GRIFFON CORP (GFF) Stock Fundamental Analysis
NYSE:GFF - US3984331021 - Common Stock
77.62 USD
-0.46 (-0.59%)
Taking everything into account, GFF scores 6 out of 10 in our fundamental rating. GFF was compared to 41 industry peers in the Building Products industry. While GFF has a great profitability rating, 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. These ratings would make GFF suitable 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.
Of the past 5 years GFF 4 years were profitable.
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: 65.85% of the companies in the same industry are doing better.
With an excellent Return On Equity value of 109.49%, GFF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.97%, GFF belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GFF is in line with the industry average of 12.73%.
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
GFF has a worse Profit Margin (2.78%) than 73.17% of its industry peers.
In the last couple of years the Profit Margin of GFF has grown nicely.
GFF's Operating Margin of 17.89% is fine compared to the rest of the industry. GFF outperforms 70.73% of its industry peers.
In the last couple of years the Operating Margin of GFF has grown nicely.
The Gross Margin of GFF (41.80%) is better 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 just above the Cost of Capital (WACC), so GFF is still creating some value.
The number of shares outstanding for GFF has been reduced compared to 1 year ago.
GFF has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GFF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.62 indicates that GFF is not in any danger for bankruptcy at the moment.
GFF has a Altman-Z score (3.62) which is comparable to the rest of the industry.
The Debt to FCF ratio of GFF is 4.93, which is a neutral value as it means it would take GFF, 4.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.93, GFF is in line with its industry, outperforming 46.34% of the companies in the same industry.
A Debt/Equity ratio of 22.58 is on the high side and indicates that GFF has dependencies on debt financing.
With a Debt to Equity ratio value of 22.58, GFF is not doing good in the industry: 92.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.58 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.79
WACC10.06%
2.3 Liquidity
A Current Ratio of 2.70 indicates that GFF has no problem at all paying its short term obligations.
GFF has a better Current ratio (2.70) than 70.73% of its industry peers.
A Quick Ratio of 1.38 indicates that GFF should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.38, GFF perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
| 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 15.26%, 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 -3.37% in the past year.
GFF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.96% yearly.
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
GFF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.71% yearly.
The Revenue is expected to grow by 0.21% on average over the next years.
EPS Next Y11.35%
EPS Next 2Y11.19%
EPS Next 3Y12.71%
EPS Next 5YN/A
Revenue Next Year-4.07%
Revenue Next 2Y-1.05%
Revenue Next 3Y0.21%
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.
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 13.89, the valuation of GFF can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of GFF indicates a rather cheap valuation: GFF is cheaper than 87.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.14, GFF is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.24, the valuation of GFF can be described as correct.
Based on the Price/Forward Earnings ratio, GFF is valued cheaper than 85.37% of the companies in the same industry.
GFF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.89 | ||
| Fwd PE | 12.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GFF is valued cheaper than 80.49% 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 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.28 | ||
| EV/EBITDA | 9.71 |
4.3 Compensation for Growth
GFF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GFF has a very decent profitability rating, which may justify a higher PE ratio.
GFF's earnings are expected to grow with 12.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)0.38
EPS Next 2Y11.19%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
GFF has a yearly dividend return of 1.00%, which is pretty low.
GFF's Dividend Yield is a higher than the industry average which is at 1.14.
With a Dividend Yield of 1.00, GFF pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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
GFF pays out 55.25% of its income as dividend. 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 2Y11.19%
EPS Next 3Y12.71%
NYSE:GFF (8/28/2025, 12:52:02 PM)
77.62
-0.46 (-0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners83.04%
Inst Owner Change-4.77%
Ins Owners10.66%
Ins Owner Change0.23%
Market Cap3.61B
Analysts87.27
Price Target99.67 (28.41%)
Short Float %3.24%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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)1.03%
PT rev (3m)-0.44%
EPS NQ rev (1m)-4%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)-4.2%
Revenue NQ rev (3m)-5.82%
Revenue NY rev (1m)-2.28%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.89 | ||
| Fwd PE | 12.24 | ||
| P/S | 1.44 | ||
| P/FCF | 12.28 | ||
| P/OCF | 10.19 | ||
| P/B | 56.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.71 |
EPS(TTM)5.59
EY7.2%
EPS(NY)6.34
Fwd EY8.17%
FCF(TTM)6.32
FCFY8.14%
OCF(TTM)7.62
OCFY9.81%
SpS54.07
BVpS1.37
TBVpS-13.38
PEG (NY)1.22
PEG (5Y)0.38
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%
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-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 | 3.62 |
F-Score7
WACC10.06%
ROIC/WACC1.79
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 Y11.35%
EPS Next 2Y11.19%
EPS Next 3Y12.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y4.93%
Revenue growth 5Y6.96%
Sales Q2Q%-5.28%
Revenue Next Year-4.07%
Revenue Next 2Y-1.05%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
EBIT growth 1Y7.48%
EBIT growth 3Y31.85%
EBIT growth 5Y32.32%
EBIT Next Year28.79%
EBIT Next 3Y14.98%
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%