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The Scotts Miracle Gro Co Class A SMG

Morningstar Rating
$67.66 −0.86 (1.26%)
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Company Report

First Pillar of Germany's Cannabis Legalization Begins April 1; Legal Sales to Come Later

The Bundestag, the lower house of Germany’s legislature, passed a cannabis bill last month that would allow possession of up to 25 grams and home-growing of up to three plants. The law will become effective April 1 as planned after the Bundesrat, the upper house, voted not to send it to mediation committee on March 22. The law expands on July 1 to allow nonprofit cannabis grow clubs of up to 500 members and 50 grams per member.

Price vs Fair Value

SMG is trading at a 29% discount.
Price
$67.89
Fair Value
$51.00
Uncertainty
Very High
1-Star Price
$626.88
5-Star Price
$92.20
Economic Moat
Shfqss
Capital Allocation
Ymky

Bulls Say, Bears Say

Bulls

U.S. household formation growth will drive demand for gardening products. As the market leader in consumer gardening products, Scotts will benefit from the secular housing trend.

Bears

While the recreational gardening industry is growing, consumers will increasingly prefer cheaper private label and generic products, reducing Scotts' market share over time.

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News

Trading Information

Previous Close Price
$68.52
Day Range
$66.7068.27
52-Week Range
$43.6777.95
Bid/Ask
$63.46 / $71.57
Market Cap
$3.84 Bil
Volume/Avg
641,121 / 776,321

Key Statistics

Price/Earnings (Normalized)
92.68
Price/Sales
1.11
Dividend Yield (Trailing)
3.85%
Dividend Yield (Forward)
3.85%
Total Yield
4.20%

Company Profile

Scotts Miracle-Gro is the largest provider of gardening and lawncare products in the United States. The majority of the company's sales are to large retailers that include Home Depot, Lowe's, and Walmart. Scotts Miracle-Gro can sell its products at a higher price point than its competition because of a well-recognized portfolio of brands that include Miracle-Gro, Roundup, Ortho, Tomcat, and Scotts. Scotts is also the leading supplier of cannabis-growing equipment in North America through its Hawthorne business.
Sector
Basic Materials
Industry
Agricultural Inputs
Stock Style Box
Small Core
Total Number of Employees
5,500

Competitors

Valuation

Metric
SMG
MAS
CURLF
Price/Earnings (Normalized)
92.6817.69
Price/Book Value
3.32
Price/Sales
1.111.982.55
Price/Cash Flow
58.7813.0660.23
Price/Earnings
SMG
MAS
CURLF

Financial Strength

Metric
SMG
MAS
CURLF
Quick Ratio
0.391.020.31
Current Ratio
2.201.740.85
Interest Coverage
−1.6512.98−0.24
Quick Ratio
SMG
MAS
CURLF

Profitability

Metric
SMG
MAS
CURLF
Return on Assets (Normalized)
0.84%16.54%−3.72%
Return on Equity (Normalized)
−10.45%
Return on Invested Capital (Normalized)
5.89%28.32%−2.20%
Return on Assets
SMG
MAS
CURLF
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