SMG’s stock performance
The Scotts Miracle-Gro Company (SMG) is easy to miss if you find the lawn and gardening business unexciting. However, this company has returned an impressive 49% YTD (year-to-date), outperforming the S&P 500 (SPY), which has returned 11% so far this year. Scotts Miracle-Gro has outperformed the S&P 500 since its listing date in 1992.
When Scotts Miracle-Gro was listed on the NASDAQ, it opened at $19 per share. Following the merger with Stern’s Miracle-Gro Products in 1995, the company was listed on the New York Stock Exchange under the ticker SMG.
Without adjusting for inflation, the company has returned 792% over a 24-year period, compared with the S&P 500’s 454% return. On a compound annual basis, the company’s return stands at ~10%, compared with the S&P 500’s ~7.7% return.
In this series, we’ll cover Scotts Miracle-Gro. We’ll look at how the company began and how it has evolved over the years to suit the demands of the market. Also, we’ll analyze the company’s sales drivers and cost structure. Later, we’ll compare the company’s fundamentals with those of peers such as Central Garden & Pet (CENT), Spectrum Brands (SPB), and Seaboard (SEB). Let’s begin with the history of The Scotts Miracle-Gro Company.