Stock of the Day

July 21, 2021

Scotts Miracle-Gro (SMG)

$54.57
+$0.32 (+0.6%)
Market Cap: $3.16B

About Scotts Miracle-Gro

The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, 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 offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components for use in hydroponic and indoor gardening applications; 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, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Handy Green II, Miracle-Gro, LiquaFeed, Shake N Feed, Hyponex, Earthgro, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, 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 Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

Today's Trend

The Scotts Miracle-Gro Company (NYSE: SMG) is facing mixed investor sentiment. Shares have declined and remain below their 50-day and 200-day moving averages, near the lower end of their 12-month range. Recent news is broadly supportive of financial discipline, but modest growth expectations and EPS guidance below consensus may be weighing on the stock.

  • Scotts reported that it achieved its $275 million fiscal 2026 free-cash-flow target, helping fund the redemption of $250 million of 5.250% senior notes due in 2026. The company also renewed its $750 million accounts receivable facility through August 2027, preserving liquidity and financial flexibility. ScottsMiracle-Gro Advances Debt Reduction and Capital Allocation
  • SMG began a $500 million share-repurchase program, buying back $25 million of stock in August. Buybacks could support per-share results and signal management’s confidence in the company’s long-term value, while management said debt reduction remains the priority. Scotts Miracle-Gro Redeems Notes, Renews Facility and Repurchases Shares
  • The company reaffirmed fiscal 2026 expectations, including low-single-digit U.S. Consumer sales growth, mid-single-digit adjusted EBITDA growth, adjusted gross margin of at least 32%, and leverage in the high 3s. Analysts remain divided on SMG’s outlook, indicating uncertainty over the pace of improvement under its “SMG 2.0” strategy. Analysts Have Conflicting Sentiments on Ecolab and Scotts Miracle-Gro
  • Fiscal 2026 adjusted EPS guidance of $4.30-$4.45 has a midpoint slightly below the $4.41 analyst consensus. Additionally, the note redemption was funded partly with revolver debt, and projected sales growth remains limited, tempering the otherwise positive capital-allocation news. Scotts Miracle-Gro Redeems Senior Notes and Reaffirms Outlook
← Previous Stock of the DayNext Stock of the Day →

Recent News