Home Sectors Basic Materials Stock Analysis: Scotts Miracle-Gro Company (NYSE: SMG)

Stock Analysis: Scotts Miracle-Gro Company (NYSE: SMG)

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Scotts Miracle-Gro Company trades as part of the basic materials sector and trades as part of the agriculture industry. The company CEO is James Hagedorn. The Scotts Miracle Gro Co is operative in the agricultural industry. It manufactures and sells dry, granular slow-release lawn fertilizers, combination lawn fertilizer and control products.

Previous Intraday Trading Performance:

The SMG stock showed a previous change of 1.26% with an open at 66.75 and a close of 66.76. It reached an intraday high of 67.59 and a low of 66.32.

SeekingAlpha:  The Impact Of Dividend Increases Through September Of 2018

Liquidity:

The stock has a market cap of $3.7b with 55.3m shares outstanding, of which the float is 54.6m shares. Trading volume reached 537,214 shares compared to its average volume of 580,009 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Scotts Miracle-Gro Company shares returned 6.95% and in the past 30 trading days it returned -10.51%. Over three months, it changed -14.86%. In one year it has changed -37.16% and within that year its 52-week high was 110.12 and its 52-week low was 57.96. SMG stock is 15.18% above its 52 Week Low.

Our calculations show a 200 day moving average of 76.96 and a 50 day moving average of 68.99. Currently SMG stock is trading -13.25% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  The Impact Of Dividend Increases Through September Of 2018

Earnings:

The last annual fiscal EPS for the company was reported at 3.72 that ended on 30th of September 2018, which according to the previous close, that is a PE of 58.56. Based on 5 analyst estimates, the consensus EPS for the next quarter is -0.67. The TTM EPS is 3.72, which comes to a TTM PE of 17.95. Historically, the PE high was 58.56 and the PE low was 16.00. If the stock reached its PE low, that would represent a price of 59.51, which is a decrease of -10.86%.

The following are the last four quarter reported earnings per share:
09-30-2018:  -0.75
06-30-2018:  2.67
03-31-2018:  2.88
12-31-2017:  -1.08

The dividend per share is currently 2.20, which is a dividend yield of 3.30%. Also, the payout ratio is 59.14%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 45.20, which means it may be overvalued by -47.70%

Indicators to Watch:

Based on the latest filings, there is 102.20% of institutional ownership. Short-interest is 2,736,624, which is 4.95% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.63. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.70

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.78%, return on assets is 2.21%, profit margin is 3.44%, price-to-sales is 1.37 and price-to-book is 9.50.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 1  :Past Performance Score
 2  :Financial Strength Score
 4  :Future Growth Score
 4  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.