Griffon
Market Cap
US$914.7m
Last Updated
2020/02/23 00:57 UTC
Data Sources
Company Financials +
Executive Summary
Griffon Corporation, through its subsidiaries, engages in the consumer and professional products, home and building products, and defense electronics businesses primarily in the United States, Canada, Australia, the United Kingdom, Mexico, and China.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with solid track record.
Similar Companies
Share Price & News
How has Griffon's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GFF has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.8%
GFF
0.1%
US Building
-1.1%
US Market
1 Year Return
14.2%
GFF
23.2%
US Building
17.9%
US Market
Return vs Industry: GFF underperformed the US Building industry which returned 23.2% over the past year.
Return vs Market: GFF underperformed the US Market which returned 17.9% over the past year.
Shareholder returns
| GFF | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 0.1% | -1.1% |
| 30 Day | -6.3% | 2.3% | 1.4% |
| 90 Day | -6.4% | 5.4% | 6.9% |
| 1 Year | 16.0%14.2% | 25.0%23.2% | 20.3%17.9% |
| 3 Year | -8.3%-16.9% | 27.8%21.9% | 47.8%38.3% |
| 5 Year | 44.8%28.2% | 51.3%31.6% | 71.9%53.0% |
Price Volatility Vs. Market
How volatile is Griffon's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Does Griffon Corporation (NYSE:GFF) Have A Good P/E Ratio?2 weeks ago | Simply Wall St
Insider Buying: The Griffon Corporation (NYSE:GFF) Lead Independent Director Just Bought US$99k Worth Of Shares3 weeks ago | Simply Wall St
How Do Griffon Corporation’s (NYSE:GFF) Returns Compare To Its Industry?Valuation
Is Griffon undervalued compared to its fair value and its price relative to the market?
20.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GFF ($20.93) is trading below our estimate of fair value ($26.44)
Significantly Below Fair Value: GFF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GFF is good value based on its PE Ratio (18.1x) compared to the Building industry average (23x).
PE vs Market: GFF is good value based on its PE Ratio (18.1x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: GFF is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: GFF is good value based on its PB Ratio (1.8x) compared to the US Building industry average (2.6x).
Next Steps
Future Growth
How is Griffon forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
21.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GFF's forecast earnings growth (21.4% per year) is above the savings rate (1.7%).
Earnings vs Market: GFF's earnings (21.4% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GFF's revenue (3.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: GFF's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if GFF's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Griffon performed over the past 5 years?
10.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GFF has high quality earnings.
Growing Profit Margin: GFF's current net profit margins (2.1%) are higher than last year (0.9%).
Past Earnings Growth Analysis
Earnings Trend: GFF's earnings have grown by 10.5% per year over the past 5 years.
Accelerating Growth: GFF's earnings growth over the past year (147.6%) exceeds its 5-year average (10.5% per year).
Earnings vs Industry: GFF earnings growth over the past year (147.6%) exceeded the Building industry -15.5%.
Return on Equity
High ROE: GFF's Return on Equity (9.6%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Griffon's financial position?
Financial Position Analysis
Short Term Liabilities: GFF's short term assets ($946.0M) exceed its short term liabilities ($388.5M).
Long Term Liabilities: GFF's short term assets ($946.0M) do not cover its long term liabilities ($1.4B).
Debt to Equity History and Analysis
Debt Level: GFF's debt to equity ratio (230.6%) is considered high.
Reducing Debt: GFF's debt to equity ratio has increased from 158.4% to 230.6% over the past 5 years.
Debt Coverage: GFF's debt is not well covered by operating cash flow (8.1%).
Interest Coverage: GFF's interest payments on its debt are not well covered by EBIT (2.2x coverage).
Balance Sheet
Inventory Level: GFF has a high level of physical assets or inventory.
Debt Coverage by Assets: GFF's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Griffon's current dividend yield, its reliability and sustainability?
1.43%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GFF's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: GFF's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, GFF has been paying a dividend for less than 10 years.
Growing Dividend: GFF's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.3%), GFF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.2yrs
Average management tenure
CEO
Ron Kramer (61yo)
11.8yrs
Tenure
US$11,579,690
Compensation
Mr. Ronald J. Kramer, also known as Ron, serves as Independent Director of Business Development Corporation of America. since October 28, 2016. He has been the Chief Executive Officer of Griffon Corporatio ...
CEO Compensation Analysis
Compensation vs Market: Ron's total compensation ($USD11.58M) is above average for companies of similar size in the US market ($USD2.51M).
Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 11.8yrs | US$11.58m | 5.73% $52.4m | |
| President | 1.8yrs | US$4.57m | 1.26% $11.5m | |
| Senior VP & CFO | 4.5yrs | US$2.11m | 0.38% $3.5m | |
| Senior VP | 9.8yrs | US$1.99m | 0.53% $4.8m | |
| VP, Controller & Chief Accounting Officer | 0yrs | no data | 0.11% $975.3k | |
| Senior Vice President of Operations | 3.1yrs | no data | no data | |
| President of Clopay Building Products | 11.1yrs | no data | no data | |
| President of Telephonics Corporation | 3.3yrs | no data | no data | |
| VP & Treasurer | 0yrs | no data | no data |
7.2yrs
Average Tenure
53.5yo
Average Age
Experienced Management: GFF's management team is seasoned and experienced (7.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 11.8yrs | US$11.58m | 5.73% $52.4m | |
| President | 1.8yrs | US$4.57m | 1.26% $11.5m | |
| Independent Director | 4.6yrs | US$180.00k | 0.058% $530.1k | |
| Independent Director | 25yrs | US$179.00k | 0.16% $1.4m | |
| Independent Director | 57.1yrs | US$163.50k | 0.13% $1.2m | |
| Independent Director | 1.8yrs | US$164.00k | 0.057% $520.9k | |
| Independent Director | 16yrs | US$164.00k | 0.097% $886.3k | |
| Independent Director | 4.8yrs | US$183.50k | 0.097% $886.0k | |
| Independent Director | 6.1yrs | US$156.50k | 0.066% $599.8k | |
| Lead Independent Director | 4.3yrs | US$196.50k | 0.085% $774.3k |
4.7yrs
Average Tenure
68.5yo
Average Age
Experienced Board: GFF's board of directors are considered experienced (4.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GFF insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Griffon Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Griffon Corporation
- Ticker: GFF
- Exchange: NYSE
- Founded: 1959
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$914.669m
- Shares outstanding: 43.70m
- Website: https://www.griffon.com
Number of Employees
Location
- Griffon Corporation
- 712 Fifth Avenue
- 18th Floor
- New York
- New York
- 10019
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GFF | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 1968 |
Biography
Griffon Corporation, through its subsidiaries, engages in the consumer and professional products, home and building products, and defense electronics businesses primarily in the United States, Canada, Australia, the United Kingdom, Mexico, and China. Its Consumer and Professional Products segment manufactures and markets long-handled tools and landscaping products for homeowners and professionals; and wood and wire closet organization, general living storage, and wire garage storage products to home center retail chains, mass merchandisers, and direct-to builder professional installers. The company’s Home & Building Products segment manufactures and markets manufactures and markets residential and commercial garage doors to professional dealers and various home center retail chains; and rolling steel door and grille products designed for commercial, industrial, institutional, and retail uses. Its Defense Electronics segment designs, develops, manufactures, and provides logistical support and lifecycle sustainment services; and intelligence, surveillance, and communications solutions to defense, aerospace, and commercial customers. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation founded in 1959 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:57 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.