GRIFFON CORP (GFF)
US3984331021 - Common Stock
Overall GFF gets a fundamental rating of 5 out of 10. We evaluated GFF against 43 industry peers in the Building Products industry. GFF has an average financial health and profitability rating. GFF is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years GFF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GFF (2.97%) is worse than 76.74% of its industry peers.
Looking at the Return On Equity, with a value of 24.94%, GFF is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
GFF has a Return On Invested Capital of 14.23%. This is in the better half of the industry: GFF outperforms 62.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GFF is below the industry average of 13.68%.
The last Return On Invested Capital (14.23%) for GFF is above the 3 year average (9.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 24.94% | ||
| ROIC | 14.23% |
ROA(3y)-0.18%
ROA(5y)0.68%
ROE(3y)-1.9%
ROE(5y)1.95%
ROIC(3y)9.96%
ROIC(5y)7.92%
1.3 Margins
Looking at the Profit Margin, with a value of 2.65%, GFF is doing worse than 79.07% of the companies in the same industry.
GFF's Profit Margin has declined in the last couple of years.
The Operating Margin of GFF (15.44%) is better than 62.79% of its industry peers.
In the last couple of years the Operating Margin of GFF has grown nicely.
GFF has a better Gross Margin (39.02%) than 76.74% of its industry peers.
In the last couple of years the Gross Margin of GFF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.44% | ||
| PM (TTM) | 2.65% | ||
| GM | 39.02% |
OM growth 3Y26.04%
OM growth 5Y23.94%
PM growth 3Y3.8%
PM growth 5Y-14.58%
GM growth 3Y10.48%
GM growth 5Y7.43%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GFF is creating some value.
GFF has about the same amout of 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
GFF has an Altman-Z score of 3.11. This indicates that GFF is financially healthy and has little risk of bankruptcy at the moment.
GFF has a Altman-Z score of 3.11. This is in the lower half of the industry: GFF underperforms 62.79% of its industry peers.
The Debt to FCF ratio of GFF is 3.39, which is a good value as it means it would take GFF, 3.39 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.39, GFF is doing worse than 62.79% of the companies in the same industry.
GFF has a Debt/Equity ratio of 5.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 5.02, GFF is not doing good in the industry: 93.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.02 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 3.11 |
ROIC/WACC1.33
WACC10.69%
2.3 Liquidity
GFF has a Current Ratio of 2.46. This indicates that GFF is financially healthy and has no problem in meeting its short term obligations.
GFF has a better Current ratio (2.46) than 62.79% of its industry peers.
GFF has a Quick Ratio of 1.24. 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 Quick ratio value of 1.24, GFF perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.62% over the past year.
The Earnings Per Share has been growing by 42.66% on average over the past years. This is a very strong growth
Looking at the last year, GFF shows a decrease in Revenue. The Revenue has decreased by -7.82% in the last year.
Measured over the past years, GFF shows a small growth in Revenue. The Revenue has been growing by 6.31% on average per year.
EPS 1Y (TTM)4.62%
EPS 3Y41.09%
EPS 5Y42.66%
EPS growth Q2Q24.42%
Revenue 1Y (TTM)-7.82%
Revenue growth 3Y9.12%
Revenue growth 5Y6.31%
Revenue growth Q2Q-0.96%
3.2 Future
The Earnings Per Share is expected to grow by 16.35% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y0.78%
EPS Next 2Y11.13%
EPS Next 3Y16.35%
EPS Next 5YN/A
Revenue Next Year-2.83%
Revenue Next 2Y0%
Revenue Next 3Y1.42%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.43, GFF is valued correctly.
Based on the Price/Earnings ratio, GFF is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
GFF is valuated rather cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.23, the valuation of GFF can be described as correct.
Based on the Price/Forward Earnings ratio, GFF is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GFF to the average of the S&P500 Index (20.72), we can say GFF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
GFF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GFF is cheaper than 69.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GFF is valued cheaper than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.99 | ||
| EV/EBITDA | 9.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GFF does not grow enough to justify the current Price/Earnings ratio.
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 16.35% in the coming years.
PEG (NY)18.55
PEG (5Y)0.34
EPS Next 2Y11.13%
EPS Next 3Y16.35%
5. Dividend
5.1 Amount
GFF has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 1.31, GFF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, GFF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
On average, the dividend of GFF grows each year by 16.90%, which is quite nice.
GFF has paid a dividend for at least 10 years, which is a reliable track record.
GFF has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.9%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
GFF pays out 192.28% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GFF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP192.28%
EPS Next 2Y11.13%
EPS Next 3Y16.35%
GRIFFON CORP
NYSE:GFF (5/2/2024, 7:04:00 PM)
After market: 68.71 0 (0%)68.71
+1.53 (+2.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.40B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 12.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)18.55
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 24.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.44% | ||
| PM (TTM) | 2.65% | ||
| GM | 39.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.62%
EPS 3Y41.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.82%
Revenue growth 3Y9.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y