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.

Risks

  • Griffon has significant price volatility in the past 3 months.

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

11.6%

NYSE:GFF

0.1%

US Building

-0.02%

US Market


1 Year Return

22.4%

NYSE:GFF

3.8%

US Building

1.6%

US Market

GFF outperformed the Building industry which returned 3.5% over the past year.

GFF outperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

GFFIndustryMarket
7 Day11.6%0.1%-0.02%
30 Day17.4%5.2%2.7%
90 Day26.0%6.0%1.4%
1 Year24.8%22.4%5.6%3.8%3.8%1.6%
3 Year41.2%28.2%26.1%15.5%45.2%35.8%
5 Year98.6%76.2%56.3%37.0%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

28.55x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Griffon's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Griffon's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Griffon is good value based on expected growth next year.


Price Based on Value of Assets

Griffon is good value based on assets compared to the US Building industry average.


Next Steps

Future Growth

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

32.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Griffon's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

Griffon's earnings are expected to grow significantly at over 20% yearly.

Griffon's revenue growth is positive but not above the United States of America market average.

Griffon's earnings growth is expected to exceed the United States of America market average.

Griffon's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Griffon is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Griffon's year on year earnings growth rate has been positive over 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.


Return on Equity

Griffon has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Griffon used its assets less efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

Griffon has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Griffon's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Griffon's level of debt (239.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (142.4% vs 239.8% today).

Debt is not well covered by operating cash flow (5.7%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.42%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Griffon's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Griffon's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

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.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).


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)

11.4yrs

Tenure

US$14,379,946

Compensation

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  ...


CEO Compensation Analysis

Ron's remuneration is higher than average for companies of similar size in United States of America.

Ron's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.8yrs

Average Tenure

53.5yo

Average Age

The average tenure for the Griffon management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.0yrs

Average Tenure

69yo

Average Age

The tenure for the Griffon board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$160,44226 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares228,465
Max PriceUS$16.84
BuyUS$277,80826 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares50,800
Max PriceUS$17.02
BuyUS$102,13426 Jul 19
Gabelli & Company Investment Advisers, Inc.
EntityCompany
Shares6,500
Max PriceUS$15.72
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: 11.4yrs
    • Compensation: US$14.38m
  • Bob Mehmel (57yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$5.32m
  • Kevin McSweeney

    President of Telephonics Corporation

    • Tenure: 2.9yrs
  • Brian Harris (50yo)

    Senior VP & CFO

    • Tenure: 4.1yrs
    • Compensation: US$1.91m
  • Mike Sarrica

    President of The AMES Companies & ClosetMaid and Senior VP

    • Tenure: 2.7yrs
  • Seth Kaplan (50yo)

    Senior VP

    • Tenure: 9.3yrs
    • Compensation: US$1.77m
  • Chris Durborow

    VP, Controller & Chief Accounting Officer

    • Tenure: 0yrs
  • Steve Lynch

    President of Clopay Building Products

    • Tenure: 10.7yrs

Board Members

  • Thomas Brosig (69yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$168.00k
  • Henry Alpert (72yo)

    Independent Director

    • Tenure: 24.6yrs
    • Compensation: US$182.00k
  • Ron Kramer (61yo)

    Chairman of the Board & CEO

    • Tenure: 11.4yrs
    • Compensation: US$14.38m
  • William Waldorf (81yo)

    Independent Director

    • Tenure: 56.7yrs
    • Compensation: US$163.50k
  • Bob Mehmel (57yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$5.32m
  • Robert Harrison (83yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$167.00k
  • Donald Kutyna (86yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: US$158.00k
  • Lou Grabowsky (68yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$183.50k
  • Gene Renuart (69yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$153.50k
  • Kevin Sullivan (65yo)

    Lead Independent Director

    • Tenure: 3.8yrs
    • 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$928.536m
  • 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 Analysis2019/09/18 23:36
End of Day Share Price2019/09/18 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.