HYFM (Hydrofarm Holdings Group) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HYFM Hydrofarm Holdings Group Inc HYFM
36 GF Score
Price $1.11
GF Value $3.45
Valuation Possible Value Trap
! 6 Warning Signs
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What is Hydrofarm Holdings Group Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Hydrofarm Holdings Group is: High Risk: High uncertainty.

Hydrofarm Holdings Group  (NAS:HYFM) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Hydrofarm Holdings Group Risk Assessment Related Terms

HYFM vs HCAI, NMHI, GP: Risk Assessment Comparison

For the Farm & Heavy Construction Machinery subindustry, Hydrofarm Holdings Group's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Farm & Heavy Construction Machinery Industry

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

* The bar in red indicates where Hydrofarm Holdings Group's Risk Assessment falls into.


HYFM
36GF Score
Hydrofarm Holdings Group Inc HYFM
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Hydrofarm Holdings Group (HYFM) Overvalued in 2026?

Based on GuruFocus' analysis, Hydrofarm Holdings Group stock appears to be undervalued. The current stock price of $1.11 is trading 68% below its estimated GF Value™ of $3.45. GuruFocus considers Hydrofarm Holdings Group to be Possible Value Trap.

Key valuation signals for HYFM:

  • Risk Assessment:
  • GF Value™: $3.45 vs. price of $1.11 (68% below fair value)
  • GF Score™: 36/100 with 6 warning signs

No single metric tells the full story. See the HYFM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hydrofarm Holdings Group Business Description

Address 1510 Main Street, Shoemakersville, PA, USA, 19555
Hydrofarm Holdings Group Inc is an independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture (CEA), including grow lights, climate control solutions, grow media, nutrients, and other products. Hydroponics involves growing plants in soilless media, often using artificial lighting in controlled indoor or greenhouse environments. Its products are used to cultivate cannabis, flowers, fruits, vegetables, grains, and herbs, enabling control over key factors such as temperature, humidity, light, nutrients, and pH. Its product portfolio spans lighting, grow media (i.e., premium soils and soil alternatives), nutrients, equipment, and supplies. The United States generates maximum revenue.
36GF Score

Get the complete analysis for HYFM

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$1.11
Price
$3.45
GF Value