SCOTTS MIRACLE-GRO CO (SMG)
US8101861065 - Common Stock
Overall SMG gets a fundamental rating of 4 out of 10. We evaluated SMG against 84 industry peers in the Chemicals industry. SMG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SMG has a valuation in line with the averages, but it does not seem to be growing.
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 has a worse Return On Assets (-7.43%) than 80.95% of its industry peers.
The Return On Invested Capital of SMG (10.25%) is better than 89.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SMG is significantly above the industry average of 6.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.43% | ||
| ROE | N/A | ||
| ROIC | 10.25% |
ROA(3y)-3.55%
ROA(5y)3.21%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.63%
ROIC(5y)13.61%
1.3 Margins
SMG has a Operating Margin (9.74%) which is comparable to the rest of the industry.
SMG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 26.01%, SMG is in line with its industry, outperforming 48.81% of the companies in the same industry.
SMG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.74% | ||
| PM (TTM) | N/A | ||
| GM | 26.01% |
OM growth 3Y-17.38%
OM growth 5Y-8.49%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.39%
GM growth 5Y-6.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SMG is still creating some value.
Compared to 1 year ago, SMG has more shares outstanding
SMG has more shares outstanding than it did 5 years ago.
SMG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.46 indicates that SMG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.46, SMG is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
SMG has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as SMG would need 2.49 years to pay back of all of its debts.
The Debt to FCF ratio of SMG (2.49) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.38
WACC7.42%
2.3 Liquidity
SMG has a Current Ratio of 1.80. This is a normal value and indicates that SMG is financially healthy and should not expect problems in meeting its short term obligations.
SMG's Current ratio of 1.80 is on the low side compared to the rest of the industry. SMG is outperformed by 65.48% of its industry peers.
SMG has a Quick Ratio of 1.09. This is a normal value and indicates that SMG is financially healthy and should not expect problems in meeting its short term obligations.
SMG has a worse Quick ratio (1.09) than 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for SMG have decreased by -5.82% in the last year.
The earnings per share for SMG have been decreasing by -20.79% on average. This is quite bad
Looking at the last year, SMG shows a decrease in Revenue. The Revenue has decreased by -4.30% in the last year.
The Revenue has been growing slightly by 5.92% on average over the past years.
EPS 1Y (TTM)-5.82%
EPS 3Y-45.69%
EPS 5Y-20.79%
EPS Q2Q%97.44%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y-4.92%
Revenue growth 5Y5.92%
Sales Q2Q%7.46%
3.2 Future
Based on estimates for the next years, SMG will show a very strong growth in Earnings Per Share. The EPS will grow by 42.72% on average per year.
Based on estimates for the next years, SMG will show a small growth in Revenue. The Revenue will grow by 3.42% on average per year.
EPS Next Y135.47%
EPS Next 2Y80.7%
EPS Next 3Y62.32%
EPS Next 5Y42.72%
Revenue Next Year0.93%
Revenue Next 2Y1.44%
Revenue Next 3Y1.96%
Revenue Next 5Y3.42%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.62, which means the current valuation is very expensive for SMG.
SMG's Price/Earnings ratio is a bit more expensive when compared to the industry. SMG is more expensive than 60.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.71, SMG is valued a bit more expensive.
A Price/Forward Earnings ratio of 18.62 indicates a rather expensive valuation of SMG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMG is on the same level as its industry peers.
SMG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.62 | ||
| Fwd PE | 18.62 |
4.2 Price Multiples
SMG's Enterprise Value to EBITDA ratio is in line with 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 96.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.02 | ||
| EV/EBITDA | 14.64 |
4.3 Compensation for Growth
The 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 62.32% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y80.7%
EPS Next 3Y62.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.97%, SMG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.01, SMG pays a better dividend. On top of this SMG pays more dividend than 85.71% of the companies listed in the same industry.
SMG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
The dividend of SMG has a limited annual growth rate of 4.70%.
SMG has been paying a dividend for at least 10 years, so it has a reliable track record.
SMG has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.7%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
SMG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
SMG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-58.16%
EPS Next 2Y80.7%
EPS Next 3Y62.32%
SCOTTS MIRACLE-GRO CO
NYSE:SMG (9/16/2024, 8:04:00 PM)
After market: 70.52 0 (0%)70.52
+0.78 (+1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.62 | ||
| Fwd PE | 18.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.43% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.74% | ||
| PM (TTM) | N/A | ||
| GM | 26.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.82%
EPS 3Y-45.69%
EPS 5Y
EPS Q2Q%
EPS Next Y135.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y-4.92%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y