SCOTTS MIRACLE-GRO CO (SMG)
US8101861065 - Common Stock
Overall SMG gets a fundamental rating of 3 out of 10. We evaluated SMG against 85 industry peers in the Chemicals industry. SMG has a bad profitability rating. Also its financial health evaluation is rather negative. SMG has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
SMG's Return On Assets of -10.65% is on the low side compared to the rest of the industry. SMG is outperformed by 88.24% of its industry peers.
SMG has a better Return On Invested Capital (6.81%) than 64.71% of its industry peers.
SMG had an Average Return On Invested Capital over the past 3 years of 11.63%. This is above the industry average of 7.47%.
The last Return On Invested Capital (6.81%) for SMG is well below the 3 year average (11.63%), which needs to be investigated, but indicates that SMG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.65% | ||
| ROE | N/A | ||
| ROIC | 6.81% |
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 of 7.41%. This is comparable to the rest of the industry: SMG outperforms 41.18% of its industry peers.
In the last couple of years the Operating Margin of SMG has declined.
SMG has a Gross Margin of 23.09%. This is comparable to the rest of the industry: SMG outperforms 45.88% of its industry peers.
SMG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.41% | ||
| PM (TTM) | N/A | ||
| GM | 23.09% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SMG is creating some value.
SMG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SMG has more shares outstanding
The debt/assets ratio for SMG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.16 indicates that SMG is not a great score, but indicates only limited risk for bankruptcy at the moment.
SMG's Altman-Z score of 2.16 is in line compared to the rest of the industry. SMG outperforms 52.94% of its industry peers.
SMG has a debt to FCF ratio of 5.83. This is a neutral value as SMG would need 5.83 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.83, SMG is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.83 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.84
WACC8.1%
2.3 Liquidity
A Current Ratio of 2.20 indicates that SMG has no problem at all paying its short term obligations.
SMG has a Current ratio (2.20) which is comparable to the rest of the industry.
A Quick Ratio of 0.67 indicates that SMG may have some problems paying its short term obligations.
SMG's Quick ratio of 0.67 is on the low side compared to the rest of the industry. SMG is outperformed by 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for SMG have decreased strongly by -81.52% in the last year.
Measured over the past years, SMG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.79% on average per year.
The Revenue for SMG has decreased by -11.58% in the past year. This is quite bad
Measured over the past years, SMG shows a small growth in Revenue. The Revenue has been growing by 5.92% on average per year.
EPS 1Y (TTM)-81.52%
EPS 3Y-45.69%
EPS 5Y-20.79%
EPS growth Q2Q-42.16%
Revenue 1Y (TTM)-11.58%
Revenue growth 3Y-4.92%
Revenue growth 5Y5.92%
Revenue growth Q2Q-22.07%
3.2 Future
SMG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.95% yearly.
The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y142.54%
EPS Next 2Y83.01%
EPS Next 3Y62.77%
EPS Next 5Y44.95%
Revenue Next Year2.93%
Revenue Next 2Y2.74%
Revenue Next 3Y2.59%
Revenue Next 5Y4.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
SMG is valuated quite expensively with a Price/Earnings ratio of 92.68.
Based on the Price/Earnings ratio, SMG is valued a bit more expensive than 68.24% of the companies in the same industry.
SMG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.20.
The Price/Forward Earnings ratio is 17.42, which indicates a rather expensive current valuation of SMG.
SMG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.63. SMG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.68 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SMG indicates a slightly more expensive valuation: SMG is more expensive than 71.76% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SMG indicates a rather cheap valuation: SMG is cheaper than 90.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.4 | ||
| EV/EBITDA | 20.17 |
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 62.77% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y83.01%
EPS Next 3Y62.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.88%, SMG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.34, SMG pays a better dividend. On top of this SMG pays more dividend than 84.71% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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
The earnings of SMG are negative and hence is the payout ratio. SMG will probably not be able to sustain this dividend level.
SMG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-37.87%
EPS Next 2Y83.01%
EPS Next 3Y62.77%
SCOTTS MIRACLE-GRO CO
NYSE:SMG (4/25/2024, 7:17:44 PM)
After market: 67.66 0 (0%)67.66
-0.86 (-1.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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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 | 92.68 | ||
| Fwd PE | 17.42 | ||
| 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)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.65% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.41% | ||
| PM (TTM) | N/A | ||
| GM | 23.09% | ||
| 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 Turnover0.92
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 | 2.2 | ||
| Quick Ratio | 0.67 | ||
| 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)
Growth
EPS 1Y (TTM)-81.52%
EPS 3Y-45.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y142.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.58%
Revenue growth 3Y-4.92%
Revenue growth 5Y
Revenue growth 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