SCOTTS MIRACLE-GRO Reports Record Earnings for Q3 FY 2023
August 25, 2023
🌥️Earnings Overview
For the third quarter of fiscal year 2023, SCOTTS MIRACLE-GRO ($NYSE:SMG) reported total revenue of USD 1118.7 million, a decrease of 5.7% from the same period in the previous year. Net income, however, increased by 109.8% to USD 43.7 million compared to the previous year.
Stock Price
On Wednesday, SCOTTS MIRACLE-GRO reported record earnings for Q3 FY 2023, with the company’s stock opening at $60.0 and closing at $57.9, a 19.0% plunge from its previous closing price of $71.4. Despite the drop, the company’s impressive third-quarter performance made it clear that SCOTTS MIRACLE-GRO remains a strong force in the lawn and garden products industry. This solid financial footing has enabled SCOTTS to continue to invest in innovative products and growth strategies to meet the demands of their customers.
The company’s high level of performance in Q3 FY 2023 is a testament to their commitment to quality products and customer service. SCOTTS MIRACLE-GRO continues to be a leader in the lawn and garden products industry, and its earnings this quarter make it clear that they are well-positioned to continue to make strong gains in the future. 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
At GoodWhale, we analyzed SCOTTS MIRACLE-GRO‘s fundamentals and our Star Chart gives a health score of 6/10 for its cashflows and debt, indicating that the company may be able to pay off debts and fund future operations. We found that SCOTTS MIRACLE-GRO is strong in dividends, medium in profitability, and weak in growth and asset. As a result, we classify the company as ‘cow’ – a type of company with track record of paying out consistent and sustainable dividends. Given these fundamental analysis results, investors interested in stability and consistent returns may find SCOTTS MIRACLE-GRO an attractive investment opportunity. For investors with high risk appetite, however, SCOTTS MIRACLE-GRO may not be the best option due to its weaker asset and growth performance. 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 third quarter earnings for the fiscal year 2023, with total revenue of USD 1118.7 million and net income of USD 43.7 million. This marks a 5.7% decrease in revenue and a 109.8% increase in net income compared to the same period last year. Despite the positive results, the stock price decreased after the announcement.
Considering the increased profitability and resilience in light of the decreased revenue, it may be a good time for investors to consider adding SCOTTS MIRACLE-GRO to their portfolios. This company could be an ideal pick for investors looking for capital appreciation and dividend income.
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