The firm said it upgraded the lawn and garden products manufacturer and marketer company after reading positive consumer surveys.
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- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Chemicals industry and the overall market, SCOTTS MIRACLE-GRO CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- SCOTTS MIRACLE-GRO CO's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SCOTTS MIRACLE-GRO CO increased its bottom line by earning $2.56 versus $1.79 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $2.56).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.66% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- SMG, with its decline in revenue, underperformed when compared the industry average of 12.7%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income increased by 3.1% when compared to the same quarter one year prior, going from -$67.70 million to -$65.60 million.
- You can view the full analysis from the report here: SMG Ratings Report