company background image
SMG

Scotts Miracle-GroNYSE:SMG Stock Report

Last Price

US$154.24

Market Cap

US$8.5b

7D

-6.5%

1Y

-32.2%

Updated

20 Jan, 2022

Data

Company Financials +
SMG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health2/6
Dividends5/6

SMG Stock Overview

The Scotts Miracle-Gro Company engages in the manufacture, marketing, and sale of products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally.

Scotts Miracle-Gro Competitors

Reckitt Benckiser Group

LSE:RKT

UK£45.9b

Nutrien

TSX:NTR

CA$52.7b

Archer-Daniels-Midland

NYSE:ADM

US$39.7b

Henkel KGaA

XTRA:HEN3

€32.9b

Price History & Performance

Summary of all time highs, changes and price drops for Scotts Miracle-Gro
Historical stock prices
Current Share PriceUS$154.24
52 Week HighUS$254.34
52 Week LowUS$133.36
Beta1.13
1 Month Change0.48%
3 Month Change4.68%
1 Year Change-32.18%
3 Year Change123.54%
5 Year Change63.91%
Change since IPO1,286.43%

Recent News & Updates

Jan 04
Is Now The Time To Put Scotts Miracle-Gro (NYSE:SMG) On Your Watchlist?

Is Now The Time To Put Scotts Miracle-Gro (NYSE:SMG) On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Dec 08
Is It Time To Consider Buying The Scotts Miracle-Gro Company (NYSE:SMG)?

Is It Time To Consider Buying The Scotts Miracle-Gro Company (NYSE:SMG)?

The Scotts Miracle-Gro Company ( NYSE:SMG ), is not the largest company out there, but it saw a decent share price...

Nov 25
Scotts Miracle-Gro (NYSE:SMG) Has Announced That It Will Be Increasing Its Dividend To US$0.66

Scotts Miracle-Gro (NYSE:SMG) Has Announced That It Will Be Increasing Its Dividend To US$0.66

The board of The Scotts Miracle-Gro Company ( NYSE:SMG ) has announced that it will be increasing its dividend on the...

Nov 22

Scotts Miracle-Gro: Cannabis Angle Is Already Fully Priced In

Scotts Miracle-Gro guides to grow its topline in the year ahead 2% y/y. Supply chain issues led Scotts Miracle-Gro to aggressively grow inventory, causing a drag on free cash flow. Looking ahead, SMG stock is richly priced at more than 20x forward free cash flow.

Shareholder Returns

SMGUS ChemicalsUS Market
7D-6.5%-3.5%-4.6%
1Y-32.2%12.0%7.7%

Return vs Industry: SMG underperformed the US Chemicals industry which returned 12% over the past year.

Return vs Market: SMG underperformed the US Market which returned 7.7% over the past year.

Price Volatility

Is SMG's price volatile compared to industry and market?
SMG volatility
SMG Average Weekly Movement6.2%
Chemicals Industry Average Movement5.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: SMG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SMG's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18687,300Jim Hagedornhttps://scottsmiraclegro.com

The Scotts Miracle-Gro Company engages in the manufacture, marketing, and sale of products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. The company operates through three segments: U.S. Consumer, Hawthorne, and Other.

Scotts Miracle-Gro Fundamentals Summary

How do Scotts Miracle-Gro's earnings and revenue compare to its market cap?
SMG fundamental statistics
Market CapUS$8.48b
Earnings (TTM)US$516.40m
Revenue (TTM)US$4.93b

16.4x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMG income statement (TTM)
RevenueUS$4.93b
Cost of RevenueUS$3.43b
Gross ProfitUS$1.49b
ExpensesUS$977.30m
EarningsUS$516.40m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 01, 2022

Earnings per share (EPS)9.39
Gross Margin30.33%
Net Profit Margin10.49%
Debt/Equity Ratio224.0%

How did SMG perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

27%

Payout Ratio

Valuation

Is Scotts Miracle-Gro undervalued compared to its fair value and its price relative to the market?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMG ($154.24) is trading below our estimate of fair value ($290.24)

Significantly Below Fair Value: SMG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SMG is good value based on its PE Ratio (16.4x) compared to the US Chemicals industry average (21.1x).

PE vs Market: SMG is good value based on its PE Ratio (16.4x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: SMG is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: SMG is overvalued based on its PB Ratio (8.4x) compared to the US Chemicals industry average (2.5x).


Future Growth

How is Scotts Miracle-Gro forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMG's forecast earnings growth (7.5% per year) is above the savings rate (2%).

Earnings vs Market: SMG's earnings (7.5% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: SMG's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMG's revenue (5.4% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: SMG's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMG's Return on Equity is forecast to be high in 3 years time (36.5%)


Past Performance

How has Scotts Miracle-Gro performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMG has high quality earnings.

Growing Profit Margin: SMG's current net profit margins (10.5%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: SMG's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: SMG's earnings growth over the past year (33.9%) exceeds its 5-year average (22.1% per year).

Earnings vs Industry: SMG earnings growth over the past year (33.9%) exceeded the Chemicals industry 17.5%.


Return on Equity

High ROE: Whilst SMG's Return on Equity (51.05%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Scotts Miracle-Gro's financial position?


Financial Position Analysis

Short Term Liabilities: SMG's short term assets ($2.0B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: SMG's short term assets ($2.0B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: SMG's net debt to equity ratio (199.9%) is considered high.

Reducing Debt: SMG's debt to equity ratio has increased from 167.6% to 224% over the past 5 years.

Debt Coverage: SMG's debt is not well covered by operating cash flow (12%).

Interest Coverage: SMG's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


Dividend

What is Scotts Miracle-Gro current dividend yield, its reliability and sustainability?

1.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SMG's dividend (1.71%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: SMG's dividend (1.71%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: SMG's dividends per share have been stable in the past 10 years.

Growing Dividend: SMG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.2%), SMG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SMG's dividends in 3 years are forecast to be well covered by earnings (26.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure


CEO

Jim Hagedorn (66 yo)

20.67yrs

Tenure

US$10,713,912

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. He has been an Exe...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD10.71M) is above average for companies of similar size in the US market ($USD6.42M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SMG's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: SMG's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SMG insiders have bought more shares than they have sold 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 employee growth, exchange listings and data sources


Key Information

  • Name: The Scotts Miracle-Gro Company
  • Ticker: SMG
  • Exchange: NYSE
  • Founded: 1868
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Implied Market Cap: US$8.484b
  • Shares outstanding: 55.00m
  • Website: https://scottsmiraclegro.com

Number of Employees


Location

  • The Scotts Miracle-Gro Company
  • 14111 Scottslawn Road
  • Marysville
  • Ohio
  • 43041
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 23:55
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.