GRIFFON CORP (GFF) Stock Fundamental Analysis
USA - NYSE:GFF - US3984331021 - Common Stock
75 USD
+0.24 (+0.32%)
We assign a fundamental rating of 6 out of 10 to GFF. GFF was compared to 41 industry peers in the Building Products industry. GFF scores excellent on profitability, but 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.
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 3.35%, GFF is doing worse than 65.85% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 17.97%, GFF belongs to the top of the industry, outperforming 85.37% 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 12.63%.
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.
With a decent Operating Margin value of 17.89%, GFF is doing good in the industry, outperforming 70.73% of the companies in the same industry.
In the last couple of years the Operating Margin of GFF has grown nicely.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GFF is creating value.
GFF has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GFF has been increased 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 3.58. This indicates that GFF is financially healthy and has little risk of bankruptcy at the moment.
GFF has a Altman-Z score (3.58) which is in line with its industry peers.
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.
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.
GFF's Debt to Equity ratio of 22.58 is on the low side compared to the rest of the industry. GFF is outperformed by 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.58 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.93
WACC9.32%
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 73.17% of its industry peers.
A Quick Ratio of 1.38 indicates that GFF should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.38, GFF is in the better half of the industry, outperforming 60.98% 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.
GFF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.56% yearly.
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
The Earnings Per Share is expected to grow by 12.58% on average over the next years. This is quite good.
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 Y10.7%
EPS Next 2Y10.92%
EPS Next 3Y12.58%
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.
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
Based on the Price/Earnings ratio of 13.42, the valuation of GFF can be described as correct.
GFF's Price/Earnings ratio is rather cheap when compared to the industry. GFF is cheaper than 82.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, GFF is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.88, which indicates a very decent valuation of GFF.
Based on the Price/Forward Earnings ratio, GFF is valued cheaper than 80.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, GFF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
78.05% of the companies in the same industry are more expensive than GFF, based on the Enterprise Value to EBITDA ratio.
GFF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GFF is cheaper than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.87 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GFF may justify a higher PE ratio.
GFF's earnings are expected to grow with 12.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)0.37
EPS Next 2Y10.92%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
GFF has a yearly dividend return of 0.95%, which is pretty low.
GFF's Dividend Yield is a higher than the industry average which is at 1.24.
With a Dividend Yield of 0.95, GFF pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 2Y10.92%
EPS Next 3Y12.58%
NYSE:GFF (10/30/2025, 2:24:48 PM)
75
+0.24 (+0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners80.98%
Inst Owner Change-0.12%
Ins Owners10.76%
Ins Owner Change0%
Market Cap3.49B
Revenue(TTM)2.52B
Net Income(TTM)69.97M
Analysts87.27
Price Target102.29 (36.39%)
Short Float %3.32%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)0%
PT rev (3m)3.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 11.88 | ||
| P/S | 1.39 | ||
| P/FCF | 11.87 | ||
| P/OCF | 9.85 | ||
| P/B | 54.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.4 |
EPS(TTM)5.59
EY7.45%
EPS(NY)6.31
Fwd EY8.41%
FCF(TTM)6.32
FCFY8.43%
OCF(TTM)7.62
OCFY10.16%
SpS54.07
BVpS1.37
TBVpS-13.38
PEG (NY)1.25
PEG (5Y)0.37
Graham Number13.14
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%
ROICexgc growth 3Y35.8%
ROICexgc 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 | 3.58 |
F-Score7
WACC9.32%
ROIC/WACC1.93
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 Y10.7%
EPS Next 2Y10.92%
EPS Next 3Y12.58%
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 Year26.01%
EBIT Next 3Y12.68%
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%
GRIFFON CORP / GFF FAQ
What is the ChartMill fundamental rating of GRIFFON CORP (GFF) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GFF.
What is the valuation status for GFF stock?
ChartMill assigns a valuation rating of 7 / 10 to GRIFFON CORP (GFF). This can be considered as Undervalued.
What is the profitability of GFF stock?
GRIFFON CORP (GFF) has a profitability rating of 7 / 10.
What are the PE and PB ratios of GRIFFON CORP (GFF) stock?
The Price/Earnings (PE) ratio for GRIFFON CORP (GFF) is 13.42 and the Price/Book (PB) ratio is 54.65.
How sustainable is the dividend of GRIFFON CORP (GFF) stock?
The dividend rating of GRIFFON CORP (GFF) is 4 / 10 and the dividend payout ratio is 55.25%.