# Scotts Miracle-Gro (SMG.US)

Canonical: https://gigainvestors.com/s/SMG

Analysis as of: 2026-10-16T07:31:58.591Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $54.25 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 3

- Operating margin variation: 1.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.16×

- FY2018: 0.07×

- FY2019: 0.22×

- FY2020: 0.14×

- FY2021: 0.15×

- FY2022: -0.11×

- FY2023: -0.05×

- FY2024: 0.06×

- FY2025: 0.11×

- LTM to Jun 2026: 0.12×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 7.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 16.0%

- ROIC, second-lowest year: -5.8%

- Typical minus recent gross margin: 7.5 pp

- Typical gross margin (annual median): 31.5%

- Recent gross margin (lower of latest and 3-year median): 23.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 8.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 18.6%

- FY2017: 18.9%

- FY2018: 11.1%

- FY2019: 28.6%

- FY2020: 24.4%

- FY2021: 20.0%

- FY2022: -11.1%

- FY2023: -5.8%

- FY2024: 9.1%

- FY2025: 13.5%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$229M

- Net income, five-year total: -$195M

- Return on incremental invested capital: 45.6%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -3.4 pp

- Working capital / revenue, final three-year average: 18.7%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $513M

- FY2022: -$446M

- FY2023: -$380M

- FY2024: -$38M

- FY2025: $123M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 18.6% vs 9.1%

- Per-share earnings: 3.63 to -0.61 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquisition spending exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.6%

- Ordinary dilution, 5-year annual growth: 0.6%

- Market cap gain: -$2.4B

- Cumulative retained earnings: -$684M

- Diluted shares, 10-year annual growth: -0.6%

- Diluted shares, 5-year annual growth: 0.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$4.24

- Per-share value, starting three-year median: $3.63

- Per-share value, ending three-year median: -$0.61

- Buybacks concentrated in cheaper years (correlation): -0.35

- Average buyback yield: 2.9%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.1B

- Cumulative net income, 10 years: $1.3B

- ROIC, first three-year median: 18.6%

- ROIC, last three-year median: 9.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.17

- FY2017: $3.63

- FY2018: $1.12

- FY2019: $8.18

- FY2020: $6.81

- FY2021: $8.96

- FY2022: -$7.88

- FY2023: -$6.79

- FY2024: -$0.61

- FY2025: $2.47

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -8.2%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 18.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.56×

- Accounting red flags: 1

Chart: Sloan accruals; fiscal year observations.

- FY2016: 3.0%

- FY2017: -4.9%

- FY2018: -9.1%

- FY2019: 7.7%

- FY2020: -5.0%

- FY2021: 5.0%

- FY2022: -7.2%

- FY2023: -26.7%

- FY2024: -24.5%

- FY2025: -8.2%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 66% since Dec 2021 · "Scotts Miracle-Gro posts wider Q1 loss, sticks with full-year outlook on cannabis exit" (seekingalpha.com, Jan 2026) · sales -1.2%

Story as of 2026-10-16T09:59:35.831Z; price observation 2026-10-15.

- 2025-06-05: ScottsMiracle-Gro reaffirms fiscal 2025 guidance; shares up over 10% ([seekingalpha.com](https://seekingalpha.com/news/4455890-scottsmiracle-gro-reaffirms-fiscal-2025-guidance-shares-up-over-10?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-28: Scotts Miracle-Gro posts wider Q1 loss, sticks with full-year outlook on cannabis exit ([seekingalpha.com](https://seekingalpha.com/news/4543606-scotts-miracle-gro-posts-wider-q1-loss-sticks-with-full-year-outlook-on-cannabis-exit?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-04-29: Scotts Miracle-Gro Shares Rise 3% on Earnings Beat and Margin Expansion ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/scotts-miracle-gro-shares-rise-124945891.html))

### Sales · FY2025–2026

sales -1.2%; source https://www.sec.gov/Archives/edgar/data/825542/000082554225000022/smg-20250930.htm; observed 2025-11-25.

- FY2017: $2.6B 

- FY2018: $2.7B 

- FY2019: $3.2B 

- FY2020: $4.1B 

- FY2021: $4.9B 

- FY2022: $3.9B 

- FY2023: $3.6B 

- FY2024: $3.6B 

- FY2025: $3.4B 

- FY2026: $3.4B 

### Gross margin · FY2025

gross margin 30.6%; source https://www.sec.gov/Archives/edgar/data/825542/000082554225000022/smg-20250930.htm; observed 2025-11-25.

- FY2016: 35.1% 

- FY2017: 36.8% 

- FY2018: 32.5% 

- FY2019: 32.3% 

- FY2020: 32.6% 

- FY2021: 29.8% 

- FY2022: 22.2% 

- FY2023: 18.5% 

- FY2024: 23.9% 

- FY2025: 30.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in agricultural inputs; annual sales are USD 3.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/825542/000082554225000022/smg-20250930.htm (filed 2025-11-25); FY2025: revenue 3413100000; grossProfit 1044200000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SMG.US: The Scotts Miracle-Gro Company, together with its subsidiaries, engages in the manufacture, marketing, and sale of products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. The company provides lawn care products, comprising lawn fertilizers, clover and grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions. It also offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components; insect, rodent, and weed control products for home areas; and non-selective weed killer products. The company sells its products under the Scotts, Turf Builder, Grower's Edge, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Whirl, Wizz, Miracle-Gro, LiquaFeed, Shake "N Feed, Hyponex, Earthgro, Miracle-Gro Organic, CAN-FAN, CAN-FILTERS, EcoPlus, Bug B Gon, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, Ortho Max, Home Defense, Mother Earth, Botanicare, General Hydroponics, CYCO, Gavita, Agrolux, HydroLogic Purification System, Gro Pro, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers. The company was formerly known as The Scotts Company. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

### Why customers stay

Margins ranged from 18.5% to 30.6% during 2023–25; it earns 16% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: grossProfit / revenue = 18.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: grossProfit / revenue = 23.9%.

- Source: https://www.sec.gov/Archives/edgar/data/825542/000082554225000022/smg-20250930.htm (filed 2025-11-25); FY2025: grossProfit / revenue = 30.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); 10-year return on capital observations [[2016,0.18551233455539676],[2017,0.18934668638257832],[2018,0.11086338554149713],[2019,0.2861285740040865],[2020,0.24380201526623915],[2021,0.20018385160292737],[2022,-0.11143395735829432],[2023,-0.05830307646735221],[2024,0.09104316149685396],[2025,0.134807234378818]]; median 0.16015978446710738. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 2% of cash earnings; earns 45.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2016: growth capex 0; upkeep 58300000; cash acquisitions 158400000; owner earnings 335500000. Growth capex plus acquisitions / owner earnings = 0.4721311475409836.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2017: growth capex 0; upkeep 69600000; cash acquisitions 121700000; owner earnings 228800000. Growth capex plus acquisitions / owner earnings = 0.5319055944055944.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2018: growth capex 0; upkeep 68200000; cash acquisitions 492900000; owner earnings 78900000. Growth capex plus acquisitions / owner earnings = 6.247148288973384.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2019: growth capex 0; upkeep 42400000; cash acquisitions 6600000; owner earnings 507600000. Growth capex plus acquisitions / owner earnings = 0.013002364066193853.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2020: growth capex 0; upkeep 62700000; cash acquisitions 0; owner earnings 419400000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2021: growth capex 13100000; upkeep 93800000; cash acquisitions 127800000; owner earnings 512500000. Growth capex plus acquisitions / owner earnings = 0.2749268292682927.

- Source: https://www.sec.gov/Archives/edgar/data/825542/000082554225000022/smg-20250930.htm (filed 2025-11-25); FY2025: growth capex 0; upkeep 97400000; cash acquisitions 2500000; owner earnings 122800000. Growth capex plus acquisitions / owner earnings = 0.02035830618892508.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Incremental return on capital 0.4556143307034012, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Dividend observations: [[2016,116600000],[2017,120300000],[2018,120000000],[2019,124500000],[2020,411200000],[2021,143000000],[2022,166200000],[2023,149100000],[2024,151300000],[2025,154300000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/825542/000082554225000022/smg-20250930.htm (filed 2025-11-25); FY2025: cash repurchases 18400000 USD.

### Are managers owners

Insiders own 23.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SMG.US SharesStats.PercentInsiders = 23.679 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Closing price 54.25 USD; reporting-to-trading FX 1; FY2025 annual sales per share 58.14480408858603; price multiple 0.9330154405086286. FY2025 cash earnings/share 2.0919931856899487. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $88.09 per share

- 2016-11: $91.27 per share

- 2016-12: $95.55 per share

- 2017-01: $91.97 per share

- 2017-02: $90.63 per share

- 2017-03: $93.39 per share

- 2017-04: $96.60 per share

- 2017-05: $86.61 per share

- 2017-06: $89.46 per share

- 2017-07: $95.99 per share

- 2017-08: $95.59 per share

- 2017-09: $97.34 per share

- 2017-10: $99.62 per share

- 2017-11: $98.90 per share

- 2017-12: $106.99 per share

- 2018-01: $90.27 per share

- 2018-02: $89.84 per share

- 2018-03: $85.75 per share

- 2018-04: $83.58 per share

- 2018-05: $85.13 per share

- 2018-06: $83.16 per share

- 2018-07: $79.43 per share

- 2018-08: $74.72 per share

- 2018-09: $78.73 per share

- 2018-10: $66.74 per share

- 2018-11: $75.98 per share

- 2018-12: $61.46 per share

- 2019-01: $74.35 per share

- 2019-02: $81.90 per share

- 2019-03: $78.58 per share

- 2019-04: $85.02 per share

- 2019-05: $89.53 per share

- 2019-06: $98.50 per share

- 2019-07: $112.18 per share

- 2019-08: $106.32 per share

- 2019-09: $101.82 per share

- 2019-10: $100.39 per share

- 2019-11: $101.08 per share

- 2019-12: $106.18 per share

- 2020-01: $122.74 per share

- 2020-02: $105.99 per share

- 2020-03: $102.40 per share

- 2020-04: $124.03 per share

- 2020-05: $142.57 per share

- 2020-06: $134.47 per share

- 2020-07: $158.57 per share

- 2020-08: $168.53 per share

- 2020-09: $152.91 per share

- 2020-10: $150.05 per share

- 2020-11: $175.77 per share

- 2020-12: $199.14 per share

- 2021-01: $221.41 per share

- 2021-02: $213.15 per share

- 2021-03: $244.97 per share

- 2021-04: $231.16 per share

- 2021-05: $217.37 per share

- 2021-06: $191.92 per share

- 2021-07: $176.96 per share

- 2021-08: $156.83 per share

- 2021-09: $146.36 per share

- 2021-10: $148.46 per share

- 2021-11: $144.89 per share

- 2021-12: $161.00 per share

- 2022-01: $151.20 per share

- 2022-02: $140.06 per share

- 2022-03: $122.96 per share

- 2022-04: $103.93 per share

- 2022-05: $94.62 per share

- 2022-06: $78.99 per share

- 2022-07: $88.95 per share

- 2022-08: $66.95 per share

- 2022-09: $42.75 per share

- 2022-10: $45.91 per share

- 2022-11: $55.93 per share

- 2022-12: $48.59 per share

- 2023-01: $72.19 per share

- 2023-02: $82.50 per share

- 2023-03: $69.74 per share

- 2023-04: $66.81 per share

- 2023-05: $63.20 per share

- 2023-06: $62.69 per share

- 2023-07: $70.04 per share

- 2023-08: $56.66 per share

- 2023-09: $51.68 per share

- 2023-10: $44.44 per share

- 2023-11: $55.66 per share

- 2023-12: $63.75 per share

- 2024-01: $56.26 per share

- 2024-02: $65.70 per share

- 2024-03: $74.59 per share

- 2024-04: $68.54 per share

- 2024-05: $69.69 per share

- 2024-06: $65.06 per share

- 2024-07: $78.60 per share

- 2024-08: $70.98 per share

- 2024-09: $86.70 per share

- 2024-10: $86.98 per share

- 2024-11: $77.09 per share

- 2024-12: $66.34 per share

- 2025-01: $70.96 per share

- 2025-02: $58.57 per share

- 2025-03: $54.89 per share

- 2025-04: $50.38 per share

- 2025-05: $59.56 per share

- 2025-06: $65.96 per share

- 2025-07: $62.66 per share

- 2025-08: $61.22 per share

- 2025-09: $56.95 per share

- 2025-10: $53.52 per share

- 2025-11: $56.62 per share

- 2025-12: $58.35 per share

- 2026-01: $64.22 per share

- 2026-02: $70.12 per share

- 2026-03: $60.81 per share

- 2026-04: $62.70 per share

- 2026-05: $59.00 per share

- 2026-06: $68.11 per share

- 2026-07: $65.68 per share

- 2026-08: $59.80 per share

- 2026-09: $50.11 per share

- 2026-10: $54.25 per share

## Annual estimated value (USD per share)

- FY2016: low $26.35 per share, central $30.59 per share, high $35.57 per share

- FY2017: low $29.58 per share, central $33.51 per share, high $38.73 per share

- FY2018: low $26.35 per share, central $29.99 per share, high $34.82 per share

- FY2019: low $53.38 per share, central $61.14 per share, high $71.02 per share

- FY2020: low $83.67 per share, central $99.09 per share, high $115.32 per share

- FY2021: low $109.97 per share, central $140.80 per share, high $164.14 per share

- FY2022: low $78.60 per share, central $89.42 per share, high $103.81 per share

- FY2023: low $70.36 per share, central $80.06 per share, high $92.98 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/825542/000082554225000022/smg-20250930.htm); period 2025-09-30, filed 2025-11-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [John Rogers](https://gigainvestors.com/AI): 1,410,981 SMG shares; USD 96,102,000 reported position value; 0.96% of portfolio; add; quarter 2026 Q2.

# SMG — Scotts Miracle-Gro Co.

Held by 1 investor · USD 96,102,000 total · 2026 Q2 · reported price USD 68.11 (split-adjusted).
Page: https://gigainvestors.com/s/SMG

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| John Rogers (https://gigainvestors.com/AI) | USD 96,102,000 | 1.0% | add +46.57% |
| Thomas Gayner (https://gigainvestors.com/MKL) | USD 10,216,080 | 0.0% | sold |
| Steven Romick (https://gigainvestors.com/FPA) | USD 447,011 | 0.0% | sold |

## Total held by quarter

- 2018 Q1: USD 1,115,010 · 1 holder · USD 46.43
- 2018 Q2: USD 6,153,840 · 1 holder · USD 45.01
- 2018 Q3: USD 13,305,370 · 1 holder · USD 42.61
- 2018 Q4: USD 10,939,880 · 1 holder · USD 33.27
- 2019 Q1: USD 23,416,840 · 1 holder · USD 42.53
- 2019 Q2: USD 37,233,000 · 1 holder · USD 53.32
- 2019 Q3: USD 41,848,020 · 1 holder · USD 55.11
- 2019 Q4: USD 44,807,960 · 1 holder · USD 57.47
- 2020 Q1: USD 0 · 0 holders
- 2020 Q2: USD 0 · 0 holders
- 2020 Q3: USD 0 · 0 holders
- 2020 Q4: USD 0 · 0 holders
- 2021 Q1: USD 0 · 0 holders
- 2021 Q2: USD 0 · 0 holders
- 2021 Q3: USD 0 · 0 holders
- 2021 Q4: USD 0 · 0 holders
- 2022 Q1: USD 798,980 · 1 holder · USD 66.53
- 2022 Q2: USD 1,856,030 · 1 holder · USD 42.75
- 2022 Q3: USD 2,458,125 · 1 holder · USD 42.75
- 2022 Q4: USD 6,279,529 · 1 holder · USD 48.59
- 2023 Q1: USD 10,442,519 · 1 holder · USD 69.74
- 2023 Q2: USD 9,386,887 · 1 holder · USD 62.69
- 2023 Q3: USD 8,062,080 · 1 holder · USD 51.68
- 2023 Q4: USD 9,945,000 · 1 holder · USD 63.75
- 2024 Q1: USD 12,531,120 · 1 holder · USD 74.59
- 2024 Q2: USD 10,931,760 · 1 holder · USD 65.07
- 2024 Q3: USD 14,565,600 · 1 holder · USD 86.70
- 2024 Q4: USD 11,145,120 · 1 holder · USD 66.34
- 2025 Q1: USD 9,221,520 · 1 holder · USD 54.89
- 2025 Q2: USD 11,081,280 · 1 holder · USD 65.96
- 2025 Q3: USD 9,567,600 · 1 holder · USD 56.95
- 2025 Q4: USD 9,802,800 · 1 holder · USD 58.35
- 2026 Q1: USD 69,201,351 · 3 holders · USD 60.81
- 2026 Q2: USD 96,102,000 · 1 holder · USD 68.11