The Scotts Miracle-Gro Company (SMG): A Bull Case Theory

From Yahoo Finance: 2025-06-09 09:27:00

The Scotts Miracle-Gro Company (SMG) is trading at $57.31 with a trailing P/E of 98.81 and forward P/E of 12.38. CEO Jim Hagedorn is leading a turnaround strategy focusing on core U.S. Consumer business and operational efficiency. Management targets $700 million EBITDA by FY27, with potential for shareholder returns through buybacks and dividends.

The bullish thesis on SMG highlights its improved strategic direction, operational momentum, and undervalued stock price at 12x EV/EBIT. The company aims for capital returns and margin growth, anticipating a reduction in share count and increased earnings potential. Despite not being among the top 30 hedge fund picks, SMG exhibits promising potential for investors.

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