SCOTTS MIRACLE-GRO CO (SMG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SMG - US8101861065 - Common Stock
57.93 USD
+0.12 (+0.21%)
57.93 USD
0 (0%)
Overall SMG gets a fundamental rating of 5 out of 10. We evaluated SMG against 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 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.
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 83.33% of its industry peers.
The Return On Invested Capital of SMG (14.47%) is better than 94.05% of its industry peers.
SMG had an Average Return On Invested Capital over the past 3 years of 10.89%. This is above the industry average of 6.09%.
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
SMG's Profit Margin of 4.25% is fine compared to the rest of the industry. SMG outperforms 69.05% of its industry peers.
In the last couple of years the Profit Margin of SMG has declined.
SMG has a better Operating Margin (12.96%) than 70.24% of its industry peers.
In the last couple of years the Operating Margin of SMG has declined.
Looking at the Gross Margin, with a value of 31.19%, SMG is in line with its industry, outperforming 58.33% of the companies in the same industry.
SMG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.96% | ||
| PM (TTM) | 4.25% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SMG is still 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 has been reduced compared to a year ago.
2.2 Solvency
SMG has an Altman-Z score of 2.67. 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.
With a decent Altman-Z score value of 2.67, SMG is doing good in the industry, outperforming 79.76% of the companies in the same industry.
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 Debt to FCF ratio of 7.69. This is in the better half of the industry: SMG outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.3
WACC11.13%
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 83.33% of its industry peers.
SMG has a Quick Ratio of 1.27. 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's Quick ratio of 0.47 is on the low side compared to the rest of the industry. SMG is outperformed by 94.05% of its industry peers.
| 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.
The earnings per share for SMG have been decreasing by -12.47% on average. This is quite bad
SMG shows a decrease in Revenue. In the last year, the revenue decreased by -3.93%.
SMG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.75% yearly.
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 13.99% on average per year.
Based on estimates for the next years, SMG will show a small growth in Revenue. The Revenue will grow by 2.82% on average per year.
EPS Next Y16.56%
EPS Next 2Y16.38%
EPS Next 3Y17.37%
EPS Next 5Y13.99%
Revenue Next Year0.44%
Revenue Next 2Y1.33%
Revenue Next 3Y1.96%
Revenue Next 5Y2.82%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SMG is valuated correctly with a Price/Earnings ratio of 15.57.
Based on the Price/Earnings ratio, SMG is valued a bit cheaper than 65.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, SMG is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.36 indicates a correct valuation of SMG.
SMG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SMG is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SMG to the average of the S&P500 Index (23.46), we can say SMG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
SMG's Enterprise Value to EBITDA is on the same level as the industry average.
SMG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SMG is cheaper than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.27 | ||
| EV/EBITDA | 10.5 |
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.
The decent profitability rating of SMG may justify a higher PE ratio.
SMG's earnings are expected to grow with 17.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y16.38%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
SMG has a Yearly Dividend Yield of 4.57%, which is a nice return.
SMG's Dividend Yield is rather good when compared to the industry average which is at 2.48. SMG pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, SMG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
5.2 History
The dividend of SMG decreases each year by -18.28%.
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)-18.28%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
106.27% of the earnings are spent on dividend by SMG. This is not a sustainable payout ratio.
DP106.27%
EPS Next 2Y16.38%
EPS Next 3Y17.37%
57.93
+0.12 (+0.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.04%
Inst Owner Change-7.76%
Ins Owners0.59%
Ins Owner Change-0.16%
Market Cap3.36B
Revenue(TTM)3.41B
Net Income(TTM)145.20M
Analysts81.67
Price Target73.78 (27.36%)
Short Float %7.07%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend2.69
Dividend Growth(5Y)-18.28%
DP106.27%
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)0%
PT rev (3m)-4.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.83%
EPS NY rev (1m)1.59%
EPS NY rev (3m)-0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.38%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 13.36 | ||
| P/S | 0.98 | ||
| P/FCF | 12.27 | ||
| P/OCF | 9.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.5 |
EPS(TTM)3.72
EY6.42%
EPS(NY)4.34
Fwd EY7.49%
FCF(TTM)4.72
FCFY8.15%
OCF(TTM)6.4
OCFY11.05%
SpS58.85
BVpS-6.16
TBVpS-17.3
PEG (NY)0.94
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) | 4.25% | ||
| 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 | 3.37 | ||
| Cash Conversion | 71.78% | ||
| Profit Quality | 188.64% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.67 |
F-Score8
WACC11.13%
ROIC/WACC1.3
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 Y16.56%
EPS Next 2Y16.38%
EPS Next 3Y17.37%
EPS Next 5Y13.99%
Revenue 1Y (TTM)-3.93%
Revenue growth 3Y-4.54%
Revenue growth 5Y-3.75%
Sales Q2Q%-6.58%
Revenue Next Year0.44%
Revenue Next 2Y1.33%
Revenue Next 3Y1.96%
Revenue Next 5Y2.82%
EBIT growth 1Y24.52%
EBIT growth 3Y1.8%
EBIT growth 5Y-5.98%
EBIT Next Year39.48%
EBIT Next 3Y16.5%
EBIT Next 5Y14.08%
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 5 / 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 3 / 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 106.27%.