Griffon (GFF) AI Stock Analysis

• Market Cap: $4.07B
• Dividend Yield: 1.01%
• Average Volume (3M): 322.72K
• Price to Earnings (P/E): 95.6
• Beta (1Y): 0.95
• Revenue Growth: -3.95%
• EPS Growth: -74.65%
• Country: US
• Employees: 5,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 1.45
• Shares Outstanding: 46,579,174
• 10 Day Avg. Volume: 334,121
• 30 Day Avg. Volume: 322,720
• PEG Ratio: -0.91
• Price to Book (P/B): 46.69
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 11.38
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 5.27
• Enterprise Value/Ebitda: 20.25
• 1Y Price Target: $111.50
• Price Target Upside: 30.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.94
• Revenue Forecast (FY): $2.53B

• Rating: 62 Neutral
• Price Target: $98.00 ▲(14.65% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

Score is driven by strong cash generation and supportive guidance/leverage improvement signals, reinforced by a strong technical uptrend. It is capped by high balance-sheet risk indicators and thin/pressured profitability, with valuation (very high P/E and modest yield) a major additional headwind.

Positive Factors

Strong free cash flow

Consistently material free cash flow provides durable financial flexibility: it funds buybacks, dividends and debt paydown without relying on external financing. That capacity supports capital allocation through cycles and underpins investment in operations or strategic deals over the next 2–6 months.

Resilient revenue and gross margins

A sharp top‑line rebound with materially improved gross margins suggests durable pricing, mix benefits and manufacturing/distribution leverage. This structural improvement enhances throughput economics and provides a foundation for margin recovery if operating expenses and absorption normalize.

Disciplined capital returns & shareholder support

Large share repurchases and a long track record of dividend growth signal a shareholder‑friendly capital allocation policy sustained by cash generation. This discipline reduces share count, improves per‑share metrics, and signals management confidence in long‑term cash flows and balance‑sheet priority setting.

Negative Factors

Elevated, volatile leverage

Very high and inconsistent leverage increases refinancing, covenant and interest‑cost risk. A small equity base amplifies debt ratios, making the company sensitive to earnings dips and rising rates; this structural balance‑sheet volatility constrains strategic optionality over the medium term.

Compressed net profitability

Despite healthy gross margins, net income is thin due to operating costs, interest and one‑offs. Sustaining healthy operating leverage will be difficult if material and labor inflation persist, meaning revenue gains may not translate reliably into durable bottom‑line improvement.

Execution and portfolio risks from JV/disposals

Monetization via a leveraged JV and retained minority stakes yields immediate cash but limited near‑term earnings and adds high‑cost PIK debt to the picture. Concurrent reviews and divestiture workstreams (Australia/U.K.) raise execution and timing risk that could weigh on free cash flow and leverage metrics.

Griffon Business Overview & Revenue Model

Company Description

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. Its Consumer and Professional Products segment manufactures and markets long-handled tools and landscaping products for homeowners and professionals; 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; wheelbarrows and lawn carts; snow, striking, and hand tools; planters and lawn accessories; garden hoses; and pruners, loppers, shears, and other tools, as well as cleaning products for professional, home, and industrial use. The company's Home & Building Products segment manufactures and markets residential and commercial garage doors for professional dealers and various home center retail chains; and rolling steel door and grille products for commercial, industrial, institutional, and retail uses. It sells its products under the True Temper, AMES, ClosetMaid, Clopay, Ideal, Holmes, CornellCookson, Garant, Harper, UnionTools, Westmix, Cyclone, Southern Patio, Northcote Pottery, Nylex, Hills, Kelkay, Tuscan Path, La Hacienda, Kelso, Dynamic Design, Apta, Quatro Design, Razor-Back, Jackson, Darby, Trojan, Supercraft, NeverLeak, Maximum Load, SuperSlide, ShelfTrack, MasterSuite, Suite Symphony, ExpressShelf, Style+, and SpaceCreations brand names. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1959 and is headquartered in New York, New York.

How the Company Makes Money

Griffon generates revenue through multiple key streams, predominantly from its subsidiaries in the home and building products sector, which includes the manufacturing and sale of branded products such as residential and commercial hardware, building materials, and related services. Additionally, the company earns revenue from its defense segment, which involves providing specialized products and services to government and military clients. The revenue model is bolstered by strategic partnerships with distributors and retailers, enhancing market reach and customer access. Furthermore, ongoing investments in product innovation and operational efficiencies contribute to profitability, allowing Griffon to capture market share and respond effectively to changing consumer demands.

Griffon Financial Statement Overview

Summary

Strong cash generation (TTM FCF ~$285M; Q1 FCF $99M) and sharp TTM revenue rebound support the score, but it is held back by compressed profitability (TTM net margin ~1.8%) and meaningful balance-sheet/leverage risk signaled by historically very high and volatile debt-to-equity.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded sharply (+66.3% growth), and gross margin improved to ~41.8% versus ~33.4% in 2022, showing better pricing/mix and/or cost control. However, profitability is currently thin: net margin is only ~1.8% in TTM (down from ~8.0% in FY2024), indicating meaningful pressure below the gross line (operating costs, interest, and/or one-time items). Overall, the top-line trajectory is strong, but the earnings profile has become less stable and less efficient than recent history.

Balance Sheet

Leverage looks elevated and volatile across periods, with debt-to-equity very high in recent annual data (e.g., ~21.5x in FY2025 and ~7.6x in FY2024), reflecting a relatively small equity base versus debt. While TTM shows a much lower debt figure and a more moderate ~1.85x debt-to-equity, the sharp swings suggest balance-sheet structure risk and potential sensitivity to refinancing/interest costs. Returns on equity are high in several periods, but that’s partly a function of high leverage and low equity, which raises risk if profits soften.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow (~$320M) and free cash flow (~$285M) are sizable and consistently positive in recent years. Free cash flow remains strong even with a modest TTM decline (about -6%), and cash flow has generally tracked earnings reasonably well over time, supporting reinvestment and/or debt reduction capacity. The main weakness is variability in coverage across years (notably weak cash generation in FY2022), which suggests cash flows can fluctuate with business conditions.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	2.54B	2.52B	2.62B	2.69B	2.85B	2.27B
Gross Profit	1.06B	1.06B	1.02B	948.82M	950.25M	641.11M
EBITDA	276.25M	286.40M	461.44M	279.57M	428.36M	225.43M
Net Income	44.65M	51.11M	209.90M	77.62M	-191.56M	79.21M
Balance Sheet
Total Assets	2.05B	2.06B	2.37B	2.42B	2.82B	2.60B
Cash, Cash Equivalents and Short-Term Investments	95.28M	99.05M	114.44M	102.89M	120.18M	248.65M
Total Debt	1.71B	1.59B	1.71B	1.65B	1.76B	1.19B
Total Liabilities	1.95B	1.99B	2.15B	2.10B	2.34B	1.80B
Stockholders Equity	108.90M	73.97M	224.89M	315.24M	477.57M	807.16M
Cash Flow
Free Cash Flow	277.63M	303.58M	308.87M	365.17M	26.95M	74.82M
Operating Cash Flow	320.27M	356.02M	377.27M	428.77M	69.44M	111.77M
Investing Cash Flow	-42.45M	-34.29M	-65.00M	-45.21M	-585.85M	-49.42M
Financing Cash Flow	-332.18M	-338.75M	-298.75M	-400.16M	393.35M	-28.25M

Griffon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFF, the sentiment is Positive. The current price of 85.48 is below the 20-day moving average (MA) of 88.19, above the 50-day MA of 82.65, and above the 200-day MA of 76.24, indicating a neutral trend. The MACD of 1.48 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 12.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GFF.

Griffon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	75 Outperform	$9.12B	27.58	20.41%	0.63%	1.23%	-22.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GFF	62 Neutral	$4.07B	95.62	26.52%	1.01%	-3.95%	-74.65%
MDU	57 Neutral	$4.15B	21.89	7.01%	2.76%	-57.80%	-57.40%
IEP	52 Neutral	$4.64B	-10.09	-12.71%	27.59%	-8.45%	27.66%
MATW	50 Neutral	$832.62M	38.30	4.73%	3.87%	-16.60%	58.86%
CODI	45 Neutral	$609.41M	-1.49	-41.05%	20.53%	-15.85%	-59.42%

Griffon Corporate Events

Griffon Shareholders Back Board, Executive Pay and Auditor

At Griffon’s 2026 Annual Meeting of Shareholders held on February 18, 2026, investors representing 88% of the company’s outstanding common stock were present in person or by proxy, establishing a strong quorum. Shareholders elected 11 directors, including Henry A. Alpert, Jerome L. Coben and Ronald J. Kramer, to serve on the board until the 2027 annual meeting, signaling broad support for the existing leadership slate.

Investors also approved, on an advisory basis, the compensation program for Griffon’s named executive officers, indicating continued backing for management’s pay structure. In addition, shareholders ratified the appointment of Grant Thornton LLP as the company’s independent registered public accounting firm for fiscal 2026, reinforcing continuity in Griffon’s financial oversight and audit processes.

The most recent analyst rating on (GFF) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Griffon stock, see the GFF Stock Forecast page.