GRIFFON CORP (GFF) Stock Fundamental Analysis
USA - NYSE:GFF - US3984331021 - Common Stock
76.59 USD
+0.83 (+1.1%)
76.59 USD
0 (0%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GFF may be a bit undervalued, certainly considering the very reasonable score on growth This makes GFF very considerable 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.
In the past 5 years GFF always reported a positive cash flow from operatings.
1.2 Ratios
GFF's Return On Assets of 3.35% is on the low side compared to the rest of the industry. GFF is outperformed by 65.85% of its industry peers.
GFF's Return On Equity of 109.49% is amongst the best of the industry. GFF outperforms 100.00% of its industry peers.
GFF has a better Return On Invested Capital (17.97%) than 85.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GFF is in line with the industry average of 12.76%.
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 73.17% of its industry peers.
GFF's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 41.80%, GFF belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
GFF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.89% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GFF is creating 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.
GFF has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.59 indicates that GFF is not in any danger for bankruptcy at the moment.
GFF has a Altman-Z score (3.59) 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.
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 | 3.59 |
ROIC/WACC1.81
WACC9.95%
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.
Looking at the Current ratio, with a value of 2.70, GFF is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that GFF should not have too much problems paying its short term obligations.
GFF has a Quick ratio (1.38) which is comparable to the rest of the 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.
The Earnings Per Share has been growing by 36.56% on average over the past years. This is a very strong growth
The Revenue has decreased by -3.37% in the past year.
The Revenue has been growing slightly by 6.96% on average over the past years.
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
Based on estimates for the next years, GFF will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.71% on average per year.
The Revenue is expected to grow by 0.29% 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-4.37%
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.
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
A Price/Earnings ratio of 13.70 indicates a correct valuation of GFF.
85.37% 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 27.41, GFF is valued rather cheaply.
A Price/Forward Earnings ratio of 12.08 indicates a correct valuation of GFF.
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 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.08 |
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 78.05% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GFF is valued cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.12 | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
The 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)1.21
PEG (5Y)0.37
EPS Next 2Y11.19%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, GFF is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.13, GFF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, GFF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
GFF pays out 55.25% of its income as dividend. 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 2Y11.19%
EPS Next 3Y12.71%
76.59
+0.83 (+1.1%)
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%
Market Cap3.57B
Analysts87.27
Price Target102.29 (33.56%)
Short Float %3.67%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)2.48%
PT rev (3m)3.69%
EPS NQ rev (1m)-3.47%
EPS NQ rev (3m)-5.79%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-5.26%
Revenue NY rev (1m)-2.59%
Revenue NY rev (3m)-2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.08 | ||
| P/S | 1.42 | ||
| P/FCF | 12.12 | ||
| P/OCF | 10.05 | ||
| P/B | 55.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.5 |
EPS(TTM)5.59
EY7.3%
EPS(NY)6.34
Fwd EY8.28%
FCF(TTM)6.32
FCFY8.25%
OCF(TTM)7.62
OCFY9.95%
SpS54.07
BVpS1.37
TBVpS-13.38
PEG (NY)1.21
PEG (5Y)0.37
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 | 3.59 |
F-Score7
WACC9.95%
ROIC/WACC1.81
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-4.37%
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 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%