GRIFFON CORP (GFF) Stock Fundamental Analysis
NYSE:GFF - New York Stock Exchange, Inc. - US3984331021 - Common Stock - Currency: USD
Overall GFF gets a fundamental rating of 6 out of 10. We evaluated GFF against 41 industry peers in the Building Products industry. While GFF has a great profitability rating, there are some minor concerns on its financial health. GFF may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make GFF suitable 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.
GFF had positive earnings in 4 of the past 5 years.
GFF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GFF (9.86%) is better than 63.41% of its industry peers.
With an excellent Return On Equity value of 107.66%, GFF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 15.28%, GFF is doing good in the industry, outperforming 78.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GFF is in line with the industry average of 12.62%.
The 3 year average ROIC (13.01%) for GFF is below the current ROIC(15.28%), indicating increased profibility in the last year.
| 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.
With a decent Operating Margin value of 17.27%, GFF is doing good in the industry, outperforming 68.29% of the companies in the same industry.
GFF's Operating Margin has improved in the last couple of years.
GFF has a Gross Margin of 41.23%. 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 | 17.27% | ||
| 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
GFF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GFF has less shares outstanding than it did 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
GFF has an Altman-Z score of 3.38. This indicates that GFF is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GFF (3.38) is comparable to the rest of the industry.
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 41.46% of its industry peers.
A Debt/Equity ratio of 7.12 is on the high side and indicates that GFF has dependencies on debt financing.
GFF has a Debt to Equity ratio of 7.12. This is amonst the worse of the industry: GFF underperforms 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.12 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.56
WACC9.79%
2.3 Liquidity
A Current Ratio of 2.78 indicates that GFF has no problem at all paying its short term obligations.
The Current ratio of GFF (2.78) is better than 78.05% 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
The Earnings Per Share has grown by an nice 8.78% over the past year.
GFF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.56% yearly.
Looking at the last year, GFF shows a decrease in Revenue. The Revenue has decreased by -3.38% in the last 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)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.
GFF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.08% yearly.
EPS Next Y12.42%
EPS Next 2Y11.9%
EPS Next 3Y15.12%
EPS Next 5YN/A
Revenue Next Year-1.82%
Revenue Next 2Y0.57%
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.
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 14.61 indicates a correct valuation of GFF.
Based on the Price/Earnings ratio, GFF is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
GFF is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
GFF is valuated correctly with a Price/Forward Earnings ratio of 12.12.
GFF's Price/Forward Earnings ratio is rather cheap when compared to the industry. GFF is cheaper than 82.93% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GFF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
GFF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GFF is cheaper than 73.17% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GFF indicates a rather cheap valuation: GFF is cheaper than 85.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.74 | ||
| EV/EBITDA | 10.09 |
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 an outstanding profitability rating, which 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)1.18
PEG (5Y)0.4
EPS Next 2Y11.9%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
GFF has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 1.16, GFF pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.92, GFF pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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.
The dividend of GFF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.25%
EPS Next 2Y11.9%
EPS Next 3Y15.12%
77.87
+0.27 (+0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners83.25%
Inst Owner Change2.93%
Ins Owners10.66%
Ins Owner Change1.89%
Market Cap3.66B
Analysts87.27
Price Target98.65 (26.69%)
Short Float %4.05%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)-1.46%
PT rev (3m)-4.56%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.58%
EPS NY rev (1m)0.48%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-2.72%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 12.12 | ||
| P/S | 1.44 | ||
| P/FCF | 12.74 | ||
| P/OCF | 10.35 | ||
| P/B | 17.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.09 |
EPS(TTM)5.33
EY6.84%
EPS(NY)6.42
Fwd EY8.25%
FCF(TTM)6.11
FCFY7.85%
OCF(TTM)7.52
OCFY9.66%
SpS54.25
BVpS4.57
TBVpS-15.29
PEG (NY)1.18
PEG (5Y)0.4
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 | 3.38 |
F-Score6
WACC9.79%
ROIC/WACC1.56
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 2Y0.57%
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%