Scotts Miracle-Gro

CIN rates Scotts Miracle-Gro Neutral, with a 47.8 composite score and low 1/5 conviction. Fundamentals provide the principal support at 75, led by near-maximal operating-margin and market-capitalization subscores, plus a strong positive-EBITDA contribution. The 53 regulatory pillar offers secondary support through a clean enforcement record and a middle-tier domestic jurisdiction posture, although filing cadence limits the contribution. Market and editorial pillars constrain the rating at 15 and 30, respectively: institutional pricing feeds recorded no volume, while CIN newsroom coverage contained neither newsroom nor brief activity. The resulting mix places SMG firmly in the Neutral band despite a stable financial condition.

Licensed fundamentals data show year-over-year revenue growth of roughly 5%, sufficient for a mid-50s growth subscore but not enough to create a high-growth profile. Gross margin approached one-third of revenue, translating into a mid-50s subscore, while operating margin reached approximately 28% and generated the strongest operating-quality reading at 98.2. EBITDA stood above $560 million, net income exceeded $110 million, and market capitalization was about $3.8 billion, supporting the top-tier scale assessment and positive-EBITDA runway classification. Primary regulatory filings show the latest filing dated July 1, 2026, with one event recorded across both the trailing 90-day and 180-day windows. That limited cadence produced a 34.4 subscore, partly offset by zero enforcement hits.

The forward catalyst sits squarely within fundamentals, the strongest pillar. Sustained revenue expansion paired with preservation of the elevated operating margin would reinforce earnings quality, validate the stable financial condition, and create room for the composite to overcome weak market-liquidity and editorial inputs. Scale already delivers maximum support, so further rating upside depends less on market capitalization and more on operating execution broadening beyond the current modest sales-growth rate. Regulatory improvement could add incremental support through a more active filing cadence, but the core re-rating mechanism remains fundamental performance. The single most important signal is the next primary filing confirming continued revenue growth without material erosion in operating margin.