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HYFMHydrofarm Holdings Group, Inc.
$0.88$4M
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  4. Financial Ratios

Hydrofarm Holdings Group, Inc. (HYFM) Financial Ratios

Latest Ratios: P/E Ratio -0.0x · EV/EBITDA N/A · ROE -361.3%. (2016–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

HYFM Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$4M$7M$27M$42M$70M$1.2B$1.8B————
Enterprise Value$158M$161M$170M$195M$234M$1.4B$1.7B————
P/E Ratio →-0.01————90.67—————
P/S Ratio0.030.050.140.180.202.545.15————
P/B Ratio——0.120.140.201.918.35————
P/FCF———14.775.07——————
P/OCF———5.933.17——————

P/E links to full P/E history page with 30-year chart

HYFM EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—1.200.890.860.682.834.99————
EV / EBITDA—————110.92154.28————
EV / EBIT——————495.44————
EV / FCF———69.0717.04——————

HYFM Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin1.6%1.6%16.9%16.6%8.5%21.2%18.6%11.5%11.4%14.5%19.0%
Operating Margin-29.4%-29.4%-27.4%-21.9%-81.7%-0.6%1.3%-11.4%-12.0%-2.8%6.4%
Net Profit Margin-215.9%-215.9%-35.1%-28.6%-82.8%2.8%-2.1%-17.0%-15.5%-41.0%5.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-361.3%-361.3%-25.9%-20.2%-57.9%3.2%-6.0%-101.8%-81.4%-222.7%38.5%
ROA-105.4%-105.4%-14.3%-12.0%-39.0%2.3%-3.2%-22.3%-18.1%-57.1%15.7%
ROIC-12.9%-12.9%-9.6%-7.8%-32.7%-0.4%2.2%-15.7%-14.0%-3.7%16.7%
ROCE-21.1%-21.1%-12.1%-9.9%-42.2%-0.5%2.5%-21.2%-30.3%-10.8%25.2%

HYFM Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity——0.760.630.530.260.104.072.113.590.92
Debt / EBITDA—————13.701.81———2.02
Net Debt / Equity——0.640.530.470.22-0.263.341.533.530.90
Net Debt / EBITDA—————11.52-4.98———1.98
Debt / FCF———54.3011.98———23.46—4.80
Interest Coverage-2.94-2.94-3.32-3.21-25.63-1.680.34-2.03-2.10——

HYFM Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.370.372.723.403.723.054.111.632.290.682.39
Quick Ratio0.130.131.271.401.050.912.290.851.080.180.63
Cash Ratio0.050.050.750.810.510.301.540.350.640.020.02
Asset Turnover—1.080.450.450.600.541.241.271.211.072.73
Inventory Turnover3.963.963.122.512.832.003.144.143.532.234.04
Days Sales Outstanding—22.2628.3027.2118.2532.0626.4331.1130.2738.4522.41

HYFM Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio——————————76.0%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield—————1.1%—————
FCF Yield———6.8%19.7%——————
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.1%————
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.1%————
Shares Outstanding—$5M$5M$5M$4M$4M$3M$3M$7M$1M$1M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Imminent liquidity and insolvency

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Distressed Valuation Reflects Existential Risk

Based on current market pricing, Hydrofarm's price-to-sales ratio of 0.03 suggests that investors are pricing the company as a distressed asset rather than a growth entity, reflecting deep skepticism regarding its ability to survive the ongoing contraction in the North American controlled environment agriculture market.

The lack of meaningful P/E or EV/EBITDA multiples underscores that traditional valuation metrics are currently inapplicable due to the company's persistent net losses and negative cash flow. This valuation gap relative to historical levels implies that the market has largely abandoned the growth-oriented thesis that defined the company's 2021-era market capitalization.

Capital Returns Decaying Into Negative Territory

As reported in recent financial statements, Hydrofarm's ROIC has deteriorated to -5.6% in 2026Q1, illustrating a consistent failure to generate positive returns on invested capital as the company struggles to cover its cost base amidst a severe and prolonged industry-wide demand downturn.

The trend of negative ROIC over the last ten quarters indicates that the company is effectively destroying shareholder value with every dollar of capital deployed. This decay is driven by both the collapse in operating margins and the inability to maintain asset turnover efficiency, suggesting that the core business model is currently unable to achieve the scale required for profitability.

Working Capital Strains Impede Operational Flow

According to quarterly data, the cash conversion cycle has fluctuated significantly, reaching 93 days in 2026Q1, which highlights the company's ongoing struggle to manage inventory levels effectively while facing a sharp decline in customer demand for hydroponic equipment and consumables.

The elevated days inventory outstanding, which peaked at 164 days in 2023Q4, suggests that the company has been burdened by excess stock that may be subject to obsolescence risks. This inefficiency in working capital management exacerbates the liquidity crunch, as cash remains trapped in slow-moving inventory rather than supporting essential operational needs.

Liquidity Buffer Nearing Critical Depletion

Based on the most recent quarterly filings, the current ratio has plummeted to 0.33, signaling a severe liquidity shortfall that leaves the firm with minimal flexibility to meet short-term obligations without immediate external financing or a drastic restructuring of its current debt-heavy capital structure.

The quick ratio of 0.14 further confirms that the company's ability to cover immediate liabilities is highly dependent on inventory liquidation, which is inherently risky given the current market environment. Investors should monitor the company's ability to maintain operations, as the current cash position appears insufficient to sustain the business through a prolonged period of negative cash flow.

Misapplication of Revenue-Based Growth Metrics

Market participants frequently misapply revenue growth as a primary indicator of health for Hydrofarm, failing to recognize that in a distressed industrial distribution model, top-line figures often obscure the underlying margin erosion and the unsustainable nature of the company's current cost structure.

Focusing on revenue growth ignores the critical reality that the company's gross margins have collapsed to near-zero levels, rendering volume growth essentially meaningless for shareholder value. Analysts should instead prioritize free cash flow and liquidity ratios, as these metrics provide a more accurate assessment of the company's ability to remain a going concern in its current state.

Download Financial Ratios Data

Includes 30+ ratios · 10 years · Updated daily

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HYFM — Frequently Asked Questions

Quick answers to the most common questions about buying HYFM stock.

What is Hydrofarm Holdings Group, Inc.'s P/E ratio?

Hydrofarm Holdings Group, Inc.'s current P/E ratio is -0.0x. The historical average is 90.7x.

What is Hydrofarm Holdings Group, Inc.'s ROE?

Hydrofarm Holdings Group, Inc.'s return on equity (ROE) is -361.3%. The historical average is -83.6%.

Is HYFM stock overvalued?

Based on historical data, Hydrofarm Holdings Group, Inc. is trading at a P/E of -0.0x. Compare with industry peers and growth rates for a complete picture.

What are Hydrofarm Holdings Group, Inc.'s profit margins?

Hydrofarm Holdings Group, Inc. has 1.6% gross margin and -29.4% operating margin.