SCOTTS MIRACLE-GRO CO (SMG) Stock Fundamental Analysis
USA - NYSE:SMG - US8101861065 - Common Stock
58.4 USD
-0.09 (-0.15%)
58.4 USD
0 (0%)
Taking everything into account, SMG scores 4 out of 10 in our fundamental rating. SMG was compared to 82 industry peers in the Chemicals industry. There are concerns on the financial health of SMG while its profitability can be described as average. SMG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SMG had positive earnings in the past year.
SMG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SMG reported negative net income in multiple years.
Of the past 5 years SMG 4 years had a positive operating cash flow.
1.2 Ratios
SMG's Return On Assets of 5.30% is amongst the best of the industry. SMG outperforms 82.93% of its industry peers.
SMG's Return On Invested Capital of 14.47% is amongst the best of the industry. SMG outperforms 95.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SMG is above the industry average of 6.13%.
The 3 year average ROIC (10.89%) for SMG is below the current ROIC(14.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | N/A | ||
| ROIC | 14.47% |
ROA(3y)-2.35%
ROA(5y)-1.31%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.89%
ROIC(5y)10.87%
1.3 Margins
With a decent Profit Margin value of 4.26%, SMG is doing good in the industry, outperforming 65.85% of the companies in the same industry.
In the last couple of years the Profit Margin of SMG has declined.
With a decent Operating Margin value of 12.96%, SMG is doing good in the industry, outperforming 70.73% of the companies in the same industry.
In the last couple of years the Operating Margin of SMG has declined.
SMG has a Gross Margin (31.19%) which is in line with its industry peers.
SMG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.96% | ||
| PM (TTM) | 4.26% | ||
| GM | 31.19% |
OM growth 3Y6.65%
OM growth 5Y-2.32%
PM growth 3YN/A
PM growth 5Y-14.62%
GM growth 3Y5.81%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SMG is creating value.
The number of shares outstanding for SMG has been increased compared to 1 year ago.
Compared to 5 years ago, SMG has more shares outstanding
The debt/assets ratio for SMG has been reduced compared to a year ago.
2.2 Solvency
SMG has a debt to FCF ratio of 7.69. This is a slightly negative value and a sign of low solvency as SMG would need 7.69 years to pay back of all of its debts.
SMG has a better Debt to FCF ratio (7.69) than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | N/A |
ROIC/WACC1.92
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.27 indicates that SMG should not have too much problems paying its short term obligations.
SMG has a worse Current ratio (1.27) than 85.37% of its industry peers.
A Quick Ratio of 0.47 indicates that SMG may have some problems paying its short term obligations.
With a Quick ratio value of 0.47, SMG is not doing good in the industry: 92.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.07% over the past year.
SMG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.47% yearly.
The Revenue has decreased by -3.93% in the past year.
The Revenue has been decreasing by -3.75% on average over the past years.
EPS 1Y (TTM)66.07%
EPS 3Y-3.11%
EPS 5Y-12.47%
EPS Q2Q%15.15%
Revenue 1Y (TTM)-3.93%
Revenue growth 3Y-4.54%
Revenue growth 5Y-3.75%
Sales Q2Q%-6.58%
3.2 Future
The Earnings Per Share is expected to grow by 15.10% on average over the next years. This is quite good.
SMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.84% yearly.
EPS Next Y14.74%
EPS Next 2Y16.98%
EPS Next 3Y18.18%
EPS Next 5Y15.1%
Revenue Next Year1.57%
Revenue Next 2Y1.81%
Revenue Next 3Y1.03%
Revenue Next 5Y1.84%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.70, which indicates a correct valuation of SMG.
62.20% of the companies in the same industry are more expensive than SMG, based on the Price/Earnings ratio.
SMG is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
SMG is valuated correctly with a Price/Forward Earnings ratio of 13.68.
SMG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, SMG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 13.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SMG is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SMG is valued cheaper than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.31 | ||
| EV/EBITDA | 10.53 |
4.3 Compensation for Growth
SMG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SMG has a very decent profitability rating, which may justify a higher PE ratio.
SMG's earnings are expected to grow with 18.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y16.98%
EPS Next 3Y18.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.51%, SMG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.95, SMG pays a better dividend. On top of this SMG pays more dividend than 85.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SMG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
The dividend of SMG decreases each year by -18.27%.
SMG has paid a dividend for at least 10 years, which is a reliable track record.
SMG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-18.27%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
106.19% of the earnings are spent on dividend by SMG. This is not a sustainable payout ratio.
DP106.19%
EPS Next 2Y16.98%
EPS Next 3Y18.18%
58.4
-0.09 (-0.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners78.72%
Inst Owner Change-2.75%
Ins Owners0.51%
Ins Owner Change-0.3%
Market Cap3.37B
Revenue(TTM)3.41B
Net Income(TTM)145.30M
Analysts76.92
Price Target73.44 (25.75%)
Short Float %7.5%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend2.69
Dividend Growth(5Y)-18.27%
DP106.19%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.7%
Min EPS beat(2)2.56%
Max EPS beat(2)12.85%
EPS beat(4)3
Avg EPS beat(4)10.9%
Min EPS beat(4)-0.27%
Max EPS beat(4)28.45%
EPS beat(8)6
Avg EPS beat(8)7.37%
EPS beat(12)9
Avg EPS beat(12)6.6%
EPS beat(16)11
Avg EPS beat(16)4.72%
Revenue beat(2)0
Avg Revenue beat(2)-3.72%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)-3.33%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-6.02%
Max Revenue beat(4)5.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.77%
PT rev (1m)-3.14%
PT rev (3m)-4.85%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)0.08%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 13.68 | ||
| P/S | 0.99 | ||
| P/FCF | 12.31 | ||
| P/OCF | 9.08 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.53 |
EPS(TTM)3.72
EY6.37%
EPS(NY)4.27
Fwd EY7.31%
FCF(TTM)4.74
FCFY8.12%
OCF(TTM)6.43
OCFY11.01%
SpS59.11
BVpS-6.19
TBVpS-17.37
PEG (NY)1.06
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | N/A | ||
| ROCE | 22.09% | ||
| ROIC | 14.47% | ||
| ROICexc | 14.74% | ||
| ROICexgc | 21.95% | ||
| OM | 12.96% | ||
| PM (TTM) | 4.26% | ||
| GM | 31.19% | ||
| FCFM | 8.02% |
ROA(3y)-2.35%
ROA(5y)-1.31%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.89%
ROIC(5y)10.87%
ROICexc(3y)11.14%
ROICexc(5y)11.26%
ROICexgc(3y)16.21%
ROICexgc(5y)16.69%
ROCE(3y)16.63%
ROCE(5y)16.6%
ROICexgc growth 3Y24.46%
ROICexgc growth 5Y-7.91%
ROICexc growth 3Y20.33%
ROICexc growth 5Y-2.04%
OM growth 3Y6.65%
OM growth 5Y-2.32%
PM growth 3YN/A
PM growth 5Y-14.62%
GM growth 3Y5.81%
GM growth 5Y-1.12%
F-Score8
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.69 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 129.87% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.78% | ||
| Profit Quality | 188.51% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | N/A |
F-Score8
WACC7.53%
ROIC/WACC1.92
Cap/Depr(3y)111.47%
Cap/Depr(5y)111.25%
Cap/Sales(3y)2.61%
Cap/Sales(5y)2.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)66.07%
EPS 3Y-3.11%
EPS 5Y-12.47%
EPS Q2Q%15.15%
EPS Next Y14.74%
EPS Next 2Y16.98%
EPS Next 3Y18.18%
EPS Next 5Y15.1%
Revenue 1Y (TTM)-3.93%
Revenue growth 3Y-4.54%
Revenue growth 5Y-3.75%
Sales Q2Q%-6.58%
Revenue Next Year1.57%
Revenue Next 2Y1.81%
Revenue Next 3Y1.03%
Revenue Next 5Y1.84%
EBIT growth 1Y24.52%
EBIT growth 3Y1.8%
EBIT growth 5Y-5.98%
EBIT Next Year43.13%
EBIT Next 3Y19.71%
EBIT Next 5Y14.77%
FCF growth 1Y-53.06%
FCF growth 3YN/A
FCF growth 5Y-11.17%
OCF growth 1Y-44.37%
OCF growth 3YN/A
OCF growth 5Y-7.82%
SCOTTS MIRACLE-GRO CO / SMG FAQ
What is the ChartMill fundamental rating of SCOTTS MIRACLE-GRO CO (SMG) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SMG.
Can you provide the valuation status for SCOTTS MIRACLE-GRO CO?
ChartMill assigns a valuation rating of 6 / 10 to SCOTTS MIRACLE-GRO CO (SMG). This can be considered as Fairly Valued.
Can you provide the profitability details for SCOTTS MIRACLE-GRO CO?
SCOTTS MIRACLE-GRO CO (SMG) has a profitability rating of 6 / 10.
How financially healthy is SCOTTS MIRACLE-GRO CO?
The financial health rating of SCOTTS MIRACLE-GRO CO (SMG) is 2 / 10.
Is the dividend of SCOTTS MIRACLE-GRO CO sustainable?
The dividend rating of SCOTTS MIRACLE-GRO CO (SMG) is 5 / 10 and the dividend payout ratio is 106.19%.