Scotts Miracle Gro Stock Buy Hold or Sell Recommendation

SMG Stock  USD 73.61  2.00  2.79%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Scotts Miracle Gro is 'Hold'. Macroaxis provides Scotts Miracle buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding SMG positions. The advice algorithm takes into account all of Scotts Miracle's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Scotts Miracle's buy or sell advice are summarized below:
Real Value
65.39
Target Price
62.29
Hype Value
73.8
Market Value
73.61
Naive Value
74.17
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Scotts Miracle Gro given historical horizon and risk tolerance towards Scotts Miracle. When Macroaxis issues a 'buy' or 'sell' recommendation for Scotts Miracle Gro, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Scotts Miracle Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Scotts and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Scotts Miracle Gro. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.

Execute Scotts Miracle Buy or Sell Advice

The Scotts recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Scotts Miracle Gro. Macroaxis does not own or have any residual interests in Scotts Miracle Gro or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Scotts Miracle's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Scotts MiracleBuy Scotts Miracle
Hold

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Scotts Miracle Gro has a Mean Deviation of 2.01, Semi Deviation of 2.35, Standard Deviation of 2.45, Variance of 6.03, Downside Variance of 5.95 and Semi Variance of 5.5
Macroaxis provides unbiased trade recommendation on Scotts Miracle-Gro that should be used to complement current analysts and expert consensus on Scotts Miracle Gro. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Scotts Miracle-Gro is not overpriced, please validate all Scotts Miracle fundamentals, including its cash flow from operations, working capital, and the relationship between the cash per share and number of employees . Given that Scotts Miracle-Gro has a price to book of 18.98 X, we advise you to double-check Scotts Miracle Gro market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Scotts Miracle Trading Alerts and Improvement Suggestions

The company reported the last year's revenue of 3.55 B. Reported Net Loss for the year was (380.1 M) with profit before taxes, overhead, and interest of 843 M.
Over 77.0% of the company shares are owned by institutional investors
On 8th of March 2024 Scotts Miracle paid $ 0.66 per share dividend to its current shareholders
Latest headline from bizjournals.com: Scotts cannabis supply division closes distribution center, outsources some logistics

Scotts Miracle Returns Distribution Density

The distribution of Scotts Miracle's historical returns is an attempt to chart the uncertainty of Scotts Miracle's future price movements. The chart of the probability distribution of Scotts Miracle daily returns describes the distribution of returns around its average expected value. We use Scotts Miracle Gro price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Scotts Miracle returns is essential to provide solid investment advice for Scotts Miracle.
Mean Return
0.25
Value At Risk
-3.26
Potential Upside
3.79
Standard Deviation
2.45
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Scotts Miracle historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Scotts Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Scotts Miracle is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Scotts Miracle Gro backward and forwards among themselves. Scotts Miracle's institutional investor refers to the entity that pools money to purchase Scotts Miracle's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Amvescap Plc.2023-12-31
661.1 K
Geode Capital Management, Llc2023-12-31
646 K
Deprince Race & Zollo Inc2023-12-31
628.7 K
Envestnet Asset Management Inc2023-12-31
602.7 K
Bank Of New York Mellon Corp2023-12-31
586.3 K
Raymond James & Associates2023-12-31
578.5 K
Morgan Stanley - Brokerage Accounts2023-12-31
563.1 K
Charles Schwab Investment Management Inc2023-12-31
545.3 K
Norges Bank2023-12-31
434.5 K
Kayne Anderson Rudnick Investment Management Llc2023-12-31
4.9 M
Vanguard Group Inc2023-12-31
4.6 M
Note, although Scotts Miracle's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Scotts Miracle Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(80.6M)(496.5M)(203.8M)450.5M405.5M425.7M
Change In Cash(2.2M)227.5M(157.3M)(54.9M)(49.4M)(46.9M)
Free Cash Flow495.3M164.6M(242.5M)438.2M503.9M529.1M
Depreciation94.7M93.8M105.2M92.5M106.4M63.8M
Other Non Cash Items19.3M(13.4M)680.8M391M449.7M472.1M
Capital Expenditures62.7M106.9M113.5M92.8M106.7M95.5M
Net Income388.6M513.4M(437.5M)(380.1M)(437.1M)(415.3M)
End Period Cash Flow16.6M244.1M86.8M31.9M36.7M66.0M
Dividends Paid411.2M143M166.2M149.1M171.5M117.4M
Net Borrowings(160.3M)781.7M680.1M(353.6M)(406.6M)(386.3M)
Change To Netincome47.4M50.6M532.3M401.2M461.4M484.4M
Investments(3.4M)(295.4M)(25M)(65.7M)(59.1M)(56.2M)

Scotts Miracle Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Scotts Miracle or Chemicals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Scotts Miracle's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Scotts stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.1
β
Beta against NYSE Composite2.72
σ
Overall volatility
2.53
Ir
Information ratio 0.05

Scotts Miracle Volatility Alert

Scotts Miracle Gro currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of -0.1. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Scotts Miracle's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Scotts Miracle's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Scotts Miracle Fundamentals Vs Peers

Comparing Scotts Miracle's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Scotts Miracle's direct or indirect competition across all of the common fundamentals between Scotts Miracle and the related equities. This way, we can detect undervalued stocks with similar characteristics as Scotts Miracle or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Scotts Miracle's fundamental indicators could also be used in its relative valuation, which is a method of valuing Scotts Miracle by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Scotts Miracle to competition
FundamentalsScotts MiraclePeer Average
Return On Equity-0.48-0.31
Return On Asset0.0398-0.14
Profit Margin(0.12) %(1.27) %
Operating Margin(0.14) %(5.51) %
Current Valuation7.19 B16.62 B
Shares Outstanding56.69 M571.82 M
Shares Owned By Insiders25.38 %10.09 %
Shares Owned By Institutions77.31 %39.21 %
Number Of Shares Shorted4.74 M4.71 M
Price To Earning6.67 X28.72 X
Price To Book18.98 X9.51 X
Price To Sales1.21 X11.42 X
Revenue3.55 B9.43 B
Gross Profit843 M27.38 B
EBITDA97.8 M3.9 B
Net Income(380.1 M)570.98 M
Cash And Equivalents31.9 M2.7 B
Cash Per Share0.65 X5.01 X
Total Debt2.61 B5.32 B
Debt To Equity9.01 %48.70 %
Current Ratio2.41 X2.16 X
Book Value Per Share(6.80) X1.93 K
Cash Flow From Operations531 M971.22 M
Short Ratio5.55 X4.00 X
Earnings Per Share(7.04) X3.12 X
Price To Earnings To Growth0.98 X4.89 X
Target Price67.17
Number Of Employees5.5 K18.84 K
Beta1.67-0.15
Market Capitalization4.17 B19.03 B
Total Asset3.41 B29.47 B
Retained Earnings490.9 M9.33 B
Working Capital624.1 M1.48 B
Note: Acquisition by Christopher Hagedorn of 7294 shares of Scotts Miracle subject to Rule 16b-3 [view details]

Scotts Miracle Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Scotts . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Scotts Miracle Buy or Sell Advice

When is the right time to buy or sell Scotts Miracle Gro? Buying financial instruments such as Scotts Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total3.0B2.6B3.0B3.2B
Total Assets4.3B3.4B3.9B2.2B

Use Investing Ideas to Build Portfolios

In addition to having Scotts Miracle in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Music and Video Thematic Idea Now

Music and Video
Music and Video Theme
Companies specializing in music, video and movie production and distribution. The Music and Video theme has 35 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Music and Video Theme or any other thematic opportunities.
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When determining whether Scotts Miracle-Gro is a strong investment it is important to analyze Scotts Miracle's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Scotts Miracle's future performance. For an informed investment choice regarding Scotts Stock, refer to the following important reports:
Check out Scotts Miracle Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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Is Scotts Miracle's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Scotts Miracle. If investors know Scotts will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Scotts Miracle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.61)
Dividend Share
2.64
Earnings Share
(7.04)
Revenue Per Share
61.014
Quarterly Revenue Growth
(0.22)
The market value of Scotts Miracle-Gro is measured differently than its book value, which is the value of Scotts that is recorded on the company's balance sheet. Investors also form their own opinion of Scotts Miracle's value that differs from its market value or its book value, called intrinsic value, which is Scotts Miracle's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Scotts Miracle's market value can be influenced by many factors that don't directly affect Scotts Miracle's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Scotts Miracle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Scotts Miracle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Scotts Miracle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.