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GRWG vs HCHL

GRWG
GrowGeneration Corp.
BEARISH
Price
$1.04
Market Cap
$62.5M
Sector
Consumer Cyclical
AI Confidence
95%
HCHL
Happy City Holdings Limited
BEARISH
Price
$1.58
Market Cap
$47.0M
Sector
Consumer Cyclical
AI Confidence
95%

Valuation

P/E Ratio
GRWG
--
HCHL
--
Forward P/E
GRWG
-4.16
HCHL
--
P/B Ratio
GRWG
0.64
HCHL
13.74
P/S Ratio
GRWG
0.39
HCHL
6.92
EV/EBITDA
GRWG
-3.53
HCHL
-18.75

Profitability

Gross Margin
GRWG
26.76%
HCHL
12.6%
Operating Margin
GRWG
-19.74%
HCHL
-101.62%
Profit Margin
GRWG
-14.87%
HCHL
-35.73%
ROE
GRWG
-22.1%
HCHL
-173.01%
ROA
GRWG
-9.46%
HCHL
-18.96%

Growth

Revenue Growth
GRWG
1.0%
HCHL
-45.7%
Earnings Growth
GRWG
--
HCHL
--

Financial Health

Debt/Equity
GRWG
0.3
HCHL
2.08
Current Ratio
GRWG
3.99
HCHL
0.83
Quick Ratio
GRWG
2.18
HCHL
0.75

Dividends

Dividend Yield
GRWG
--
HCHL
--
Payout Ratio
GRWG
0.0%
HCHL
0.0%

AI Verdict

GRWG BEARISH

GRWG exhibits severe financial distress, highlighted by a critical Piotroski F-Score of 1/9, indicating fundamental weakness across almost all health metrics. Despite a strong current ratio (3.99) and low debt-to-equity (0.30), the company is trapped in a cycle of negative profitability and stagnant revenue growth (1.00% YoY). The catastrophic 5-year price decline of 98% and bearish insider activity from the CEO suggest a lack of confidence in a turnaround. The stock appears to be a classic value trap, trading at a low Price/Book (0.64) but lacking the earnings power to justify a recovery.

Strengths
Strong short-term liquidity (Current Ratio: 3.99)
Low leverage (Debt/Equity: 0.30)
Low valuation multiples (P/S: 0.39, P/B: 0.64)
Risks
Severe fundamental weakness (Piotroski F-Score 1/9)
Stagnant top-line growth (1.00% YoY)
Persistent negative operating and profit margins
HCHL BEARISH

HCHL exhibits severe financial distress, anchored by a weak Piotroski F-Score of 3/9 and a lack of positive earnings. The company is experiencing a collapse in top-line growth with revenue declining 45.70% YoY, coupled with a disastrous operating margin of -101.62%. With a current ratio of 0.83 and a high Debt/Equity ratio of 2.08, the company faces significant liquidity and solvency risks. The valuation is unjustifiable, trading at a Price/Book of 13.74 despite negative ROE and ROA.

Strengths
Positive gross margin (12.60%) indicating basic product viability
Recent short-term price recovery (+51.9% in 1 month)
Micro-cap size allows for high volatility spikes
Risks
Severe revenue contraction (-45.70% YoY)
Critical liquidity risk with Current Ratio below 1.0 (0.83)
Extreme operational inefficiency (Operating Margin -101.62%)

Compare Another Pair

GRWG vs HCHL: Head-to-Head Comparison

This page compares GrowGeneration Corp. (GRWG) and Happy City Holdings Limited (HCHL) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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