Scotts Miracle-Gro Company (SMG) AI Stock Analysis

• Market Cap: $3.64B
• Dividend Yield: 4.24%
• Average Volume (3M): 891.47K
• Price to Earnings (P/E): 82.1
• Beta (1Y): 0.94
• Revenue Growth: -2.05%
• EPS Growth: N/A
• Country: US
• Employees: 5,300
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Agricultural Inputs
• EPS (TTM): 2.59
• Shares Outstanding: 57,738,580
• 10 Day Avg. Volume: 794,694
• 30 Day Avg. Volume: 891,474
• PEG Ratio: 1.55
• Price to Book (P/B): -12.61
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 8.44
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 6.33
• Enterprise Value/Ebitda: 20.10
• 1Y Price Target: $71.60
• Price Target Upside: 14.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 51 Neutral
• Price Target: $63.00 ▲(1.09% Upside)

Scotts Miracle-Gro's overall stock score reflects significant financial challenges, including high leverage and declining profitability. However, positive earnings call insights, such as EBITDA and EPS growth, provide some optimism. Technical indicators and valuation suggest caution, with mixed signals and a high P/E ratio.

Positive Factors

Financial Performance

Scotts Miracle-Gro's fiscal third-quarter sales and EBITDA were above forecasts.

Management Strategy

Management has an understanding of market dynamics and levers to steer the business to sustainable profitable growth.

Market Position

Scotts Miracle-Gro is seen as a strong consumer franchise with a significant market share of approximately 50% in the domestic market.

Negative Factors

Financial Outlook

Investment plans and below-the-line items are driving a below consensus outlook for fiscal year 2025.

Market Volatility

Shares are likely to remain volatile, with the risk/reward now favoring a neutral approach.

Revenue Guidance

The updated U.S. consumer revenue guidance cadence is viewed negatively, likely underscoring channel inventory risk.

Scotts Miracle-Gro Company Business Overview & Revenue Model

Company Description

Scotts Miracle-Gro Company (SMG) is a leading global provider of lawn and garden care products, headquartered in Marysville, Ohio. The company operates primarily in the consumer and professional segments, focusing on the production and marketing of a wide range of products, including fertilizers, grass seed, pest control, and gardening supplies. SMG's portfolio includes well-known brands such as Miracle-Gro, Ortho, Roundup, and Scotts Turf Builder, catering to both residential gardeners and professional landscapers.

How the Company Makes Money

Scotts Miracle-Gro generates revenue through several key streams, primarily from the sale of consumer and professional gardening products. The consumer segment, which includes products sold through retail channels, represents a significant portion of its revenue. Additionally, SMG earns income from its professional segment, which supplies products to landscape professionals and agricultural customers. The company also benefits from strategic partnerships with major retailers like Home Depot and Walmart, which help to enhance product visibility and distribution. Seasonal demand, driven by gardening trends and weather conditions, also plays a crucial role in influencing sales. Furthermore, the company invests in innovation and marketing to expand its product offerings and maintain competitive advantages, contributing to its overall revenue growth.

Scotts Miracle-Gro Company Financial Statement Overview

Summary

Scotts Miracle-Gro faces significant financial challenges. The income statement shows declining revenue and low profit margins, the balance sheet highlights financial risk with negative equity, and while cash flow remains stable, growth is lacking. The company needs to address its leverage and operational efficiency to improve financial health.

Income Statement

The company's TTM (Trailing-Twelve-Months) income statement shows mixed results. Gross profit margin stands at 27.9%, indicating a reasonable level of profitability, but net profit margin is low at 1.0%, suggesting that most of the revenue is consumed by other expenses. Revenue has decreased over recent periods, with a decline of 2.8% from the previous annual report, highlighting a need for growth strategies. EBIT and EBITDA margins are relatively low, at 8.0% and 9.2% respectively, pointing to challenges in operational efficiency.

Balance Sheet

The balance sheet reflects financial instability, with a negative stockholders' equity of $290.1 million, indicating more liabilities than assets. The debt-to-equity ratio cannot be calculated due to negative equity, but total debt is high at $2.55 billion. Despite this, the company has managed to maintain operations, possibly leveraging its assets which total $3.54 billion. Return on equity cannot be assessed due to negative equity, while the equity ratio is negative, underlining financial risk.

Cash Flow

Cash flow statements show a positive operating cash flow of $449.3 million, indicating substantial cash generation from operations. Free cash flow is stable at $381.9 million, showing the company's ability to fund operations and capital expenditures. However, the free cash flow growth rate is negative when compared to previous period. The operating cash flow to net income ratio is strong, reflecting efficient cash conversion despite low net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.44B	3.55B	3.55B	3.92B	4.92B	4.13B
Gross Profit	991.20M	850.50M	657.30M	982.60M	1.49B	1.35B
EBITDA	312.00M	215.80M	-174.40M	-336.90M	845.80M	684.90M
Net Income	53.10M	-34.90M	-380.10M	-437.50M	512.50M	387.40M
Balance Sheet
Total Assets	3.09B	2.87B	3.41B	4.30B	4.80B	3.38B
Cash, Cash Equivalents and Short-Term Investments	51.10M	71.60M	31.90M	86.80M	244.10M	16.60M
Total Debt	2.19B	2.52B	2.91B	3.27B	2.60B	1.68B
Total Liabilities	3.26B	3.26B	3.68B	4.15B	3.79B	2.68B
Stockholders Equity	-170.90M	-390.60M	-267.30M	147.70M	1.01B	702.90M
Cash Flow
Free Cash Flow	244.60M	583.50M	438.20M	-242.50M	164.60M	495.30M
Operating Cash Flow	315.70M	667.50M	531.00M	-129.00M	271.50M	558.00M
Investing Cash Flow	-80.40M	-100.40M	-65.70M	-283.20M	-538.60M	46.90M
Financing Cash Flow	-465.00M	-527.90M	-520.10M	255.30M	494.00M	-607.10M

Scotts Miracle-Gro Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMG, the sentiment is Positive. The current price of 62.32 is above the 20-day moving average (MA) of 61.56, below the 50-day MA of 63.98, and below the 200-day MA of 62.42, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 64.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMG.

Scotts Miracle-Gro Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	72 Outperform	$13.68B	11.04	24.98%	2.37%	9.53%	36.15%
MOS	66 Neutral	$10.30B	11.00	7.80%	2.68%	-7.71%	297.49%
ICL	64 Neutral	$7.85B	21.38	6.24%	2.93%	-1.22%	-14.31%
Sector *	61 Neutral	$10.37B	6.45	-0.08%	2.84%	3.09%	-36.03%
FMC	58 Neutral	$4.72B	47.96	2.88%	6.12%	1.16%	-92.85%
RKDA	52 Neutral	$4.31M	―	-87.18%	―	1.50%	-8.01%
SMG	51 Neutral	$3.64B	82.13	4.98%	4.24%	-2.05%	―

Scotts Miracle-Gro Company Corporate Events

Scotts Miracle-Gro Amends Receivables Agreement with JPMorgan

On August 28, 2025, The Scotts Miracle-Gro Company amended its Master Receivables Purchase Agreement with JPMorgan Chase Bank to extend the purchase termination date to September 1, 2026. This amendment allows the company to sell up to $750 million in customer accounts receivable, which will continue to be serviced by the company for a fee, and the proceeds will be used for general corporate purposes.

Scotts Miracle-Gro Appoints New Board Member Scott Miller

On July 31, 2025, retired Lieutenant General John R. Vines announced his retirement from the Board of Directors of The Scotts Miracle-Gro Company, where he served for over 12 years. He will continue as an advisory Board member emeritus. Replacing him is retired U.S. Army General Scott Miller, effective August 1, 2025, who brings extensive military leadership experience and a strategic mindset to the Board. This change is part of the company’s ongoing efforts to bring fresh perspectives and skills to its leadership as it aims to transform into a consumer goods marketing powerhouse.