GrowGeneration (GRWG) is a series of hydroponics shops that primarily serve the hashish trade. GRWG reported robust development in 2019 that has managed to proceed into 2020, which has led shares to ship multi-bagger returns this yr alone. Can the outperformance proceed? In this report, I give my verdict on the valuation and my forecast for bettering profitability or lack thereof. I stay skeptical that comparable gross sales development can proceed past the pandemic, a minimum of to the purpose that will justify the present valuation.

The Home Depot Of Weed

GRWG is the most important chain of hydroponics shops within the USA, with 28 shops unfold over 10 states. Most of its shops are positioned in states which have totally legalized hashish:

(Investor Presentation)

GRWG might be thought-about a “picks and shovels” sort firm for the hashish trade, because it sells provides starting from vitamins & components to lighting:

(Investor Presentation)

GRWG has delivered stellar top-line development within the…

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