GRIFFON CORP (GFF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GFF - US3984331021 - Common Stock
75.17 USD
-0.21 (-0.28%)
75.17 USD
0 (0%)
Taking everything into account, GFF scores 5 out of 10 in our fundamental rating. GFF was compared to 41 industry peers in the Building Products industry. GFF has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
In multiple years GFF reported negative net income over the last 5 years.
GFF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of GFF (3.35%) is worse than 65.85% of its industry peers.
The Return On Equity of GFF (109.49%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.97%, GFF belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
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 12.49%.
The last Return On Invested Capital (17.97%) for GFF is above the 3 year average (13.01%), which is a sign of increasing profitability.
| 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
The Profit Margin of GFF (2.78%) is worse than 68.29% of its industry peers.
In the last couple of years the Profit Margin of GFF has grown nicely.
GFF has a better Operating Margin (17.89%) than 70.73% of its industry peers.
GFF's Operating Margin has improved in the last couple of years.
GFF has a Gross Margin of 41.80%. 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 | 17.89% | ||
| 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.
GFF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.58 indicates that GFF is not in any danger for bankruptcy at the moment.
GFF has a Altman-Z score (3.58) which is in line with 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.
With a Debt to FCF ratio value of 4.93, GFF perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
GFF has a Debt/Equity ratio of 22.58. This is a high value indicating a heavy dependency on external 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 | 3.58 |
ROIC/WACC1.93
WACC9.29%
2.3 Liquidity
GFF has a Current Ratio of 2.70. This indicates that GFF is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GFF (2.70) is better than 68.29% 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.
The Quick ratio of GFF (1.38) is better than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
GFF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.33%, which is quite good.
The Earnings Per Share has been growing by 28.43% on average over the past years. This is a very strong growth
EPS 1Y (TTM)10.33%
EPS 3Y11.53%
EPS 5Y28.43%
EPS Q2Q%4.76%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.38%
3.2 Future
GFF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.65% yearly.
GFF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y11.5%
EPS Next 2Y13.72%
EPS Next 3Y11.17%
EPS Next 5Y10.65%
Revenue Next Year2.03%
Revenue Next 2Y2.71%
Revenue Next 3Y2.53%
Revenue Next 5Y2.65%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.28 indicates a correct valuation of GFF.
Based on the Price/Earnings ratio, GFF is valued a bit cheaper than 75.61% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, GFF is valued a bit cheaper.
GFF is valuated reasonably with a Price/Forward Earnings ratio of 11.91.
GFF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GFF is cheaper than 73.17% of the companies in the same industry.
GFF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
GFF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GFF is cheaper than 70.73% 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 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.81 | ||
| EV/EBITDA | 9.39 |
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.
PEG (NY)1.15
PEG (5Y)0.47
EPS Next 2Y13.72%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
GFF has a Yearly Dividend Yield of 1.17%.
Compared to an average industry Dividend Yield of 1.41, 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 | 1.17% |
5.2 History
The dividend of GFF is nicely growing with an annual growth rate of 18.06%!
GFF has been paying a dividend for at least 10 years, so it has 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.
The dividend of GFF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.25%
EPS Next 2Y13.72%
EPS Next 3Y11.17%
75.17
-0.21 (-0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners80.98%
Inst Owner Change-2.18%
Ins Owners10.76%
Ins Owner Change3.21%
Market Cap3.48B
Revenue(TTM)N/A
Net Income(TTM)69.97M
Analysts87.27
Price Target102.29 (36.08%)
Short Float %2.55%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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)2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 11.91 | ||
| P/S | 1.38 | ||
| P/FCF | 11.81 | ||
| P/OCF | 9.8 | ||
| P/B | 54.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.39 |
EPS(TTM)5.66
EY7.53%
EPS(NY)6.31
Fwd EY8.4%
FCF(TTM)6.37
FCFY8.47%
OCF(TTM)7.67
OCFY10.21%
SpS54.45
BVpS1.38
TBVpS-13.47
PEG (NY)1.15
PEG (5Y)0.47
Graham Number13.27
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 | 3.58 |
F-Score7
WACC9.29%
ROIC/WACC1.93
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)10.33%
EPS 3Y11.53%
EPS 5Y28.43%
EPS Q2Q%4.76%
EPS Next Y11.5%
EPS Next 2Y13.72%
EPS Next 3Y11.17%
EPS Next 5Y10.65%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.38%
Revenue Next Year2.03%
Revenue Next 2Y2.71%
Revenue Next 3Y2.53%
Revenue Next 5Y2.65%
EBIT growth 1Y7.48%
EBIT growth 3Y31.85%
EBIT growth 5Y32.32%
EBIT Next Year26.01%
EBIT Next 3Y12.68%
EBIT Next 5Y9.45%
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 5 / 10 to GFF.
What is the valuation status for GFF stock?
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 are the PE and PB ratios of GRIFFON CORP (GFF) stock?
The Price/Earnings (PE) ratio for GRIFFON CORP (GFF) is 13.28 and the Price/Book (PB) ratio is 54.38.
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%.