Scotts Miracle-Gro Company (SMG) AI Stock Analysis

• Market Cap: $3.59B
• Dividend Yield: 4.25%
• Average Volume (3M): 822.06K
• Price to Earnings (P/E): 81.0
• Beta (1Y): 0.97
• Revenue Growth: -2.05%
• EPS Growth: N/A
• Country: US
• Employees: 5,300
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 2.59
• Shares Outstanding: 57,738,580
• 10 Day Avg. Volume: 688,739
• 30 Day Avg. Volume: 822,061
• 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: 1.75
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 6.50
• Enterprise Value/Ebitda: 19.75
• 1Y Price Target: $70.00
• Price Target Upside: 12.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 50 Neutral
• Price Target: $62.00 ▼(-0.27% Downside)

Scotts Miracle-Gro's overall stock score reflects significant financial challenges, including high leverage and declining revenue, offset by positive cash flow and strategic improvements highlighted in the earnings call. The technical analysis and valuation suggest caution, with mixed signals and a high P/E ratio indicating potential overvaluation.

Positive Factors

Earnings

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

Financial Performance

Solid demand trends, coupled with expanding margins and balance sheet improvement, position the business to achieve its midterm operating and financial plans.

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 Leverage

Net leverage remains elevated, and tightening covenants are ahead.

Revenue Guidance

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

Trading Multiple

Scotts Miracle-Gro's trading multiple is penalized by the company’s high level of financial leverage and uncertainty around its cannabis-exposed businesses.

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

The financial performance of Scotts Miracle-Gro is challenged by declining revenue, low profit margins, and financial instability with negative equity. Despite positive operating cash flow, the lack of growth and high debt pose significant risks.

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	3.45B	3.55B	3.55B	3.92B	4.92B	4.13B
Gross Profit	964.80M	850.50M	657.30M	982.60M	1.49B	1.35B
EBITDA	317.60M	215.80M	-174.40M	-336.90M	845.80M	684.90M
Net Income	36.10M	-34.90M	-380.10M	-437.50M	512.50M	387.40M
Balance Sheet
Total Assets	3.54B	2.87B	3.41B	4.30B	4.80B	3.38B
Cash, Cash Equivalents and Short-Term Investments	16.90M	71.60M	31.90M	86.80M	244.10M	16.60M
Total Debt	2.55B	2.52B	2.91B	3.27B	2.60B	1.68B
Total Liabilities	3.83B	3.26B	3.68B	4.15B	3.79B	2.68B
Stockholders Equity	-290.10M	-390.60M	-267.30M	147.70M	1.01B	702.90M
Cash Flow
Free Cash Flow	381.90M	583.50M	438.20M	-242.50M	164.60M	495.30M
Operating Cash Flow	449.30M	667.50M	531.00M	-129.00M	271.50M	558.00M
Investing Cash Flow	-64.00M	-100.40M	-65.70M	-283.20M	-538.60M	46.90M
Financing Cash Flow	-432.80M	-527.90M	-520.10M	255.30M	494.00M	-607.10M

Scotts Miracle-Gro Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.17
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMG, the sentiment is Negative. The current price of 62.17 is below the 20-day moving average (MA) of 63.94, below the 50-day MA of 65.01, and below the 200-day MA of 64.32, indicating a bearish trend. The MACD of -1.22 indicates Positive momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	$13.91B	11.23	24.98%	2.33%	9.53%	36.15%
MOS	63 Neutral	$10.31B	11.01	7.80%	2.65%	-7.71%	297.49%
ICL	59 Neutral	$7.98B	21.73	6.24%	2.98%	-1.22%	-14.31%
Sector *	58 Neutral	HK$18.47B	5.20	-7.29%	3.70%	-4.14%	-48.91%
FMC	56 Neutral	$4.66B	47.35	2.88%	6.19%	1.16%	-92.85%
SMG	50 Neutral	$3.59B	80.99	4.98%	4.25%	-2.05%	―
RKDA	49 Neutral	$6.36M	―	-87.18%	―	-2.81%	72.03%

Scotts Miracle-Gro Company Corporate Events

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.