Griffon Corporation Fundamental Analysis (NYSE: GFF)
Griffon Corporation (NYSE: GFF) shows weak financial fundamentals with a PE ratio of 22.69, profit margin of 9.10%, and ROE of 1.98%. The company generates $2.3B in annual revenue with weak year-over-year growth of -3.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GFF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGFF demonstrates superior asset utilization.
Valuation Score
ExcellentGFF trades at attractive valuation levels.
Growth Score
WeakGFF faces weak or negative growth trends.
Financial Health Score
ModerateGFF shows balanced financial health with some risks.
Profitability Score
ModerateGFF maintains healthy but balanced margins.
Key Financial Metrics
Is GFF Expensive or Cheap?
P/E Ratio
GFF trades at 22.69 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GFF's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Griffon Corporation at 35.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.13 times EBITDA. This is generally considered low.
How Well Does GFF Make Money?
Net Profit Margin
For every $100 in sales, Griffon Corporation keeps $9.10 as profit after all expenses.
Operating Margin
Core operations generate 19.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.98 in profit for every $100 of shareholder equity.
ROA
Griffon Corporation generates $10.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Griffon Corporation produces operating cash flow of $334.69M, showing steady but balanced cash generation.
Free Cash Flow
Griffon Corporation generates strong free cash flow of $297.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.48 in free cash annually.
FCF Yield
GFF converts 6.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
35.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
10.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.98
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How GFF Stacks Against Its Sector Peers
| Metric | GFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.69 | 27.26 | Better (Cheaper) |
| ROE | 198.41% | 1203.00% | Weak |
| Net Margin | 9.10% | 200.00% | Weak |
| Debt/Equity | 10.35 | 0.74 | Weak (High Leverage) |
| Current Ratio | 2.41 | 3.29 | Strong Liquidity |
| ROA | 10.98% | 3162.00% | Weak |
GFF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Griffon Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.50%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-10.17%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
149.47%
Industry Style: Cyclical, Commodity, Value
High Growth