📊 SMG Key Takeaways
Is Scotts Miracle-Gro Co (SMG) a Good Investment?
Scotts Miracle-Gro faces severe financial distress with negative stockholders equity of -$286.5M, negative operating cash flow of -$150.4M, and minimal cash reserves of $6.2M against $2.1B in debt. The company is technically insolvent and unsustainably burning cash despite reasonable operating margins, creating acute refinancing and liquidity risk.
Scotts Miracle-Gro Co Key Strengths (SMG)
- Gross margin of 38.5% indicates underlying product profitability
- Operating margin of 20.9% shows cost control in core operations
- Interest coverage ratio of 6.5x suggests current debt service capability
SMG Stock Risks: Scotts Miracle-Gro Co Investment Risks
- Negative stockholders equity of -$286.5M indicates technical insolvency with liabilities exceeding assets
- Negative operating cash flow of -$150.4M demonstrates the company cannot fund operations from internal sources
- Critical liquidity crisis: only $6.2M cash against $2.1B long-term debt and total liabilities of $3.7B
- Revenue declining 3.9% YoY while burning cash unsustainably
- Quick ratio of 0.73x signals potential inability to meet short-term obligations
- Free cash flow of -$189.0M creates severe refinancing risk and limits financial flexibility
Key Metrics to Watch
- Operating cash flow trend - must turn positive for viability
- Cash balance trajectory - at critical levels
- Debt refinancing ability - with negative equity, refinancing risk is acute
- Revenue stabilization - need to reverse declining sales trend
Scotts Miracle-Gro Co (SMG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Scotts Miracle-Gro Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SMG Profit Margin, ROE & Profitability Analysis
SMG vs Materials Sector: How Scotts Miracle-Gro Co Compares
How Scotts Miracle-Gro Co compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Scotts Miracle-Gro Co Stock Overvalued? SMG Valuation Analysis 2026
Based on fundamental analysis, Scotts Miracle-Gro Co has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Scotts Miracle-Gro Co Balance Sheet: SMG Debt, Cash & Liquidity
SMG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Scotts Miracle-Gro Co's revenue has declined by 28% over the 5-year period, indicating business contraction. The most recent EPS of $-6.79 indicates the company is currently unprofitable.
SMG Revenue Growth, EPS Growth & YoY Performance
SMG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.4B | $113.6M | $1.93 |
| Q1 2026 | $354.4M | -$69.5M | $-1.21 |
| Q3 2025 | $1.2B | N/A | $2.28 |
| Q2 2025 | $1.4B | N/A | $1.34 |
| Q1 2025 | $410.4M | N/A | $-1.21 |
| Q3 2024 | $1.1B | N/A | $0.77 |
| Q2 2024 | $1.5B | N/A | $0.80 |
| Q1 2024 | $410.4M | N/A | $-1.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Scotts Miracle-Gro Co Dividends, Buybacks & Capital Allocation
SMG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Scotts Miracle-Gro Co (CIK: 0000825542)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SMG
What is the AI rating for SMG?
Scotts Miracle-Gro Co (SMG) has an AI grade of D with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SMG's key strengths?
Claude: Gross margin of 38.5% indicates underlying product profitability. Operating margin of 20.9% shows cost control in core operations.
What are the risks of investing in SMG?
Claude: Negative stockholders equity of -$286.5M indicates technical insolvency with liabilities exceeding assets. Negative operating cash flow of -$150.4M demonstrates the company cannot fund operations from internal sources.
What is SMG's revenue and growth?
Scotts Miracle-Gro Co reported revenue of $1.8B.
Does SMG pay dividends?
Scotts Miracle-Gro Co pays dividends, with $77.8M distributed to shareholders in the trailing twelve months.
Where can I find SMG SEC filings?
Official SEC filings for Scotts Miracle-Gro Co (CIK: 0000825542) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SMG's EPS?
Scotts Miracle-Gro Co has a diluted EPS of $1.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SMG's fundamental grade?
Based on our AI fundamental analysis in May 2026, Scotts Miracle-Gro Co has a D grade with 92% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SMG stock overvalued or undervalued?
Valuation metrics for SMG: ROE of N/A (sector avg: 14%), net margin of 6.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is SMG's AI grade for 2026?
Our dual AI analysis gives Scotts Miracle-Gro Co a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SMG's free cash flow?
Scotts Miracle-Gro Co's operating cash flow is $-150.4M, with capital expenditures of $38.6M. FCF margin is -10.4%.
How does SMG compare to other Materials stocks?
Vs Materials sector averages: Net margin 6.3% (avg: 10%), ROE N/A (avg: 14%), current ratio 1.27 (avg: 1.6).