Griffon (GFF)
NYSE:GFF
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Griffon
(NYSE:GFF)
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Rating:61Neutral
Price Target:
$93.00
▲(5.91% Upside)
Action:Reiterated
Date:05/09/26
The score is primarily constrained by weaker TTM profitability and historical balance-sheet volatility, partially offset by strong cash generation. The earnings call adds support via maintained FY2026 guidance, ongoing buybacks/dividend continuity, and expected JV proceeds with modest deleveraging, while technicals are moderately constructive (above key longer-term moving averages) and valuation is middling with a low dividend yield.
Positive Factors
Strong cash generation
Sustained TTM operating and free cash flow provide durable internal funding for capex, dividends, and buybacks without reliance on external financing. High cash conversion versus net income supports balance‑sheet repair and funds strategic actions over the next several quarters.
Negative Factors
Declining revenue and volumes
Sustained top‑line declines and volume weakness reflect structural sensitivity to residential repair/remodel and retail demand. Persistent revenue contraction undermines fixed cost absorption and growth optionality, requiring either market recovery or share gains to restore prior scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained TTM operating and free cash flow provide durable internal funding for capex, dividends, and buybacks without reliance on external financing. High cash conversion versus net income supports balance‑sheet repair and funds strategic actions over the next several quarters.
Read all positive factors
Griffon Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows where Griffon generates sales across regions (domestic vs. international), revealing geographic concentration, exposure to regional economic cycles and currency swings, and where the company has the most growth opportunity or vulnerability.
Shows where Griffon generates sales across regions (domestic vs. international), revealing geographic concentration, exposure to regional economic cycles and currency swings, and where the company has the most growth opportunity or vulnerability.
Data provided by:
The Fly
The FlyGriffon (GFF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.80B
Dividend Yield1.01%
Average Volume (3M)409.27K
Price to Earnings (P/E)19.3
Beta (1Y)1.05
Revenue Growth-8.03%
EPS Growth-85.98%
CountryUS
Employees5,300
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.71
Shares Outstanding45,866,630
10 Day Avg. Volume402,417
30 Day Avg. Volume409,275
Financial Highlights & Ratios
PEG Ratio-0.91
Price to Book (P/B)46.69
Price to Sales (P/S)1.37
P/FCF Ratio11.38
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit5.19
Enterprise Value/Ebitda20.23
Forecast
1Y Price Target
$117.00Price Target Upside33.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.18
Revenue Forecast (FY)$1.87B
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...
How the Company Makes Money
Griffon makes money by manufacturing and selling branded and private-label products through its operating segments, generating revenue primarily from product sales (recognized when control transfers to customers) and supported by distribution rela...
Griffon Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed confidence in strategic actions (joint venture proceeds, continued product innovation, disciplined capital return and maintained guidance) and demonstrated modest deleveraging and pricing power. However, near-term operational headwinds were noted: slight revenue and EBITDA declines, margin pressure from higher material costs, lower year-to-date free cash flow, and uncertainty from AMES dispositions. Overall, positives around strategy execution, cash returns, and innovation slightly outweigh the near-term challenges.Positive Updates
Strategic Joint Venture with ONCAP and Expected Cash Inflow
Griffon expects to close a joint venture including AMES U.S. and Canada by end of June 2026, receiving $100 million in cash proceeds plus $161 million in second-lien paid-in-kind (PIK) notes and retaining a 43% equity stake and board representation.
Negative Updates
Modest Revenue and Volume Decline
Second quarter revenue was $422 million, down 1% year-over-year. Reported volume declined ~6%, with price and mix offsetting ~5% of the decline.
Read all updates
Q2-2026 Updates
Positive
Negative
Strategic Joint Venture with ONCAP and Expected Cash Inflow
Griffon expects to close a joint venture including AMES U.S. and Canada by end of June 2026, receiving $100 million in cash proceeds plus $161 million in second-lien paid-in-kind (PIK) notes and retaining a 43% equity stake and board representation.
Read all positive updates
Company Guidance
Management maintained fiscal 2026 guidance, forecasting continuing-operations revenue of $1.8 billion and adjusted EBITDA of $458 million, with free cash flow from continuing operations expected to exceed income from continuing operations; they also project capital expenditures of $50 million, depreciation of $27 million, amortization of $15 million, interest expense of $93 million (excluding any JV interest), and a normalized tax rate of 28%. In Q2, revenue was $422 million (‑1% YoY; volume down 6% offset by +5% price/mix), adjusted EBITDA was $98 million (‑4% YoY) with a 23.2% EBITDA margin (‑60 bps), gross profit $192 million (45.5% margin), SG&A $105 million (24.8% of revenue), GAAP income from continuing operations $47 million ($1.03/share) and adjusted net income $48 million ($1.05/share); year‑to‑date free cash flow was $101 million and capex was $18 million. Balance sheet and capital allocation metrics included net debt of $1.3 billion (net‑debt/EBITDA 2.4x), $33 million of buybacks in the quarter (422k shares at $78.03 average) with $247 million remaining authorization, $611 million repurchased since April 2023 (11.5M shares at $53.21 average, reducing shares outstanding ~20% vs. end of Q2 FY23), a quarterly dividend of $0.22/share payable June 17 (record May 29; 59th consecutive quarter; >19% annualized dividend CAGR since 2012), and the anticipated AMES JV close by end‑June 2026 that will deliver $100 million cash and $161 million of 10% PIK notes while Griffon retains 43% ownership.Griffon Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
41
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.35B | 2.52B | 2.62B | 2.69B | 2.85B | 2.27B |
| Gross Profit | 1.00B | 1.06B | 1.02B | 948.82M | 950.25M | 641.11M |
| EBITDA | 256.54M | 286.40M | 461.44M | 279.57M | 428.36M | 225.43M |
| Net Income | 29.85M | 51.11M | 209.90M | 77.62M | -191.56M | 79.21M |
Balance Sheet | ||||||
| Total Assets | 2.07B | 2.06B | 2.37B | 2.42B | 2.82B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 109.67M | 99.05M | 114.44M | 102.89M | 120.18M | 248.65M |
| Total Debt | 1.48B | 1.59B | 1.71B | 1.65B | 1.76B | 1.19B |
| Total Liabilities | 1.97B | 1.99B | 2.15B | 2.10B | 2.34B | 1.80B |
| Stockholders Equity | 94.45M | 73.97M | 224.89M | 315.24M | 477.57M | 807.16M |
Cash Flow | ||||||
| Free Cash Flow | 287.20M | 303.58M | 308.87M | 365.17M | 26.95M | 74.82M |
| Operating Cash Flow | 326.11M | 356.02M | 377.27M | 428.77M | 69.44M | 111.77M |
| Investing Cash Flow | -40.63M | -34.29M | -65.00M | -45.21M | -585.85M | -49.42M |
| Financing Cash Flow | -302.56M | -338.75M | -298.75M | -400.16M | 393.35M | -28.25M |
Griffon Technical Analysis
Negative
87.81
Price Trends
80.69
Negative
81.98
Negative
78.28
Positive
Market Momentum
-0.30
Positive
40.06
Neutral
6.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFF, the sentiment is Negative. The current price of 87.81 is below the 20-day moving average (MA) of 88.45, above the 50-day MA of 80.69, and above the 200-day MA of 78.28, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 40.06 is Neutral, neither overbought nor oversold. The STOCH value of 6.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GFF.
Griffon Risk Analysis
Griffon disclosed 31 risk factors in its most recent earnings report. Griffon reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Griffon Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.72B | 17.67 | 21.43% | 0.63% | 2.40% | 4.95% | |
64 Neutral | $4.70B | 13.17 | 6.80% | 2.76% | -45.41% | -28.15% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $3.80B | 19.32 | 34.99% | 1.01% | -8.03% | -85.98% | |
56 Neutral | $837.79M | -9.30 | 1.89% | 3.87% | -28.90% | ― | |
54 Neutral | $904.34M | -4.81 | -46.27% | 20.53% | 7.52% | -1.67% | |
46 Neutral | $5.13B | -2.41 | -13.03% | 27.59% | 1.28% | 69.04% |
* Industrials Sector Average
GFF
Griffon
79.78
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18.26%
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Griffon Corporate Events
Executive/Board ChangesShareholder Meetings
Griffon Shareholders Back Board, Executive Pay and Auditor
Positive
Feb 18, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.