NYSE:GFF

Stock Analysis Report

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.


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

GFFIndustryMarket
7 Day1.8%0.1%-1.1%
30 Day-6.3%2.3%1.4%
90 Day-6.4%5.4%6.9%
1 Year16.0%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 Year44.8%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

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

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.5%

Current dividend yield vs market & industry

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

NamePositionTenureCompensationOwnership
Ronald Kramer
Chairman of the Board & CEO11.8yrsUS$11.58m5.73% $52.4m
Robert Mehmel
President1.8yrsUS$4.57m1.26% $11.5m
Brian Harris
Senior VP & CFO4.5yrsUS$2.11m0.38% $3.5m
Seth Kaplan
Senior VP9.8yrsUS$1.99m0.53% $4.8m
W. Durborow
VP, Controller & Chief Accounting Officer0yrsno data0.11% $975.3k
Michael Sarrica
Senior Vice President of Operations3.1yrsno datano data
Steven Lynch
President of Clopay Building Products11.1yrsno datano data
Kevin McSweeney
President of Telephonics Corporation3.3yrsno datano data
Thomas Gibbons
VP & Treasurer0yrsno datano 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

NamePositionTenureCompensationOwnership
Ronald Kramer
Chairman of the Board & CEO11.8yrsUS$11.58m5.73% $52.4m
Robert Mehmel
President1.8yrsUS$4.57m1.26% $11.5m
Thomas Brosig
Independent Director4.6yrsUS$180.00k0.058% $530.1k
Henry Alpert
Independent Director25yrsUS$179.00k0.16% $1.4m
William Waldorf
Independent Director57.1yrsUS$163.50k0.13% $1.2m
Cheryl Turnbull
Independent Director1.8yrsUS$164.00k0.057% $520.9k
Robert Harrison
Independent Director16yrsUS$164.00k0.097% $886.3k
Louis Grabowsky
Independent Director4.8yrsUS$183.50k0.097% $886.0k
Victor Renuart
Independent Director6.1yrsUS$156.50k0.066% $599.8k
Kevin Sullivan
Lead Independent Director4.3yrsUS$196.50k0.085% $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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:57
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.