Scotts Miracle-gro Stock Fair Value Calculation – SCOTTS MIRACLE-GRO Reports 5.7% Decrease in Revenue for FY2023 Q3
August 22, 2023
🌥️Earnings Overview
SCOTTS MIRACLE-GRO ($NYSE:SMG) released their FY2023 Q3 earnings report on June 30th, 2023, which showed total revenue of USD 1118.7 million, a 5.7% decrease from the previous year’s quarter. Net income, however, rose to USD 43.7 million, a 109.8% increase compared to the same period in the preceding year.
Analysis – Scotts Miracle-gro Stock Fair Value Calculation
GoodWhale has recently conducted an analysis of SCOTTS MIRACLE-GRO‘s wellbeing and has concluded that the fair value of the company’s share is around $98.8. This figure was calculated using GoodWhale’s proprietary Valuation Line, which takes into account a wide range of factors and data to come to an accurate conclusion. Currently, SCOTTS MIRACLE-GRO stock is being traded at $57.9, which means that it is undervalued by 41.4%. This provides a great opportunity for investors to buy the stock at a discounted rate and benefit from the potential growth of the company in the future. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Scotts Miracle-gro. More…
| Total Revenues | Net Income | Net Margin |
| 3.67k | -131.7 | -2.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Scotts Miracle-gro. More…
| Operations | Investing | Financing |
| 546.3 | 6.7 | -553.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Scotts Miracle-gro. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.45k | 4.32k | 2.4 |
Key Ratios Snapshot
Some of the financial key ratios for Scotts Miracle-gro are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.6% | -46.1% | 0.2% |
| FCF Margin | ROE | ROA |
| 12.5% | 4.0% | 0.1% |
Peers
The Scotts Miracle Gro Co. is a leading manufacturer and marketer of consumer products for do-it-yourself lawn and garden care. The company’s products are sold under the brand names Scotts, Miracle-Gro and Ortho. Nutrien Ltd., Potash America Inc., and CF Industries Holdings Inc. are all major competitors in the lawn and garden care industry.
– Nutrien Ltd ($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 recently released their earnings report for Q3 of FY2023, revealing total revenue of $1118.7 million, down 5.7% from the same period in the previous year.
However, net income rose to $43.7 million, a 109.8% increase year over year. Consequently, the stock price dropped the same day. Investors may be wary of these results, as the decrease in revenue could signal ongoing challenges with the company despite the strong net income result. However, it is important to consider a variety of factors when making an investment decision, such as the company’s performance over time and its future outlook.
