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Griffon

NYSE:GFF
Snowflake Description

Good value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GFF
NYSE
$719M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company 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 last earnings update was 47 days ago. More info.


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GFF Share Price and Events
7 Day Returns
5%
NYSE:GFF
0.7%
US Building
0.1%
US Market
1 Year Returns
-11.3%
NYSE:GFF
-1.4%
US Building
1.2%
US Market
GFF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Griffon (GFF) 5% 7.6% -11.1% -11.3% -2.2% 36%
US Building 0.7% 2.7% 7.4% -1.4% 9.8% 15.9%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • GFF underperformed the Building industry which returned -1.4% over the past year.
  • GFF underperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
GFF
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Griffon.

NYSE:GFF Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:GFF
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 1.11
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.111 (1 + (1- 21%) (169.2%))
2.07
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.

NYSE:GFF DCF 1st Stage: Next 10 year cash flow forecast
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
NYSE:GFF DCF 2nd Stage: Terminal Value
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
NYSE:GFF Total Equity Value
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
NYSE:GFF Discount to Share Price
Calculation Result
Value per share (USD) From above. $50.03
Current discount Discount to share price of $16.50
= -1 x ($16.50 - $50.03) / $50.03
67%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Griffon is available for.
Intrinsic value
>50%
Share price is $16.5 vs Future cash flow value of $50.03
Current Discount Checks
For Griffon to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
NYSE:GFF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.58
NYSE:GFF Share Price ** NYSE (2019-06-18) in USD $16.5
United States of America Building Industry PE Ratio Median Figure of 30 Publicly-Listed Building Companies 17.9x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Griffon.

NYSE:GFF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GFF Share Price ÷ EPS (both in USD)

= 16.5 ÷ 0.58

28.23x

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?
Raw Data
NYSE:GFF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.23x
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 26 Publicly-Listed Building Companies 1.31x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:GFF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.23x ÷ 38.2%

0.74x

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?
Raw Data
NYSE:GFF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $10.88
NYSE:GFF Share Price * NYSE (2019-06-18) in USD $16.5
United States of America Building Industry PB Ratio Median Figure of 37 Publicly-Listed Building Companies 2.08x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:GFF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GFF Share Price ÷ Book Value per Share (both in USD)

= 16.5 ÷ 10.88

1.52x

* 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.
X
Value checks
We assess Griffon's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
38.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Griffon expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:GFF Future Growth Rates Data Sources
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 12.4%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
Raw Data
NYSE:GFF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GFF Future Estimates Data
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
NYSE:GFF Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Griffon's earnings are expected to grow significantly at over 20% yearly.
  • Griffon's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GFF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months 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 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GFF Future Estimates Data
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
NYSE:GFF Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Griffon is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Griffon's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Griffon's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Griffon's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Griffon Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GFF Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Griffon's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Griffon's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Griffon Company Filings, last reported 2 months ago.

NYSE:GFF Past Debt and Equity Data
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).
X
Financial health checks
We assess Griffon's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Griffon has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.76%
Current annual income from Griffon dividends. Estimated to be 1.94% next year.
If you bought $2,000 of Griffon shares you are expected to receive $35 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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%).
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.
Raw Data
NYSE:GFF Annualized Past and Future Dividends
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 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 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.

NYSE:GFF Future Dividends Estimate Data
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
NYSE:GFF Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-02 0.290 1.851
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.
Current Payout to shareholders
What portion of Griffon's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).
X
Income/ dividend checks
We assess Griffon's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ron Kramer
COMPENSATION $14,379,946
AGE 60
TENURE AS CEO 11.2 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:

6.5
Average Tenure
52.5
Average Age
  • 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

TITLE
Chairman of the Board & CEO
COMPENSATION
$14M
AGE
60
TENURE
11.2 yrs

Bob Mehmel

TITLE
President
COMPENSATION
$5M
AGE
56
TENURE
6.5 yrs

Brian Harris

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
49
TENURE
3.8 yrs

Seth Kaplan

TITLE
Senior VP
COMPENSATION
$2M
AGE
49
TENURE
9.1 yrs

Chris Durborow

TITLE
VP, Controller & Chief Accounting Officer

Mike Sarrica

TITLE
President of The AMES Companies & ClosetMaid and Senior VP
TENURE
2.4 yrs

Steve Lynch

TITLE
President of Clopay Building Products
TENURE
10.4 yrs

Kevin McSweeney

TITLE
President of Telephonics Corporation
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the Griffon board of directors in years:

9
Average Tenure
69.5
Average Age
  • The tenure for the Griffon board of directors is about average.
Board of Directors

Bob Mehmel

TITLE
President
COMPENSATION
$5M
AGE
56
TENURE
1.1 yrs

Henry Alpert

TITLE
Independent Director
COMPENSATION
$182K
AGE
71
TENURE
24.3 yrs

Ron Kramer

TITLE
Chairman of the Board & CEO
COMPENSATION
$14M
AGE
60
TENURE
1.4 yrs

Kevin Sullivan

TITLE
Lead Independent Director
COMPENSATION
$195K
AGE
64
TENURE
3.6 yrs

Lou Grabowsky

TITLE
Independent Director
COMPENSATION
$184K
AGE
67
TENURE
4.2 yrs

Thomas Brosig

TITLE
Independent Director
COMPENSATION
$168K
AGE
68
TENURE
3.9 yrs

William Waldorf

TITLE
Independent Director
COMPENSATION
$164K
AGE
80
TENURE
56.4 yrs

Robert Harrison

TITLE
Independent Director
COMPENSATION
$167K
AGE
82
TENURE
15.3 yrs

Donald Kutyna

TITLE
Independent Director
COMPENSATION
$158K
AGE
85
TENURE
13.8 yrs

Fin Fogg

TITLE
Independent Director
COMPENSATION
$182K
AGE
78
TENURE
14.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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
X
Management checks
We assess Griffon's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Is Griffon Corporation (NYSE:GFF) Overpaying Its CEO?

Check out our latest analysis for Griffon How Does Ron Kramer's Compensation Compare With Similar Sized Companies? … According to our data, Griffon Corporation has a market capitalization of US$629m, and pays its CEO total annual compensation worth US$14m. … We examined the amount Griffon Corporation pays its CEO, and compared it to the amount paid by similar sized companies.

Simply Wall St -

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 -

Does 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 -

Despite 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 -

Is 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 -

Do 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 -

Why 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 -

How 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 -

A 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 -

Are 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 -

Company 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
$719,288,674
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
Staff numbers
7,200
Griffon employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:41
End of day share price update: 2019/06/18 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.