Hydrofarm Holdings Group (Hydrofarm Holdings Group) Gross Margin % : 17.91% (As of Dec. 2023)

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What is Hydrofarm Holdings Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hydrofarm Holdings Group's Gross Profit for the three months ended in Dec. 2023 was $8.4 Mil. Hydrofarm Holdings Group's Revenue for the three months ended in Dec. 2023 was $47.2 Mil. Therefore, Hydrofarm Holdings Group's Gross Margin % for the quarter that ended in Dec. 2023 was 17.91%.

The historical rank and industry rank for Hydrofarm Holdings Group's Gross Margin % or its related term are showing as below:

HYFM' s Gross Margin % Range Over the Past 10 Years
Min: 8.52 Med: 14.06 Max: 21.17
Current: 16.6

During the past 6 years, the highest Gross Margin % of Hydrofarm Holdings Group was 21.17%. The lowest was 8.52%. And the median was 14.06%.

HYFM's Gross Margin % is ranked worse than
77.07% of 205 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.22 vs HYFM: 16.60

Hydrofarm Holdings Group had a gross margin of 17.91% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hydrofarm Holdings Group was 3.30% per year.

Hydrofarm Holdings Group Gross Margin % Historical Data

The historical data trend for Hydrofarm Holdings Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hydrofarm Holdings Group Gross Margin % Chart

Hydrofarm Holdings Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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11.52

18.59

21.17

8.52

16.60

Hydrofarm Holdings Group Quarterly Data
	Dec18	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial														-0.77	18.30	22.95	6.11	17.91

Competitive Comparison of Hydrofarm Holdings Group's Gross Margin %

For the Farm & Heavy Construction Machinery subindustry, Hydrofarm Holdings Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Hydrofarm Holdings Group's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Hydrofarm Holdings Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hydrofarm Holdings Group's Gross Margin % falls into.

Hydrofarm Holdings Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hydrofarm Holdings Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	37.6	/	226.581
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(226.581 - 188.969)	/	226.581
	=	16.60 %

Hydrofarm Holdings Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	8.4	/	47.184
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(47.184 - 38.735)	/	47.184
	=	17.91 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Hydrofarm Holdings Group (NAS:HYFM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Hydrofarm Holdings Group had a gross margin of 17.91% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Hydrofarm Holdings Group Gross Margin % Related Terms

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Hydrofarm Holdings Group (Hydrofarm Holdings Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Hydrofarm Holdings Group Inc (NAS:HYFM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

5TUA:Germany 5TUA:Germany

Address

1510 Main Street, Shoemakersville, PA, USA, 19526

Website

https://www.hydrofarm.com

Hydrofarm Holdings Group Inc is a distributor and manufacturer of agriculture equipment and supplies. Some of its products include lighting solutions, growing media (i.e., premium soils and soil alternatives), nutrients, equipment, and supplies sold under proprietary, exclusive/preferred brands, or non-exclusive/distributed brands. The business is organized into two operating segments, the U.S. and Canada.

Executives

William Douglas Toler	director, officer: CEO and Chairman of the Board	1 EAST ARMOUR BOULEVARD, KANSAS CITY MO 64111
Kevin Patrick O'brien	officer: Chief Accounting Officer	C/O CPI CARD GROUP INC., 10026 W. SAN JUAN WAY, SUITE 200, LITTLETON CO 80127
Terence Fitch	officer: President	32 ORLE CIR, LITTLE ROCK AR 72223
Mark S Parker	officer: Executive Vice President	C/O HYDROFARM HOLDINGS GROUP, INC., 1510 MAIN STREET, SHOEMAKERSVILLE PA 19526
Patrick Chung	director	13 CARNATION RD, THORNHILL A6 L3T 7V3
Joseph D Rumley	officer: Chief Accounting Officer	1141 CUMMINGS ROAD, SANTA PAULA CA 93060
Renah Persofsky	director	55 PRINCE ARTHUR AVENUE, #604, TORONTO A6 M5R 1B3
Susan Peters	director	40 OLD MILITARY ROAD, HILTON HEAD SC 29928
Richard D Moss	director	1715 WEST 38TH STREET, CHATTANOOGA TN 37409
Bruce John Lindeman	officer: CFO	1500 PATHFINDER AVENUE, WESTLAKE VILLAGE CA 91362
Melisa Denis	director	627 WESTHAVEN RD., COPPELL TX 75019
Chris Payne	10 percent owner	C/O HAWTHORN EQUITY PARTNERS INC., PO BOX 1061, TORONTO DOMINION A6 M5K 1P2
John Tomes	10 percent owner	C/O HAWTHORN EQUITY PARTNERS INC., PO BOX 1061, TORONTO DOMINION A6 M5K 1P2
Peter Wardenburg	10 percent owner	3 BEYER CT., NOVATO CA 94945