Fact based stock research
Scotts Miracle-Gro (NYSE:SMG)
US8101861065
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Scotts Miracle-Gro stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 33 (worse than 67% compared with investment alternatives), Scotts Miracle-Gro (Fertilizers & Agricultural Chemicals, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Scotts Miracle-Gro are a good value (attractively priced) with a consolidated Value Rank of 89 (better than 89% of alternatives) but show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 13), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 33, is a hold recommendation based on Scotts Miracle-Gro's financial characteristics. As the company Scotts Miracle-Gro's key financial metrics exhibit good value (Obermatt Value Rank of 89) but low growth (Obermatt Growth Rank of 45) and risky financing practices (Obermatt Safety Rank of 13), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 89% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
Latest Obermatt Ranks
Log in or sign up to see the new 360° View and Sentiment ranks.
360° Viewnew| Country | USA |
| Industry | Fertilizers & Agricultural Chemicals |
| Index | Dividends USA, S&P MIDCAP |
| Size class | X-Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Scotts Miracle-Gro
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 61 |
|
40 |
|
83 |
|
89 |
|
| GROWTH | ||||||||
| GROWTH | 17 |
|
16 |
|
82 |
|
45 |
|
| SAFETY | ||||||||
| SAFETY | 51 |
|
32 |
|
16 |
|
13 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
18 |
|
35 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
14 |
|
60 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 33 (worse than 67% compared with investment alternatives), Scotts Miracle-Gro (Fertilizers & Agricultural Chemicals, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Scotts Miracle-Gro are a good value (attractively priced) with a consolidated Value Rank of 89 (better than 89% of alternatives) but show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 13), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 33, is a hold recommendation based on Scotts Miracle-Gro's financial characteristics. As the company Scotts Miracle-Gro's key financial metrics exhibit good value (Obermatt Value Rank of 89) but low growth (Obermatt Growth Rank of 45) and risky financing practices (Obermatt Safety Rank of 13), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 89% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 61 |
|
40 |
|
83 |
|
89 |
|
| GROWTH | ||||||||
| GROWTH | 17 |
|
16 |
|
82 |
|
45 |
|
| SAFETY | ||||||||
| SAFETY | 51 |
|
32 |
|
16 |
|
13 |
|
| COMBINED | ||||||||
| COMBINED | 33 |
|
14 |
|
73 |
|
33 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 89 (better than 89% compared with alternatives) for 2024, Scotts Miracle-Gro shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Scotts Miracle-Gro. Price-to-Sales (P/S) is 58 which means that the stock price compared with what market professionals expect for future sales is lower than for 58% of comparable companies, indicating a good value for Scotts Miracle-Gro's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 100. Finally, compared with other companies in the same industry, dividend yields of Scotts Miracle-Gro are expected to be higher than for 92% of all competitors (a Dividend Yield rank of 92). The only low rank is for expected profits with a Price-to-Profit Rank of 41, indicating that the market expects the company's profit to be low despite a high dividend. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 89, is a buy recommendation based on Scotts Miracle-Gro's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 63 |
|
40 |
|
66 |
|
58 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 79 |
|
37 |
|
16 |
|
41 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 10 |
|
8 |
|
100 |
|
100 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 78 |
|
92 |
|
96 |
|
92 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 61 |
|
40 |
|
83 |
|
89 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Scotts Miracle-Gro shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Scotts Miracle-Gro. Profit Growth has a rank of 86, which means that currently professionals expect the company to grow its profits more than 86% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 81 (above 81% of alternative investments). But Sales Growth has a below the median rank of 14, which means that, currently, professionals expect the company to grow less than 86% of its competitors, and Capital Growth also has a lower rank of 16. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Scotts Miracle-Gro. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 50 |
|
53 |
|
49 |
|
14 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 55 |
|
6 |
|
98 |
|
86 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
78 |
|
31 |
|
16 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 10 |
|
4 |
|
88 |
|
81 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 17 |
|
16 |
|
82 |
|
45 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 13 (better than 13% compared with alternatives), the company Scotts Miracle-Gro has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Scotts Miracle-Gro is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Scotts Miracle-Gro. Liquidity is at 57, meaning the company generates more profit to service its debt than 57% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 29, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 71% of its competitors. Leverage is also high at a rank of 4, which means that the company has an above-average debt-to-equity ratio. It has more debt than 96% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 13 (worse than 87% compared with alternatives), Scotts Miracle-Gro has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 22 |
|
17 |
|
3 |
|
4 |
|
| REFINANCING | ||||||||
| REFINANCING | 67 |
|
36 |
|
60 |
|
29 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 52 |
|
74 |
|
37 |
|
57 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 51 |
|
32 |
|
16 |
|
13 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
81 |
|
55 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
14 |
|
67 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
1 |
|
5 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
18 |
|
35 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Scotts Miracle-Gro from November 14, 2024.
Obermatt Portfolio Performance
We’re so convinced about our free research, that we buy our stock tips.
See the performance of the Obermatt portfolio.