NYSE:GFF

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


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


Market Performance


7 Day Return

4.5%

GFF

2.0%

US Building

2.3%

US Market


1 Year Return

44.2%

GFF

17.0%

US Building

5.6%

US Market

Return vs Industry: GFF exceeded the US Building industry which returned 17% over the past year.

Return vs Market: GFF exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

GFFIndustryMarket
7 Day4.5%2.0%2.3%
30 Day-1.4%-0.2%-1.0%
90 Day33.6%4.4%-0.7%
1 Year46.9%44.2%18.8%17.0%7.9%5.6%
3 Year39.3%26.4%29.1%18.2%45.6%36.3%
5 Year105.2%82.0%59.8%40.3%65.8%47.6%

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

Valuation

Is Griffon undervalued compared to its fair value and its price relative to the market?

28.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: GFF ($20.99) is trading above our estimate of fair value ($18.24)

Significantly Undervalued: GFF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GFF is poor value based on its PE Ratio (28.1x) compared to the Building industry average (20.3x).

PE vs Market: GFF is poor value based on its PE Ratio (28.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 (1.9x) compared to the US Building industry average (2.2x).


Next Steps

Future Growth

How is Griffon forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFF's forecast earnings growth (36.1% per year) is above the savings rate (2.7%).

Earnings vs Market: GFF's earnings (36.1% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GFF's revenue (3.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GFF's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GFF's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Griffon performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GFF has become profitable over the past 5 years, growing earnings by 15.2% per year.

Accelerating Growth: GFF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GFF had negative earnings growth (-16.8%) over the past year, making it difficult to compare to the Building industry average (7.7%).


Return on Equity

High ROE: GFF's Return on Equity (6.2%) is considered low.


Return on Assets

ROA vs Industry: GFF's Return on Assets is below or equal to the Building industry average last year.


Return on Capital Employed

ROCE Improving: GFF has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Griffon's financial position?


Financial Position Analysis

Short Term Liabilities: GFF's short term assets ($961.4M) exceeds its short term liabilities ($367.2M)

Long Term Liabilities: GFF's short term assets (961.4M) do not cover its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: GFF's debt to equity ratio (239.8%) is considered high

Reducing Debt: GFF's debt to equity ratio has increased from 142.4% to 239.8% over the past 5 years.

Debt Coverage: GFF's debt is not well covered by operating cash flow (5.7%).

Interest Coverage: GFF's interest payments on its debt are not well covered by EBIT (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?

1.38%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.8%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GFF's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: GFF's dividend (1.38%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 (38.5%), GFF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GFF's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

What is the CEO of Griffon's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Ron Kramer (61yo)

11.5yrs

Tenure

US$14,379,946

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 ($USD14.38M) is about average for companies of similar size in the US market ($USD2.69M).

Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: GFF's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

69yo

Average Age

Experienced Board: GFF's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$160,44226 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares228,465
Max PriceUS$16.84
BuyUS$102,13426 Jul 19
Gabelli & Company Investment Advisers, Inc.
EntityCompany
Shares6,500
Max PriceUS$15.72
BuyUS$277,80826 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares50,800
Max PriceUS$17.02
BuyUS$30,44706 Dec 18
W. Durborow
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares2,550
Max PriceUS$11.94
BuyUS$46,90006 Dec 18
Brian Harris
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares4,000
Max PriceUS$12.10
BuyUS$52,29006 Dec 18
Seth Kaplan
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares4,500
Max PriceUS$11.62
BuyUS$123,25030 Nov 18
Ronald Kramer
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO
Shares10,000
Max PriceUS$12.41
BuyUS$120,40028 Nov 18
Ronald Kramer
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO
Shares10,000
Max PriceUS$12.12
BuyUS$23,60027 Nov 18
Brian Harris
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,000
Max PriceUS$11.80
BuyUS$122,90026 Nov 18
Ronald Kramer
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO
Shares10,000
Max PriceUS$12.72
BuyUS$363,66320 Nov 18
Ronald Kramer
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO
Shares29,997
Max PriceUS$12.20

Ownership Breakdown


Management Team

  • Ron Kramer (61yo)

    Chairman of the Board & CEO

    • Tenure: 11.5yrs
    • Compensation: US$14.38m
  • Bob Mehmel (57yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$5.32m
  • Kevin McSweeney

    President of Telephonics Corporation

    • Tenure: 3yrs
  • Brian Harris (50yo)

    Senior VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$1.91m
  • Mike Sarrica

    President of The AMES Companies & ClosetMaid and Senior VP

    • Tenure: 2.8yrs
  • Seth Kaplan (50yo)

    Senior VP

    • Tenure: 9.4yrs
    • Compensation: US$1.77m
  • Chris Durborow

    VP, Controller & Chief Accounting Officer

    • Tenure: 0yrs
  • Steve Lynch

    President of Clopay Building Products

    • Tenure: 10.8yrs

Board Members

  • Thomas Brosig (69yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$168.00k
  • Henry Alpert (72yo)

    Independent Director

    • Tenure: 24.7yrs
    • Compensation: US$182.00k
  • Ron Kramer (61yo)

    Chairman of the Board & CEO

    • Tenure: 11.5yrs
    • Compensation: US$14.38m
  • William Waldorf (81yo)

    Independent Director

    • Tenure: 56.8yrs
    • Compensation: US$163.50k
  • Bob Mehmel (57yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$5.32m
  • Robert Harrison (83yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$167.00k
  • Donald Kutyna (86yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$158.00k
  • Lou Grabowsky (68yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$183.50k
  • Gene Renuart (69yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$153.50k
  • Kevin Sullivan (65yo)

    Lead Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$195.00k

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$915.022m
  • Shares outstanding: 43.59m
  • Website: https://www.griffon.com

Number of Employees


Location

  • Griffon Corporation
  • 712 Fifth Avenue
  • 18th Floor
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GFFNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1968

Biography

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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:36
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.