Scotts Story

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SMG -- USA Stock  

USD 213.03  7.35  3.34%

While some millenniums may be indifferent towards basic materials space, we will examine how sound are Scotts Miracle fundamentals compared to HRG. We are going to discuss some of the competitive aspects of both Scotts and HRG.
Published over two weeks ago
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What should I trade first Scotts (NYSE:SMG) or HRG?
By analyzing existing basic indicators between Scotts Miracle and HRG, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in HRG with a short position in Scotts Miracle. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Scotts Miracle has an asset utilization ratio of 147.04 percent. This indicates that the company is making $1.47 for each dollar of assets. An increasing asset utilization means that Scotts Miracle Gro is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Scotts or HRG is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Scotts Miracle-Gro dividends

A dividend is the distribution of a portion of Scotts Miracle-Gro earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Scotts Miracle-Gro dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Scotts one year expected dividend income is about $2.83 per share.
The current year Dividend Yield is expected to grow to 0.0364, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (144.7 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-134.1 M-144.7 M
Dividend Yield 0.0265  0.0364 
Dividends per Basic Common Share 1.72  1.69 
Investing in dividend-paying stocks, such as Scotts Miracle-Gro is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Scotts Miracle-Gro must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Scotts Miracle-Gro. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Scotts Miracle-Gro's Liquidity

Scotts Miracle-Gro financial leverage refers to using borrowed capital as a funding source to finance Scotts Miracle-Gro ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Scotts Miracle-Gro financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Scotts Miracle-Gro's total debt and its cash.

Correlation Between Scotts and HRG Group

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Scotts Miracle-Gro together with similar or unrelated positions with a negative correlation. For example, you can also add HRG to your portfolio. If HRG is not perfectly correlated to Scotts Miracle-Gro it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Scotts Miracle-Gro for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between SMG and HRG for more information.

Another 3 percent surge for Scotts Miracle

The maximum drawdown is down to 16.87 as of today. As of the 3rd of February, Scotts Miracle has the Coefficient Of Variation of 400.37, semi deviation of 2.44, and Risk Adjusted Performance of 0.2306. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Scotts Miracle Gro, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Scotts Miracle Gro, which can be compared to its competition. Please validate Scotts Miracle Gro variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Scotts Miracle is priced more or less accurately, providing market reflects its prevalent price of 240.17 per share. Given that Scotts Miracle Gro has jensen alpha of 0.6123, we advise you to double-check Scotts Miracle Gro's current market performance to make sure the company can sustain itself at a future point.

Although some other firms under the agricultural inputs industry are still a bit expensive, Scotts Miracle may offer a potential longer-term growth to shareholders. To summarize, as of the 3rd of February 2021, we see that Scotts Miracle moves indifferently to market moves. The firm is overvalued with low chance of bankruptcy within the next 24 months. Our concluding 30 days buy-or-sell advice on the firm is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Scotts Miracle-Gro. Please refer to our Terms of Use for any information regarding our disclosure principles.

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