Scotts Miracle-Gro Co.
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. MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERAT…
$55.93
+$0.07 (+0.13%)
EOD Oct 21, 2026
10.51% operating margin is respectable but not wide. ROIC at 11.44%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 3.9% YoY. The question is whether this is cyclical or a structural shift.
At 47x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 53% versus the prior year, cash generation momentum has weakened.
46.6x earnings, 12.4x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$3.48B
▼ -3.9% YoY
Net Income (TTM)
$74M
▲ +516.0% YoY
Op. Margin
10.98%
▲ +4.6pp YoY
ROIC
11.05%
▲ +4.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$263M
▼ -53.1% YoY
Op. Cash Flow (TTM)
$369M
▼ -44.4% YoY
Net Debt
$2.48B
Cash & Equiv.
$28M
5Y CAGR: -3.7%
5Y CAGR: -11.2%
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SourceComputed from the 10-Q filed 31 Jul 2026, covering the period ending 27 Jun 2026, as reported to the SEC. Data last refreshed 12 Oct 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Sep. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Scotts Miracle-Gro (SMG) overvalued?
At a P/E of 46.6 and a price-to-free-cash-flow of 12.4, Scotts Miracle-Gro (SMG) trades below a two-stage DCF intrinsic value of about $82.28 per share, so at $55.93 the stock looks undervalued (47.1% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Scotts Miracle-Gro scores 39/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 4.7%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Scotts Miracle-Gro's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $82.28 per share for SMG, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $61.71. At today's $55.93, that puts the stock about 47.1% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Scotts Miracle-Gro a high-quality business?+
Scotts Miracle-Gro scores 39 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 11.0% operating margin and a 11.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Scotts Miracle-Gro (SMG) pay a dividend, and how much?+
Yes, Scotts Miracle-Gro pays a regular dividend of about $2.61 per share per year (typically in quarterly installments), a yield of roughly 4.7% at the current price. That is a payout ratio of about 208.9% of earnings, so the dividend is stretched at this level. Scotts Miracle-Gro has grown the dividend at roughly 1.9% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For SMG's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Scotts Miracle-Gro a good stock to buy right now?+
That depends on valuation and quality together, not either alone. SMG currently trades below its estimated intrinsic value and scores 39/100 on quality (lower-quality). It also yields about 4.7%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Agricultural Chemicals
Spot a number that looks wrong? Check it in SMG's SEC filings or
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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