Hydrofarm Holdings Group, Inc. HYFM

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
12/100
Weak

About Hydrofarm Holdings Group, Inc.

Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes hydroponics equipment and supplies for controlled environment agriculture (CEA) in the United States and Canada. The company provides agricultural lighting devices, indoor climate control equipment, and nutrients, as well as plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment. … Full HYFM analysis →

Competitive advantage assessment

Key risks

  • Commodity Pressure / Weak Differentiation Gross margin at 21.7th percentile with high volatility suggests weak pricing power or commoditized products.
  • ROIC Below WACC or Peers ROIC at 4.3th percentile suggests inefficient capital deployment.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Weak
10

Where HYFM ranks in Farm & Heavy Construction Machinery

Hydrofarm Holdings Group, Inc. ranks #23 of 29 scored companies in Farm & Heavy Construction Machinery by moat score — the top 79%. The widest moat in the group is Caterpillar, Inc. (CAT) at 80/100.

Moat scores for companies ranked near HYFM in Farm & Heavy Construction Machinery
# Company Moat score Rating
19 Xos, Inc. XOS 28/100 Developing
20 Columbus McKinnon Corporation CMCO 27/100 Developing
21 urban-gro, Inc. UGRO 26/100 Developing
22 GreenPower Motor Company Inc. GP 24/100 Weak
23 Hydrofarm Holdings Group, Inc. HYFM 12/100 Weak
24 Huachen AI Parking Management T HCAI 8/100 Weak
25 Agrify Corporation AGFY 0/100 Weak
26 CEA Industries Inc. CEAD 0/100 Weak
27 CEA Industries Inc. Warrant CEADW 0/100 Weak

See every General Corporate company ranked by moat score →

How HYFM scores on the Corporate Default defenses

Pricing Power

Score 10 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 15 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 18 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 8 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 10 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 12 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding HYFM's moat

What is Hydrofarm Holdings Group, Inc.'s moat score?

Hydrofarm Holdings Group, Inc. (HYFM) scores 12 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as weak. It ranks #23 of 29 scored companies in Farm & Heavy Construction Machinery, the top 79%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 28 companies in Farm & Heavy Construction Machinery. Its strongest defense is Customer Stickiness (18/100) and its weakest is Capital Efficiency (8/100).

How does Hydrofarm Holdings Group, Inc. compare with other Farm & Heavy Construction Machinery companies?

Hydrofarm Holdings Group, Inc. ranks #23 of 29 scored companies in Farm & Heavy Construction Machinery by moat score. The widest moat in Farm & Heavy Construction Machinery is Caterpillar, Inc. (CAT) at 80/100. The companies ranked closest are GreenPower Motor Company Inc. (GP) at 24 just above it and Huachen AI Parking Management T (HCAI) at 8 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 28 companies in Farm & Heavy Construction Machinery. The defenses are then weighted to produce the overall score out of 100.

Why is Hydrofarm Holdings Group, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Hydrofarm Holdings Group, Inc.?

The Corporate Default template measures 6 defenses, and HYFM scores: Pricing Power (10), Cost Advantage (15), Customer Stickiness (18), Capital Efficiency (8), Resilience (10), Scale & Market Position (12). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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