GrowGeneration Corp. Common Stock (GRWG)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach GrowGeneration as a Graham-style asset buyer and a Buffett-style business appraiser, and the two views diverge. The company sells hydroponic and organic gardening supplies through retail and distribution, but a specialty retailer without durable margins is rarely a moat. Looking at filed figures, in fiscal FY2025, the year ended 2025-12-31, revenue was $161.7M and net income was -$24.0M, or diluted EPS -$0.40. That is an improvement from fiscal FY2024, the year ended 2024-12-31, when revenue was $188.9M and net income was -$49.5M, or diluted EPS -$0.82, but revenue has fallen from fiscal FY2023, the year ended 2023-12-31, when revenue was $225.9M and net income was -$46.5M. The latest quarter, fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $43.2M, net income of -$2.0M, and diluted EPS of -$0.03, versus fiscal Q2 2025, the quarter ended 2025-06-30, with revenue of $41.0M, net income of -$4.8M, and diluted EPS of -$0.08. So there is modest top-line stabilization and cost progress, but still no profit. At the 2026-10-13 close of $1.49, FairStock calculations show a market cap of $87.8M, P/B of 0.99, negative P/E of -5.32, ROE of -17.07%, ROCE of -7.78%, and FCF yield of -8.4%. Debt/equity of 0.29 is not alarming, and a Piotroski F-Score of 7/9 suggests some financial improvement. But Altman Z-Score of -0.89 warns of financial stress, and trailing free cash flow is -$7.3M. The Lynch rule assigns no category because losses occurred in each of the last four years. At about book value, the price may not be demanding, but without positive earnings or cash generation, a margin of safety is not clearly established. I would want evidence of sustainable profits and cash flow before calling this a sound value.

In plain English: GrowGeneration sells hydroponic and organic gardening supplies, mainly to cultivation customers. The business is still losing money and has shrunk over the past few years, although the latest quarter showed a smaller loss and a small sales increase. At $1.49, the market value is $87.8 million and the stock trades around its accounting book value, so it looks more fair-to-cheap on assets than proven by profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer