# The Scotts Miracle-Gro Company (SMG) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Basic Materials / Construction Materials. Price $59.47, market value $3.5 billion.

## Valuation
- **P/E (trailing): 23.0×** (5-yr avg 17.9×, 3-yr avg 22.3×). The Scotts Miracle-Gro Company trades at 23.0× trailing earnings, well above its own five-year average of 17.9×: investors are paying up relative to the company's past. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 12.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.02**. A PEG of 0.02 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×.
- **Free-cash-flow yield: 7.6%** (5-yr avg 5.7%). Free cash flow equals 7.6% of the market value, above its five-year average of 5.7%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.4%**. The inverse of the P/E: 4.4% of the price is earned each year.

## Profitability
- **Gross margin: 31.9%**. The Scotts Miracle-Gro Company keeps 31.9% of revenue after the direct cost of what it sells.
- **Operating margin: 11.3%**. 11.3% of revenue is left after running the business.
- **Net margin: 4.3%**. 4.3% of each dollar of sales reaches the bottom line.
- **Return on equity: -40.6%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 17.9%**. Return on all capital, debt included, is 17.9%: comfortably above what that capital costs.
- **Return on assets: 2.7%**. Each dollar of assets produces 2.7% of profit.

## Growth
- **Revenue growth (1 yr): -3.9%** (3-yr -4.5%/yr, 5-yr -3.7%/yr). Revenue fell 3.9% over the last year, against -3.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 504.9%** (5-yr -18.4%/yr). Earnings per share rose 504.9%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Altman Z-score: 2.16**. A Z-score of 2.16 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 4.44%** ($2.64 per share, trailing). The Scotts Miracle-Gro Company yields 4.44%, an income-level yield.
- **Payout ratio: 106%** (59% of free cash flow). The dividend exceeds earnings (106% payout), though free cash flow still covers it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): -18.6%/yr** (1-yr 0.0%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: buy** (6 analysts). 6 analysts cover The Scotts Miracle-Gro Company; the consensus is buy, with an average price target of $77.17 (+30% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -1.9%** (YTD 4.0%, 3-mo 3.1%). The shares are down 1.9% over twelve months including dividends.
- **From 52-week high: -21.1%** (14.4% above the low). Trading 21% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 40**. An RSI of 40 is neutral.
- **Beta (1 yr): 0.87** (volatility 36%). Beta of 0.87 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SMG · Page: https://foliofundamentals.com/stocks/smg

Not investment advice.