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 -24.68%, 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 -24.68% 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.
4.2%
-0.47
39.13%
S&P 500
14.9%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
-5.79%
EBIT Growth (5y)
-8.16%
EBIT to Interest (avg)
5.12
Debt to EBITDA (avg)
5.30
Net Debt to Equity (avg)
-8.94
Sales to Capital Employed (avg)
1.55
Tax Ratio
52.44%
Dividend Payout Ratio
106.73%
Pledged Shares
0
Institutional Holding
87.27%
ROCE (avg)
14.82%
ROE (avg)
88.43%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
-8.77
EV to EBIT
14.86
EV to EBITDA
11.38
EV to Capital Employed
3.36
EV to Sales
2.08
PEG Ratio
0.41
Dividend Yield
253.24%
ROCE (Latest)
22.61%
ROE (Latest)
Negative BV
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
4What is working for the Company
NET PROFIT(9M)
At USD -18.37 MM has Grown at 73.93%
RAW MATERIAL COST(Y)
Fallen by -3.73% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 16.45 times
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 446.2 MM
DEBT-EQUITY RATIO
(HY)
Highest at -566 %
NET SALES(Q)
Lowest at USD 354.4 MM
Here's what is working for Scotts Miracle-Gro Co.
Net Profit
At USD -18.37 MM has Grown at 73.93%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Debtors Turnover Ratio
Highest at 16.45 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -3.73% (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 446.2 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Net Sales
Lowest at USD 354.4 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Debt-Equity Ratio
Highest at -566 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






