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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The Scotts Miracle Gro Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 19.77%.
As of today (2026-08-10), The Scotts Miracle Gro Co's WACC % is 9.97%. The Scotts Miracle Gro Co's ROIC % is 10.77% (calculated using TTM income statement data).
The Scotts Miracle Gro Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
The Scotts Miracle Gro Co (NYSE:SMG) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, The Scotts Miracle Gro Co's WACC % is 9.97%. The Scotts Miracle Gro Co's ROIC % is 10.77% (calculated using TTM income statement data).
The Scotts Miracle Gro Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Agricultural Inputs subindustry, The Scotts Miracle Gro Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Scotts Miracle Gro Co ROIC % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, The Scotts Miracle Gro Co's ROIC % distribution charts can be found below:
* The bar in red indicates where The Scotts Miracle Gro Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Scotts Miracle Gro Co (SMG) has a ROIC % of 19.77% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on The Scotts Miracle Gro Co and its competitors.
Is The Scotts Miracle Gro Co's ROIC % too high?
The Scotts Miracle Gro Co's current ROIC % is 19.77%. The Agriculture industry median ROIC % is 5.30. The Scotts Miracle Gro Co's value of 19.77% is 273% above this industry median. Overall, The Scotts Miracle Gro Co has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Scotts Miracle Gro Co's ROIC % compare to FMC and UAN?
The Scotts Miracle Gro Co's ROIC % of 19.77% can be compared against companies in the Agriculture industry. The industry median ROIC % is 5.30. The Scotts Miracle Gro Co's value of 19.77% is 273% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Agriculture company?
The median ROIC % among Agriculture companies is 5.30, based on 258 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Scotts Miracle Gro Co's current ROIC % of 19.77% is 273% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on The Scotts Miracle Gro Co and its competitors. For the Agriculture industry, the median ROIC % is 5.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Scotts Miracle Gro Co's current ROIC % is 19.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Scotts Miracle Gro Co stock overvalued right now?
Based on GuruFocus' analysis, The Scotts Miracle Gro Co (SMG) is currently considered Fairly Valued. The stock's GF Value™ is $61.01, compared to a current price of $62.27 — trading 2.1% above its estimated fair value. The current ROIC % is 19.77% and 273% above the Agriculture industry median of 5.30. The Scotts Miracle Gro Co's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For The Scotts Miracle Gro Co (SMG), the current ROIC % is 19.77% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Scotts Miracle Gro Co (SMG) Overvalued in 2026?
Based on GuruFocus' analysis, The Scotts Miracle Gro Co stock appears to be overvalued.
The current stock price of $62.27 is trading 2.1% above its estimated GF Value™ of $61.01.
GuruFocus considers The Scotts Miracle Gro Co to be Fairly Valued.
Key valuation signals for SMG:
ROIC %: 19.77%
GF Value™: $61.01 vs. price of $62.27 (2.1% above fair value)
Industry Position: 273% above the Agriculture median
No single metric tells the full story. See the SMG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Scotts Miracle-Gro is the largest purveyor of home lawn and gardening products in the US. The company sells a broad range of lawncare products, including grass seed, fertilizer, and lawn-related weed, animal, and disease control. US consumer typically generates the vast majority of companywide revenue and profits. Its lawncare and gardening products are well-recognized brands in the US, including Scotts, Miracle-Gro, Roundup, Ortho, and Tomcat. Over half of revenue typically comes from Home Depot and Lowe's, as Scotts' products are featured at both home improvement retailers.
66GF Score
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