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Scotts Miracle-Gro Company (The (SMG) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Basic Materials · Agricultural Inputs

Sell if holding. At $60.88, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 5.5%; Concentration risk — Customer: The Home Depot and Lowe's (52.0%).

Scotts Miracle-Gro is the leading US marketer of branded consumer lawn and garden products (Scotts, Miracle-Gro, Ortho, Roundup) and a provider of indoor/hydroponic products via its Hawthorne segment. Home Depot and Lowe's together accounted for 52% of fiscal 2025 net sales.... Read more

$60.88+5.5% A.UpsideScore 4.8/10#7 of 8 Agricultural Inputs
Stop $57.22Target $64.38(analyst − 13%)A.R:R 0.6:1
Analyst target$74.00+21.6%6 analysts
$64.38our TP
$60.88price
$74.00mean
$80

Sell if holding. At $60.88, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 5.5%; Concentration risk — Customer: The Home Depot and Lowe's (52.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.8/10, moderate confidence.

Passes 4/6 gates (clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Risks
Concentration risk — Customer: The Home Depot and Lowe's (52.0%)
Thin upside margin: 5.5%
Earnings estimates trending DOWN

Key Metrics

P/E (TTM)17.4
P/E (Fwd)13.2
Mkt Cap$3.6B
EV/EBITDA12.3
Profit Mgn2.6%
ROE
Rev Growth-3.3%
Beta1.92
Dividend4.23%
Rating analysts11

Quality Signals

Piotroski F6/9

Options Flow

P/C1.36bearish
IV49%normal

Concentration Risks(10-K Item 1A)

  • HIGHCustomerThe Home Depot and Lowe's52%
    10-K Item 1A: 'Our top two retail customers, The Home Depot and Lowe’s, together accounted for 52% of our fiscal 2025 net sales'

Material Events(8-K, last 90d)

  • 2026-01-29Item 5.02LOW
    Shareholders approved amendment to Long-Term Incentive Plan at Jan 26, 2026 Annual Meeting, increasing authorized shares by 2.75M. Named executive officer equity award forms also described. No officer changes.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers

Revenue shrinking — -3.3% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
1.7
Declining revenue: -3%
Low model confidence on this dimension (33%).

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.5
Obv
1.0
Macd
1.7
Ma Position
4.0
Rsi
5.5
Volume distribution (falling OBV)Above 200-day MA

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
1.3
Growth Rank
2.5
Value Rank
3.9
GatesMomentum 2.5<4.5A.R:R 0.6 < 1.5@spotInsider activity: OKNo SEC red flagsEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARSuitability: Aggressive
RSI
51 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $58.99Resistance $68.80

Price Targets

$57
$64
A.Upside+5.7%
A.R:R0.6:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Momentum score 2.5/10 — below 4.5 minimum
! Reward/Risk 0.6:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-04-29 (nulld)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SMG stock a buy right now?

Sell if holding. At $60.88, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 5.5%; Concentration risk — Customer: The Home Depot and Lowe's (52.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $57.22. Score 4.8/10, moderate confidence.

What is the SMG stock price target?

Take-profit target: $64.38 (+5.5% upside). Prior stop was $57.22. Stop-loss: $57.22.

What are the risks of investing in SMG?

Concentration risk — Customer: The Home Depot and Lowe's (52.0%); Thin upside margin: 5.5%; Earnings estimates trending DOWN.

Is SMG overvalued or undervalued?

Scotts Miracle-Gro Company (The trades at a P/E of 17.4 (forward 13.2). TrendMatrix value score: 7.5/10. Verdict: Sell.

What do analysts say about SMG?

11 analysts cover SMG with a consensus score of 4.0/5. Average price target: $74.

What does Scotts Miracle-Gro Company (The do?Scotts Miracle-Gro is the leading US marketer of branded consumer lawn and garden products (Scotts, Miracle-Gro, Ortho,...

Scotts Miracle-Gro is the leading US marketer of branded consumer lawn and garden products (Scotts, Miracle-Gro, Ortho, Roundup) and a provider of indoor/hydroponic products via its Hawthorne segment. Home Depot and Lowe's together accounted for 52% of fiscal 2025 net sales. Scotts is the exclusive US marketing agent for Monsanto's consumer Roundup brand.

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