SCOTTS MIRACLE-GRO CO (SMG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SMG - US8101861065 - Common Stock
63.56 USD
+1.1 (+1.76%)
63.56 USD
0 (0%)
Taking everything into account, SMG scores 5 out of 10 in our fundamental rating. 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.
- In the past year SMG had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 5.30%, SMG belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
- The Return On Invested Capital of SMG (14.47%) is better than 93.90% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SMG is above the industry average of 6.10%.
- 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
- The Profit Margin of SMG (4.25%) is better than 68.29% of its industry peers.
- SMG's Profit Margin has declined in the last couple of years.
- The Operating Margin of SMG (12.96%) is better than 69.51% 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) | 4.25% | ||
| 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.
- SMG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.72 indicates that SMG is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SMG has a better Altman-Z score (2.72) than 79.27% of its industry peers.
- 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.
- SMG has a Debt to FCF ratio of 7.69. This is in the better half of the industry: SMG outperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.27
WACC11.41%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that SMG should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.27, SMG is doing worse than 84.15% of the companies in the same industry.
- 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 93.90% 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.
- SMG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.47% yearly.
- Looking at the last year, SMG shows a decrease in Revenue. The Revenue has decreased by -3.93% in the last year.
- 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.
- 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
- A Price/Earnings ratio of 17.09 indicates a rather expensive valuation of SMG.
- SMG's Price/Earnings ratio is a bit cheaper when compared to the industry. SMG is cheaper than 63.41% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SMG to the average of the S&P500 Index (27.33), we can say SMG is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 14.66, SMG is valued correctly.
- SMG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SMG is cheaper than 65.85% of the companies in the same industry.
- SMG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SMG is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, SMG is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.46 | ||
| EV/EBITDA | 11 |
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 17.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y16.38%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
- SMG has a Yearly Dividend Yield of 4.34%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.34, SMG pays a better dividend. On top of this SMG pays more dividend than 87.80% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, SMG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
- The dividend of SMG decreases each year by -18.28%.
- 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)-18.28%
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%
63.56
+1.1 (+1.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)01-28 2026-01-28/bmo
Inst Owners74.56%
Inst Owner Change-0.15%
Ins Owners0.57%
Ins Owner Change-0.16%
Market Cap3.69B
Revenue(TTM)3.41B
Net Income(TTM)145.20M
Analysts81.67
Price Target73.78 (16.08%)
Short Float %7.2%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend2.69
Dividend Growth(5Y)-18.28%
DP106.27%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)-2.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 14.66 | ||
| P/S | 1.08 | ||
| P/FCF | 13.46 | ||
| P/OCF | 9.93 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11 |
EPS(TTM)3.72
EY5.85%
EPS(NY)4.34
Fwd EY6.82%
FCF(TTM)4.72
FCFY7.43%
OCF(TTM)6.4
OCFY10.07%
SpS58.85
BVpS-6.16
TBVpS-17.3
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) | 4.25% | ||
| 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 | 2.72 |
F-Score8
WACC11.41%
ROIC/WACC1.27
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.
What is the valuation status for SMG stock?
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.
What are the PE and PB ratios of SCOTTS MIRACLE-GRO CO (SMG) stock?
The Price/Earnings (PE) ratio for SCOTTS MIRACLE-GRO CO (SMG) is 17.09 and the Price/Book (PB) ratio is -10.31.
Can you provide the expected EPS growth for SMG stock?
The Earnings per Share (EPS) of SCOTTS MIRACLE-GRO CO (SMG) is expected to grow by 16.56% in the next year.