash flow in multiple years.
HYFM Yearly Net Income VS EBIT VS OCF VS FCFHYFM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 -100M -200M -300M -400M -500M

1.2 Ratios

With a Return On Assets value of -14.45%, HYFM is not doing good in the industry: 81.89% of the companies in the same industry are doing better.
With a Return On Equity value of -26.51%, HYFM is not doing good in the industry: 80.31% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -14.45%
ROE -26.51%
ROIC N/A
ROA(3y)-20.34%
ROA(5y)-17.24%
ROE(3y)-33.92%
ROE(5y)-47%
ROIC(3y)N/A
ROIC(5y)N/A
HYFM Yearly ROA, ROE, ROICHYFM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 -50 -100 -150 -200

1.3 Margins

HYFM has a worse Gross Margin (20.77%) than 73.23% of its industry peers.
In the last couple of years the Gross Margin of HYFM has grown nicely.
The Profit Margin and Operating Margin are not available for HYFM so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 20.77%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.66%
GM growth 5Y13.37%
HYFM Yearly Profit, Operating, Gross MarginsHYFM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60 -80

3

2. Health

2.1 Basic Checks

HYFM does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HYFM has been increased compared to 1 year ago.
Compared to 5 years ago, HYFM has more shares outstanding
HYFM has a worse debt/assets ratio than last year.
HYFM Yearly Shares OutstandingHYFM Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
HYFM Yearly Total Debt VS Total AssetsHYFM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of -1.23, we must say that HYFM is in the distress zone and has some risk of bankruptcy.
HYFM has a Altman-Z score of -1.23. This is amonst the worse of the industry: HYFM underperforms 85.83% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that HYFM is somewhat dependend on debt financing.
The Debt to Equity ratio of HYFM (0.51) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Altman-Z -1.23
ROIC/WACCN/A
WACC9.76%
HYFM Yearly LT Debt VS Equity VS FCFHYFM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M 600M

2.3 Liquidity

A Current Ratio of 3.24 indicates that HYFM has no problem at all paying its short term obligations.
The Current ratio of HYFM (3.24) is better than 79.53% of its industry peers.
A Quick Ratio of 1.41 indicates that HYFM should not have too much problems paying its short term obligations.
HYFM has a Quick ratio (1.41) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 3.24
Quick Ratio 1.41
HYFM Yearly Current Assets VS Current LiabilitesHYFM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

1

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 59.49% over the past year.
Looking at the last year, HYFM shows a very negative growth in Revenue. The Revenue has decreased by -16.95% in the last year.
HYFM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.36% yearly.
EPS 1Y (TTM)59.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%43.75%
Revenue 1Y (TTM)-16.95%
Revenue growth 3Y-12.84%
Revenue growth 5Y1.36%
Sales Q2Q%-18.75%

3.2 Future

The Earnings Per Share is expected to decrease by -2.16% on average over the next years.
Based on estimates for the next years, HYFM will show a decrease in Revenue. The Revenue will decrease by -1.97% on average per year.
EPS Next Y-115.59%
EPS Next 2Y-19.89%
EPS Next 3Y-2.16%
EPS Next 5YN/A
Revenue Next Year-15.39%
Revenue Next 2Y-6.23%
Revenue Next 3Y-1.97%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
HYFM Yearly Revenue VS EstimatesHYFM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M
HYFM Yearly EPS VS EstimatesHYFM Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 -1

0

4. Valuation

4.1 Price/Earnings Ratio

HYFM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year HYFM is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
HYFM Price Earnings VS Forward Price EarningsHYFM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
HYFM Per share dataHYFM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4 5

4.3 Compensation for Growth

HYFM's earnings are expected to decrease with -2.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.89%
EPS Next 3Y-2.16%

0

5. Dividend

5.1 Amount

No dividends for HYFM!.
Industry RankSector Rank
Dividend Yield N/A

HYDROFARM HOLDINGS GROUP INC

NASDAQ:HYFM (1/21/2025, 8:06:25 PM)

After market: 0.6001 0 (-0.46%)

0.6029

+0.03 (+4.72%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)N/A N/A
Inst Owners27.78%
Inst Owner Change0.31%
Ins Owners17.56%
Ins Owner Change2.55%
Market Cap27.82M
Analysts45.71
Price Target0.71 (17.76%)
Short Float %2.66%
Short Ratio6.39
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)63.24%
Min EPS beat(2)50.98%
Max EPS beat(2)75.49%
EPS beat(4)4
Avg EPS beat(4)58.62%
Min EPS beat(4)49.29%
Max EPS beat(4)75.49%
EPS beat(8)7
Avg EPS beat(8)45.54%
EPS beat(12)9
Avg EPS beat(12)-10.37%
EPS beat(16)11
Avg EPS beat(16)-2.28%
Revenue beat(2)1
Avg Revenue beat(2)-5.34%
Min Revenue beat(2)-12.2%
Max Revenue beat(2)1.53%
Revenue beat(4)2
Avg Revenue beat(4)-3.81%
Min Revenue beat(4)-12.2%
Max Revenue beat(4)5.48%
Revenue beat(8)3
Avg Revenue beat(8)-0.46%
Revenue beat(12)5
Avg Revenue beat(12)-1.88%
Revenue beat(16)7
Avg Revenue beat(16)-0.77%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.92%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.14
P/FCF N/A
P/OCF N/A
P/B 0.11
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.32
EYN/A
EPS(NY)-0.63
Fwd EYN/A
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)-0.1
OCFYN/A
SpS4.34
BVpS5.27
TBVpS-0.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -14.45%
ROE -26.51%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 20.77%
FCFM N/A
ROA(3y)-20.34%
ROA(5y)-17.24%
ROE(3y)-33.92%
ROE(5y)-47%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.66%
GM growth 5Y13.37%
F-Score3
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 8.89%
Cap/Sales 1.39%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.24
Quick Ratio 1.41
Altman-Z -1.23
F-Score3
WACC9.76%
ROIC/WACCN/A
Cap/Depr(3y)1054.9%
Cap/Depr(5y)639.6%
Cap/Sales(3y)33.93%
Cap/Sales(5y)20.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%43.75%
EPS Next Y-115.59%
EPS Next 2Y-19.89%
EPS Next 3Y-2.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.95%
Revenue growth 3Y-12.84%
Revenue growth 5Y1.36%
Sales Q2Q%-18.75%
Revenue Next Year-15.39%
Revenue Next 2Y-6.23%
Revenue Next 3Y-1.97%
Revenue Next 5YN/A
EBIT growth 1Y38.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year111.92%
EBIT Next 3Y35.03%
EBIT Next 5YN/A
FCF growth 1Y89.16%
FCF growth 3YN/A
FCF growth 5Y-1.81%
OCF growth 1Y62.17%
OCF growth 3YN/A
OCF growth 5Y9.67%