Company Description and Development of the Business The discussion below describes the business conducted by The Scotts Miracle-Gro Company, an Ohio corporation (“Scotts Miracle-Gro” and, together with its subsidiaries, the “Company,” “we,” “our” or “us”), including general developments in our business during fiscal 2025. Each reference in this Annual Report on Form 10-K (“Form 10-K”) to a “fiscal” year is to our fiscal year ended or ending, as applicable, on September 30 of the referenced year. For additional information on recent business developments, see “ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS” of this Form 10-K. Through our U.S. Consumer and Other segments, we are the leading marketer of branded consumer lawn and garden products in North America. Our products are marketed under some of the most recognized brand names in the consumer lawn and garden industry.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.4B | 3.4B | 3.6B | 3.6B | 3.9B | 4.9B |
| Net Income | 90M | 145M | -35M | -380M | -438M | 513M |
| EPS | $1.57 | $2.47 | $-0.61 | $-6.79 | $-7.88 | $8.96 |
| Free Cash Flow | 358M | 274M | 584M | 438M | -243M | 165M |
| ROIC | 9.7% | 13.7% | 10.4% | -14.4% | -14.1% | 21.2% |
| Gross Margin | 31.0% | 30.6% | 23.9% | 18.5% | 22.2% | 29.8% |
| Debt/Equity | 0.00 | -5.89 | -5.70 | -9.76 | 20.11 | 2.26 |
| Dividends/Share | $2.64 | $2.64 | $2.64 | $2.64 | $2.64 | $2.52 |
| Operating Income | 388M | 359M | 209M | -174M | -434M | 723M |
| Operating Margin | 11.6% | 10.5% | 5.9% | -4.9% | -11.1% | 14.7% |
| ROE | 0.0% | -38.8% | 10.6% | - | -75.4% | 59.9% |
| Shares Outstanding | 58M | 59M | 57M | 56M | 56M | 57M |
SCOTTS MIRACLE-GRO CO passes 3 of 9 quality checks, indicating weak fundamentals.
SCOTTS MIRACLE-GRO CO trades at 40.7x trailing earnings, compared to its 15-year median P/E of 18.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 10.0x vs a median of 14.5x. The company's 5-year average ROIC is 3.4% with a gross margin of 25.0%. Total shareholder yield (dividends + buybacks) is 4.6%. At current prices, the estimated annualized return to fair value is +8.9%.
SCOTTS MIRACLE-GRO CO (SMG) has a current P/E ratio of 40.7, compared to its historical median P/E of 18.5. The stock is currently considered Expensive based on its historical valuation range.
SCOTTS MIRACLE-GRO CO (SMG) has a 5-year average return on invested capital (ROIC) of 3.4%. This is below average and may indicate limited pricing power.
SCOTTS MIRACLE-GRO CO (SMG) has a market capitalization of $3.6B. It is classified as a mid-cap stock.
Yes, SCOTTS MIRACLE-GRO CO (SMG) pays a dividend with a trailing twelve-month yield of 4.27%. The company also returns capital through share buybacks, with a buyback yield of 0.31%.
Based on historical P/E analysis, SCOTTS MIRACLE-GRO CO (SMG) appears expensive. The current P/E of 40.7 is 120% above its historical median of 18.5. The estimated fair value CAGR (P/E method) is -26.8%.
SCOTTS MIRACLE-GRO CO (SMG) operates in the Agricultural Chemicals industry, within the Materials sector.
SCOTTS MIRACLE-GRO CO (SMG) reported annual revenue of $3.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
SCOTTS MIRACLE-GRO CO (SMG) has a net profit margin of 4.3%. This is a modest margin.
SCOTTS MIRACLE-GRO CO (SMG) generated $274 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
SCOTTS MIRACLE-GRO CO (SMG) reported earnings per share (EPS) of $2.47 in its most recent fiscal year.
SCOTTS MIRACLE-GRO CO (SMG) has a return on equity (ROE) of -38.8%. A negative ROE may indicate losses or negative equity.
SCOTTS MIRACLE-GRO CO (SMG) has a 5-year average gross margin of 25.0%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 18 years of financial data for SCOTTS MIRACLE-GRO CO (SMG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SCOTTS MIRACLE-GRO CO (SMG) has a book value per share of $-6.08, based on its most recent annual SEC filing.
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