THIS LOOKS LIKE A BARGIN ON HYFM
Hydrofarm Holdings Group, Inc., together with its subsidiaries, engages in the manufacture and distribution of controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. The company offers agricultural lighting devices, indoor climate control equipment, hydroponics and nutrients, and plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment; and distributes CEA equipment and supplies, which include grow light systems; heating, ventilation, and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media made from soil, rock wool or coconut fiber. It also provides hydroponics systems, such as hydro systems, hydro trays and components, meters and solutions, pumps and irrigation systems, water filtration systems, pots and containers, and tents and tarps; atmospheric control equipment comprising controllers, monitors and timers, ventilation/air conditioning equipment, air purification equipment, and CO2 equipment; and nutrients and additives.
The company offers its products under the Phantom, PhotoBio, Active Aqua, Active Air, HEAVY 16, House & Garden, Mad Farmer, Roots Organics, Soul, Procision, Grotek, Gaia Green, Innovative Growers Equipment, Quantum, Xtrasun, Digilux, Agrobrite, SunBlaster, Jump Start, Active Eye, Autopilot, Phat, oxyClone, and GROW T brands. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.
Below Fair Value: HYFM ($1.49) is trading below our estimate of fair value ($4.36)
Significantly Below Fair Value: HYFM is trading below fair value by more than 20%.
Price-To-Sales vs Peers: HYFM is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.8x).
RISKS
Earnings vs Savings Rate: HYFM is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: HYFM is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: HYFM is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: HYFM's revenue is expected to decline over the next 3 years (-1.5% per year).
High Growth Revenue: HYFM's revenue is forecast to decline over the next 3 years (-1.5% per year).
The company offers its products under the Phantom, PhotoBio, Active Aqua, Active Air, HEAVY 16, House & Garden, Mad Farmer, Roots Organics, Soul, Procision, Grotek, Gaia Green, Innovative Growers Equipment, Quantum, Xtrasun, Digilux, Agrobrite, SunBlaster, Jump Start, Active Eye, Autopilot, Phat, oxyClone, and GROW T brands. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.
Below Fair Value: HYFM ($1.49) is trading below our estimate of fair value ($4.36)
Significantly Below Fair Value: HYFM is trading below fair value by more than 20%.
Price-To-Sales vs Peers: HYFM is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.8x).
RISKS
Earnings vs Savings Rate: HYFM is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: HYFM is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: HYFM is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: HYFM's revenue is expected to decline over the next 3 years (-1.5% per year).
High Growth Revenue: HYFM's revenue is forecast to decline over the next 3 years (-1.5% per year).
Lord MEDZ
Reducing Debt: HYFM's debt to equity ratio has reduced from 280.9% to 31.1% over the past 5 years.