Scotts Miracle-gro Intrinsic Value Calculation – SCOTTS MIRACLE-GRO Reports Fiscal Year 2023 Q3 Earnings Results on August 2, 2023
August 22, 2023
🌥️Earnings Overview
On August 2, 2023, SCOTTS MIRACLE-GRO ($NYSE:SMG) released its fiscal year 2023, quarter 3 (ending June 30, 2023) earnings results. The total revenue reported was USD 1118.7 million, a decrease of 5.7% from the same quarter in the prior year. However, net income rose by 109.8% to USD 43.7 million.
Stock Price
The stock opened at $60.0 in the morning and by the end of the day had closed at $57.9, a plunge of 19.0% from the previous closing price of 71.4. This shocking drop in stock prices is likely due to a disappointing earnings report, as investors had expected stronger financial performance from the company. The unfavorable report came as a surprise to many analysts who were bullish on the prospects of SCOTTS MIRACLE-GRO. Many investors have been watching the company closely and had forecasted positive returns for its stock in the upcoming quarter.
Despite optimism, the company failed to deliver the expected performance, leading to a drop in stock prices. In light of the disappointing results, investors should remain vigilant and carefully consider their investments in SCOTTS MIRACLE-GRO going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Scotts Miracle-gro. More…
| Total Revenues | Net Income | Net Margin |
| 3.67k | -131.7 | -2.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Scotts Miracle-gro. More…
| Operations | Investing | Financing |
| 546.3 | 6.7 | -553.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Scotts Miracle-gro. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.45k | 4.32k | 2.4 |
Key Ratios Snapshot
Some of the financial key ratios for Scotts Miracle-gro are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.6% | -46.1% | 0.2% |
| FCF Margin | ROE | ROA |
| 12.5% | 4.0% | 0.1% |
Analysis – Scotts Miracle-gro Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis on SCOTTS MIRACLE-GRO‘s wellbeing. Through our proprietary Valuation Line, we were able to calculate SCOTTS MIRACLE-GRO’s intrinsic value to be around $99.1. Interestingly, it appears that SCOTTS MIRACLE-GRO’s stock is currently being traded at $57.9 – significantly lower than its intrinsic value. This means that SCOTTS MIRACLE-GRO is currently undervalued by a staggering 41.6%. More…
Peers
The Scotts Miracle Gro Co. is a leading manufacturer and marketer of consumer products for do-it-yourself lawn and garden care. The company’s products are sold under the brand names Scotts, Miracle-Gro and Ortho. Nutrien Ltd., Potash America Inc., and CF Industries Holdings Inc. are all major competitors in the lawn and garden care industry.
– Nutrien Ltd ($TSX:NTR)
Nutrien Ltd. is a Canadian retail and wholesale fertilizer company with operations in North and South America, Australia, and Asia. The company is the largest provider of crop inputs and services in the world. Nutrien Ltd. has a market cap of 58.31B as of 2022, a Return on Equity of 23.76%. The company’s retail operations include more than 1,700 retail locations across North America, South America, and Australia. The company’s wholesale operations include a network of distribution facilities in North America, South America, Asia, and Australia. Nutrien Ltd. also has a joint venture with Sinochem Group, one of the largest chemical companies in China.
– Potash America Inc ($OTCPK:PTAM)
Potash America Inc is a fertilizer company that produces and sells potash, a key ingredient in many fertilizers. The company has a market cap of 297.25k as of 2022 and a return on equity of 144.09%. Potash America Inc is a publicly traded company on the OTC markets.
– CF Industries Holdings Inc ($NYSE:CF)
CF Industries Holdings, Inc., through its subsidiaries, engages in the manufacture and distribution of nitrogen fertilizers, and other nitrogen products in North America. It operates through Ammonia, Granular Urea, UAN, AN, Other, and Phosphates segments. The company offers ammonia, granular urea, urea ammonium nitrate, and nitric acid products. It also produces phosphate-based fertilizers, including diammonium phosphate, monoammonium phosphate, and nitrogen phosphates. The company sells its products directly to retailers, farmers, and cooperatives, as well as through dealers and distributors. CF Industries Holdings, Inc. was incorporated in 1946 and is headquartered in Deerfield, Illinois.
Summary
SCOTTS MIRACLE-GRO reported its earnings results for the third quarter of fiscal year 2023 (ending June 30, 2023) on August 2, 2023. Total revenue for the quarter decreased by 5.7% to USD 1118.7 million, and reported net income increased by 109.8% to USD 43.7 million compared to the same period last year. Despite the positive financials, stock prices moved down the same day, suggesting investor sentiment is cautious. Analysts will be looking at the potential for future earnings growth and balance sheet strength, as well as company strategies and competitive advantages, when making their investment decisions.
