GRIFFON CORP (GFF) Stock Fundamental Analysis
NYSE:GFF - New York Stock Exchange, Inc. - US3984331021 - Common Stock - Currency: USD
Taking everything into account, GFF scores 6 out of 10 in our fundamental rating. GFF was compared to 42 industry peers in the Building Products industry. While GFF belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GFF is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
GFF had positive earnings in the past year.
In the past year GFF had a positive cash flow from operations.
GFF had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GFF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GFF (9.86%) is better than 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 107.66%, GFF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
GFF has a better Return On Invested Capital (15.28%) than 76.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GFF is in line with the industry average of 12.98%.
The 3 year average ROIC (13.01%) for GFF is below the current ROIC(15.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.86% | ||
| ROE | 107.66% | ||
| ROIC | 15.28% |
ROA(3y)1.75%
ROA(5y)2.1%
ROE(3y)25.95%
ROE(5y)19.05%
ROIC(3y)13.01%
ROIC(5y)10.16%
1.3 Margins
The Profit Margin of GFF (9.06%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GFF has grown nicely.
With a decent Operating Margin value of 17.27%, GFF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of GFF has grown nicely.
GFF has a better Gross Margin (41.23%) than 78.57% of its industry peers.
In the last couple of years the Gross Margin of GFF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.27% | ||
| PM (TTM) | 9.06% | ||
| GM | 41.23% |
OM growth 3Y25.65%
OM growth 5Y23.71%
PM growth 3Y31.88%
PM growth 5Y32.08%
GM growth 3Y12.08%
GM growth 5Y7.85%
2. Health
2.1 Basic Checks
GFF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GFF has less shares outstanding than it did 1 year ago.
GFF has more shares outstanding than it did 5 years ago.
GFF has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.24 indicates that GFF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.24, GFF is in line with its industry, outperforming 50.00% of the companies in the same industry.
GFF has a debt to FCF ratio of 5.35. This is a neutral value as GFF would need 5.35 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.35, GFF is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
A Debt/Equity ratio of 7.12 is on the high side and indicates that GFF has dependencies on debt financing.
GFF has a Debt to Equity ratio of 7.12. This is amonst the worse of the industry: GFF underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.12 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.62
WACC9.41%
2.3 Liquidity
GFF has a Current Ratio of 2.78. This indicates that GFF is financially healthy and has no problem in meeting its short term obligations.
GFF's Current ratio of 2.78 is fine compared to the rest of the industry. GFF outperforms 76.19% of its industry peers.
A Quick Ratio of 1.48 indicates that GFF should not have too much problems paying its short term obligations.
The Quick ratio of GFF (1.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.78% over the past year.
Measured over the past years, GFF shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.56% on average per year.
GFF shows a decrease in Revenue. In the last year, the revenue decreased by -3.38%.
GFF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.96% yearly.
EPS 1Y (TTM)8.78%
EPS 3Y39.99%
EPS 5Y36.56%
EPS Q2Q%-8.89%
Revenue 1Y (TTM)-3.38%
Revenue growth 3Y4.93%
Revenue growth 5Y6.96%
Sales Q2Q%-9.09%
3.2 Future
The Earnings Per Share is expected to grow by 15.12% on average over the next years. This is quite good.
GFF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.08% yearly.
EPS Next Y11.88%
EPS Next 2Y12.5%
EPS Next 3Y15.12%
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y1.02%
Revenue Next 3Y1.08%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.61, which indicates a correct valuation of GFF.
Based on the Price/Earnings ratio, GFF is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GFF to the average of the S&P500 Index (25.82), we can say GFF is valued rather cheaply.
GFF is valuated reasonably with a Price/Forward Earnings ratio of 10.35.
Based on the Price/Forward Earnings ratio, GFF is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. GFF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GFF indicates a somewhat cheap valuation: GFF is cheaper than 71.43% of the companies listed in the same industry.
83.33% of the companies in the same industry are more expensive than GFF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.99 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GFF may justify a higher PE ratio.
A more expensive valuation may be justified as GFF's earnings are expected to grow with 15.12% in the coming years.
PEG (NY)1.06
PEG (5Y)0.34
EPS Next 2Y12.5%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
GFF has a Yearly Dividend Yield of 1.06%.
Compared to an average industry Dividend Yield of 1.19, GFF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, GFF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of GFF grows each year by 18.06%, which is quite nice.
GFF has been paying a dividend for at least 10 years, so it has a reliable track record.
GFF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)18.06%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
16.25% of the earnings are spent on dividend by GFF. This is a low number and sustainable payout ratio.
The dividend of GFF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.25%
EPS Next 2Y12.5%
EPS Next 3Y15.12%
67.2
-0.43 (-0.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners80.39%
Inst Owner Change2.97%
Ins Owners10.52%
Ins Owner Change0.93%
Market Cap3.16B
Analysts87.27
Price Target100.11 (48.97%)
Short Float %5.17%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend0.68
Dividend Growth(5Y)18.06%
DP16.25%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.35%
Min EPS beat(2)11.43%
Max EPS beat(2)15.26%
EPS beat(4)3
Avg EPS beat(4)10.92%
Min EPS beat(4)-6.57%
Max EPS beat(4)23.55%
EPS beat(8)7
Avg EPS beat(8)25.53%
EPS beat(12)11
Avg EPS beat(12)29.71%
EPS beat(16)14
Avg EPS beat(16)52.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)-1.87%
Revenue beat(4)1
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-6.9%
Max Revenue beat(4)1.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.35%
Revenue beat(12)3
Avg Revenue beat(12)-1.19%
Revenue beat(16)5
Avg Revenue beat(16)-3.08%
PT rev (1m)-3.15%
PT rev (3m)-4.34%
EPS NQ rev (1m)-1.79%
EPS NQ rev (3m)-2.17%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)-2.15%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 10.35 | ||
| P/S | 1.24 | ||
| P/FCF | 10.99 | ||
| P/OCF | 8.93 | ||
| P/B | 14.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.09 |
EPS(TTM)5.33
EY7.93%
EPS(NY)6.49
Fwd EY9.66%
FCF(TTM)6.11
FCFY9.1%
OCF(TTM)7.52
OCFY11.2%
SpS54.25
BVpS4.57
TBVpS-15.29
PEG (NY)1.06
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.86% | ||
| ROE | 107.66% | ||
| ROCE | 21.9% | ||
| ROIC | 15.28% | ||
| ROICexc | 16.32% | ||
| ROICexgc | 32.34% | ||
| OM | 17.27% | ||
| PM (TTM) | 9.06% | ||
| GM | 41.23% | ||
| FCFM | 11.27% |
ROA(3y)1.75%
ROA(5y)2.1%
ROE(3y)25.95%
ROE(5y)19.05%
ROIC(3y)13.01%
ROIC(5y)10.16%
ROICexc(3y)13.73%
ROICexc(5y)10.9%
ROICexgc(3y)27.02%
ROICexgc(5y)20.88%
ROCE(3y)18.64%
ROCE(5y)14.56%
ROICexcg growth 3Y35.8%
ROICexcg growth 5Y28.19%
ROICexc growth 3Y29.9%
ROICexc growth 5Y27.94%
OM growth 3Y25.65%
OM growth 5Y23.71%
PM growth 3Y31.88%
PM growth 5Y32.08%
GM growth 3Y12.08%
GM growth 5Y7.85%
F-Score6
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.12 | ||
| Debt/FCF | 5.35 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 106.8% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.36% | ||
| Profit Quality | 124.37% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.24 |
F-Score6
WACC9.41%
ROIC/WACC1.62
Cap/Depr(3y)91.87%
Cap/Depr(5y)85.09%
Cap/Sales(3y)2.16%
Cap/Sales(5y)2.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.78%
EPS 3Y39.99%
EPS 5Y36.56%
EPS Q2Q%-8.89%
EPS Next Y11.88%
EPS Next 2Y12.5%
EPS Next 3Y15.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.38%
Revenue growth 3Y4.93%
Revenue growth 5Y6.96%
Sales Q2Q%-9.09%
Revenue Next Year-1.14%
Revenue Next 2Y1.02%
Revenue Next 3Y1.08%
Revenue Next 5YN/A
EBIT growth 1Y5.68%
EBIT growth 3Y31.85%
EBIT growth 5Y32.32%
EBIT Next Year28.63%
EBIT Next 3Y14.92%
EBIT Next 5YN/A
FCF growth 1Y-19.89%
FCF growth 3Y60.43%
FCF growth 5Y32.06%
OCF growth 1Y-9.56%
OCF growth 3Y49.99%
OCF growth 5Y27.54%