GRIFFON CORP (GFF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GFF - US3984331021 - Common Stock
81.48 USD
+0.09 (+0.11%)
Overall GFF gets a fundamental rating of 5 out of 10. We evaluated GFF against 42 industry peers in the Building Products industry. While GFF has a great profitability rating, 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
- In the past year GFF was profitable.
- In the past year GFF had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 2.48%, GFF is doing worse than 69.05% of the companies in the same industry.
- GFF has a better Return On Equity (69.09%) than 97.62% of its industry peers.
- GFF has a better Return On Invested Capital (20.55%) than 88.10% of its industry peers.
- GFF had an Average Return On Invested Capital over the past 3 years of 17.68%. This is above the industry average of 12.68%.
- 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
- Looking at the Profit Margin, with a value of 2.03%, GFF is doing worse than 69.05% of the companies in the same industry.
- In the last couple of years the Profit Margin of GFF has declined.
- GFF has a better Operating Margin (17.85%) than 71.43% of its industry peers.
- In the last couple of years the Operating Margin of GFF has grown nicely.
- The Gross Margin of GFF (41.99%) is better than 80.95% of its industry peers.
- 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
- GFF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
- GFF has an Altman-Z score of 3.72. This indicates that GFF is financially healthy and has little risk of bankruptcy at the moment.
- GFF has a Altman-Z score (3.72) which is in line with its industry peers.
- 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.
- GFF's Debt to FCF ratio of 4.65 is in line compared to the rest of the industry. GFF outperforms 50.00% of its industry peers.
- A Debt/Equity ratio of 18.99 is on the high side and indicates that GFF has dependencies on debt financing.
- The Debt to Equity ratio of GFF (18.99) is worse than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.99 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 3.72 |
ROIC/WACC2.26
WACC9.08%
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.
- GFF has a Current ratio of 2.66. This is in the better half of the industry: GFF outperforms 66.67% of its industry peers.
- GFF has a Quick Ratio of 1.34. This is a normal value and indicates that GFF is financially healthy and should not expect problems in meeting its short term obligations.
- GFF has a better Quick ratio (1.34) than 64.29% 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.
- GFF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.43% yearly.
- GFF shows a decrease in Revenue. In the last year, the revenue decreased by -3.95%.
- 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
- The Earnings Per Share is expected to grow by 10.65% on average over the next years. This is quite good.
- The Revenue is expected to grow by 2.65% on average over the next years.
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.
- 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
- The Price/Earnings ratio is 14.40, which indicates a correct valuation of GFF.
- Compared to the rest of the industry, the Price/Earnings ratio of GFF indicates a somewhat cheap valuation: GFF is cheaper than 73.81% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of GFF to the average of the S&P500 Index (28.60), we can say GFF is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 13.61, GFF is valued correctly.
- Based on the Price/Forward Earnings ratio, GFF is valued a bit cheaper than 76.19% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GFF to the average of the S&P500 Index (25.83), we can say GFF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 13.61 |
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 66.67% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, GFF is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of GFF may justify a higher PE ratio.
PEG (NY)2.49
PEG (5Y)0.51
EPS Next 2Y10.24%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
- GFF has a Yearly Dividend Yield of 1.04%.
- GFF's Dividend Yield is a higher than the industry average which is at 0.66.
- With a Dividend Yield of 1.04, GFF pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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.
- GFF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP77.66%
EPS Next 2Y10.24%
EPS Next 3Y11.17%
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 5 / 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%.