Scotts Miracle-Gro Company (The) (SMG) Company Bio
Scotts Miracle-Gro Company manufactures, markets, and sells consumer lawn and garden care products worldwide. The company was founded in 1868 and is in Marysville, Ohio.
SMG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SMG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Scotts Miracle-Gro Co ranked in the 40th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for SMG, they are:
The company's balance sheet shows it gets 84% of its capital from equity, and 16% of its capital from debt. Notably, its equity weight is greater than 68.67% of US equities in the Basic Materials sector yielding a positive free cash flow.
Scotts Miracle-Gro Co's effective tax rate, as measured by taxes paid relative to net income, is at 17 -- greater than 66.07% of US stocks with positive free cash flow.
Scotts Miracle-Gro Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 6.07. This coverage rate is greater than that of 66.81% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SMG, try SHW, NP, WLK, USAP, and PPG.
Dividend Increases are the foundation of our plan to achieve financial freedom. We are looking to build a growing, passive income stream using dividends! The key word in the previous sentence is growing. That is why the two of us are always monitoring our companies to see if they announce...
Dividend Diplomats on Seeking Alpha | August 7, 2020
From the companies we’ve been following, there are few that have benefitted from COVID-19 like Scotts Miracle-Gro (SMG) has done. A strong Q3 has caused management to update their outlook, with company-wide sales growth now expected to be in the range of 26% to 28% from their previous target of...