GRIFFON CORP (GFF) Stock Fundamental Analysis
NYSE:GFF - New York Stock Exchange, Inc. - US3984331021 - Common Stock - Currency: USD
Overall GFF gets a fundamental rating of 6 out of 10. We evaluated GFF against 41 industry peers in the Building Products industry. GFF has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GFF. These ratings could make GFF a good candidate for value investing.
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.
Of the past 5 years GFF 4 years were profitable.
In the past 5 years GFF always reported a positive cash flow from operatings.
1.2 Ratios
GFF has a Return On Assets of 9.86%. This is in the better half of the industry: GFF outperforms 63.41% of its industry peers.
GFF has a Return On Equity of 107.66%. This is amongst the best in the industry. GFF outperforms 100.00% of its industry peers.
GFF has a Return On Invested Capital of 15.28%. This is in the better half of the industry: GFF outperforms 78.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GFF is in line with the industry average of 12.62%.
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
Looking at the Profit Margin, with a value of 9.06%, GFF is in line with its industry, outperforming 51.22% of the companies in the same industry.
GFF's Profit Margin has improved in the last couple of years.
GFF's Operating Margin of 17.27% is fine compared to the rest of the industry. GFF outperforms 68.29% of its industry peers.
In the last couple of years the Operating Margin of GFF has grown nicely.
GFF has a Gross Margin of 41.23%. This is amongst the best in the industry. GFF outperforms 80.49% 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.
The number of shares outstanding for GFF has been increased compared to 5 years ago.
The debt/assets ratio for GFF is higher compared to a year ago.
2.2 Solvency
GFF has an Altman-Z score of 3.41. This indicates that GFF is financially healthy and has little risk of bankruptcy at the moment.
GFF has a Altman-Z score (3.41) which is comparable to the rest of the industry.
The Debt to FCF ratio of GFF is 5.35, which is a neutral value as it means it would take GFF, 5.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.35, GFF is in line with its industry, outperforming 41.46% of the companies in the same industry.
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 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.12 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.41 |
ROIC/WACC1.57
WACC9.71%
2.3 Liquidity
A Current Ratio of 2.78 indicates that GFF has no problem at all paying its short term obligations.
GFF's Current ratio of 2.78 is fine compared to the rest of the industry. GFF outperforms 78.05% of its industry peers.
GFF has a Quick Ratio of 1.48. This is a normal value and indicates that GFF is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.48, GFF is doing good in the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
GFF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.78%, which is quite good.
The Earnings Per Share has been growing by 36.56% on average over the past years. This is a very strong growth
The Revenue has decreased by -3.38% in the past year.
Measured over the past years, GFF shows a small growth in Revenue. The Revenue has been growing by 6.96% on average per year.
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
Based on estimates for the next years, GFF will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.12% on average per year.
Based on estimates for the next years, GFF will show a small growth in Revenue. The Revenue will grow by 1.08% on average per year.
EPS Next Y12.42%
EPS Next 2Y11.9%
EPS Next 3Y15.12%
EPS Next 5YN/A
Revenue Next Year-1.82%
Revenue Next 2Y0.57%
Revenue Next 3Y1.08%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 14.69, which indicates a correct valuation of GFF.
GFF's Price/Earnings ratio is a bit cheaper when compared to the industry. GFF is cheaper than 73.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. GFF is valued slightly cheaper when compared to this.
GFF is valuated correctly with a Price/Forward Earnings ratio of 12.19.
82.93% of the companies in the same industry are more expensive than GFF, based on the Price/Forward Earnings ratio.
GFF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
73.17% of the companies in the same industry are more expensive than GFF, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GFF is valued cheaper than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.81 | ||
| EV/EBITDA | 10.25 |
4.3 Compensation for Growth
GFF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GFF may justify a higher PE ratio.
GFF's earnings are expected to grow with 15.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)0.4
EPS Next 2Y11.9%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, GFF is not a good candidate for dividend investing.
GFF's Dividend Yield is a higher than the industry average which is at 1.14.
Compared to an average S&P500 Dividend Yield of 2.37, GFF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of GFF is nicely growing with an annual growth rate of 18.06%!
GFF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)18.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GFF pays out 16.25% of its income as dividend. This is a sustainable payout ratio.
GFF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.25%
EPS Next 2Y11.9%
EPS Next 3Y15.12%
78.3
-1.32 (-1.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners83.25%
Inst Owner Change0%
Ins Owners10.66%
Ins Owner Change1.89%
Market Cap3.68B
Analysts87.27
Price Target98.65 (25.99%)
Short Float %4.05%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend0.68
Dividend Growth(5Y)18.06%
DP16.25%
Div Incr Years0
Div Non Decr Years0
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)-1.46%
PT rev (3m)-4.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.58%
EPS NY rev (1m)0.48%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 12.19 | ||
| P/S | 1.44 | ||
| P/FCF | 12.81 | ||
| P/OCF | 10.41 | ||
| P/B | 17.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.25 |
EPS(TTM)5.33
EY6.81%
EPS(NY)6.42
Fwd EY8.2%
FCF(TTM)6.11
FCFY7.81%
OCF(TTM)7.52
OCFY9.61%
SpS54.25
BVpS4.57
TBVpS-15.29
PEG (NY)1.18
PEG (5Y)0.4
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 | 3.41 |
F-Score6
WACC9.71%
ROIC/WACC1.57
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 Y12.42%
EPS Next 2Y11.9%
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-1.82%
Revenue Next 2Y0.57%
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%