Latest Ratios: P/E Ratio 27.2x · EV/EBITDA 14.4x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.9B | $3.3B | $4.9B | $2.9B | $2.4B | $8.4B | $8.7B | $5.7B | $4.5B | $5.9B | $5.2B |
| Enterprise Value | $6.2B | $5.7B | $7.4B | $5.8B | $5.6B | $10.7B | $10.4B | $7.4B | $6.5B | $7.1B | $6.4B |
| P/E Ratio → | 27.16 | 23.06 | — | — | — | 16.33 | 22.45 | 12.45 | 70.29 | 26.82 | 16.36 |
| P/S Ratio | 1.14 | 0.98 | 1.39 | 0.81 | 0.60 | 1.70 | 2.11 | 1.82 | 1.69 | 2.22 | 1.82 |
| P/B Ratio | — | — | — | — | 16.06 | 8.26 | 12.38 | 7.88 | 12.33 | 8.69 | 6.89 |
| P/FCF | 14.25 | 12.21 | 8.44 | 6.60 | — | 50.86 | 17.57 | 31.09 | 16.39 | 20.60 | 28.83 |
| P/OCF | 10.51 | 9.00 | 7.38 | 5.45 | — | 30.84 | 15.59 | 25.28 | 13.13 | 16.55 | 21.75 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.67 | 2.07 | 1.62 | 1.42 | 2.18 | 2.51 | 2.33 | 2.43 | 2.70 | 2.27 |
| EV / EBITDA | 14.41 | 13.11 | 25.47 | — | — | 13.13 | 15.25 | 9.44 | 22.95 | 13.91 | 12.07 |
| EV / EBIT | 17.42 | 16.22 | 54.52 | — | — | 14.18 | 17.56 | 10.78 | 32.05 | 18.26 | 14.39 |
| EV / FCF | — | 20.76 | 12.63 | 13.16 | — | 65.15 | 20.93 | 39.94 | 23.62 | 25.11 | 35.89 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.6% | 30.6% | 23.9% | 18.5% | 22.2% | 29.8% | 32.6% | 32.3% | 32.5% | 36.8% | 35.1% |
| Operating Margin | 10.5% | 10.5% | 5.9% | -4.9% | -11.1% | 14.7% | 14.2% | 21.9% | 7.5% | 16.4% | 16.2% |
| Net Profit Margin | 4.3% | 4.3% | -1.0% | -10.7% | -11.1% | 10.4% | 9.4% | 14.6% | 2.4% | 8.3% | 11.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | -75.4% | 59.7% | 54.2% | 84.4% | 12.3% | 30.7% | 45.9% |
| ROA | 5.2% | 5.2% | -1.1% | -9.9% | -9.6% | 12.5% | 12.1% | 15.1% | 2.2% | 7.9% | 12.0% |
| ROIC | 13.3% | 13.3% | 6.7% | -4.4% | -9.7% | 18.9% | 18.6% | 22.0% | 6.9% | 16.4% | 18.4% |
| ROCE | 17.4% | 17.4% | 8.8% | -5.8% | -12.4% | 23.7% | 24.2% | 28.5% | 8.6% | 19.6% | 22.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | 22.14 | 2.56 | 2.39 | 2.27 | 5.53 | 2.08 | 1.76 |
| Debt / EBITDA | 5.49 | 5.49 | 8.70 | — | — | 3.18 | 2.47 | 2.12 | 7.14 | 2.73 | 2.47 |
| Net Debt / Equity | — | — | — | — | 21.55 | 2.32 | 2.37 | 2.24 | 5.44 | 1.90 | 1.69 |
| Net Debt / EBITDA | 5.40 | 5.40 | 8.45 | — | — | 2.88 | 2.45 | 2.09 | 7.02 | 2.49 | 2.38 |
| Debt / FCF | — | 8.56 | 4.19 | 6.56 | — | 14.28 | 3.36 | 8.85 | 7.23 | 4.50 | 7.07 |
| Interest Coverage | 2.72 | 2.72 | 0.85 | -1.55 | -3.73 | 9.58 | 6.70 | 6.71 | 2.34 | 5.26 | 7.71 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.27 | 1.27 | 1.31 | 1.81 | 2.06 | 1.77 | 1.28 | 1.68 | 1.45 | 1.62 | 1.66 |
| Quick Ratio | 0.47 | 0.47 | 0.52 | 0.67 | 0.66 | 0.79 | 0.63 | 0.81 | 0.66 | 0.87 | 0.90 |
| Cash Ratio | 0.05 | 0.05 | 0.10 | 0.04 | 0.09 | 0.21 | 0.02 | 0.03 | 0.06 | 0.22 | 0.08 |
| Asset Turnover | — | 1.24 | 1.24 | 1.04 | 0.91 | 1.03 | 1.22 | 1.04 | 0.87 | 0.96 | 1.01 |
| Inventory Turnover | 4.00 | 4.00 | 4.60 | 3.29 | 2.27 | 3.07 | 4.48 | 3.95 | 3.74 | 4.10 | 4.11 |
| Days Sales Outstanding | — | 19.99 | 18.16 | 31.27 | 27.81 | 35.83 | 41.95 | 35.67 | 42.55 | 39.59 | 38.83 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.9% | 4.6% | 3.1% | 5.2% | 7.0% | 1.7% | 4.7% | 2.2% | 2.7% | 2.1% | 2.3% |
| Payout Ratio | 106.3% | 106.3% | — | — | — | 27.9% | 106.1% | 27.0% | 188.4% | 55.1% | 36.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 4.3% | — | — | — | 6.1% | 4.5% | 8.0% | 1.4% | 3.7% | 6.1% |
| FCF Yield | 7.0% | 8.2% | 11.8% | 15.1% | — | 2.0% | 5.7% | 3.2% | 6.1% | 4.9% | 3.5% |
| Buyback Yield | 0.5% | 0.6% | 0.1% | 0.3% | 10.9% | 1.5% | 0.6% | 0.1% | 7.3% | 4.4% | 2.7% |
| Total Shareholder Yield | 4.4% | 5.2% | 3.2% | 5.5% | 17.9% | 3.3% | 5.3% | 2.2% | 10.0% | 6.4% | 4.9% |
| Shares Outstanding | — | $59M | $57M | $56M | $56M | $57M | $57M | $56M | $57M | $60M | $62M |
Seasonal liquidity and leverage
According to recent market data, SMG trades at a TTM P/E of 28.30, which appears to discount the significant earnings volatility observed in recent quarters, while the forward P/E of 16.06 suggests that investors are pricing in a recovery that remains contingent on seasonal performance.
The disparity between trailing and forward multiples indicates that the market is heavily discounting current bottom-line results in anticipation of normalized profitability. Given the company's history of seasonal losses and restructuring, this valuation may be overly optimistic if the Hawthorne segment fails to stabilize.
Based on reported figures, SMG's ROIC has fluctuated wildly, reaching 15.1% in 2026Q2 after periods of negative returns, which suggests that the company's ability to compound capital is currently hampered by the ongoing rightsizing of its hydroponics business and high debt-related interest expenses.
The erratic nature of ROIC reflects the difficulty in maintaining efficient capital deployment when the underlying business segments face divergent demand cycles. Investors should monitor whether the recent improvement in ROIC is a sustainable trend or merely a temporary byproduct of aggressive cost-cutting measures.
As reported in financial statements, SMG's cash conversion cycle remains highly inefficient, peaking at 255 days in 2024Q1, which highlights the company's structural reliance on seasonal inventory build-ups and the resulting pressure on liquidity during the off-peak months of the lawn and garden cycle.
The high DIO and fluctuating CCC indicate that inventory management is the primary lever for operational efficiency, yet this is often constrained by the need to stock big-box retailers ahead of the spring season. This dependency creates a structural risk where inventory miscalculations directly impair cash flow.
According to recent SEC filings, SMG's debt-to-EBITDA ratio reached 5.49 in 2026Q2, a level that, when combined with a negative equity position, suggests a highly leveraged capital structure that leaves little room for error in managing interest coverage during seasonal revenue troughs.
The company's reliance on debt to bridge seasonal working capital needs appears to be a persistent vulnerability that limits strategic flexibility. The interest coverage ratio, which has swung into negative territory in previous quarters, warrants close monitoring as it directly threatens the sustainability of dividend payments.
As indicated by the provided balance sheet data, the company's negative equity position renders the traditional debt-to-equity ratio effectively meaningless, which may mask the true extent of the financial risk currently embedded within the firm's capital structure for unsuspecting market participants.
Analysts should instead focus on debt-to-EBITDA and interest coverage ratios to assess the company's actual ability to service its obligations. Relying on equity-based leverage metrics in this context provides a false sense of security and fails to capture the reality of the company's strained balance sheet.
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Quick answers to the most common questions about buying SMG stock.
The Scotts Miracle-Gro Company's current P/E ratio is 27.2x. The historical average is 24.4x. This places it at the 88th percentile of its historical range.
The Scotts Miracle-Gro Company's current EV/EBITDA is 14.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.7x.
Based on historical data, The Scotts Miracle-Gro Company is trading at a P/E of 27.2x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Scotts Miracle-Gro Company's current dividend yield is 3.92% with a payout ratio of 106.3%.
The Scotts Miracle-Gro Company has 30.6% gross margin and 10.5% operating margin. Operating margin between 10-20% is typical for established companies.
The Scotts Miracle-Gro Company's Debt/EBITDA ratio is 5.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.