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

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


Scotts Miracle-Gro Company trades as part of the agriculture industry and is in the basic materials sector. 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 -0.60% with an open at 92.00 and a close of 90.62. It reached an intraday high of 92.50 and a low of 90.05.

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The stock has a market cap of $5.0b with 55.5m shares outstanding, of which the float is 54.6m shares. Trading volume reached 527,557 shares compared to its average volume of 477,211 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 1.36% and in the past 30 trading days it returned 9.29%. Over three months, it changed 11.75%. In one year it has changed 13.07% and within that year its 52-week high was 94.49 and its 52-week low was 57.96. SMG stock is 56.35% above its 52 Week Low.

Our calculations show a 200 day moving average of 75.74 and a 50 day moving average of 84.84. Currently SMG stock is trading 19.64% above its 200 day moving average.

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The last annual fiscal EPS for the company was reported at 1.14 that ended on 30th of September 2018, which according to the previous close, that is a PE of 79.49. Based on 5 analyst estimates, the consensus EPS for the next quarter is -1.24. The TTM EPS is 3.41, which comes to a TTM PE of 26.57. Historically, the PE high was 79.49 and the PE low was 16.00. If the stock reached its PE low, that would represent a price of 54.57, which is a decrease of -39.78%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/01/2019): 7.09
4thQtr of 2018 (Reported on 01/30/2019): -1.44
3rdQtr of 2018 (Reported on 11/07/2018): -2.65
2ndQtr of 2018 (Reported on 07/31/2018): 1.47
1stQtr of 2018 (Reported on 05/01/2018): 2.59

The dividend per share is currently 2.20, which is a dividend yield of 2.41%.

Base on our calculations, the intrinsic value per share is 218.58, which means it is possibly undervalued and has a margin of safety of 58.54%.

Indicators to Watch:

Short-interest was 4,103,801, which was 7.40% of shares outstanding. The short-interest ratio or days-to-cover ratio was 9.95. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.83.

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Fundamental Indicators:

Based on last reported financials, the company’s return on assets is 6.72%, profit margin is 8.66%, price-to-sales is 1.73 and price-to-book is 8.19.

Company Scores:

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

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.