Added to YB: 2021-10-11
Pitch date: 2021-10-11
SMG [bullish]
The Scotts Miracle-Gro Company
-53.05%
current return
Author Info
No bio for this author
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
$3.5B
Pitch Price
$122.54
Price Target
195.00 (+239%)
Dividend
4.44%
EV/EBITDA
9.03
P/E
22.71
EV/Sales
1.70
Sector
Chemicals
Category
value
SMG: Buy two, get one free
SMG: Scotts Miracle-Gro’s lawn-and-garden businesses are valued at roughly $138 per share, close to the then-current $147 price, leaving fast-growing hydroponics supplier Hawthorne — valued at $56 per share — almost free. A sum-of-the-parts valuation yields a $195 target, or 32% upside, supported by Hawthorne’s 54% FY20 growth and improving leverage. The key risks are consumer-business normalization and an aggressive 25% FY22 Hawthorne growth assumption.
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