GRIFFON CORP (GFF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GFF - US3984331021 - Common Stock
74.46 USD
-1.84 (-2.41%)
74.46 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GFF. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GFF was profitable.
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
GFF has a Return On Assets of 2.48%. This is in the lower half of the industry: GFF underperforms 69.05% of its industry peers.
GFF's Return On Equity of 69.09% is amongst the best of the industry. GFF outperforms 97.62% of its industry peers.
With an excellent Return On Invested Capital value of 20.55%, GFF belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GFF is significantly above the industry average of 12.61%.
The last Return On Invested Capital (20.55%) for GFF is above the 3 year average (17.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 69.09% | ||
| ROIC | 20.56% |
ROA(3y)4.85%
ROA(5y)2.16%
ROE(3y)62.35%
ROE(5y)31.35%
ROIC(3y)17.68%
ROIC(5y)14.41%
1.3 Margins
GFF has a Profit Margin of 2.03%. This is in the lower half of the industry: GFF underperforms 69.05% of its industry peers.
In the last couple of years the Profit Margin of GFF has declined.
GFF has a Operating Margin of 17.85%. This is in the better half of the industry: GFF outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of GFF has grown nicely.
Looking at the Gross Margin, with a value of 41.99%, GFF belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
GFF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.85% | ||
| PM (TTM) | 2.03% | ||
| GM | 41.99% |
OM growth 3Y12.83%
OM growth 5Y19.22%
PM growth 3YN/A
PM growth 5Y-4.73%
GM growth 3Y8.17%
GM growth 5Y8.08%
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.
GFF has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GFF has been reduced compared to 5 years ago.
The debt/assets ratio for GFF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.63 indicates that GFF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.63, GFF is in line with its industry, outperforming 47.62% of the companies in the same industry.
The Debt to FCF ratio of GFF is 4.65, which is a neutral value as it means it would take GFF, 4.65 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.65, GFF perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 18.99 is on the high side and indicates that GFF has dependencies on debt financing.
GFF's Debt to Equity ratio of 18.99 is on the low side compared to the rest of the industry. GFF is outperformed by 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.99 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 3.63 |
ROIC/WACC2.06
WACC9.98%
2.3 Liquidity
GFF has a Current Ratio of 2.66. This indicates that GFF is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.66, GFF is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that GFF should not have too much problems paying its short term obligations.
GFF has a better Quick ratio (1.34) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.33% over the past year.
The Earnings Per Share has been growing by 28.43% 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 -3.95% in the last year.
The Revenue has been growing slightly by 4.05% on average over the past years.
EPS 1Y (TTM)10.33%
EPS 3Y11.53%
EPS 5Y28.43%
EPS Q2Q%4.76%
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y-4%
Revenue growth 5Y4.05%
Sales Q2Q%0.38%
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 10.65% on average per year.
Based on estimates for the next years, GFF will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y5.79%
EPS Next 2Y10.24%
EPS Next 3Y11.17%
EPS Next 5Y10.65%
Revenue Next Year1.51%
Revenue Next 2Y2.34%
Revenue Next 3Y2.53%
Revenue Next 5Y2.65%
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
Based on the Price/Earnings ratio of 13.16, the valuation of GFF can be described as correct.
73.81% of the companies in the same industry are more expensive than GFF, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.92, GFF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.44, the valuation of GFF can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GFF indicates a somewhat cheap valuation: GFF is cheaper than 76.19% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GFF to the average of the S&P500 Index (23.57), we can say GFF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 12.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GFF is valued a bit cheaper than 71.43% of the companies in the same industry.
GFF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GFF is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 9.27 |
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.
PEG (NY)2.27
PEG (5Y)0.46
EPS Next 2Y10.24%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
GFF has a Yearly Dividend Yield of 1.19%.
Compared to an average industry Dividend Yield of 0.73, GFF pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.94, GFF is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
On average, the dividend of GFF grows each year by 24.38%, which is quite nice.
GFF has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)24.38%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
77.66% of the earnings are spent on dividend by GFF. 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.
DP77.66%
EPS Next 2Y10.24%
EPS Next 3Y11.17%
74.46
-1.84 (-2.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners79.74%
Inst Owner Change0%
Ins Owners11.01%
Ins Owner Change0.21%
Market Cap3.44B
Revenue(TTM)2.52B
Net Income(TTM)51.11M
Analysts87.27
Price Target103.31 (38.75%)
Short Float %2.56%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend0.84
Dividend Growth(5Y)24.38%
DP77.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.13%
Min EPS beat(2)-0.61%
Max EPS beat(2)0.88%
EPS beat(4)3
Avg EPS beat(4)6.74%
Min EPS beat(4)-0.61%
Max EPS beat(4)15.26%
EPS beat(8)6
Avg EPS beat(8)18%
EPS beat(12)10
Avg EPS beat(12)24.52%
EPS beat(16)14
Avg EPS beat(16)53.06%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-6.33%
Max Revenue beat(2)3.6%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-6.33%
Max Revenue beat(4)3.6%
Revenue beat(8)4
Avg Revenue beat(8)0.12%
Revenue beat(12)4
Avg Revenue beat(12)-1.3%
Revenue beat(16)6
Avg Revenue beat(16)0.07%
PT rev (1m)1%
PT rev (3m)1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 12.44 | ||
| P/S | 1.37 | ||
| P/FCF | 11.34 | ||
| P/OCF | 9.67 | ||
| P/B | 46.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.27 |
EPS(TTM)5.66
EY7.6%
EPS(NY)5.99
Fwd EY8.04%
FCF(TTM)6.57
FCFY8.82%
OCF(TTM)7.7
OCFY10.34%
SpS54.51
BVpS1.6
TBVpS-13.13
PEG (NY)2.27
PEG (5Y)0.46
Graham Number14.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 69.09% | ||
| ROCE | 26.02% | ||
| ROIC | 20.56% | ||
| ROICexc | 21.8% | ||
| ROICexgc | 37.45% | ||
| OM | 17.85% | ||
| PM (TTM) | 2.03% | ||
| GM | 41.99% | ||
| FCFM | 12.05% |
ROA(3y)4.85%
ROA(5y)2.16%
ROE(3y)62.35%
ROE(5y)31.35%
ROIC(3y)17.68%
ROIC(5y)14.41%
ROICexc(3y)18.71%
ROICexc(5y)15.35%
ROICexgc(3y)35.12%
ROICexgc(5y)28.73%
ROCE(3y)22.38%
ROCE(5y)18.24%
ROICexgc growth 3Y16.31%
ROICexgc growth 5Y25.61%
ROICexc growth 3Y21.01%
ROICexc growth 5Y26.37%
OM growth 3Y12.83%
OM growth 5Y19.22%
PM growth 3YN/A
PM growth 5Y-4.73%
GM growth 3Y8.17%
GM growth 5Y8.08%
F-Score6
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.99 | ||
| Debt/FCF | 4.65 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 83.21% | ||
| Cap/Sales | 2.08% | ||
| Interest Coverage | 4.84 | ||
| Cash Conversion | 69.41% | ||
| Profit Quality | 593.98% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.63 |
F-Score6
WACC9.98%
ROIC/WACC2.06
Cap/Depr(3y)97.71%
Cap/Depr(5y)85.91%
Cap/Sales(3y)2.35%
Cap/Sales(5y)2.04%
Profit Quality(3y)403.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.33%
EPS 3Y11.53%
EPS 5Y28.43%
EPS Q2Q%4.76%
EPS Next Y5.79%
EPS Next 2Y10.24%
EPS Next 3Y11.17%
EPS Next 5Y10.65%
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y-4%
Revenue growth 5Y4.05%
Sales Q2Q%0.38%
Revenue Next Year1.51%
Revenue Next 2Y2.34%
Revenue Next 3Y2.53%
Revenue Next 5Y2.65%
EBIT growth 1Y2.34%
EBIT growth 3Y8.32%
EBIT growth 5Y24.04%
EBIT Next Year16.51%
EBIT Next 3Y6.5%
EBIT Next 5Y9.14%
FCF growth 1Y-1.71%
FCF growth 3Y124.31%
FCF growth 5Y26.75%
OCF growth 1Y-5.63%
OCF growth 3Y72.47%
OCF growth 5Y21.58%
GRIFFON CORP / GFF FAQ
What is the ChartMill fundamental rating of GRIFFON CORP (GFF) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GFF.
Can you provide the valuation status for GRIFFON CORP?
ChartMill assigns a valuation rating of 6 / 10 to GRIFFON CORP (GFF). This can be considered as Fairly Valued.
What is the profitability of GFF stock?
GRIFFON CORP (GFF) has a profitability rating of 7 / 10.
What is the financial health of GRIFFON CORP (GFF) stock?
The financial health rating of GRIFFON CORP (GFF) is 5 / 10.
Can you provide the dividend sustainability for GFF stock?
The dividend rating of GRIFFON CORP (GFF) is 4 / 10 and the dividend payout ratio is 77.66%.