Why is Scotts Miracle-Gro Co. ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate -4.44% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Risky - Negative Book Value
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -25.47%, its profits have risen by 9102.9%
- At the current price, the company has a high dividend yield of 317.1
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -25.47% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Scotts Miracle-Gro Co. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Scotts Miracle-Gro Co.
-27.95%
-0.43
38.66%
S&P 500
13.22%
0.64
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.65%
EBIT Growth (5y)
-4.44%
EBIT to Interest (avg)
5.12
Debt to EBITDA (avg)
5.30
Net Debt to Equity (avg)
-8.94
Sales to Capital Employed (avg)
1.42
Tax Ratio
52.44%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
88.50%
ROCE (avg)
14.82%
ROE (avg)
88.43%
Valuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
-16.11
EV to EBIT
17.50
EV to EBITDA
13.33
EV to Capital Employed
3.16
EV to Sales
2.10
PEG Ratio
NA
Dividend Yield
317.15%
ROCE (Latest)
18.04%
ROE (Latest)
Negative BV
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
5What is working for the Company
NET PROFIT(HY)
Higher at USD 392.93 MM
RAW MATERIAL COST(Y)
Fallen by -10.29% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.22 times
-2What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 315.7 MM
Here's what is working for Scotts Miracle-Gro Co.
Net Profit
Higher at USD 392.93 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (USD MM)
Inventory Turnover Ratio
Highest at 4.22 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -10.29% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Scotts Miracle-Gro Co.
Operating Cash Flow
Lowest at USD 315.7 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)






