Scotts Miracle-Gro Company (SMG) AI Stock Analysis

• Market Cap: $3.24B
• Dividend Yield: 4.71%
• Average Volume (3M): 672.25K
• Price to Earnings (P/E): 73.0
• Beta (1Y): 0.89
• 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: 587,090
• 30 Day Avg. Volume: 672,255
• 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: 1.94
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 6.33
• Enterprise Value/Ebitda: 20.10
• 1Y Price Target: $69.20
• Price Target Upside: 23.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 52 Neutral
• Price Target: $61.00 ▲(8.83% Upside)

The overall stock score of 52 reflects significant financial challenges, including high leverage and declining revenues. However, positive earnings call insights and strategic initiatives provide some optimism. The technical analysis and valuation suggest caution, with mixed signals and a high P/E ratio.

Positive Factors

Market Share Growth

The increase in market share and POS growth indicates strong competitive positioning and effective sales strategies, which are crucial for long-term market leadership and revenue stability.

E-commerce Expansion

The significant growth in e-commerce sales highlights the company's successful adaptation to digital trends, enhancing its distribution channels and potentially increasing its customer base.

Innovation and R&D

Investments in R&D and new product launches, such as organic solutions, position the company to meet evolving consumer preferences and maintain a competitive edge.

Negative Factors

High Leverage

High leverage and negative equity pose significant financial risks, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Declining Revenue

A substantial decline in revenue indicates challenges in maintaining sales momentum, which could affect long-term profitability and market competitiveness if not addressed.

Decreased Free Cash Flow

Reduced free cash flow growth can strain liquidity, impacting the company's ability to fund operations, pay down debt, and invest in future growth initiatives.

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 faces significant financial challenges. The income statement shows declining revenue and low profit margins, the balance sheet highlights financial risk with negative equity, and while cash flow remains stable, growth is lacking. The company needs to address its leverage and operational efficiency to improve financial health.

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	3.44B	3.55B	3.55B	3.92B	4.92B	4.13B
Gross Profit	991.20M	850.50M	657.30M	982.60M	1.49B	1.35B
EBITDA	312.00M	215.80M	-174.40M	-336.90M	845.80M	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	702.90M
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: Negative
• Last Price: 56.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 56.05 is below the 20-day moving average (MA) of 59.92, below the 50-day MA of 61.70, and below the 200-day MA of 61.39, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 30.12 is Neutral, neither overbought nor oversold. The STOCH value of 4.70 is Positive, 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	72 Outperform	14.92B	12.04	26.23%	2.17%	9.53%	36.15%
MOS	65 Neutral	11.21B	11.98	7.56%	2.46%	-7.71%	297.49%
ICL	63 Neutral	7.86B	21.41	6.10%	2.93%	-1.22%	-14.31%
FMC	58 Neutral	4.20B	42.70	2.24%	6.90%	1.16%	-92.85%
SMG	52 Neutral	$3.24B	73.02	4.98%	4.71%	-2.05%	―
RKDA	45 Neutral	4.65M	-0.62	-113.10%	―	1.50%	-8.01%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.