GRIFFON CORP (GFF) Stock Fundamental Analysis
NYSE:GFF - New York Stock Exchange, Inc. - US3984331021 - Common Stock - Currency: USD
GFF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. GFF scores excellent on profitability, but 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! With these ratings, GFF could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year GFF was profitable.
GFF had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 9.86%, GFF is doing good in the industry, outperforming 60.98% of the companies in the same industry.
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's Return On Invested Capital of 15.28% is fine compared to the rest of the industry. GFF outperforms 78.05% 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 12.78%.
The last Return On Invested Capital (15.28%) for GFF is above the 3 year average (13.01%), which is a sign of increasing profitability.
| 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
GFF has a Profit Margin (9.06%) which is in line with its industry peers.
In the last couple of years the Profit Margin of GFF has grown nicely.
The Operating Margin of GFF (17.27%) is better than 68.29% of its industry peers.
In the last couple of years the Operating Margin of GFF has grown nicely.
GFF has a better Gross Margin (41.23%) than 80.49% of its industry peers.
GFF's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GFF is creating some value.
The number of shares outstanding for GFF has been reduced compared to 1 year ago.
The number of shares outstanding for GFF has been increased compared to 5 years ago.
Compared to 1 year ago, GFF has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.44 indicates that GFF is not in any danger for bankruptcy at the moment.
GFF has a Altman-Z score (3.44) which is in line with its industry peers.
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.
GFF has a Debt to FCF ratio of 5.35. This is comparable to the rest of the industry: GFF outperforms 46.34% of its industry peers.
GFF has a Debt/Equity ratio of 7.12. This is a high value indicating a heavy dependency on external financing.
GFF's Debt to Equity ratio of 7.12 is on the low side compared to the rest of the industry. GFF is outperformed by 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.12 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.65
WACC9.25%
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 has a better Current ratio (2.78) than 75.61% of its industry peers.
A Quick Ratio of 1.48 indicates that GFF should not have too much problems paying its short term obligations.
GFF has a Quick ratio of 1.48. This is in the better half of the industry: GFF outperforms 65.85% of its industry peers.
| 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.
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.
The Revenue has decreased by -3.38% in the past year.
The Revenue has been growing slightly by 6.96% on average over the past years.
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 2Y0.59%
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
Based on the Price/Earnings ratio of 13.81, the valuation of GFF can be described as correct.
75.61% of the companies in the same industry are more expensive than GFF, based on the Price/Earnings ratio.
GFF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
Based on the Price/Forward Earnings ratio of 11.46, the valuation of GFF can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GFF indicates a somewhat cheap valuation: GFF is cheaper than 78.05% 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 (36.28), we can say GFF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 11.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GFF is valued a bit cheaper than 73.17% 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 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.04 | ||
| EV/EBITDA | 10.5 |
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)1.11
PEG (5Y)0.38
EPS Next 2Y11.9%
EPS Next 3Y15.12%
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 1.15, GFF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, GFF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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
16.25% of the earnings are spent on dividend by GFF. This is a low number and 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%
NYSE:GFF (8/6/2025, 11:52:07 AM)
73.61
-8.73 (-10.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners83.25%
Inst Owner Change-0.98%
Ins Owners10.66%
Ins Owner Change1.89%
Market Cap3.46B
Analysts87.27
Price Target98.65 (34.02%)
Short Float %3.6%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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)0%
PT rev (3m)-1.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 11.46 | ||
| P/S | 1.36 | ||
| P/FCF | 12.04 | ||
| P/OCF | 9.78 | ||
| P/B | 16.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.5 |
EPS(TTM)5.33
EY7.24%
EPS(NY)6.42
Fwd EY8.73%
FCF(TTM)6.11
FCFY8.31%
OCF(TTM)7.52
OCFY10.22%
SpS54.25
BVpS4.57
TBVpS-15.29
PEG (NY)1.11
PEG (5Y)0.38
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 | 3.44 |
F-Score6
WACC9.25%
ROIC/WACC1.65
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 2Y0.59%
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%