SCOTTS MIRACLE-GRO CO (SMG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SMG - US8101861065 - Common Stock
60.8 USD
+1.88 (+3.19%)
60.8 USD
0 (0%)
SMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. There are concerns on the financial health of SMG while its profitability can be described as average. SMG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SMG had positive earnings in the past year.
In the past year SMG had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 5.30%, SMG belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
SMG has a Return On Invested Capital of 14.47%. This is amongst the best in the industry. SMG outperforms 93.98% of its industry peers.
SMG had an Average Return On Invested Capital over the past 3 years of 10.89%. This is above the industry average of 6.10%.
The 3 year average ROIC (10.89%) for SMG is below the current ROIC(14.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | N/A | ||
| ROIC | 14.47% |
ROA(3y)-2.35%
ROA(5y)-1.31%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.89%
ROIC(5y)10.87%
1.3 Margins
Looking at the Profit Margin, with a value of 4.25%, SMG is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
In the last couple of years the Profit Margin of SMG has declined.
SMG has a better Operating Margin (12.96%) than 69.88% of its industry peers.
In the last couple of years the Operating Margin of SMG has declined.
Looking at the Gross Margin, with a value of 31.19%, SMG is in line with its industry, outperforming 57.83% of the companies in the same industry.
SMG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.96% | ||
| PM (TTM) | 4.25% | ||
| GM | 31.19% |
OM growth 3Y6.65%
OM growth 5Y-2.32%
PM growth 3YN/A
PM growth 5Y-14.62%
GM growth 3Y5.81%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SMG is still creating some value.
The number of shares outstanding for SMG has been increased compared to 1 year ago.
SMG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SMG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.68 indicates that SMG is not a great score, but indicates only limited risk for bankruptcy at the moment.
SMG has a Altman-Z score of 2.68. This is in the better half of the industry: SMG outperforms 79.52% of its industry peers.
SMG has a debt to FCF ratio of 7.69. This is a slightly negative value and a sign of low solvency as SMG would need 7.69 years to pay back of all of its debts.
The Debt to FCF ratio of SMG (7.69) is better than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.28
WACC11.27%
2.3 Liquidity
A Current Ratio of 1.27 indicates that SMG should not have too much problems paying its short term obligations.
SMG has a worse Current ratio (1.27) than 83.13% of its industry peers.
A Quick Ratio of 0.47 indicates that SMG may have some problems paying its short term obligations.
With a Quick ratio value of 0.47, SMG is not doing good in the industry: 93.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
SMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.07%, which is quite impressive.
SMG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.47% yearly.
Looking at the last year, SMG shows a decrease in Revenue. The Revenue has decreased by -3.93% in the last year.
SMG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.75% yearly.
EPS 1Y (TTM)66.07%
EPS 3Y-3.11%
EPS 5Y-12.47%
EPS Q2Q%15.15%
Revenue 1Y (TTM)-3.93%
Revenue growth 3Y-4.54%
Revenue growth 5Y-3.75%
Sales Q2Q%-6.58%
3.2 Future
Based on estimates for the next years, SMG will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.99% on average per year.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y16.56%
EPS Next 2Y16.38%
EPS Next 3Y17.37%
EPS Next 5Y13.99%
Revenue Next Year0.44%
Revenue Next 2Y1.33%
Revenue Next 3Y1.96%
Revenue Next 5Y2.82%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.34, the valuation of SMG can be described as correct.
63.86% of the companies in the same industry are more expensive than SMG, based on the Price/Earnings ratio.
SMG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.02, which indicates a correct valuation of SMG.
Based on the Price/Forward Earnings ratio, SMG is valued a bit cheaper than 66.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.70. SMG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SMG.
80.72% of the companies in the same industry are more expensive than SMG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.87 | ||
| EV/EBITDA | 10.61 |
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.
SMG has a very decent profitability rating, which may justify a higher PE ratio.
SMG's earnings are expected to grow with 17.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y16.38%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
SMG has a Yearly Dividend Yield of 4.52%, which is a nice return.
SMG's Dividend Yield is rather good when compared to the industry average which is at 2.47. SMG pays more dividend than 84.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, SMG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of SMG decreases each year by -18.28%.
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)-18.28%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
SMG pays out 106.27% of its income as dividend. This is not a sustainable payout ratio.
DP106.27%
EPS Next 2Y16.38%
EPS Next 3Y17.37%
60.8
+1.88 (+3.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.56%
Inst Owner Change0%
Ins Owners0.57%
Ins Owner Change-0.16%
Market Cap3.53B
Revenue(TTM)3.41B
Net Income(TTM)145.20M
Analysts81.67
Price Target73.78 (21.35%)
Short Float %7.2%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend2.69
Dividend Growth(5Y)-18.28%
DP106.27%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.7%
Min EPS beat(2)2.56%
Max EPS beat(2)12.85%
EPS beat(4)3
Avg EPS beat(4)10.9%
Min EPS beat(4)-0.27%
Max EPS beat(4)28.45%
EPS beat(8)6
Avg EPS beat(8)7.37%
EPS beat(12)9
Avg EPS beat(12)6.6%
EPS beat(16)11
Avg EPS beat(16)4.72%
Revenue beat(2)0
Avg Revenue beat(2)-3.72%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)-3.33%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-6.02%
Max Revenue beat(4)5.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.77%
PT rev (1m)0%
PT rev (3m)-2.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.02 | ||
| P/S | 1.03 | ||
| P/FCF | 12.87 | ||
| P/OCF | 9.5 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.61 |
EPS(TTM)3.72
EY6.12%
EPS(NY)4.34
Fwd EY7.13%
FCF(TTM)4.72
FCFY7.77%
OCF(TTM)6.4
OCFY10.53%
SpS58.85
BVpS-6.16
TBVpS-17.3
PEG (NY)0.99
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | N/A | ||
| ROCE | 22.09% | ||
| ROIC | 14.47% | ||
| ROICexc | 14.74% | ||
| ROICexgc | 21.95% | ||
| OM | 12.96% | ||
| PM (TTM) | 4.25% | ||
| GM | 31.19% | ||
| FCFM | 8.02% |
ROA(3y)-2.35%
ROA(5y)-1.31%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.89%
ROIC(5y)10.87%
ROICexc(3y)11.14%
ROICexc(5y)11.26%
ROICexgc(3y)16.21%
ROICexgc(5y)16.69%
ROCE(3y)16.63%
ROCE(5y)16.6%
ROICexgc growth 3Y24.46%
ROICexgc growth 5Y-7.91%
ROICexc growth 3Y20.33%
ROICexc growth 5Y-2.04%
OM growth 3Y6.65%
OM growth 5Y-2.32%
PM growth 3YN/A
PM growth 5Y-14.62%
GM growth 3Y5.81%
GM growth 5Y-1.12%
F-Score8
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.69 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 129.87% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 3.37 | ||
| Cash Conversion | 71.78% | ||
| Profit Quality | 188.64% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.68 |
F-Score8
WACC11.27%
ROIC/WACC1.28
Cap/Depr(3y)111.47%
Cap/Depr(5y)111.25%
Cap/Sales(3y)2.61%
Cap/Sales(5y)2.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)66.07%
EPS 3Y-3.11%
EPS 5Y-12.47%
EPS Q2Q%15.15%
EPS Next Y16.56%
EPS Next 2Y16.38%
EPS Next 3Y17.37%
EPS Next 5Y13.99%
Revenue 1Y (TTM)-3.93%
Revenue growth 3Y-4.54%
Revenue growth 5Y-3.75%
Sales Q2Q%-6.58%
Revenue Next Year0.44%
Revenue Next 2Y1.33%
Revenue Next 3Y1.96%
Revenue Next 5Y2.82%
EBIT growth 1Y24.52%
EBIT growth 3Y1.8%
EBIT growth 5Y-5.98%
EBIT Next Year39.48%
EBIT Next 3Y16.5%
EBIT Next 5Y14.08%
FCF growth 1Y-53.06%
FCF growth 3YN/A
FCF growth 5Y-11.17%
OCF growth 1Y-44.37%
OCF growth 3YN/A
OCF growth 5Y-7.82%
SCOTTS MIRACLE-GRO CO / SMG FAQ
What is the ChartMill fundamental rating of SCOTTS MIRACLE-GRO CO (SMG) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SMG.
What is the valuation status for SMG stock?
ChartMill assigns a valuation rating of 6 / 10 to SCOTTS MIRACLE-GRO CO (SMG). This can be considered as Fairly Valued.
Can you provide the profitability details for SCOTTS MIRACLE-GRO CO?
SCOTTS MIRACLE-GRO CO (SMG) has a profitability rating of 6 / 10.
What are the PE and PB ratios of SCOTTS MIRACLE-GRO CO (SMG) stock?
The Price/Earnings (PE) ratio for SCOTTS MIRACLE-GRO CO (SMG) is 16.34 and the Price/Book (PB) ratio is -9.86.
Can you provide the expected EPS growth for SMG stock?
The Earnings per Share (EPS) of SCOTTS MIRACLE-GRO CO (SMG) is expected to grow by 16.56% in the next year.