Scotts Miracle-Gro Company (SMG) AI Stock Analysis

• Market Cap: $3.26B
• Dividend Yield: 4.71%
• Average Volume (3M): 721.59K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.66
• Revenue Growth: -3.93%
• EPS Growth: N/A
• Country: US
• Employees: 5,300
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -1.96
• Shares Outstanding: 57,738,580
• 10 Day Avg. Volume: 905,824
• 30 Day Avg. Volume: 721,587
• 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: 1.64
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 5.40
• Enterprise Value/Ebitda: 17.17
• 1Y Price Target: $68.00
• Price Target Upside: 20.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $54.00 ▼(-4.39% Downside)

The overall stock score is primarily influenced by financial performance challenges, including high leverage and declining profitability. While the earnings call provided positive insights into strategic initiatives and financial improvements, technical analysis indicates bearish trends, and the valuation suggests potential overvaluation. The dividend yield offers some support, but significant risks remain.

Positive Factors

Market Share Growth

Increasing market share indicates competitive strength and effective market strategies, positioning the company for sustained growth in the lawn and garden sector.

E-commerce Expansion

Strong growth in e-commerce sales enhances distribution channels and aligns with consumer trends, supporting long-term revenue growth and market reach.

Innovation and R&D

Investment in R&D and new product launches drive competitive advantage and align with consumer preferences for sustainable products, supporting future growth.

Negative Factors

High Financial Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term financial stability.

Declining Revenue

Significant revenue decline reflects challenges in maintaining sales momentum, potentially impacting profitability and market position over time.

Hawthorne Segment Decline

Declining sales in the Hawthorne segment highlight challenges in specific business areas, affecting overall revenue diversification and growth potential.

Scotts Miracle-Gro Company Business Overview & Revenue Model

Company Description

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. It provides lawn care products comprising lawn fertilizers, grass seed products, spreaders, other durable products, and outdoor cleaners, as well as lawn-related weed, pest, and disease control products; gardening and landscape products include 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. The company also offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components for use in hydroponic and indoor gardening applications; insect, rodent, and weed control products for home areas; and non-selective weed killer products. It sells its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Handy Green II, Miracle-Gro, LiquaFeed, Osmocote, Shake 'N Feed, Hyponex, Earthgro, SuperSoil, Fafard, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, Mother Earth, Botanicare, Hydroponics, Vermicrop, Gavita, Agrolux, Can-Filters, Sun System, Gro Pro, Hurricane, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. The company serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

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 Company faces financial headwinds with declining revenues and profitability, high leverage, and negative equity. While there are some operational cash flow strengths, the overall financial health is concerning, with significant risks due to high debt levels and negative shareholder equity.

Income Statement

The income statement shows a challenging financial trajectory with declining revenue growth and profitability. The TTM data indicates a significant revenue decline of 41.1%, and the net profit margin is low at 1.54%. Although there is a slight improvement in margins compared to previous periods, the overall profitability remains weak.

Balance Sheet

The balance sheet reflects high financial leverage and negative equity, with a debt-to-equity ratio of -12.80 in the TTM period. This indicates significant financial risk. The return on equity is negative, highlighting the company's struggle to generate returns for shareholders.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 35.95% in the TTM period, indicating potential liquidity challenges. However, the operating cash flow to net income ratio is relatively healthy at 0.40, suggesting some operational cash generation capability.

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	872.90M	1.47B	1.35B
EBITDA	312.00M	215.80M	-182.70M	-334.80M	849.80M	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	697.20M
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: Neutral
• Last Price: 56.48
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 56.48 is above the 20-day moving average (MA) of 54.97, below the 50-day MA of 57.46, and below the 200-day MA of 59.67, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 70.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	68 Neutral	$12.79B	9.89	27.46%	2.44%	12.59%	31.40%
MOS	65 Neutral	$8.12B	6.64	10.00%	3.40%	3.82%	239.39%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ICL	55 Neutral	$7.28B	19.83	6.24%	3.16%	-1.22%	-14.31%
SMG	50 Neutral	$3.26B	22.83	―	4.71%	-3.93%	―
RKDA	50 Neutral	$4.83M	-0.64	-64.08%	―	-1.80%	15.74%
FMC	48 Neutral	$1.75B	―	-11.52%	16.58%	-13.42%	-136.59%

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.

The most recent analyst rating on (SMG) stock is a Hold with a $62.00 price target. To see the full list of analyst forecasts on Scotts Miracle-Gro Company stock, see the SMG Stock Forecast page.

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.

The most recent analyst rating on (SMG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Scotts Miracle-Gro Company stock, see the SMG Stock Forecast page.

Scotts Miracle-Gro Earnings Call: Strong Growth Amid Challenges

Scotts Miracle-Gro’s recent earnings call painted a picture of robust performance, marked by notable gains in market share and financial metrics, alongside strategic advancements in digital and product innovation. Despite facing challenges such as adverse weather conditions and a decline in the Hawthorne segment, the company successfully mitigated these issues through effective strategies and positive trends in other areas.

Scotts Miracle-Gro Reports Strong Q3 Earnings Growth

Scotts Miracle-Gro is the world’s largest marketer of branded consumer lawn and garden products and a leader in indoor and hydroponic growing products, known for its popular brands such as Scotts, Miracle-Gro, and Ortho.