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1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Hydrofarm Holdings Group's 1-Year ROIIC % for the quarter that ended in Jun. 2026 was -7.01%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Hydrofarm Holdings Group's 1-Year ROIIC % or its related term are showing as below:
HYFM's 1-Year ROIIC % is ranked worse than 59.2% of 201
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 4.91
vs HYFM: -7.01
Hydrofarm Holdings Group (NAS:HYFM) 1-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Hydrofarm Holdings Group 1-Year ROIIC % Related Terms
Hydrofarm Holdings Group 1-Year ROIIC % Historical Data
* 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.
For the Farm & Heavy Construction Machinery subindustry, Hydrofarm Holdings Group's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % 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 1-Year ROIIC % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Hydrofarm Holdings Group's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Hydrofarm Holdings Group's 1-Year ROIIC % falls into.
Hydrofarm Holdings Group 1-Year ROIIC % Calculation
Hydrofarm Holdings Group's 1-Year ROIIC % for the quarter that ended in Jun. 2026 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( -36.3224 (Jun. 2026) - -48.4116 (Jun. 2025) )
/
( 187.21 (Jun. 2026) - 359.686 (Jun. 2025) )
=
12.0892
/
-172.476
=
-7.01%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Hydrofarm Holdings Group (HYFM) has a 1-Year ROIIC % of -7.01 as of Jun. 2026. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Hydrofarm Holdings Group and its competitors. According to the industry distribution chart, Hydrofarm Holdings Group ranks #119 out of 201 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 59.2%.
Is Hydrofarm Holdings Group's 1-Year ROIIC % too high?
Hydrofarm Holdings Group's current 1-Year ROIIC % is -7.01. Based on the distribution chart, Hydrofarm Holdings Group ranks #119 out of 201 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Hydrofarm Holdings Group has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hydrofarm Holdings Group's 1-Year ROIIC % compare to HCAI and NMHI?
According to the Farm & Heavy Construction Machinery industry distribution chart, Hydrofarm Holdings Group ranks #119 out of 201 companies for 1-Year ROIIC %. This places Hydrofarm Holdings Group in the lower half of its industry. The industry median 1-Year ROIIC % is 4.91. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year ROIIC % for a Farm & Heavy Construction Machinery company?
The median 1-Year ROIIC % among Farm & Heavy Construction Machinery companies is 4.91, based on 201 companies in the industry. Companies in the top quartile (top 25%) have a 1-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 1-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year ROIIC % mean?
A high 1-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Hydrofarm Holdings Group and its competitors. For the Farm & Heavy Construction Machinery industry, the median 1-Year ROIIC % is 4.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hydrofarm Holdings Group's current 1-Year ROIIC % is -7.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hydrofarm Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Hydrofarm Holdings Group (HYFM) is currently considered Possible Value Trap. The stock's GF Value™ is $3.45, compared to a current price of $1.06 — trading 69.3% below its estimated fair value. The current 1-Year ROIIC % is -7.01. Hydrofarm Holdings Group's overall GF Score™ is 36/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year ROIIC % calculated?
1-Year ROIIC % is calculated from a company's financial statements. For Hydrofarm Holdings Group (HYFM), the current 1-Year ROIIC % is -7.01 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
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 $1.06 is trading 69.3% below its estimated GF Value™ of $3.45.
GuruFocus considers Hydrofarm Holdings Group to be Possible Value Trap.
Key valuation signals for HYFM:
1-Year ROIIC %: -7.01
GF Value™: $3.45 vs. price of $1.06 (69.3% below fair value)
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 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
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