GRIFFON CORP (GFF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GFF - US3984331021 - Common Stock
75.74 USD
+0.52 (+0.69%)
75.74 USD
0 (0%)
Overall GFF gets a fundamental rating of 5 out of 10. We evaluated GFF against 42 industry peers in the Building Products industry. GFF has an excellent profitability rating, but 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
GFF's Return On Assets of 2.48% is on the low side compared to the rest of the industry. GFF is outperformed by 69.05% of its industry peers.
Looking at the Return On Equity, with a value of 69.09%, GFF belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.55%, GFF belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GFF is significantly above the industry average of 12.60%.
The 3 year average ROIC (17.68%) for GFF is below the current ROIC(20.55%), indicating increased profibility in the last year.
| 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.
GFF's Profit Margin has declined in the last couple of years.
GFF's Operating Margin of 17.85% is fine compared to the rest of the industry. GFF outperforms 71.43% of its industry peers.
GFF's Operating Margin has improved in the last couple of years.
GFF's Gross Margin of 41.99% is amongst the best of the industry. GFF outperforms 80.95% of its industry peers.
In the last couple of years the Gross Margin of GFF has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GFF is creating value.
The number of shares outstanding for GFF has been reduced compared to 1 year ago.
Compared to 5 years ago, GFF has less shares outstanding
GFF has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.64 indicates that GFF is not in any danger for bankruptcy at the moment.
GFF has a Altman-Z score (3.64) which is in line with its industry peers.
GFF has a debt to FCF ratio of 4.65. This is a neutral value as GFF would need 4.65 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.65, GFF perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 18.99 is on the high side and indicates that GFF has dependencies on debt financing.
GFF has a Debt to Equity ratio of 18.99. This is amonst the worse of the industry: GFF underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.99 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 3.64 |
ROIC/WACC2.13
WACC9.65%
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 better Current ratio (2.66) than 69.05% of its industry peers.
A Quick Ratio of 1.34 indicates that GFF should not have too much problems paying its short term obligations.
GFF's Quick ratio of 1.34 is fine compared to the rest of the industry. GFF outperforms 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.
Measured over the past years, GFF shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.43% on average per year.
Looking at the last year, GFF shows a decrease in Revenue. The Revenue has decreased by -3.95% in the last year.
GFF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.05% yearly.
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.
GFF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y5.79%
EPS Next 2Y10.26%
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
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
Based on the Price/Earnings ratio of 13.38, the valuation of GFF can be described as correct.
Based on the Price/Earnings ratio, GFF is valued a bit cheaper than 73.81% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, GFF is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.65, GFF is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GFF indicates a somewhat cheap valuation: GFF is cheaper than 76.19% of the companies listed in the same industry.
GFF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 12.65 |
4.2 Price Multiples
GFF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GFF is cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GFF is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.53 | ||
| EV/EBITDA | 9.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GFF does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GFF may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)0.47
EPS Next 2Y10.26%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
GFF has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.71, GFF pays a bit more dividend than its industry peers.
GFF's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
The dividend of GFF is nicely growing with an annual growth rate of 24.38%!
GFF has paid a dividend for at least 10 years, which is 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 2Y10.26%
EPS Next 3Y11.17%
75.74
+0.52 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners79.49%
Inst Owner Change-2.16%
Ins Owners11.28%
Ins Owner Change1.3%
Market Cap3.50B
Revenue(TTM)2.52B
Net Income(TTM)51.11M
Analysts87.27
Price TargetN/A
Short Float %2.4%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0.84
Dividend Growth(5Y)24.38%
DP77.66%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.13%
Min EPS beat(2)-0.61%
Max EPS beat(2)0.88%
EPS beat(4)3
Avg EPS beat(4)6.74%
Min EPS beat(4)-0.61%
Max EPS beat(4)15.26%
EPS beat(8)6
Avg EPS beat(8)18%
EPS beat(12)10
Avg EPS beat(12)24.52%
EPS beat(16)14
Avg EPS beat(16)53.06%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-6.33%
Max Revenue beat(2)3.6%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-6.33%
Max Revenue beat(4)3.6%
Revenue beat(8)4
Avg Revenue beat(8)0.12%
Revenue beat(12)4
Avg Revenue beat(12)-1.3%
Revenue beat(16)6
Avg Revenue beat(16)0.07%
PT rev (1m)1%
PT rev (3m)1%
EPS NQ rev (1m)-11.53%
EPS NQ rev (3m)-11.53%
EPS NY rev (1m)-5.13%
EPS NY rev (3m)-5.6%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 12.65 | ||
| P/S | 1.39 | ||
| P/FCF | 11.53 | ||
| P/OCF | 9.84 | ||
| P/B | 47.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.39 |
EPS(TTM)5.66
EY7.47%
EPS(NY)5.99
Fwd EY7.91%
FCF(TTM)6.57
FCFY8.67%
OCF(TTM)7.7
OCFY10.17%
SpS54.51
BVpS1.6
TBVpS-13.13
PEG (NY)2.31
PEG (5Y)0.47
Graham Number14.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 69.09% | ||
| ROCE | 26.02% | ||
| ROIC | 20.56% | ||
| ROICexc | 21.8% | ||
| ROICexgc | 37.45% | ||
| OM | 17.85% | ||
| PM (TTM) | 2.03% | ||
| GM | 41.99% | ||
| FCFM | 12.05% |
ROA(3y)4.85%
ROA(5y)2.16%
ROE(3y)62.35%
ROE(5y)31.35%
ROIC(3y)17.68%
ROIC(5y)14.41%
ROICexc(3y)18.71%
ROICexc(5y)15.35%
ROICexgc(3y)35.12%
ROICexgc(5y)28.73%
ROCE(3y)22.38%
ROCE(5y)18.24%
ROICexgc growth 3Y16.31%
ROICexgc growth 5Y25.61%
ROICexc growth 3Y21.01%
ROICexc growth 5Y26.37%
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%
F-Score6
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.99 | ||
| Debt/FCF | 4.65 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 83.21% | ||
| Cap/Sales | 2.08% | ||
| Interest Coverage | 4.84 | ||
| Cash Conversion | 69.41% | ||
| Profit Quality | 593.98% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.64 |
F-Score6
WACC9.65%
ROIC/WACC2.13
Cap/Depr(3y)97.71%
Cap/Depr(5y)85.91%
Cap/Sales(3y)2.35%
Cap/Sales(5y)2.04%
Profit Quality(3y)403.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.33%
EPS 3Y11.53%
EPS 5Y28.43%
EPS Q2Q%4.76%
EPS Next Y5.79%
EPS Next 2Y10.26%
EPS Next 3Y11.17%
EPS Next 5Y10.65%
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y-4%
Revenue growth 5Y4.05%
Sales Q2Q%0.38%
Revenue Next Year1.51%
Revenue Next 2Y2.34%
Revenue Next 3Y2.53%
Revenue Next 5Y2.65%
EBIT growth 1Y2.34%
EBIT growth 3Y8.32%
EBIT growth 5Y24.04%
EBIT Next Year16.51%
EBIT Next 3Y6.5%
EBIT Next 5Y9.14%
FCF growth 1Y-1.71%
FCF growth 3Y124.31%
FCF growth 5Y26.75%
OCF growth 1Y-5.63%
OCF growth 3Y72.47%
OCF growth 5Y21.58%
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.
What is the valuation status for GFF stock?
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 are the PE and PB ratios of GRIFFON CORP (GFF) stock?
The Price/Earnings (PE) ratio for GRIFFON CORP (GFF) is 13.38 and the Price/Book (PB) ratio is 47.33.
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 77.66%.