GRIFFON CORP (GFF) Stock Fundamental Analysis
USA - NYSE:GFF - US3984331021 - Common Stock
75.76 USD
-1.31 (-1.7%)
75.76 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GFF. 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. GFF may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make GFF a good candidate 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.
GFF had positive earnings in 4 of the past 5 years.
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.
GFF has a Return On Equity of 109.49%. This is amongst the best in the industry. GFF outperforms 100.00% of its industry peers.
GFF's Return On Invested Capital of 17.97% is amongst the best of the industry. GFF outperforms 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 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's Profit Margin of 2.78% is on the low side compared to the rest of the industry. GFF is outperformed by 73.17% of its industry peers.
GFF's Profit Margin has improved in the last couple of years.
GFF's Operating Margin of 17.89% is fine compared to the rest of the industry. GFF outperforms 70.73% of its industry peers.
GFF's Operating Margin has improved in the last couple of years.
GFF has a better Gross Margin (41.80%) 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 well above the Cost of Capital (WACC), so GFF is creating value.
Compared to 1 year ago, GFF has less shares outstanding
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
GFF has an Altman-Z score of 3.59. This indicates that GFF is financially healthy and has little risk of bankruptcy at the moment.
GFF has a Altman-Z score (3.59) which is comparable to the rest of the industry.
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.
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.
Looking at the Debt to Equity ratio, with a value of 22.58, GFF is doing worse than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.58 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.81
WACC9.93%
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.
GFF has a better Current ratio (2.70) than 70.73% 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.
GFF has a Quick ratio of 1.38. This is comparable to the rest of the industry: GFF outperforms 53.66% 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 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
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.
Based on estimates for the next years, GFF will show a small growth in Revenue. The Revenue will grow by 0.29% on average per year.
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
The Price/Earnings ratio is 13.55, which indicates a correct valuation of GFF.
GFF's Price/Earnings ratio is rather cheap when compared to the industry. GFF is cheaper than 85.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of GFF to the average of the S&P500 Index (27.20), we can say GFF is valued rather cheaply.
GFF is valuated reasonably with a Price/Forward Earnings ratio of 11.94.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GFF indicates a rather cheap valuation: GFF is cheaper than 85.37% of the companies listed in the same industry.
GFF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 11.94 |
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.
92.68% of the companies in the same industry are more expensive than GFF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.99 | ||
| EV/EBITDA | 9.5 |
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)1.19
PEG (5Y)0.37
EPS Next 2Y11.19%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
GFF has a yearly dividend return of 0.90%, which is pretty low.
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
On average, the dividend of GFF grows each year by 18.06%, 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)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%
75.76
-1.31 (-1.7%)
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 Cap3.53B
Analysts87.27
Price Target102.29 (35.02%)
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 | 13.55 | ||
| Fwd PE | 11.94 | ||
| P/S | 1.4 | ||
| P/FCF | 11.99 | ||
| P/OCF | 9.94 | ||
| P/B | 55.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.5 |
EPS(TTM)5.59
EY7.38%
EPS(NY)6.34
Fwd EY8.37%
FCF(TTM)6.32
FCFY8.34%
OCF(TTM)7.62
OCFY10.06%
SpS54.07
BVpS1.37
TBVpS-13.38
PEG (NY)1.19
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
WACC9.93%
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%