SCOTTS MIRACLE-GRO CO (SMG) Stock Fundamental Analysis
USA - NYSE:SMG - US8101861065 - Common Stock
60.48 USD
-0.27 (-0.44%)
60.48 USD
0 (0%)
Taking everything into account, SMG scores 4 out of 10 in our fundamental rating. SMG was compared to 83 industry peers in the Chemicals industry. SMG has a medium profitability rating, but doesn't score so well on its financial health evaluation. SMG is not valued too expensively and it also shows a decent growth rate. Finally SMG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SMG had positive earnings in the past year.
In the past year SMG had a positive cash flow from operations.
In multiple years SMG reported negative net income over the last 5 years.
SMG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.72%, SMG perfoms like the industry average, outperforming 57.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.61%, SMG belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SMG is above the industry average of 6.34%.
The last Return On Invested Capital (14.61%) for SMG is above the 3 year average (10.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | N/A | ||
| ROIC | 14.61% |
ROA(3y)-7.51%
ROA(5y)-0.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.63%
ROIC(5y)13.54%
1.3 Margins
SMG's Profit Margin of 1.54% is in line compared to the rest of the industry. SMG outperforms 55.42% of its industry peers.
Looking at the Operating Margin, with a value of 12.32%, SMG is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
SMG's Operating Margin has declined in the last couple of years.
The Gross Margin of SMG (29.77%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SMG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.32% | ||
| PM (TTM) | 1.54% | ||
| GM | 29.77% |
OM growth 3Y-13.17%
OM growth 5Y-5.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.65%
GM growth 5Y-4.15%
2. Health
2.1 Basic Checks
SMG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SMG has been increased compared to 1 year ago.
SMG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SMG is higher compared to a year ago.
2.2 Solvency
SMG has an Altman-Z score of 2.62. This is not the best score and indicates that SMG is in the grey zone with still only limited risk for bankruptcy at the moment.
SMG's Altman-Z score of 2.62 is fine compared to the rest of the industry. SMG outperforms 73.49% of its industry peers.
SMG has a debt to FCF ratio of 8.95. This is a slightly negative value and a sign of low solvency as SMG would need 8.95 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.95, SMG is doing good in the industry, outperforming 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.95 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.63
WACC8.97%
2.3 Liquidity
SMG has a Current Ratio of 1.61. This is a normal value and indicates that SMG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.61, SMG is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
SMG has a Quick Ratio of 1.61. This is a bad value and indicates that SMG is not financially healthy enough and could expect problems in meeting its short term obligations.
SMG has a worse Quick ratio (0.93) than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
SMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.33%, which is quite impressive.
SMG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.83% yearly.
SMG shows a decrease in Revenue. In the last year, the revenue decreased by -2.05%.
Measured over the past years, SMG shows a small growth in Revenue. The Revenue has been growing by 2.40% on average per year.
EPS 1Y (TTM)89.33%
EPS 3Y-37.53%
EPS 5Y-12.83%
EPS Q2Q%12.12%
Revenue 1Y (TTM)-2.05%
Revenue growth 3Y-10.32%
Revenue growth 5Y2.4%
Sales Q2Q%-1.18%
3.2 Future
SMG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.93% yearly.
Based on estimates for the next years, SMG will show a small growth in Revenue. The Revenue will grow by 0.46% on average per year.
EPS Next Y66.66%
EPS Next 2Y40.39%
EPS Next 3Y32.55%
EPS Next 5Y24.93%
Revenue Next Year-3.72%
Revenue Next 2Y-0.93%
Revenue Next 3Y0.16%
Revenue Next 5Y0.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.95, which indicates a rather expensive current valuation of SMG.
60.24% 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 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.70 indicates a correct valuation of SMG.
Based on the Price/Forward Earnings ratio, SMG is valued a bit cheaper than the industry average as 60.24% of the companies are valued more expensively.
SMG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 13.7 |
4.2 Price Multiples
SMG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SMG indicates a rather cheap valuation: SMG is cheaper than 81.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.28 | ||
| EV/EBITDA | 11.28 |
4.3 Compensation for Growth
SMG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SMG's earnings are expected to grow with 32.55% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y40.39%
EPS Next 3Y32.55%
5. Dividend
5.1 Amount
SMG has a Yearly Dividend Yield of 4.28%, which is a nice return.
SMG's Dividend Yield is rather good when compared to the industry average which is at 3.43. SMG pays more dividend than 85.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SMG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
The dividend of SMG has a limited annual growth rate of 3.51%.
SMG has been paying a dividend for at least 10 years, so it has a reliable track record.
SMG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.51%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
SMG pays out 289.64% of its income as dividend. This is not a sustainable payout ratio.
SMG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP289.64%
EPS Next 2Y40.39%
EPS Next 3Y32.55%
60.48
-0.27 (-0.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.67%
Inst Owner Change4.87%
Ins Owners0.55%
Ins Owner Change-0.3%
Market Cap3.49B
Analysts76.92
Price Target77.18 (27.61%)
Short Float %8.7%
Short Ratio4.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
Yearly Dividend2.66
Dividend Growth(5Y)3.51%
DP289.64%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.29%
Min EPS beat(2)-0.27%
Max EPS beat(2)12.85%
EPS beat(4)2
Avg EPS beat(4)6.18%
Min EPS beat(4)-16.32%
Max EPS beat(4)28.45%
EPS beat(8)6
Avg EPS beat(8)7.66%
EPS beat(12)8
Avg EPS beat(12)6.19%
EPS beat(16)11
Avg EPS beat(16)4.76%
Revenue beat(2)0
Avg Revenue beat(2)-5.07%
Min Revenue beat(2)-6.02%
Max Revenue beat(2)-4.12%
Revenue beat(4)2
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-6.02%
Max Revenue beat(4)5.18%
Revenue beat(8)4
Avg Revenue beat(8)1.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)6
Avg Revenue beat(16)-0.19%
PT rev (1m)0%
PT rev (3m)12.1%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-8.84%
EPS NY rev (1m)4.21%
EPS NY rev (3m)6.74%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 13.7 | ||
| P/S | 1.02 | ||
| P/FCF | 14.28 | ||
| P/OCF | 11.06 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.28 |
EPS(TTM)3.37
EY5.57%
EPS(NY)4.41
Fwd EY7.3%
FCF(TTM)4.24
FCFY7%
OCF(TTM)5.47
OCFY9.04%
SpS59.59
BVpS-2.96
TBVpS-14.28
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | N/A | ||
| ROCE | 18.49% | ||
| ROIC | 14.61% | ||
| ROICexc | 14.94% | ||
| ROICexgc | 21.1% | ||
| OM | 12.32% | ||
| PM (TTM) | 1.54% | ||
| GM | 29.77% | ||
| FCFM | 7.11% |
ROA(3y)-7.51%
ROA(5y)-0.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.63%
ROIC(5y)13.54%
ROICexc(3y)10.91%
ROICexc(5y)13.96%
ROICexgc(3y)15.3%
ROICexgc(5y)22.83%
ROCE(3y)13.46%
ROCE(5y)17.14%
ROICexcg growth 3Y-10.58%
ROICexcg growth 5Y-6.7%
ROICexc growth 3Y-7.68%
ROICexc growth 5Y0%
OM growth 3Y-13.17%
OM growth 5Y-5.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.65%
GM growth 5Y-4.15%
F-Score8
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.95 | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 92.94% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 63.09% | ||
| Profit Quality | 460.64% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.62 |
F-Score8
WACC8.97%
ROIC/WACC1.63
Cap/Depr(3y)104.14%
Cap/Depr(5y)98.52%
Cap/Sales(3y)2.62%
Cap/Sales(5y)2.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)89.33%
EPS 3Y-37.53%
EPS 5Y-12.83%
EPS Q2Q%12.12%
EPS Next Y66.66%
EPS Next 2Y40.39%
EPS Next 3Y32.55%
EPS Next 5Y24.93%
Revenue 1Y (TTM)-2.05%
Revenue growth 3Y-10.32%
Revenue growth 5Y2.4%
Sales Q2Q%-1.18%
Revenue Next Year-3.72%
Revenue Next 2Y-0.93%
Revenue Next 3Y0.16%
Revenue Next 5Y0.46%
EBIT growth 1Y23.95%
EBIT growth 3Y-22.13%
EBIT growth 5Y-3.01%
EBIT Next Year58.86%
EBIT Next 3Y23.69%
EBIT Next 5Y17.18%
FCF growth 1Y-46.59%
FCF growth 3Y52.48%
FCF growth 5Y25.91%
OCF growth 1Y-42.21%
OCF growth 3Y34.97%
OCF growth 5Y24.1%