📊 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.
Why Buy Scotts Miracle-Gro Co Stock? SMG Key Strengths
- 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 rating of STRONG SELL 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 rating reflects both perspectives for balanced insights.
Is SMG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Scotts Miracle-Gro Co has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. 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.
Should I buy SMG stock in 2026?
Our dual AI analysis gives Scotts Miracle-Gro Co a combined STRONG SELL rating 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).