The Scotts Miracle-Gro Company (SMG) AI Stock Analysis

The Scotts Miracle-Gro Company manufactures, markets, and distributes lawn care, garden care, and indoor gardening products across domestic and international markets. Operating through U.S. Consumer, Hawthorne, and Other segments, its offerings include fertilizers, grass seeds, spreaders, plant foods, potting mixes, mulch, and pest control solutions. The company is also active in hydroponic gardening, supplying non-soil plant growth products, lighting systems, and indoor insect control solutions. Its core consumer brands include Scotts, Turf Builder, Miracle-Gro, Ortho, and AeroGarden, sold across home centers, hardware stores, garden centers, e-commerce platforms, and specialty distributors.

Annual revenue contracted from $4.92B in FY2021 to $3.41B in FY2025, reflecting a 5-year revenue CAGR of -3.7%. Operating margin improved to 10.5% in FY2025 from -4.9% in FY2023, while gross margin expanded to 30.6%. Following a net loss of -$437.5M in FY2022, net income rebounded to $145.2M in FY2025. Over the trailing twelve months, revenue was $3.48B with an operating margin of 16.8% and a net profit margin of 2.1%. In the latest quarter ended June 30, 2026, quarterly revenue grew 1.1% year-over-year, while quarterly earnings declined 25.5%.

As of June 30, 2026, the company held $27.7M in cash and short-term investments against total debt of $2.11B, leaving net debt at $2.09B. Shareholders' equity was -$208.7M, and the current ratio stood at 1.21. Free cash flow reached $273.9M in FY2025 on operating cash flow of $371.3M. Capital allocation in FY2025 included $97.4M in capital expenditures, $154.3M in dividends paid, and $18.4M dedicated to share buybacks.

SMG trades at a trailing price-to-earnings ratio of 19.5x and a forward price-to-earnings multiple of 12.9x, compared to medians of 19.7x and 13.4x for its US-listed Basic Materials peers. Its enterprise value to EBITDA ratio is 11.9x, above the peer median of 10.5x, while its price-to-sales multiple is 0.9x versus the peer median of 1.8x. Over the past year, the stock returned 5.8%, lagging the 16.8% return for the S&P 500, and its 5-year return of -55.3% trails the benchmark's 83.0% gain.

The company pays a forward annual dividend of $2.64 per share, translating to a dividend yield of 4.84% and a payout ratio of 57.1%. Dividends are distributed quarterly and have been paid for 22 consecutive years. Over the last five years, the dividend growth rate has averaged 1.9% annualized, with the last ex-dividend date occurring on August 21, 2026.

Wall Street coverage includes 5 Strong Buy, 1 Buy, and 2 Hold ratings. The mean price target is $72.83, representing a 33.5% premium to the last closing price of $54.57. For the fiscal year ending September 30, 2026, consensus estimates project EPS of $4.41 on revenue of $3.29B. The company has beaten EPS expectations in 3 of the last 4 quarters, and its next earnings release is scheduled for November 4, 2026.

This page is an AI-written research summary of The Scotts Miracle-Gro Company (SMG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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