📊 SMG Key Takeaways
Is Scotts Miracle-Gro Co (SMG) a Good Investment?
SMG exhibits severe financial distress with negative stockholders' equity of -$500.6M, indicating technical insolvency. The company is burning -$370M in operating cash flow against only $8.3M cash on hand, creating an acute liquidity crisis. With massive debt ($2.3B) and negative interest coverage (-0.8x), the company cannot service obligations from operations and faces imminent refinancing or restructuring pressures.
Why Buy Scotts Miracle-Gro Co Stock? SMG Key Strengths
- Reasonable gross margin of 25% demonstrates underlying product/pricing power in agricultural chemicals
- Asset base of $3.0B provides collateral and restructuring optionality
- Established brand presence in lawn care and agricultural sectors
SMG Stock Risks: Scotts Miracle-Gro Co Investment Risks
- Negative stockholders equity of -$500.6M indicates technical insolvency and book value destruction
- Catastrophic negative operating cash flow of -$370.4M with only $8.3M cash creates weeks of runway
- Unable to service debt: negative interest coverage (-0.8x) and negative operating income (-$21.8M)
- Deteriorating profitability with -$125.0M net loss and -35.3% net margin
- Weak liquidity: quick ratio of 0.44x indicates heavy inventory dependence and potential forced liquidation risk
Key Metrics to Watch
- Operating cash flow trend and path to positive territory
- Debt refinancing status and covenant compliance
- Gross margin stability amid operational restructuring
- Cash balance and liquidity runway weeks
- Strategic asset sales or debt restructuring announcements
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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $1.1B | N/A | $0.77 |
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: Reasonable gross margin of 25% demonstrates underlying product/pricing power in agricultural chemicals. Asset base of $3.0B provides collateral and restructuring optionality.
What are the risks of investing in SMG?
Claude: Negative stockholders equity of -$500.6M indicates technical insolvency and book value destruction. Catastrophic negative operating cash flow of -$370.4M with only $8.3M cash creates weeks of runway.
What is SMG's revenue and growth?
Scotts Miracle-Gro Co reported revenue of $354.4M.
Does SMG pay dividends?
Scotts Miracle-Gro Co pays dividends, with $38.3M 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 $-2.16.
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 April 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 -35.3% (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 $-370.4M, with capital expenditures of $20.0M. FCF margin is -110.2%.
How does SMG compare to other Materials stocks?
Vs Materials sector averages: Net margin -35.3% (avg: 10%), ROE N/A (avg: 14%), current ratio 1.35 (avg: 1.6).