Is the business good?
How good a business is SMG?
The Scotts Miracle-Gro Company earns 17% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
17%
Return on invested capital · cost of capital 9.0% · 8.1 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Agricultural Inputs median 11% · 12 months to Q2 2026
- Share count, year on year
- +1.2%
Share count, year on year · shareholders own a smaller slice than a year ago
- Gross margin
- 32%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 14% |
| FY2021 | 15% |
| FY2022 | −11% |
| FY2023 | −4.9% |
| FY2024 | 5.9% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q2 2026
- 32%
- Operating margin12 months to Q2 2026
- 13%
- Free cash flow margin
- 11%
- Revenue, trailing twelve months
- $3.39B
- Free cash flow, trailing twelve months
- $380M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 17%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Agricultural Inputs
Ranks #3 of 7 by Smart Score