Added to YB: 2025-05-28
Pitch date: 2025-05-26
SMG [neutral]
The Scotts Miracle-Gro Company
-1.91%
current return
Author Info
TSOH Investment Research provides long-term investment research with 100% transparency (prior disclosure of all portfolio changes). TSOH is written by Alex Morris, a former buyside equities analyst, CFA Charterholder, and the author of 'Buffett And Munger Unscripted'. Sign up for the newsletter.
Company Info
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.
Market Cap
$3.2B
Pitch Price
$58.88
Price Target
115.00 (+99%)
Dividend
4.83%
EV/EBITDA
10.16
P/E
22.14
EV/Sales
1.53
Sector
Chemicals
Category
turnaround
'In The Penalty Box' - The Scotts Miracle-Gro Company
SMG (earnings update): Core consumer biz showing strength with 12% 1H FY25 POS unit growth, but heavy promotions affecting pricing. Hawthorne disaster nearly resolved with $39M spinoff. Management shifting from M&A to shareholder returns, targeting <3.5x leverage vs current 4.4x. $59/sh = 12x FY27e EV/EBIT (~$500M). Hagedorn family owns 25%; potential sale catalyst when 70yo CEO retires.
Read full article (7 min)