Griffon
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Griffon Corporation, through its subsidiaries, engages in the home and building products, and defense electronics businesses primarily in the United States, Canada, Australia, the United Kingdom, Mexico, and China. The last earnings update was 20 days ago. More info.
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- Griffon has significant price volatility in the past 3 months.
GFF Share Price and Events
7 Day Returns
1 Year Returns
GFF Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Griffon (GFF) | -0.6% | -19.3% | -11.9% | -31.8% | -6.5% | 31.3% |
| US Building | -0.8% | -0.5% | 2.6% | -3.4% | 8.9% | 15.2% |
| US Market | 1.6% | -1.7% | 2.1% | 2.6% | 38.5% | 41.4% |
1 Year Return vs Industry and Market
- GFF underperformed the Building industry which returned -3.4% over the past year.
- GFF underperformed the Market in United States of America which returned 2.6% over the past year.
Value
Is Griffon undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Griffon
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Griffon.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 4 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 14.7% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Building Unlevered Beta | Simply Wall St/ S&P Global | 1.15 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.151 (1 + (1- 21%) (179.19%)) |
2.192 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
2 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (2 * 5.96%) |
14.65% |
Discounted Cash Flow Calculation for NYSE:GFF using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Griffon is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 14.65%) |
|
|---|---|---|---|
| 2019 | 51.35 | Analyst x2 | 44.79 |
| 2020 | 73.20 | Analyst x2 | 55.69 |
| 2021 | 123.15 | Est @ 68.24% | 81.72 |
| 2022 | 182.98 | Est @ 48.58% | 105.90 |
| 2023 | 246.71 | Est @ 34.83% | 124.54 |
| 2024 | 308.87 | Est @ 25.2% | 136.00 |
| 2025 | 365.88 | Est @ 18.46% | 140.52 |
| 2026 | 416.15 | Est @ 13.74% | 139.40 |
| 2027 | 459.59 | Est @ 10.44% | 134.28 |
| 2028 | 496.93 | Est @ 8.12% | 126.63 |
| Present value of next 10 years cash flows | $1,089.46 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $496.93 × (1 + 2.73%) ÷ (14.65% – 2.73%) |
$4,282.65 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $4,282.65 ÷ (1 + 14.65%)10 |
$1,091.37 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $1,089.46 + $1,091.37 |
$2,180.83 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $2,180.83 / 43.59 |
$50.03 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $50.03 |
| Current discount | Discount to share price of
$15.58
= -1 x ($15.58 - $50.03) / $50.03 |
68.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Griffon's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Griffon's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Griffon's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Griffon's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $0.58 |
| NYSE:GFF Share Price ** | NYSE (2019-05-21) in USD | $15.58 |
| United States of America Building Industry PE Ratio | Median Figure of 31 Publicly-Listed Building Companies | 18.99x |
| United States of America Market PE Ratio | Median Figure of 3,087 Publicly-Listed Companies | 17.74x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Griffon.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:GFF Share Price ÷ EPS (both in USD) = 15.58 ÷ 0.58 |
26.66x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Griffon is overvalued based on earnings compared to the US Building industry average.
- Griffon is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Griffon's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 26.66x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
38.2%per year |
| United States of America Building Industry PEG Ratio | Median Figure of 27 Publicly-Listed Building Companies | 1.01x |
| United States of America Market PEG Ratio | Median Figure of 2,123 Publicly-Listed Companies | 1.53x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 26.66x ÷ 38.2% |
0.7x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Griffon is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Griffon's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $10.88 |
| NYSE:GFF Share Price * | NYSE (2019-05-21) in USD | $15.58 |
| United States of America Building Industry PB Ratio | Median Figure of 36 Publicly-Listed Building Companies | 2.19x |
| United States of America Market PB Ratio | Median Figure of 5,202 Publicly-Listed Companies | 1.84x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:GFF Share Price ÷ Book Value per Share (both in USD) = 15.58 ÷ 10.88 |
1.43x |
* Primary Listing of Griffon.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Griffon is good value based on assets compared to the US Building industry average.
Value checks
We assess Griffon's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Building industry average (and greater than 0)? (1 check) Griffon has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Griffon expected to perform in the next 1 to 3 years based on estimates from 4 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Griffon's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Griffon's earnings growth is expected to exceed the United States of America market average.
- Griffon's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:GFF Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | 38.2% |
| NYSE:GFF Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 4.5% |
| United States of America Building Industry Earnings Growth Rate | Market Cap Weighted Average | 8.9% |
| United States of America Building Industry Revenue Growth Rate | Market Cap Weighted Average | 3.5% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.8% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-09-30 | 2,406 | 65 | 1 | |
| 2020-09-30 | 2,286 | 123 | 55 | 4 |
| 2019-09-30 | 2,204 | 106 | 36 | 4 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 2,122 | 25 | 24 |
| 2018-12-31 | 2,051 | 26 | 19 |
| 2018-09-30 | 1,978 | 21 | 33 |
| 2018-06-30 | 1,863 | -2 | 37 |
| 2018-03-31 | 1,705 | 26 | 34 |
| 2017-12-31 | 1,610 | 85 | 34 |
| 2017-09-30 | 1,525 | 96 | 18 |
| 2017-06-30 | 1,115 | 110 | 9 |
| 2017-03-31 | 1,219 | 116 | 12 |
| 2016-12-31 | 1,335 | 129 | 16 |
| 2016-09-30 | 1,477 | 104 | 20 |
| 2016-06-30 | 1,959 | 105 | 35 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
All data from Griffon Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-09-30 | 1.52 | 1.52 | 1.52 | 1.00 |
| 2020-09-30 | 1.28 | 1.42 | 1.19 | 4.00 |
| 2019-09-30 | 0.83 | 0.91 | 0.72 | 3.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 0.58 |
| 2018-12-31 | 0.47 |
| 2018-09-30 | 0.81 |
| 2018-06-30 | 0.88 |
| 2018-03-31 | 0.81 |
| 2017-12-31 | 0.81 |
| 2017-09-30 | 0.43 |
| 2017-06-30 | 0.22 |
| 2017-03-31 | 0.29 |
| 2016-12-31 | 0.40 |
| 2016-09-30 | 0.48 |
| 2016-06-30 | 0.85 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Griffon's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Griffon has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Griffon performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Griffon has delivered over 20% year on year earnings growth in the past 5 years.
- Griffon's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Griffon's 1-year earnings growth is negative, it can't be compared to the US Building industry average.
Earnings and Revenue History
All data from Griffon Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 2,122.21 | 23.72 | 410.55 | 15.40 |
| 2018-12-31 | 2,051.14 | 19.18 | 403.01 | 15.40 |
| 2018-09-30 | 1,977.92 | 33.26 | 395.31 | 15.40 |
| 2018-06-30 | 1,863.21 | 36.56 | 372.83 | 17.70 |
| 2018-03-31 | 1,704.78 | 33.57 | 343.53 | 17.70 |
| 2017-12-31 | 1,610.02 | 33.57 | 323.54 | 17.70 |
| 2017-09-30 | 1,525.00 | 17.78 | 298.78 | 17.70 |
| 2017-06-30 | 1,114.78 | 8.75 | 258.35 | 18.00 |
| 2017-03-31 | 1,218.86 | 11.89 | 266.68 | 18.00 |
| 2016-12-31 | 1,335.16 | 16.04 | 276.31 | 18.00 |
| 2016-09-30 | 1,477.04 | 19.78 | 288.63 | 18.00 |
| 2016-06-30 | 1,958.61 | 35.28 | 350.43 | |
| 2016-03-31 | 2,008.11 | 38.58 | 357.20 | |
| 2015-12-31 | 2,008.02 | 37.61 | 359.17 | |
| 2015-09-30 | 1,483.29 | 12.29 | 297.87 | 15.80 |
| 2015-06-30 | 2,039.50 | 31.43 | 347.78 | 23.40 |
| 2015-03-31 | 2,032.85 | 35.01 | 347.49 | 23.40 |
| 2014-12-31 | 2,040.51 | 4.06 | 344.41 | 23.40 |
| 2014-09-30 | 1,991.81 | -0.18 | 361.12 | |
| 2014-06-30 | 1,915.19 | -4.68 | 323.41 | 22.40 |
| 2014-03-31 | 1,919.98 | -15.54 | 308.33 | 22.40 |
| 2013-12-31 | 1,901.04 | 9.47 | 307.16 | 22.40 |
| 2013-09-30 | 1,871.33 | 6.79 | 303.19 | 22.40 |
| 2013-06-30 | 1,869.75 | 6.79 | 306.66 | 23.60 |
| 2013-03-31 | 1,840.18 | 12.24 | 317.16 | 23.60 |
| 2012-12-31 | 1,833.86 | 15.08 | 317.25 | 23.60 |
| 2012-09-30 | 1,861.15 | 17.01 | 304.48 | 23.60 |
| 2012-06-30 | 1,898.70 | 16.94 | 339.73 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Griffon has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Griffon used its assets less efficiently than the US Building industry average last year based on Return on Assets.
- Griffon's use of capital has not improved over the past 3 years (Return on Capital Employed).
Past performance checks
We assess Griffon's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Griffon has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Griffon's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Griffon's finances.
The net worth of a company is the difference between its assets and liabilities.
- Griffon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Griffon's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Griffon Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 474.28 | 1,217.00 | 60.80 |
| 2018-12-31 | 471.56 | 1,154.95 | 84.32 |
| 2018-09-30 | 474.39 | 1,121.08 | 72.40 |
| 2018-06-30 | 466.09 | 1,135.72 | 67.24 |
| 2018-03-31 | 474.02 | 1,091.38 | 241.43 |
| 2017-12-31 | 434.81 | 1,250.99 | 87.77 |
| 2017-09-30 | 398.81 | 979.16 | 51.03 |
| 2017-06-30 | 394.09 | 997.38 | 70.95 |
| 2017-03-31 | 377.93 | 1,010.33 | 48.87 |
| 2016-12-31 | 389.02 | 965.02 | 53.64 |
| 2016-09-30 | 410.95 | 910.88 | 73.87 |
| 2016-06-30 | 420.03 | 931.61 | 69.88 |
| 2016-03-31 | 425.38 | 941.78 | 55.48 |
| 2015-12-31 | 428.38 | 901.22 | 51.16 |
| 2015-09-30 | 430.53 | 843.57 | 53.38 |
| 2015-06-30 | 462.25 | 840.47 | 47.19 |
| 2015-03-31 | 464.63 | 867.48 | 43.87 |
| 2014-12-31 | 511.87 | 809.47 | 56.18 |
| 2014-09-30 | 532.03 | 799.19 | 103.45 |
| 2014-06-30 | 568.34 | 809.07 | 87.44 |
| 2014-03-31 | 557.75 | 786.97 | 69.93 |
| 2013-12-31 | 595.09 | 733.16 | 95.37 |
| 2013-09-30 | 650.46 | 689.26 | 179.32 |
| 2013-06-30 | 632.37 | 691.69 | 126.10 |
| 2013-03-31 | 637.80 | 698.30 | 116.92 |
| 2012-12-31 | 656.20 | 698.62 | 150.07 |
| 2012-09-30 | 654.15 | 699.61 | 209.65 |
| 2012-06-30 | 653.04 | 702.94 | 171.91 |
- Griffon's level of debt (256.6%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (141.1% vs 256.6% today).
- Debt is not well covered by operating cash flow (2%, less than 20% of total debt).
- Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
Financial health checks
We assess Griffon's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Griffon has a total score of 1/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Griffon's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Griffon
shares you are expected to receive
$37
in your first year as a dividend.
Dividend Amount
- Griffon's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
- Griffon's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Upcoming dividend payment
Purchase Griffon before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| United States of America Building Industry Average Dividend Yield | Market Cap Weighted Average of 16 Stocks | 2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2003 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-09-30 | 0.40 | 1.00 |
| 2020-09-30 | 0.32 | 3.00 |
| 2019-09-30 | 0.29 | 3.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-02 | 0.290 | 1.802 |
| 2019-01-31 | 0.290 | 1.585 |
| 2018-11-14 | 0.290 | 2.479 |
| 2018-08-01 | 0.280 | 1.765 |
| 2018-05-03 | 0.280 | 1.413 |
| 2018-01-31 | 0.280 | 1.450 |
| 2017-11-16 | 0.280 | 1.319 |
| 2017-08-02 | 0.240 | 1.166 |
| 2017-05-04 | 0.240 | 1.091 |
| 2017-01-31 | 0.240 | 0.986 |
| 2016-11-16 | 0.240 | 0.966 |
| 2016-08-03 | 0.200 | 1.178 |
| 2016-05-04 | 0.200 | 1.192 |
| 2016-01-28 | 0.200 | 1.333 |
| 2015-11-12 | 0.200 | 1.168 |
| 2015-07-30 | 0.160 | 0.953 |
| 2015-04-30 | 0.160 | 0.992 |
| 2015-01-29 | 0.160 | 0.967 |
| 2014-11-12 | 0.160 | 1.237 |
| 2014-07-30 | 0.120 | 1.021 |
| 2014-05-01 | 0.120 | 1.034 |
| 2014-01-30 | 0.120 | 1.006 |
| 2013-11-13 | 0.120 | 0.904 |
| 2013-08-06 | 0.100 | 0.828 |
| 2013-05-07 | 0.100 | 0.868 |
| 2013-01-30 | 0.100 | 0.893 |
| 2012-11-13 | 0.100 | 0.936 |
| 2012-08-02 | 0.080 | 0.802 |
| 2012-05-08 | 0.080 | 0.957 |
| 2012-01-31 | 0.080 | 0.777 |
| 2011-11-17 | 0.080 | 0.858 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Griffon has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Griffon only paid a dividend in the past 8 years.
Income/ dividend checks
We assess Griffon's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Griffon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Griffon has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $14,379,946 |
| AGE | 60 |
| TENURE AS CEO | 11.1 years |
CEO Bio
Mr. Ronald J. Kramer, also known as Ron, has been the Chief Executive Officer of Griffon Corporation since April 2008 and has been its Chairman since January 2018. Mr. Kramer is a Owner of Clopay Building Products Company, Inc. He served as the President of Griffon Corporation from February 2009 to December 2012. Mr. Kramer served as President of Wynn Resorts Ltd. and Wynn Resorts (Macau) S.A from October 2002 to March 31, 2008. He served as the President of Wynn Las Vegas LLC. He served as President of Wynn Resorts Holdings LLC, a wholly owned indirect subsidiary of Wynn Resorts from April 2002 to October 2002. He was employed at Grand Casinos, Inc. He served as a Managing Director of Dresdner Kleinwort Wasserstein from July 1999 to October 2001. He served as Managing Director of Wasserstein Perella & Co., Inc. He served as Equity Analyst at Dresdner Kleinwort, Research Division. Mr. Kramer served as an Investment Banker for over twenty years with an experience of mergers and acquisitions and debt and equity financings. He served as the Chief Executive Officer of Ladenberg Thalmann Group Inc. from May 1995 to July 1999. He has been Independent Director at Business Development Corporation of America since October 28, 2016. He is the Director at Clopay Ames True Temper Holding Co. (also known as Clopay Ames True Temper Holding Corp.). He served as the Chairman of Ladenberg Thalmann Group Inc. from February 1986 to July 1999. He was Vice Chairman of Griffon Corporation, an affiliate of Ames True Temper Inc. from November 2003 to January 2018. He is a Director at Telephonics Corporation. He has been a Director of New Valley LLC since November 1994, Griffon Corporation since 1993 and Sapphire Industrials Corp. since October 2007. Mr. Kramer serves as a Director of Lakes Gaming Inc. He served as a Director of Golden Entertainment, Inc. since June 1998. He served as a Director of Monster Worldwide Inc. from February 2000 to December 27, 2009 and served as its Lead Independent Director until December 27, 2009. He served as a Director of Wynn Resorts Ltd from October 2002 to March 31, 2008 and Wynn Resorts (Macau) S.A. from April 2002 to March 17, 2008 and Leap Wireless International Inc. from November 3, 2009 to March 13, 2014. He served as a Director of Ladenberg Thalmann Group Inc. He served as a Director of Lakes Entertainment Inc. since June 1998. He served as a Director of Wynn Las Vegas, LLC. He served as a Trustee of Republic Property Trust since January 13, 2006. He has been Director of the Mt. Sinai Children's Center Foundation since 1999. Mr. Kramer holds a Bachelor of Science Degree in Economics from the Wharton School of the University of Pennsylvania and a Master of Business Administration from New York University.
CEO Compensation
- Ron's compensation has been consistent with company performance over the past year, both up more than 20%.
- Ron's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Griffon management team in years:
- The average tenure for the Griffon management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Ron Kramer
Chairman of the Board & CEO
$14M
60
11.1 yrs
Bob Mehmel
President
$5M
56
6.4 yrs
Brian Harris
Senior VP & CFO
$2M
49
3.8 yrs
Seth Kaplan
Senior VP
$2M
49
9 yrs
Chris Durborow
VP, Controller & Chief Accounting Officer
Mike Sarrica
President of The AMES Companies & ClosetMaid and Senior VP
2.3 yrs
Steve Lynch
President of Clopay Building Products
10.3 yrs
Kevin McSweeney
President of Telephonics Corporation
2.6 yrs
Board of Directors Tenure
Average tenure and age of the Griffon board of directors in years:
- The tenure for the Griffon board of directors is about average.
Board of Directors
Bob Mehmel
President
$5M
56
1 yrs
Henry Alpert
Independent Director
$182K
71
24.3 yrs
Ron Kramer
Chairman of the Board & CEO
$14M
60
1.3 yrs
Kevin Sullivan
Lead Independent Director
$195K
64
3.5 yrs
Lou Grabowsky
Independent Director
$184K
67
4.1 yrs
Thomas Brosig
Independent Director
$168K
68
3.8 yrs
William Waldorf
Independent Director
$164K
80
56.3 yrs
Robert Harrison
Independent Director
$167K
82
15.3 yrs
Donald Kutyna
Independent Director
$158K
85
13.8 yrs
Fin Fogg
Independent Director
$182K
78
14 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. Dec 18 | Buy | Seth Kaplan | Individual | 04. Dec 18 | 04. Dec 18 | 4,500 | $11.62 | $52,290 | ||
| 06. Dec 18 | Buy | W. Durborow | Individual | 03. Dec 18 | 03. Dec 18 | 2,550 | $11.94 | $30,447 | ||
| 06. Dec 18 | Buy | Brian Harris | Individual | 03. Dec 18 | 04. Dec 18 | 4,000 | $12.10 | $46,900 | ||
| 30. Nov 18 | Buy | Ronald Kramer | Individual | 28. Nov 18 | 29. Nov 18 | 10,000 | $12.41 | $123,250 | ||
| 28. Nov 18 | Buy | Ronald Kramer | Individual | 26. Nov 18 | 27. Nov 18 | 10,000 | $12.12 | $120,400 | ||
| 27. Nov 18 | Buy | Brian Harris | Individual | 23. Nov 18 | 23. Nov 18 | 2,000 | $11.80 | $23,600 | ||
| 26. Nov 18 | Buy | Ronald Kramer | Individual | 21. Nov 18 | 23. Nov 18 | 10,000 | $12.72 | $122,900 | ||
| 20. Nov 18 | Buy | Ronald Kramer | Individual | 16. Nov 18 | 19. Nov 18 | 29,997 | $12.20 | $363,663 | ||
| 03. Aug 18 | Buy | Henry Alpert | Individual | 03. Aug 18 | 03. Aug 18 | 5,000 | $18.09 | $90,450 | ||
| 21. Jun 18 | Sell | Goldman Sachs Group, Investment Banking and Securities Investments | Company | 19. Jun 18 | 19. Jun 18 | -5,583,375 | $17.06 | $-95,224,461 | ||
| 20. Jun 18 | Buy | Cheryl Turnbull | Individual | 18. Jun 18 | 18. Jun 18 | 10,625 | $18.00 | $191,250 | ||
| 18. Jun 18 | Buy | Teton Advisors, Inc | Company | 15. Jun 18 | 15. Jun 18 | 12,000 | $18.00 | $216,000 | ||
| 18. Jun 18 | Sell | GAMCO Investors, Inc. | Company | 18. Apr 18 | 14. Jun 18 | -176,691 | $23.27 | $-184,720 | ||
| 18. Jun 18 | Buy | GAMCO Investors, Inc. | Company | 26. Apr 18 | 15. Jun 18 | 691,183 | $22.91 | $6,797,475 | ||
Management checks
We assess Griffon's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Griffon has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Shareholders Should Look Hard At Griffon Corporation’s (NYSE:GFF) 6.8% Return On Capital
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleDoes Griffon's (NYSE:GFF) Share Price Gain of 75% Match Its Business Performance?
And while active stock picking involves risks (and requires diversification) it can also provide excess returns. … For example, long term Griffon Corporation (NYSE:GFF) shareholders have enjoyed a 75% share price rise over the last half decade, well in excess of the market return of around 46% (not including dividends). … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Simply Wall St - – Full articleDespite Its High P/E Ratio, Is Griffon Corporation (NYSE:GFF) Still Undervalued?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleIs Griffon Corporation's (NYSE:GFF) CEO Pay Justified?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … View our latest analysis for Griffon … How Does Ron Kramer's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleDo Insiders Own Shares In Griffon Corporation (NYSE:GFF)?
Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Griffon has a market capitalization of US$806m, so we would expect some institutional investors to have noticed the stock. … institutional investors have bought into the company.
Simply Wall St - – Full articleWhy We’re Not Impressed By Griffon Corporation’s (NYSE:GFF) 6.2% ROCE
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleHow Does Griffon Corporation (NYSE:GFF) Affect Your Portfolio Volatility?
The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Simply Wall St - – Full articleA Closer Look At Griffon Corporation's (NYSE:GFF) Uninspiring ROE
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.070 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleAre Insiders Buying Griffon Corporation (NYSE:GFF) Stock?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So shareholders might well want to know whether insiders have been buying or selling shares in Griffon Corporation (NYSE:GFF). … In total, Griffon insiders bought more than they sold over the last year
Simply Wall St - – Full articleIs Griffon Corporation (NYSE:GFF) A Smart Pick For Income Investors?
Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Historically, Griffon Corporation (NYSE:GFF) has paid dividends to shareholders, and these days it yields 2.3%. … Let's take a look at Griffon in more detail.
Simply Wall St - – Full articleCompany Info
Description
Griffon Corporation, through its subsidiaries, engages in the home and building products, and defense electronics businesses primarily in the United States, Canada, Australia, the United Kingdom, Mexico, and China. The company’s Home & Building Products segment manufactures and markets 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; 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, as well as long-handled tools and landscaping products for homeowners and professionals. 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.
Details
| Name: | Griffon Corporation |
| GFF | |
| Exchange: | NYSE |
| Founded: | 1959 |
| $679,182,881 | |
| 43,593,253 | |
| Website: | http://www.griffon.com |
| Address: |
Griffon Corporation 712 Fifth Avenue, 18th Floor, New York, New York, 10019, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | GFF | Common Stock | New York Stock Exchange | US | USD | 09. Jul 1968 |
Number of employees
Current staff
Industry
| Building Products | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/22 03:25 |
| End of day share price update: | 2019/05/21 00:00 |
| Last estimates confirmation: | 2019/05/15 |
| Last earnings filing: | 2019/05/02 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/09/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
