SCOTTS MIRACLE-GRO CO (SMG)
US8101861065 - Common Stock
Overall SMG gets a fundamental rating of 4 out of 10. We evaluated SMG against 83 industry peers in the Chemicals industry. While SMG is still in line with the averages on profitability rating, there are concerns on its financial health. SMG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SMG was profitable.
SMG had a positive operating cash flow in the past year.
In multiple years SMG reported negative net income over the last 5 years.
SMG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of SMG (-1.22%) is worse than 71.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.23%, SMG belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SMG is above the industry average of 7.24%.
The last Return On Invested Capital (13.23%) for SMG is above the 3 year average (10.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.22% | ||
| ROE | N/A | ||
| ROIC | 13.23% |
ROA(3y)-7.51%
ROA(5y)-0.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.63%
ROIC(5y)13.54%
1.3 Margins
SMG has a Operating Margin (10.00%) which is comparable to the rest of the industry.
SMG's Operating Margin has declined in the last couple of years.
The Gross Margin of SMG (26.28%) is comparable to the rest of the industry.
SMG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10% | ||
| PM (TTM) | N/A | ||
| GM | 26.28% |
OM growth 3Y-13.17%
OM growth 5Y-5.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.65%
GM growth 5Y-4.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SMG is creating some value.
SMG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SMG has been increased compared to 5 years ago.
Compared to 1 year ago, SMG has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SMG is 3.82, which is a good value as it means it would take SMG, 3.82 years of fcf income to pay off all of its debts.
SMG's Debt to FCF ratio of 3.82 is fine compared to the rest of the industry. SMG outperforms 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | N/A |
ROIC/WACC1.79
WACC7.4%
2.3 Liquidity
SMG has a Current Ratio of 1.31. This is a normal value and indicates that SMG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.31, SMG is not doing good in the industry: 83.13% of the companies in the same industry are doing better.
A Quick Ratio of 0.52 indicates that SMG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, SMG is doing worse than 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 93.10% over the past year.
Measured over the past years, SMG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.83% on average per year.
SMG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.04%.
The Revenue has been growing slightly by 2.40% on average over the past years.
EPS 1Y (TTM)93.1%
EPS 3Y-37.53%
EPS 5Y-12.83%
EPS Q2Q%16.61%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y-10.32%
Revenue growth 5Y2.4%
Sales Q2Q%10.73%
3.2 Future
SMG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.76% yearly.
The Revenue is expected to grow by 2.80% on average over the next years.
EPS Next Y45.14%
EPS Next 2Y37.52%
EPS Next 3Y31.55%
EPS Next 5Y27.76%
Revenue Next Year0.45%
Revenue Next 2Y1.55%
Revenue Next 3Y1.93%
Revenue Next 5Y2.8%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
SMG is valuated quite expensively with a Price/Earnings ratio of 30.59.
Based on the Price/Earnings ratio, SMG is valued a bit more expensive than the industry average as 61.45% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.73. SMG is around the same levels.
With a Price/Forward Earnings ratio of 21.08, SMG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SMG is valued a bit more expensive than 60.24% of the companies in the same industry.
SMG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.59 | ||
| Fwd PE | 21.08 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SMG.
Based on the Price/Free Cash Flow ratio, SMG is valued cheaper than 93.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 13.81 |
4.3 Compensation for Growth
SMG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SMG's earnings are expected to grow with 31.55% in the coming years.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y37.52%
EPS Next 3Y31.55%
5. Dividend
5.1 Amount
SMG has a Yearly Dividend Yield of 3.92%. Purely for dividend investing, there may be better candidates out there.
SMG's Dividend Yield is rather good when compared to the industry average which is at 3.14. SMG pays more dividend than 81.93% of the companies in the same industry.
SMG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
5.2 History
The dividend of SMG has a limited annual growth rate of 3.57%.
SMG has been paying a dividend for at least 10 years, so it has a reliable track record.
SMG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.57%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
The earnings of SMG are negative and hence is the payout ratio. SMG will probably not be able to sustain this dividend level.
SMG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-433.52%
EPS Next 2Y37.52%
EPS Next 3Y31.55%
SCOTTS MIRACLE-GRO CO
NYSE:SMG (12/20/2024, 8:04:00 PM)
After market: 68.52 0 (0%)68.52
+1.23 (+1.83%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.95%
Inst Owner Change-4.61%
Ins Owners0.57%
Ins Owner Change-0.21%
Market Cap3.93B
Analysts73.85
Price Target80.24 (17.1%)
Short Float %11.24%
Short Ratio6.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Dividend Growth(5Y)3.57%
DP-433.52%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.98%
Min EPS beat(2)-16.32%
Max EPS beat(2)18.27%
EPS beat(4)3
Avg EPS beat(4)3.85%
Min EPS beat(4)-16.32%
Max EPS beat(4)18.27%
EPS beat(8)6
Avg EPS beat(8)4.46%
EPS beat(12)8
Avg EPS beat(12)2.66%
EPS beat(16)12
Avg EPS beat(16)12.71%
Revenue beat(2)1
Avg Revenue beat(2)1.03%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)2.71%
Revenue beat(4)2
Avg Revenue beat(4)0.34%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)2.71%
Revenue beat(8)4
Avg Revenue beat(8)0.81%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)8
Avg Revenue beat(16)2.06%
PT rev (1m)-8.95%
PT rev (3m)1.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)-4.06%
EPS NY rev (3m)-14.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.59 | ||
| Fwd PE | 21.08 | ||
| P/S | 1.11 | ||
| P/FCF | 6.74 | ||
| P/OCF | 5.89 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.81 |
EPS(TTM)2.24
EY3.27%
EPS(NY)3.25
Fwd EY4.74%
FCF(TTM)10.16
FCFY14.83%
OCF(TTM)11.63
OCFY16.97%
SpS61.88
BVpS-6.8
TBVpS-18.35
PEG (NY)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.22% | ||
| ROE | N/A | ||
| ROCE | 16.74% | ||
| ROIC | 13.23% | ||
| ROICexc | 13.69% | ||
| ROICexgc | 20.23% | ||
| OM | 10% | ||
| PM (TTM) | N/A | ||
| GM | 26.28% | ||
| FCFM | 16.42% |
ROA(3y)-7.51%
ROA(5y)-0.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.63%
ROIC(5y)13.54%
ROICexc(3y)10.91%
ROICexc(5y)13.96%
ROICexgc(3y)15.3%
ROICexgc(5y)22.83%
ROCE(3y)13.46%
ROCE(5y)17.14%
ROICexcg growth 3Y-10.58%
ROICexcg growth 5Y-6.7%
ROICexc growth 3Y-7.68%
ROICexc growth 5Y0%
OM growth 3Y-13.17%
OM growth 5Y-5.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.65%
GM growth 5Y-4.15%
F-Score6
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.82 | ||
| Debt/EBITDA | 4.99 | ||
| Cap/Depr | 104.22% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 153.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score6
WACC7.4%
ROIC/WACC1.79
Cap/Depr(3y)104.14%
Cap/Depr(5y)98.52%
Cap/Sales(3y)2.62%
Cap/Sales(5y)2.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)93.1%
EPS 3Y-37.53%
EPS 5Y-12.83%
EPS Q2Q%16.61%
EPS Next Y45.14%
EPS Next 2Y37.52%
EPS Next 3Y31.55%
EPS Next 5Y27.76%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y-10.32%
Revenue growth 5Y2.4%
Sales Q2Q%10.73%
Revenue Next Year0.45%
Revenue Next 2Y1.55%
Revenue Next 3Y1.93%
Revenue Next 5Y2.8%
EBIT growth 1Y21.77%
EBIT growth 3Y-22.13%
EBIT growth 5Y-3.01%
EBIT Next Year60.25%
EBIT Next 3Y26.67%
EBIT Next 5Y20.01%
FCF growth 1Y33.16%
FCF growth 3Y52.48%
FCF growth 5Y25.91%
OCF growth 1Y25.71%
OCF growth 3Y34.97%
OCF growth 5Y24.1%