Company Overview
urban-gro, Inc. operates within the Industrials sector, specifically focusing on the Farm & Heavy Construction Machinery industry, where it specializes in the design, engineering, building, and integration of complex environmental equipment systems. These systems are tailored for indoor controlled environment agriculture (CEA) cultivation and retail facilities across the United States, Canada, and Europe, providing essential architectural design and engineering services to these sectors. The company maintains a relatively small operational scale with a market capitalization of $13.24M and employs a workforce of 130 individuals to support its business operations. This limited market cap combined with annual revenue of $21.09M indicates that the entity functions as a micro-cap or small-cap enterprise, suggesting a niche market position rather than a dominant player in the broader agricultural machinery landscape.
Financial Health
The financial performance of urban-gro, Inc. reveals significant operational challenges, evidenced by a trailing twelve-month (TTM) revenue of $21.09M contrasted against a net income loss of $41,483,620 and an EBITDA deficit of $26,077,632. The substantial gap between positive revenue and negative net income highlights a severe cost structure issue where operating expenses and losses significantly outweigh total sales, resulting in a profit margin of -200.5%. Despite these operational losses, the company reports a free cash flow of $12.32M, which provides a degree of financial flexibility by allowing the firm to potentially cover certain obligations or fund operations without immediate external financing, although this metric requires careful scrutiny against the negative earnings. The gross margin stands at -4.3%, indicating that the cost of goods sold exceeds the revenue generated from sales, while the operating margin of -93.8% further underscores the inefficiency in core business activities before interest and taxes. On the liquidity front, the company holds $62,875 in cash against total debt of $4.23M, a situation complicated by an N/A debt-to-equity ratio and a current ratio of 0.05, which signals extremely tight short-term liquidity conditions where current assets are insufficient to meet current liabilities. Return on Equity is listed as N/A due to the financial structure, while the Return on Assets is -64.2%, revealing that management is currently destroying value relative to the assets employed in the business rather than generating returns for shareholders.
Valuation Assessment
Valuation metrics for urban-gro, Inc. present an unusual picture due to the company's negative earnings, resulting in a trailing P/E ratio of N/A and a forward P/E of -73.38, which implies that traditional earnings-based valuation models are not applicable and that the market is pricing in future turnaround expectations rather than current profitability. The price-to-book ratio is reported at -0.24, a negative figure that suggests the market is valuing the company at less than the book value of its equity, or that the book value calculation is impacted by significant accumulated losses or intangible asset impairments. Alternative valuation metrics such as the price-to-sales ratio of 0.63 and an EV/EBITDA of -0.67 provide different perspectives, indicating that the company trades at a fraction of its sales revenue and possesses a negative enterprise value multiple relative to its adjusted earnings. In terms of trading range, the stock has a 52-week high of $28.30 and a 52-week low of $2.02, meaning the current price sits significantly below the recent peak but fluctuates within a highly volatile range typical for small-cap industrials. The beta of 1.89 indicates that the stock's price volatility is substantially higher than the broader market, suggesting that price movements for UGRO are amplified by market swings, exposing investors to heightened systemic risk.
Growth & Income
The growth trajectory of urban-gro, Inc. is characterized by a decline, with revenue growth year-over-year standing at -70.1%, while earnings growth is N/A due to the company's ongoing losses. This contraction in revenue suggests that the business is currently shrinking rather than expanding, and the absence of earnings growth reinforces the inability of the company to generate positive returns on its capital base. As the company does not pay dividends, indicated by a dividend yield of N/A and a payout ratio of 0.0%, it retains all of its earnings, although in this specific case, the retained earnings are negative, meaning the company is drawing down resources rather than reinvesting profits for growth. Consequently, the overall growth and income profile of urban-gro, Inc. is defined by significant revenue contraction and a lack of income generation, relying entirely on its cash reserves and operational turnaround to restore future performance.