SCOTTS MIRACLE-GRO CO (SMG) Stock Fundamental Analysis
USA - NYSE:SMG - US8101861065 - Common Stock
56.73 USD
-1.67 (-2.86%)
56.73 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SMG. SMG was compared to 82 industry peers in the Chemicals industry. While SMG is still in line with the averages on profitability rating, there are concerns on its financial health. SMG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SMG was profitable.
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.
SMG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.30%, SMG belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.47%, SMG belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
SMG had an Average Return On Invested Capital over the past 3 years of 10.89%. This is above the industry average of 6.13%.
The last Return On Invested Capital (14.47%) for SMG is above the 3 year average (10.89%), which is a sign of increasing profitability.
| 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
SMG has a Profit Margin of 4.26%. This is in the better half of the industry: SMG outperforms 65.85% of its industry peers.
SMG's Profit Margin has declined in the last couple of years.
SMG has a better Operating Margin (12.96%) than 70.73% of its industry peers.
In the last couple of years the Operating Margin of SMG has declined.
SMG has a Gross Margin (31.19%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SMG has remained more or less at the same level.
| 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
The Debt to FCF ratio of SMG is 7.69, which is on the high side as it means it would take SMG, 7.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SMG (7.69) is better 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
WACC7.52%
2.3 Liquidity
SMG has a Current Ratio of 1.27. This is a normal value and indicates that SMG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SMG (1.27) is worse 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.
SMG's Quick ratio of 0.47 is on the low side compared to the rest of the industry. SMG is outperformed by 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
SMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.07%, 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 -12.47% 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
Based on estimates for the next years, SMG will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.10% on average per year.
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
SMG is valuated correctly with a Price/Earnings ratio of 15.25.
SMG's Price/Earnings ratio is a bit cheaper when compared to the industry. SMG is cheaper than 62.20% of the companies in the same industry.
SMG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
SMG is valuated correctly with a Price/Forward Earnings ratio of 13.29.
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 34.59, SMG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 13.29 |
4.2 Price Multiples
SMG's Enterprise Value to EBITDA ratio is in line with the industry average.
SMG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SMG is cheaper than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.96 | ||
| EV/EBITDA | 10.52 |
4.3 Compensation for Growth
The 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)1.03
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.
SMG's Dividend Yield is rather good when compared to the industry average which is at 3.96. SMG pays more dividend than 85.37% of the companies in the same industry.
SMG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
The dividend of SMG decreases each year by -18.27%.
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)-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%
56.73
-1.67 (-2.86%)
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 Cap3.28B
Revenue(TTM)3.41B
Net Income(TTM)145.30M
Analysts76.92
Price Target73.44 (29.46%)
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 | 15.25 | ||
| Fwd PE | 13.29 | ||
| P/S | 0.96 | ||
| P/FCF | 11.96 | ||
| P/OCF | 8.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.52 |
EPS(TTM)3.72
EY6.56%
EPS(NY)4.27
Fwd EY7.52%
FCF(TTM)4.74
FCFY8.36%
OCF(TTM)6.43
OCFY11.34%
SpS59.11
BVpS-6.19
TBVpS-17.37
PEG (NY)1.03
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
WACC7.52%
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%.