GRIFFON CORP (GFF) Stock Fundamental Analysis
USA - NYSE:GFF - US3984331021 - Common Stock
72.15 USD
+0.91 (+1.28%)
72.15 USD
0 (0%)
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. With these ratings, GFF could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
GFF had positive earnings in the past year.
GFF had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.35%, GFF is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
GFF has a better Return On Equity (109.49%) than 100.00% of its industry peers.
GFF has a better Return On Invested Capital (17.97%) than 85.37% of its industry peers.
GFF had an Average Return On Invested Capital over the past 3 years of 13.01%. This is in line with the industry average of 12.44%.
The 3 year average ROIC (13.01%) for GFF is below the current ROIC(17.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 109.49% | ||
| ROIC | 17.97% |
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
GFF has a Profit Margin of 2.78%. This is in the lower half of the industry: GFF underperforms 70.73% of its industry peers.
In the last couple of years the Profit Margin of GFF has grown nicely.
With a decent Operating Margin value of 17.89%, GFF is doing good in the industry, outperforming 70.73% 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 (41.80%) than 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 | 17.89% | ||
| PM (TTM) | 2.78% | ||
| GM | 41.8% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GFF is creating value.
Compared to 1 year ago, GFF has less shares outstanding
Compared to 5 years ago, GFF has more shares outstanding
Compared to 1 year ago, GFF has a worse debt to assets ratio.
2.2 Solvency
GFF has an Altman-Z score of 3.54. This indicates that GFF is financially healthy and has little risk of bankruptcy at the moment.
GFF has a Altman-Z score of 3.54. This is comparable to the rest of the industry: GFF outperforms 46.34% of its industry peers.
GFF has a debt to FCF ratio of 4.93. This is a neutral value as GFF would need 4.93 years to pay back of all of its debts.
GFF has a Debt to FCF ratio (4.93) which is comparable to the rest of the industry.
A Debt/Equity ratio of 22.58 is on the high side and indicates that GFF has dependencies on debt financing.
The Debt to Equity ratio of GFF (22.58) is worse than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.58 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.92
WACC9.36%
2.3 Liquidity
A Current Ratio of 2.70 indicates that GFF has no problem at all paying its short term obligations.
GFF's Current ratio of 2.70 is fine compared to the rest of the industry. GFF outperforms 70.73% of its industry peers.
GFF has a Quick Ratio of 1.38. This is a normal value and indicates that GFF is financially healthy and should not expect problems in meeting its short term obligations.
GFF has a Quick ratio of 1.38. This is in the better half of the industry: GFF outperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.26% over the past year.
The Earnings Per Share has been growing by 36.56% 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 -3.37% in the last 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)15.26%
EPS 3Y39.99%
EPS 5Y36.56%
EPS Q2Q%20.97%
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y4.93%
Revenue growth 5Y6.96%
Sales Q2Q%-5.28%
3.2 Future
The Earnings Per Share is expected to grow by 12.58% on average over the next years. This is quite good.
Based on estimates for the next years, GFF will show a small growth in Revenue. The Revenue will grow by 0.29% on average per year.
EPS Next Y10.7%
EPS Next 2Y10.92%
EPS Next 3Y12.58%
EPS Next 5YN/A
Revenue Next Year-4.37%
Revenue Next 2Y-1.22%
Revenue Next 3Y0.29%
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
With a Price/Earnings ratio of 12.91, GFF is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GFF indicates a somewhat cheap valuation: GFF is cheaper than 78.05% of the companies listed in the same industry.
GFF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.06.
Based on the Price/Forward Earnings ratio of 11.43, the valuation of GFF can be described as reasonable.
Based on the Price/Forward Earnings ratio, GFF is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GFF to the average of the S&P500 Index (32.73), we can say GFF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 11.43 |
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 70.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GFF is valued cheaply inside the industry as 87.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.42 | ||
| EV/EBITDA | 9.17 |
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 12.58% in the coming years.
PEG (NY)1.21
PEG (5Y)0.35
EPS Next 2Y10.92%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
GFF has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
GFF's Dividend Yield is a higher than the industry average which is at 1.32.
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 | 1.01% |
5.2 History
On average, the dividend of GFF grows each year by 18.06%, which is quite nice.
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
55.25% of the earnings are spent on dividend by GFF. This is a bit on the high side, but may be sustainable.
GFF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.25%
EPS Next 2Y10.92%
EPS Next 3Y12.58%
72.15
+0.91 (+1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners80.98%
Inst Owner Change0.37%
Ins Owners10.76%
Ins Owner Change0%
Market Cap3.36B
Revenue(TTM)2.52B
Net Income(TTM)69.97M
Analysts87.27
Price Target102.29 (41.77%)
Short Float %3.32%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend0.68
Dividend Growth(5Y)18.06%
DP55.25%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.41%
Min EPS beat(2)-0.61%
Max EPS beat(2)11.43%
EPS beat(4)3
Avg EPS beat(4)12.41%
Min EPS beat(4)-0.61%
Max EPS beat(4)23.55%
EPS beat(8)6
Avg EPS beat(8)20.89%
EPS beat(12)10
Avg EPS beat(12)27.7%
EPS beat(16)13
Avg EPS beat(16)52.3%
Revenue beat(2)0
Avg Revenue beat(2)-4.18%
Min Revenue beat(2)-6.33%
Max Revenue beat(2)-2.03%
Revenue beat(4)1
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-6.33%
Max Revenue beat(4)1.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)3
Avg Revenue beat(12)-1.68%
Revenue beat(16)5
Avg Revenue beat(16)-2.94%
PT rev (1m)0%
PT rev (3m)2.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 11.43 | ||
| P/S | 1.33 | ||
| P/FCF | 11.42 | ||
| P/OCF | 9.47 | ||
| P/B | 52.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.17 |
EPS(TTM)5.59
EY7.75%
EPS(NY)6.31
Fwd EY8.75%
FCF(TTM)6.32
FCFY8.76%
OCF(TTM)7.62
OCFY10.56%
SpS54.07
BVpS1.37
TBVpS-13.38
PEG (NY)1.21
PEG (5Y)0.35
Graham Number13.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 109.49% | ||
| ROCE | 25.74% | ||
| ROIC | 17.97% | ||
| ROICexc | 19.15% | ||
| ROICexgc | 32.91% | ||
| OM | 17.89% | ||
| PM (TTM) | 2.78% | ||
| GM | 41.8% | ||
| FCFM | 11.69% |
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%
ROICexgc growth 3Y35.8%
ROICexgc 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-Score7
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.58 | ||
| Debt/FCF | 4.93 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 96.45% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.14% | ||
| Profit Quality | 420.61% | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.54 |
F-Score7
WACC9.36%
ROIC/WACC1.92
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)15.26%
EPS 3Y39.99%
EPS 5Y36.56%
EPS Q2Q%20.97%
EPS Next Y10.7%
EPS Next 2Y10.92%
EPS Next 3Y12.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y4.93%
Revenue growth 5Y6.96%
Sales Q2Q%-5.28%
Revenue Next Year-4.37%
Revenue Next 2Y-1.22%
Revenue Next 3Y0.29%
Revenue Next 5YN/A
EBIT growth 1Y7.48%
EBIT growth 3Y31.85%
EBIT growth 5Y32.32%
EBIT Next Year26.01%
EBIT Next 3Y12.68%
EBIT Next 5YN/A
FCF growth 1Y-23.46%
FCF growth 3Y60.43%
FCF growth 5Y32.06%
OCF growth 1Y-14.26%
OCF growth 3Y49.99%
OCF growth 5Y27.54%
GRIFFON CORP / GFF FAQ
What is the ChartMill fundamental rating of GRIFFON CORP (GFF) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GFF.
What is the valuation status for GFF stock?
ChartMill assigns a valuation rating of 7 / 10 to GRIFFON CORP (GFF). This can be considered as Undervalued.
What is the profitability of GFF stock?
GRIFFON CORP (GFF) has a profitability rating of 7 / 10.
What are the PE and PB ratios of GRIFFON CORP (GFF) stock?
The Price/Earnings (PE) ratio for GRIFFON CORP (GFF) is 12.91 and the Price/Book (PB) ratio is 52.57.
How sustainable is the dividend of GRIFFON CORP (GFF) stock?
The dividend rating of GRIFFON CORP (GFF) is 4 / 10 and the dividend payout ratio is 55.25%.