The Scotts Miracle-Gro Company (SMG) is a Agricultural Inputs company in the Basic Materials sector, currently trading at $61.95. It has a SharesGrow Score of 40/100, indicating a mixed investment profile with 0 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of SMG = $20.29 (-67.2% from the current price, the stock appears overvalued). Analyst consensus target is SMG = $69 (+10.6% upside).
Valuation: SMG trades at a trailing Price-to-Earnings (P/E) of 40.3 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 3.33.
Financials: revenue is $3.4B, -4.5%/yr average growth. Net income is $145M, growing at +206.7%/yr. Net profit margin is 4.3% (thin). Gross margin is 30.6% (+5.6 pp trend).
Balance sheet: total debt is $2.4B with negative equity of -$358M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.27 (adequate). Debt-to-assets is 86.8%. Total assets: $2.7B.
Analyst outlook: 9 / 17 analysts rate SMG as buy (53%) — moderate consensus.
SharesGrow 7-Criteria breakdown: Value 27/100 (Fail), Growth 58/100 (Partial), Past 25/100 (Fail), Health 25/100 (Fail), Moat 60/100 (Partial), Future 52/100 (Partial), Income 30/100 (Fail).
