The Moat Index

Scotts Miracle-Gro Co

SMG · Materials · $4.1B mkt cap · FY2025 filings · No moat ·

Doesn't clear the bar

35/ 100
No moat

The four filters

Pricing power36

Median gross margin 31.5% over 10y, variable.

Returns on capital61

Median ROIC 13.4%, above the 9% hurdle in 70% of years.

Balance-sheet safety2

Net debt/EBITDA 5.8x, interest coverage 3x.

Capital discipline28

Owner earnings -19.0%/yr, share count shrinking (buybacks).

Margin of safety

Above valueOn sale
No price data
Owner earnings (normalized)
Est. intrinsic value / share
Recent price
$70.98
Discount to value
No price data

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

19 years of fundamentals

The business, in plain English

Scotts Miracle-Gro Co booked $3.4B of revenue in FY2025 in the Materials sector and kept 30.6% of it as gross profit — a moderate-margin business by that measure. After every other cost, 4.3% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $2.8B (FY2008) to $3.4B (FY2025) — about 1.1% a year compounded over 17 years.

It earned 13.7% on invested capital in FY2025, with a median of 14.1% across 18 filed years. The Returns on Capital filter above scores it 61/100.

The balance sheet carried $2.1B of total debt in FY2025 against $47.8M of owner earnings — roughly 44.1 years of owner earnings to retire it all. Balance-Sheet Safety scores it 2/100.

The share count fell 12.7% between FY2009 and FY2025 — management has been retiring shares, which concentrates each remaining owner's claim. Capital Discipline scores it 28/100.

Put together: Returns on Capital is the strongest of the four filters (61/100) and Balance-Sheet Safety the weakest (2/100), which is how SMG lands at 35/100 — a None moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

FY2007–FY2025 · 19 fiscal years, normalized from SMG’s SEC filings

RevenueSales, as filed$3.4B FY2025
$0$2B$4B2007201320192025
Gross marginRevenue kept after cost of goods30.6% FY2025
0%20%40%2007201320192025
Return on invested capitalOperating profit on the capital employed13.7% FY2025
0%20%2007201320192025
Owner earningsCash an owner could take out$47.8M FY2025
−$500M$0$500M2007201320192025

Gaps in a line mean that item isn’t in SMG’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

3 logged readings since Jul 17, 2026 · append-only, never rewritten

Moat Score over timeLast scored reading of each day, on the 0–100 scale35.2 / 100
0406080100WideNarrowShallowNo moatJul 17, 2026

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — SMG has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Materials context

#124 of 214 scored Materials companies, ranked by Moat Score.

Nearest peers by Moat Score

  1. #122COPR IDAHO COPPER CORPORATION36.0 out of 100, No moatNo moat
  2. #123LXFR LUXFER HOLDINGS PLC35.9 out of 100, No moatNo moat
  3. #125BDCO BLUE DOLPHIN ENERGY CO35.1 out of 100, No moatNo moat
  4. #126CLF CLEVELAND-CLIFFS INC.34.8 out of 100, No moatNo moat

Compare SMG with its nearest peersAll Materials companies on the Index →

Common questions about SMG

Does Scotts Miracle-Gro Co have an economic moat?
Based on its FY2025 SEC filings, the Moat Index scores Scotts Miracle-Gro Co (SMG) 35.2 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 36, returns on capital 61, balance-sheet safety 2, capital discipline 28.
How has SMG's Moat Score changed over time?
The record logs 3 readings since Jul 17, 2026; the latest reads 35.2 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.
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