Executive Summary
The Scotts Miracle-Gro Company manufactures, markets, and sells consumer lawn and garden products in the United States and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -3.4% per year for the next 3 years
Snowflake Analysis
Established dividend payer with proven track record.
Similar Companies
Share Price & News
How has Scotts Miracle-Gro's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SCQA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.2%
SCQA
-6.6%
DE Chemicals
-6.8%
DE Market
1 Year Return
48.9%
SCQA
-10.5%
DE Chemicals
6.5%
DE Market
Return vs Industry: SCQA exceeded the German Chemicals industry which returned -10.5% over the past year.
Return vs Market: SCQA exceeded the German Market which returned 6.5% over the past year.
Shareholder returns
| SCQA | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.2% | -6.6% | -6.8% |
| 30 Day | 7.0% | -4.6% | -3.7% |
| 90 Day | 13.0% | -11.6% | -3.6% |
| 1 Year | 52.2%48.9% | -7.0%-10.5% | 9.8%6.5% |
| 3 Year | 30.1%21.1% | -21.6%-29.0% | 6.8%-2.6% |
| 5 Year | 103.6%79.7% | -10.1%-23.9% | 12.5%-2.9% |
Price Volatility Vs. Market
How volatile is Scotts Miracle-Gro's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Scotts Miracle-Gro undervalued compared to its fair value and its price relative to the market?
14.3x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SCQA (€104.3) is trading above our estimate of fair value (€91.3)
Significantly Below Fair Value: SCQA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SCQA is good value based on its PE Ratio (14.3x) compared to the Chemicals industry average (19.9x).
PE vs Market: SCQA is good value based on its PE Ratio (14.3x) compared to the German market (20x).
Price to Earnings Growth Ratio
PEG Ratio: SCQA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SCQA is overvalued based on its PB Ratio (10.3x) compared to the DE Chemicals industry average (1.6x).
Next Steps
Future Growth
How is Scotts Miracle-Gro forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
-3.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCQA's earnings are forecast to decline over the next 3 years (-3.4% per year).
Earnings vs Market: SCQA's earnings are forecast to decline over the next 3 years (-3.4% per year).
High Growth Earnings: SCQA's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SCQA's revenue (3.4% per year) is forecast to grow slower than the German market (5.1% per year).
High Growth Revenue: SCQA's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SCQA's Return on Equity is forecast to be very high in 3 years time (47.8%).
Next Steps
Past Performance
How has Scotts Miracle-Gro performed over the past 5 years?
16.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCQA has a large one-off gain of $238.9M impacting its December 28 2019 financial results.
Growing Profit Margin: SCQA's current net profit margins (13.9%) are higher than last year (2.4%).
Past Earnings Growth Analysis
Earnings Trend: SCQA's earnings have grown by 16.3% per year over the past 5 years.
Accelerating Growth: SCQA's earnings growth over the past year (581.4%) exceeds its 5-year average (16.3% per year).
Earnings vs Industry: SCQA earnings growth over the past year (581.4%) exceeded the Chemicals industry -10.8%.
Return on Equity
High ROE: Whilst SCQA's Return on Equity (71.19%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Scotts Miracle-Gro's financial position?
Financial Position Analysis
Short Term Liabilities: SCQA's short term assets ($1.3B) exceed its short term liabilities ($609.7M).
Long Term Liabilities: SCQA's short term assets ($1.3B) do not cover its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: SCQA's debt to equity ratio (323.5%) is considered high.
Reducing Debt: SCQA's debt to equity ratio has increased from 257.5% to 323.5% over the past 5 years.
Debt Coverage: SCQA's debt is not well covered by operating cash flow (7%).
Interest Coverage: SCQA's interest payments on its debt are well covered by EBIT (4.6x coverage).
Balance Sheet
Inventory Level: SCQA has a high level of physical assets or inventory.
Debt Coverage by Assets: SCQA's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is Scotts Miracle-Gro's current dividend yield, its reliability and sustainability?
2.01%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SCQA's dividend (2.01%) is higher than the bottom 25% of dividend payers in the German market (1.46%).
High Dividend: SCQA's dividend (2.01%) is low compared to the top 25% of dividend payers in the German market (3.81%).
Stability and Growth of Payments
Stable Dividend: SCQA's dividends per share have been stable in the past 10 years.
Growing Dividend: SCQA's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28%), SCQA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SCQA's dividends in 3 years are forecast to be well covered by earnings (43.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.8yrs
Average management tenure
CEO
Jim Hagedorn (64yo)
18.8yrs
Tenure
US$7,922,384
Compensation
Mr. James S. Hagedorn, also known as Jim, has been the Chief Executive Officer at The Scotts Miracle-Gro Company since May 2001 and has been the Chairman of the Board since January 2003 and has been its Ex ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD7.92M) is above average for companies of similar size in the German market ($USD3.55M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman of the Board | 18.8yrs | US$7.92m | 0.10% $5.9m | |
| President & COO | 4yrs | US$3.37m | 0.070% $4.1m | |
| Executive VP & CFO | 5.8yrs | US$3.03m | 0.050% $2.9m | |
| Executive VP | 6.6yrs | US$1.72m | 0.035% $2.0m | |
| Executive VP of Global Human Resource & Chief Ethics Officer | 17yrs | US$2.13m | 0.0049% $283.6k | |
| Chief Communications Officer | 0yrs | no data | 0.016% $919.9k | |
| Senior Vice President of Research & Development | 11.7yrs | no data | no data | |
| Senior Vice President of International Sales | 5.1yrs | no data | no data | |
| Senior Vice President of Global Supply Chain | 9yrs | no data | no data | |
| Senior Vice President of Special Operating Forces | 0yrs | no data | no data |
7.8yrs
Average Tenure
58.5yo
Average Age
Experienced Management: SCQA's management team is seasoned and experienced (7.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman of the Board | 18.8yrs | US$7.92m | 0.10% $5.9m | |
| Independent Director | 5.2yrs | US$285.03k | 0.031% $1.8m | |
| Independent Director | 13.5yrs | US$285.03k | 0.037% $2.1m | |
| Vice-Chairman of the Board | 7.1yrs | US$285.03k | 0.011% $625.3k | |
| Director | 10.1yrs | US$285.03k | 0.060% $3.5m | |
| Independent Director | 12.5yrs | US$285.03k | 0.036% $2.1m | |
| Independent Director | 9.3yrs | US$285.03k | 0.036% $2.1m | |
| Independent Director | 1.8yrs | US$285.03k | 0.0098% $569.5k | |
| Lead Independent Director | 6.1yrs | US$335.05k | 0.021% $1.2m | |
| Independent Director | 3.1yrs | US$285.03k | 0.0083% $479.4k |
8.2yrs
Average Tenure
64.5yo
Average Age
Experienced Board: SCQA's board of directors are considered experienced (8.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SCQA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Scotts Miracle-Gro Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Scotts Miracle-Gro Company
- Ticker: SCQA
- Exchange: DB
- Founded: 1868
- Industry: Fertilizers and Agricultural Chemicals
- Sector: Materials
- Market Cap: US$6.321b
- Listing Market Cap: US$5.811b
- Shares outstanding: 55.60m
- Website: https://www.scotts.com
Number of Employees
Location
- The Scotts Miracle-Gro Company
- 14111 Scottslawn Road
- Marysville
- Ohio
- 43041
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SMG | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1992 |
| SCQA | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1992 |
| 0L45 | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1992 |
Biography
The Scotts Miracle-Gro Company manufactures, markets, and sells consumer lawn and garden products in the United States and internationally. The company operates through three segments: U.S. Consumer, Hawthorne, and Other. It offers lawn care products, such as lawn fertilizers, grass seed products, spreaders, other durable products, and outdoor cleaners, as well as lawn-related weed, pest, and disease control products. The company also provides gardening and landscape products, including water-soluble and continuous-release plant foods, potting mixes and garden soils, mulch and decorative groundcover products, plant-related pest and disease control products, organic garden products, and lives goods and seeding solutions. In addition, it offers hydroponic products that help users grow plants, flowers, and vegetables in an indoor or urban environment; and insect control products, rodent control products, and weed control products for home areas. The company offers its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick’R Lawn, GrubEx, EdgeGuard, Handy Green II, Scotts OxiCleanTM3, Miracle-Gro, LiquaFeed, Osmocote, Shake ‘N Feed, Hyponex, Earthgro, SuperSoil, Fafard, Nature Scapes, Ortho, Miracle-Gro Organic Choice, Nature’s Care, Whitney Farms, EcoScraps, Gro-ables, Hydroponics, Gavita, Botanicare, Vermicrop, Agrolux, Can-Filters, Sun System, Gro Pro, Mother Earth, Hurricane, Grower's Edge, AeroGarden, Ortho Weed B Gon, Tomcat, Roundup, and Groundclear brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, food and drug stores, and indoor gardening and hydroponic distributors and retailers through a direct sales force, and network of brokers and distributors. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/26 22:59 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/12/28 |
| Annual Earnings | 2019/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.