Last Updated: 08 Nov 2024
Executive Summary
Urban-Gro Inc. (UGRO) is a provider of engineering design services for indoor growing facilities in the commercial horticulture market. The company's stock has been under pressure in recent months, but analysts remain bullish on its long-term prospects. The latest stock price is $1.57, which is below the analyst target price of $4.75.
Company Overview
Urban-Gro Inc. was founded in 2005 and is headquartered in Lafayette, Colorado. The company provides a range of services, including design, engineering, and construction management for indoor growing facilities. Urban-Gro's clients include commercial growers of cannabis, vegetables, and other crops.
The company has a strong track record of growth, with revenue increasing from $20.1 million in 2018 to $70.3 million in 2023. However, the company has also been unprofitable in recent years, with a net loss of $12.0 million in 2023.
Fundamental Analysis
Urban-Gro's financial performance has been mixed in recent years. The company has reported strong revenue growth, but it has also been unprofitable. The company's gross profit margin has been declining in recent quarters, and its operating expenses have been increasing.
The company's balance sheet is also a concern. Urban-Gro has a high level of debt, and its cash flow from operations has been negative in recent quarters.
Technical Analysis
Urban-Gro's stock price has been in a downtrend since early 2023. The stock recently broke below its 50-day moving average, which is a bearish technical signal. The stock is now trading near its 52-week low.
Short Term Outlook
The short-term outlook for Urban-Gro is negative. The stock is in a downtrend, and it is trading below its key moving averages. The company's financial performance has been mixed, and its balance sheet is a concern.
Long Term Outlook
The long-term outlook for Urban-Gro is more positive. The company is a leader in the growing indoor growing market. The company has a strong track record of growth, and it has a number of high-profile clients.
Analyst Recommendations
Analysts are mixed on Urban-Gro's stock. Three analysts have a buy rating on the stock, while none have a sell rating. The average analyst target price is $4.75.
