SCOTTS MIRACLE-GRO CO (SMG) Stock Fundamental Analysis
USA - NYSE:SMG - US8101861065 - Common Stock
59.03 USD
+1.21 (+2.09%)
59.03 USD
0 (0%)
SMG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 decent growth rate and is not valued too expensively. Finally SMG also has an excellent dividend rating.
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.
In multiple years SMG reported negative net income over the last 5 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 1.72%, SMG is in line with its industry, outperforming 56.63% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.61%, SMG belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SMG is above the industry average of 6.36%.
The last Return On Invested Capital (14.61%) for SMG is above the 3 year average (10.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | N/A | ||
| ROIC | 14.61% |
ROA(3y)-7.51%
ROA(5y)-0.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.63%
ROIC(5y)13.54%
1.3 Margins
SMG has a Profit Margin (1.54%) which is comparable to the rest of the industry.
SMG has a Operating Margin of 12.32%. This is in the better half of the industry: SMG outperforms 67.47% of its industry peers.
In the last couple of years the Operating Margin of SMG has declined.
SMG has a Gross Margin (29.77%) which is in line with its industry peers.
SMG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.32% | ||
| PM (TTM) | 1.54% | ||
| GM | 29.77% |
OM growth 3Y-13.17%
OM growth 5Y-5.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.65%
GM growth 5Y-4.15%
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.
Compared to 5 years ago, SMG has more shares outstanding
Compared to 1 year ago, SMG has a worse debt to assets ratio.
2.2 Solvency
SMG has an Altman-Z score of 2.60. 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 2.60, SMG is doing good in the industry, outperforming 75.90% of the companies in the same industry.
The Debt to FCF ratio of SMG is 8.95, which is on the high side as it means it would take SMG, 8.95 years of fcf income to pay off all of its debts.
SMG's Debt to FCF ratio of 8.95 is fine compared to the rest of the industry. SMG outperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.95 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.67
WACC8.76%
2.3 Liquidity
SMG has a Current Ratio of 1.61. This is a normal value and indicates that SMG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.61, SMG is doing worse than 67.47% of the companies in the same industry.
SMG has a Quick Ratio of 1.61. This is a bad value and indicates that SMG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.93, SMG is doing worse than 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.33% over the past year.
Measured over the past years, SMG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.83% on average per year.
The Revenue has decreased by -2.05% in the past year.
The Revenue has been growing slightly by 2.40% on average over the past years.
EPS 1Y (TTM)89.33%
EPS 3Y-37.53%
EPS 5Y-12.83%
EPS Q2Q%12.12%
Revenue 1Y (TTM)-2.05%
Revenue growth 3Y-10.32%
Revenue growth 5Y2.4%
Sales Q2Q%-1.18%
3.2 Future
The Earnings Per Share is expected to grow by 24.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.46% on average over the next years.
EPS Next Y67.36%
EPS Next 2Y39.83%
EPS Next 3Y32.35%
EPS Next 5Y24.93%
Revenue Next Year-3.72%
Revenue Next 2Y-1.11%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.46%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.52, which indicates a rather expensive current valuation of SMG.
61.45% of the companies in the same industry are more expensive than SMG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SMG to the average of the S&P500 Index (27.91), we can say SMG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.48, the valuation of SMG can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMG indicates a somewhat cheap valuation: SMG is cheaper than 63.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.30, SMG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 13.48 |
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 80.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.93 | ||
| EV/EBITDA | 11.08 |
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 32.35% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y39.83%
EPS Next 3Y32.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.52%, SMG is a good candidate for dividend investing.
SMG's Dividend Yield is rather good when compared to the industry average which is at 3.61. SMG pays more dividend than 84.34% of the companies in the same industry.
SMG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of SMG has a limited annual growth rate of 3.51%.
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)3.51%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
SMG pays out 289.64% of its income as dividend. This is not a sustainable payout ratio.
SMG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP289.64%
EPS Next 2Y39.83%
EPS Next 3Y32.35%
59.03
+1.21 (+2.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners78.72%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change-0.3%
Market Cap3.41B
Analysts76.92
Price Target75.82 (28.44%)
Short Float %7.87%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend2.66
Dividend Growth(5Y)3.51%
DP289.64%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.29%
Min EPS beat(2)-0.27%
Max EPS beat(2)12.85%
EPS beat(4)2
Avg EPS beat(4)6.18%
Min EPS beat(4)-16.32%
Max EPS beat(4)28.45%
EPS beat(8)6
Avg EPS beat(8)7.66%
EPS beat(12)8
Avg EPS beat(12)6.19%
EPS beat(16)11
Avg EPS beat(16)4.76%
Revenue beat(2)0
Avg Revenue beat(2)-5.07%
Min Revenue beat(2)-6.02%
Max Revenue beat(2)-4.12%
Revenue beat(4)2
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-6.02%
Max Revenue beat(4)5.18%
Revenue beat(8)4
Avg Revenue beat(8)1.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)6
Avg Revenue beat(16)-0.19%
PT rev (1m)-1.76%
PT rev (3m)3.96%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-9.02%
EPS NY rev (1m)0.42%
EPS NY rev (3m)4.64%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 13.48 | ||
| P/S | 0.99 | ||
| P/FCF | 13.93 | ||
| P/OCF | 10.8 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.08 |
EPS(TTM)3.37
EY5.71%
EPS(NY)4.38
Fwd EY7.42%
FCF(TTM)4.24
FCFY7.18%
OCF(TTM)5.47
OCFY9.26%
SpS59.59
BVpS-2.96
TBVpS-14.28
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | N/A | ||
| ROCE | 18.49% | ||
| ROIC | 14.61% | ||
| ROICexc | 14.94% | ||
| ROICexgc | 21.1% | ||
| OM | 12.32% | ||
| PM (TTM) | 1.54% | ||
| GM | 29.77% | ||
| FCFM | 7.11% |
ROA(3y)-7.51%
ROA(5y)-0.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.63%
ROIC(5y)13.54%
ROICexc(3y)10.91%
ROICexc(5y)13.96%
ROICexgc(3y)15.3%
ROICexgc(5y)22.83%
ROCE(3y)13.46%
ROCE(5y)17.14%
ROICexcg growth 3Y-10.58%
ROICexcg growth 5Y-6.7%
ROICexc growth 3Y-7.68%
ROICexc growth 5Y0%
OM growth 3Y-13.17%
OM growth 5Y-5.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.65%
GM growth 5Y-4.15%
F-Score8
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.95 | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 92.94% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 63.09% | ||
| Profit Quality | 460.64% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.6 |
F-Score8
WACC8.76%
ROIC/WACC1.67
Cap/Depr(3y)104.14%
Cap/Depr(5y)98.52%
Cap/Sales(3y)2.62%
Cap/Sales(5y)2.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)89.33%
EPS 3Y-37.53%
EPS 5Y-12.83%
EPS Q2Q%12.12%
EPS Next Y67.36%
EPS Next 2Y39.83%
EPS Next 3Y32.35%
EPS Next 5Y24.93%
Revenue 1Y (TTM)-2.05%
Revenue growth 3Y-10.32%
Revenue growth 5Y2.4%
Sales Q2Q%-1.18%
Revenue Next Year-3.72%
Revenue Next 2Y-1.11%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.46%
EBIT growth 1Y23.95%
EBIT growth 3Y-22.13%
EBIT growth 5Y-3.01%
EBIT Next Year58.52%
EBIT Next 3Y23.69%
EBIT Next 5Y17.18%
FCF growth 1Y-46.59%
FCF growth 3Y52.48%
FCF growth 5Y25.91%
OCF growth 1Y-42.21%
OCF growth 3Y34.97%
OCF growth 5Y24.1%