Wells Fargo maintains GrowGeneration Corp. with an Equal-Weight rating and lowers the target price to $3.50 from $4 on the company’s stock.
Based on the GrowGeneration Corp stock forecasts from 6 analysts, the average analyst target price for GrowGeneration Corp is USD 10.80 over the next 12 months. GrowGeneration Corp’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of GrowGeneration Corp is Neutral, which is based on 7 positive signals and 7 negative signals. At the last closing, GrowGeneration Corp’s stock price was USD 3.90. GrowGeneration Corp’s stock price has changed by +1.30% over the past week, -22.92% over the past month and -90.52% over the last year.
GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. It engages in the marketing and distribution of nutrients, growing media, advanced indoor and greenhouse lighting, environmental control systems, vertical benching, and accessories for hydroponic gardening, as well as other indoor and outdoor growing products. The company serves commercial and urban cultivators growing specialty crops, including organics, greens, and plant-based medicines. As of March 01, 2022, it operated a chain of 63 stores, which includes 23 in California, 8 in Colorado, 7 in Michigan, 5 in Maine, 6 in Oklahoma, 4 in Oregon, 3 in Washington, 2 in Nevada, 1 in Arizona, 1 in Rhode Island, 1 in Florida, 1 in Massachusetts, and 1 in New Mexico, as well as growgeneration.com, an online superstore for cultivators. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Underpriced compared to book value
The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Earnings Growth
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
What we don’t like:
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced on cashflow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Poor return on equity
The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.
Poor capital utilization
The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.
Poor return on assets
The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.