Griffon (GFF) AI Stock Analysis

• Market Cap: $3.42B
• Dividend Yield: 1.03%
• Average Volume (3M): 320.65K
• Price to Earnings (P/E): 67.7
• Beta (1Y): 1.06
• Revenue Growth: -3.95%
• EPS Growth: -74.65%
• Country: US
• Employees: 5,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 1.54
• Shares Outstanding: 46,231,090
• 10 Day Avg. Volume: 436,686
• 30 Day Avg. Volume: 320,650
• 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: 1.46
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 4.72
• Enterprise Value/Ebitda: 17.35
• 1Y Price Target: $92.00
• Price Target Upside: 24.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.94
• Revenue Forecast (FY): $2.53B

• Rating: 61 Neutral
• Price Target: $79.00 ▲(6.84% Upside)

Griffon's overall stock score reflects a mixed financial performance with strong cash flow but high leverage and declining profitability. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The earnings call provided a balanced outlook with notable strengths in certain segments but significant challenges in others.

Positive Factors

Cash Flow Generation

Griffon's ability to generate strong free cash flow indicates robust operational efficiency and financial health, providing flexibility for future investments and debt management.

Home & Building Products Segment

The strong performance in the Home & Building Products segment highlights Griffon's competitive advantage and market strength, contributing to stable revenue and profitability.

Dividend Growth

Consistent dividend growth reflects Griffon's commitment to returning value to shareholders and confidence in its long-term cash flow stability.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting Griffon's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Consumer and Professional Products Segment

Weak demand and disrupted ordering patterns in the CPP segment indicate challenges in market positioning, affecting overall revenue growth and profitability.

Goodwill Impairment

The significant goodwill impairment charge reflects potential overvaluation of past acquisitions, impacting Griffon's financial statements and investor confidence.

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

Griffon shows strong gross profit margins and cash flow generation, but faces challenges with declining net profit margins and high leverage. Revenue growth has resumed, yet operational efficiency needs improvement. The high debt levels pose risks, though cash flow strength provides some stability.

Income Statement

Griffon has shown a mixed performance in its income statement. The gross profit margin has improved over the years, reaching 41.99% in the latest period, indicating strong cost management. However, the net profit margin has declined significantly from 8% to 2.03%, reflecting challenges in maintaining profitability. Revenue growth has been inconsistent, with a recent 10% increase following a period of decline. The EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.54, indicating significant leverage, which could pose financial risks. Return on equity has decreased to 69.09%, down from previous highs, reflecting reduced profitability relative to shareholder equity. The equity ratio remains low, highlighting a reliance on debt financing. While there are strengths in equity growth, the high leverage remains a concern.

Cash Flow

Cash flow analysis shows a positive trend with a 9.73% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 1.07, suggesting efficient cash conversion from earnings. The free cash flow to net income ratio of 1.0 further supports the company's ability to generate cash relative to its net income. Overall, cash flow management appears robust despite past fluctuations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.52B	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	288.00M	286.40M	461.44M	279.57M	428.36M	225.43M
Net Income	51.11M	51.11M	209.90M	77.62M	-191.56M	79.21M
Balance Sheet
Total Assets	2.06B	2.06B	2.37B	2.42B	2.82B	2.60B
Cash, Cash Equivalents and Short-Term Investments	99.05M	99.05M	114.44M	102.89M	120.18M	248.65M
Total Debt	1.59B	1.59B	1.71B	1.65B	1.76B	1.19B
Total Liabilities	1.99B	1.99B	2.15B	2.10B	2.34B	1.80B
Stockholders Equity	73.97M	73.97M	224.89M	315.24M	477.57M	807.16M
Cash Flow
Free Cash Flow	303.58M	303.58M	308.87M	365.17M	26.95M	74.82M
Operating Cash Flow	356.02M	356.02M	377.27M	428.77M	69.44M	111.77M
Investing Cash Flow	-34.29M	-34.29M	-65.00M	-45.21M	-585.85M	-49.42M
Financing Cash Flow	-338.75M	-338.75M	-298.75M	-400.16M	393.35M	-28.25M

Griffon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 73.94 is above the 20-day moving average (MA) of 71.58, above the 50-day MA of 73.90, and above the 200-day MA of 72.85, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 83.90 is Negative, 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	78 Outperform	$8.01B	35.00	14.90%	0.63%	1.23%	-22.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MDU	62 Neutral	$4.22B	25.03	6.42%	2.57%	-57.80%	-57.40%
GFF	61 Neutral	$3.42B	67.67	34.20%	1.03%	-3.95%	-74.65%
CODI	59 Neutral	$529.66M	―	―	14.20%	6.77%	9.95%
MATW	54 Neutral	$752.96M	-30.57	-5.33%	4.10%	-16.60%	58.86%
IEP	48 Neutral	$4.85B	―	-12.71%	24.97%	-8.45%	27.66%

Griffon Corporate Events

Griffon Corporation’s Earnings Call: Mixed Results Amid Challenges

Griffon Corporation’s recent earnings call painted a mixed picture, reflecting both strong performance and ongoing challenges. The company reported significant improvements in the Home & Building Products (HBP) segment, with enhanced profitability and strategic capital allocation. However, the Consumer and Professional Products (CPP) segment faced hurdles, including a notable impairment charge and reduced revenue guidance due to weak consumer demand and tariff impacts.

Griffon Corporation Reports Q3 2025 Earnings

Griffon Corporation is a diversified management and holding company that operates through two main segments: Home and Building Products (HBP) and Consumer and Professional Products (CPP). The company is known for manufacturing and marketing garage doors and rolling steel doors in North America, as well as providing a range of consumer and professional tools and products globally.