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SMG (The Scotts Miracle Gro Co) Piotroski F-Score : 5 (As of Oct. 31, 2024)


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What is The Scotts Miracle Gro Co Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Scotts Miracle Gro Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for The Scotts Miracle Gro Co's Piotroski F-Score or its related term are showing as below:

SMG' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of The Scotts Miracle Gro Co was 8. The lowest was 3. And the median was 5.


The Scotts Miracle Gro Co Piotroski F-Score Historical Data

The historical data trend for The Scotts Miracle Gro Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Scotts Miracle Gro Co Piotroski F-Score Chart

The Scotts Miracle Gro Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 6.00 6.00 3.00 4.00

The Scotts Miracle Gro Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 4.00 3.00 5.00 5.00

Competitive Comparison of The Scotts Miracle Gro Co's Piotroski F-Score

For the Agricultural Inputs subindustry, The Scotts Miracle Gro Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Scotts Miracle Gro Co's Piotroski F-Score Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, The Scotts Miracle Gro Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where The Scotts Miracle Gro Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was -468.4 + -80.5 + 157.5 + 132.1 = $-259 Mil.
Cash Flow from Operations was 535.3 + -343.2 + 304.2 + 588 = $1,084 Mil.
Revenue was 374.5 + 410.4 + 1525.4 + 1202.2 = $3,513 Mil.
Gross Profit was -57 + 62.2 + 463.7 + 354.1 = $823 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(4454.4 + 3413.7 + 3716.1 + 3924.2 + 3489.3) / 5 = $3799.54 Mil.
Total Assets at the begining of this year (Jun23) was $4,454 Mil.
Long-Term Debt & Capital Lease Obligation was $2,436 Mil.
Total Current Assets was $1,538 Mil.
Total Current Liabilities was $854 Mil.
Net Income was -220 + -64.7 + 109.4 + 43.7 = $-132 Mil.

Revenue was 493.7 + 526.6 + 1531.5 + 1118.7 = $3,671 Mil.
Gross Profit was -70.8 + 95.7 + 412.7 + 205.9 = $644 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(4993.7 + 4296.8 + 4534 + 4988.1 + 4454.4) / 5 = $4653.4 Mil.
Total Assets at the begining of last year (Jun22) was $4,994 Mil.
Long-Term Debt & Capital Lease Obligation was $2,629 Mil.
Total Current Assets was $2,251 Mil.
Total Current Liabilities was $1,329 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Scotts Miracle Gro Co's current Net Income (TTM) was -259. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Scotts Miracle Gro Co's current Cash Flow from Operations (TTM) was 1,084. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=-259.3/4454.4
=-0.0582121

ROA (Last Year)=Net Income/Total Assets (Jun22)
=-131.6/4993.7
=-0.02635321

The Scotts Miracle Gro Co's return on assets of this year was -0.0582121. The Scotts Miracle Gro Co's return on assets of last year was -0.02635321. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

The Scotts Miracle Gro Co's current Net Income (TTM) was -259. The Scotts Miracle Gro Co's current Cash Flow from Operations (TTM) was 1,084. ==> 1,084 > -259 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=2436.4/3799.54
=0.64123552

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=2628.8/4653.4
=0.56492027

The Scotts Miracle Gro Co's gearing of this year was 0.64123552. The Scotts Miracle Gro Co's gearing of last year was 0.56492027. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun24)=Total Current Assets/Total Current Liabilities
=1538.4/854.4
=1.8005618

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=2251/1329.1
=1.69362727

The Scotts Miracle Gro Co's current ratio of this year was 1.8005618. The Scotts Miracle Gro Co's current ratio of last year was 1.69362727. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

The Scotts Miracle Gro Co's number of shares in issue this year was 58. The Scotts Miracle Gro Co's number of shares in issue last year was 56.6. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=823/3512.5
=0.23430605

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=643.5/3670.5
=0.17531671

The Scotts Miracle Gro Co's gross margin of this year was 0.23430605. The Scotts Miracle Gro Co's gross margin of last year was 0.17531671. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=3512.5/4454.4
=0.78854616

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=3670.5/4993.7
=0.73502613

The Scotts Miracle Gro Co's asset turnover of this year was 0.78854616. The Scotts Miracle Gro Co's asset turnover of last year was 0.73502613. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+0+1+0+1+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Scotts Miracle Gro Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The Scotts Miracle Gro Co  (NYSE:SMG) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


The Scotts Miracle Gro Co Piotroski F-Score Related Terms

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The Scotts Miracle Gro Co Business Description

Traded in Other Exchanges
Address
14111 Scottslawn Road, Marysville, OH, USA, 43041
Scotts Miracle-Gro is the largest purveyor of home lawn and gardening products in the us. The business consists of three reporting segments: us consumer, Hawthorne, and other. The us consumer segment consists of a broad range of lawncare products, including grass seed, fertilizer, and lawn-related weed, animal, and disease control. us consumer typically generates the vast majority of companywide revenue and profits. Hawthorne sells indoor gardening and hydroponic equipment, particularly to the cannabis growing industry, while the other segment primarily consists of lawn and gardening products sold in Canada. Its lawncare and gardening products are well-recognized brands in the us, including Scotts, Miracle-Gro, Roundup, Ortho, and Tomcat.
Executives
Nathan Eric Baxter 10 percent owner C/O HAGEDORN PARTNERSHIP, L.P., 800 PORT WASHINGTON BOULEVARD, PORT WASHINGTON NY 11050
Hagedorn Partnerships L P 10 percent owner SCOTTS MIRACLE-GRO PRODUCTS INC, 800 PORT WASHINGTON BLVD, PORT WASHINGTON NY 11050
Stephen L Johnson director 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Nancy G. Mistretta director 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Kelly Thomas N Jr director C/O THE SCOTTS MIRACLE-GRO COMPANY, 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
James Hagedorn director, 10 percent owner, officer: President and CEO C/O SCOTTS CO, 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Julie Demuesy officer: SVP, CHIEF HUMAN RESOURCES 14111 SCOTTSLAWN RD, MARYSVILLE OH 43041
Mark D Kingdon director 14111 SCOTTSLAWN RD, MARYSVILLE OH 43041
Edith Aviles director 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Dimiter Todorov officer: EVP, GC & CORPORATE SECRETARY 14111 SCOTTSLAWN RD, MARYSVILLE OH 43041
Matthew E Garth officer: EVP & CFO 622 THIRD AVENUE, 38TH FLOOR, NEW YORK NY 10017
David C Evans officer: EVP and CFO C/O THE SCOTTS MIRACLE-GRO COMPANY, 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Peter E Shumlin director 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Brian E Sandoval director 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
James D King officer: EVP and CCO 14111 SCOTTSLAWN RD, MARYSVILLE OH 43041