Why Scotts Miracle-Gro (SMG) Is Up 5.5% After Strong FY25 Results and Dividend Boost

• The Scotts Miracle-Gro Company recently announced its fiscal 2025 results, reporting full-year sales of US$3.41 billion, a significant improvement in net income to US$145.2 million, and a quarterly cash dividend of US$0.66 per share payable in December 2025.
• Management highlighted improved gross margins, plans for a multiyear share buyback program, and guidance for U.S. Consumer net sales growth in fiscal 2026, while emphasizing continued investments in brand innovation and operational efficiency.
• After these stronger full-year results and the new dividend, we'll assess how rising profitability and shareholder returns shape the company's investment narrative.

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Scotts Miracle-Gro Investment Narrative Recap

To own Scotts Miracle-Gro, an investor needs to have confidence in the company’s ability to execute on operational gains, capitalize on branded product innovation, and support growth in core consumer markets amid evolving retail and regulatory dynamics. The latest earnings results show improving profitability and a continued commitment to dividends, yet the biggest near-term catalyst remains the sustainable recovery of U.S. consumer sales, while reliance on large retail partners persists as the most immediate risk, recent news does not materially alter this equation.

The newly announced US$0.66 per share quarterly dividend stands out, reinforcing the company’s focus on shareholder returns after regaining profitability, even as margin pressures and retailer bargaining power remain central themes for the investment narrative.

Yet, investors should also be aware that rising dependence on just a few retail giants makes margins vulnerable if those partners shift their strategies or...

Read the full narrative on Scotts Miracle-Gro (it's free!)

Scotts Miracle-Gro's narrative projects $3.5 billion in revenue and $348.1 million in earnings by 2028. This requires a 0.8% yearly revenue decline and an increase in earnings of $295 million from the current $53.1 million.

Uncover how Scotts Miracle-Gro's forecasts yield a $73.71 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span US$48.25 to US$73.71 per share, showcasing sharply varied views on Scotts Miracle-Gro’s potential. Amid these differing opinions, the company’s product innovation push signals that your assessment of future growth drivers could be decisive, see how other market participants approach these questions.

Explore 4 other fair value estimates on Scotts Miracle-Gro - why the stock might be worth as much as 31% more than the current price!

Build Your Own Scotts Miracle-Gro Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Scotts Miracle-Gro research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Scotts Miracle-Gro research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Scotts Miracle-Gro's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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