Scotts Miracle-Gro Company (SMG) AI Stock Analysis

• Market Cap: $3.40B
• Dividend Yield: 4.5%
• Average Volume (3M): 801.73K
• Price to Earnings (P/E): 23.7
• 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: 58,007,150
• 10 Day Avg. Volume: 982,093
• 30 Day Avg. Volume: 801,728
• PEG Ratio: -0.04
• Price to Book (P/B): -9.18
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 11.98
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: 13.23
• 1Y Price Target: $64.78
• Price Target Upside: 9.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $52.00 ▼(-12.19% Downside)

Scotts Miracle-Gro's overall stock score is primarily influenced by its financial challenges, including high leverage and declining revenues. While the earnings call and corporate events show positive strategic initiatives, the technical indicators and valuation do not provide enough support to significantly improve the score.

Positive Factors

E-commerce Expansion

The significant growth in e-commerce reflects a successful adaptation to digital sales trends, enhancing market reach and consumer engagement.

Financial Restructuring

The new loan facilities improve financial flexibility, enabling strategic investments and potentially reducing leverage concerns.

Brand and Product Innovation

Investments in brand and product innovation, particularly in organic products, cater to consumer trends and can drive long-term growth.

Negative Factors

High Leverage

High leverage and negative equity pose solvency risks, limiting financial flexibility and potentially impacting long-term stability.

Declining Revenue

Declining revenue trends indicate challenges in market demand or competitive positioning, affecting long-term profitability.

Hawthorne Segment Sales Decline

Significant sales decline in the Hawthorne segment highlights operational challenges and may impact overall financial performance.

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 the sale of its extensive product portfolio, which is primarily categorized into two segments: the Consumer segment and the Professional segment. The Consumer segment includes products sold directly to consumers through retail outlets and online platforms, while the Professional segment focuses on providing products to commercial users, such as landscapers and agricultural businesses. Key revenue streams include sales of fertilizers, soil, grass seed, and pest control products. The company benefits from strong brand recognition and loyalty, particularly with its flagship Miracle-Gro products. Additionally, Scotts Miracle-Gro engages in strategic partnerships with major retailers like Home Depot and Walmart, enhancing its distribution capabilities and market reach. Seasonal demand fluctuations, particularly in spring and summer, also significantly impact the company's earnings, with peak sales occurring during these months as consumers engage in gardening and lawn care activities.

Scotts Miracle-Gro Company Financial Statement Overview

Summary

Scotts Miracle-Gro Company faces financial challenges with declining revenues and profitability pressures. The balance sheet reveals high leverage and negative equity, posing solvency risks. While cash flow generation shows some positive signs, it is not sufficient to offset the broader financial concerns.

Income Statement

The income statement reveals a challenging financial period for Scotts Miracle-Gro Company. Revenue has been declining, with a negative growth rate of -7.96% in the most recent year. Profitability metrics such as gross profit margin (31.19%) and net profit margin (4.25%) show some improvement compared to previous years, but overall margins remain under pressure. The EBIT and EBITDA margins have improved but are still below industry standards, indicating operational challenges.

Balance Sheet

The balance sheet shows significant financial leverage, with a negative stockholders' equity and a high debt-to-equity ratio of -5.89. This indicates potential solvency issues and financial instability. The return on equity is negative, reflecting the company's struggle to generate returns for shareholders. The equity ratio is also negative, highlighting a concerning capital structure.

Cash Flow

Cash flow analysis shows some positive trends, with a free cash flow growth rate of 11.98% and a free cash flow to net income ratio of 0.74, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio of 0.50 suggests that cash flow from operations is not fully covering net income, which could be a risk if profitability does not improve.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.41B	3.41B	3.55B	3.55B	3.92B	4.92B
Gross Profit	1.04B	1.06B	850.50M	657.30M	872.90M	1.47B
EBITDA	425.60M	425.50M	215.80M	-182.70M	-334.80M	849.80M
Net Income	145.30M	145.20M	-34.90M	-380.10M	-437.50M	512.50M
Balance Sheet
Total Assets	2.74B	2.74B	2.87B	3.41B	4.30B	4.80B
Cash, Cash Equivalents and Short-Term Investments	36.60M	36.60M	71.60M	31.90M	86.80M	244.10M
Total Debt	2.11B	2.11B	2.52B	2.91B	3.27B	2.60B
Total Liabilities	3.10B	3.10B	3.26B	3.68B	4.15B	3.79B
Stockholders Equity	-357.50M	-357.50M	-390.60M	-267.30M	147.70M	1.01B
Cash Flow
Free Cash Flow	273.90M	273.90M	583.50M	438.20M	-242.50M	164.60M
Operating Cash Flow	371.30M	371.30M	667.50M	531.00M	-129.00M	271.50M
Investing Cash Flow	-112.10M	-112.10M	-100.40M	-65.70M	-283.20M	-538.60M
Financing Cash Flow	-294.00M	-294.00M	-527.90M	-520.10M	255.30M	494.00M

Scotts Miracle-Gro Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 59.22 is above the 20-day moving average (MA) of 55.92, above the 50-day MA of 55.12, and above the 200-day MA of 57.85, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 78.92 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
UAN	69 Neutral	$1.01B	7.93	42.00%	12.49%	16.52%	141.96%
MOS	65 Neutral	$7.55B	6.17	10.00%	3.70%	3.82%	239.39%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ICL	60 Neutral	$6.43B	17.42	6.15%	3.49%	1.77%	-8.72%
IPI	53 Neutral	$361.45M	-1.79	-33.37%	―	8.88%	-349.99%
SMG	50 Neutral	$3.40B	23.71	―	4.50%	-3.93%	―
FMC	47 Neutral	$1.66B	-3.10	-11.52%	16.68%	-13.42%	-136.59%

Scotts Miracle-Gro Company Corporate Events

Scotts Miracle-Gro Secures $2 Billion Loan Facilities

On November 21, 2025, The Scotts Miracle-Gro Company entered into a Seventh Amended and Restated Credit Agreement, securing $2.0 billion in senior secured loan facilities, which includes a $1.5 billion revolving credit facility and a $500 million term loan. This agreement replaces the previous Sixth Amended and Restated Credit Agreement, which had a total of $2.5 billion in loan facilities, indicating a strategic financial restructuring to enhance the company’s financial flexibility.

Scotts Miracle-Gro Updates Long-Term Incentive Plan

On November 13, 2025, Scotts Miracle-Gro Company will implement a new form of restricted stock unit award notice for certain employees, including executive officers, as part of its Long-Term Incentive Plan. This change is expected to impact the company’s compensation strategy and could influence its ability to attract and retain key talent, thereby affecting its competitive positioning in the industry.