Griffon (GFF) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: 1.01%
• Average Volume (3M): 250.94K
• Price to Earnings (P/E): 53.7
• Beta (1Y): 1.10
• Revenue Growth: -3.37%
• EPS Growth: -61.83%
• Country: US
• Employees: 5,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 46,558,647
• 10 Day Avg. Volume: 300,519
• 30 Day Avg. Volume: 250,939
• PEG Ratio: 0.08
• Price to Book (P/B): 14.81
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 10.78
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: 17.45
• 1Y Price Target: $115.00
• Price Target Upside: 60.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $81.00 ▲(13.14% Upside)

Griffon's overall stock score reflects strong profitability and cash flow management, which are offset by challenges in revenue growth and high leverage. The technical analysis indicates potential short-term weakness, and the valuation suggests the stock may be overvalued. The earnings call highlighted both strengths and weaknesses, contributing to a balanced outlook.

Positive Factors

Strong Cash Flow Management

Griffon's strong cash flow management supports operational needs and financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Home & Building Products Segment Performance

The robust performance of the Home & Building Products segment, driven by favorable pricing and mix, highlights Griffon's ability to capitalize on market demand and sustain profitability.

Successful Stock Repurchase Program

The stock repurchase program demonstrates effective capital allocation, enhancing shareholder value and reflecting confidence in the company's long-term prospects.

Negative Factors

High Leverage

Griffon's high leverage poses a risk to financial stability, potentially limiting flexibility in funding future growth and increasing vulnerability to economic downturns.

Consumer and Professional Products Segment Weakness

Weakness in the Consumer and Professional Products segment, driven by reduced demand and disrupted ordering patterns, challenges Griffon's revenue growth and market position.

Significant Goodwill Impairment Charge

The substantial goodwill impairment charge reflects challenges in the CPP segment, indicating potential overvaluation of past acquisitions and impacting financial health.

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 demonstrates strong profitability and cash flow management, with improving margins and cash generation. However, the company faces challenges with declining revenue growth and high leverage, which could impact long-term financial stability. Addressing revenue growth and reducing debt levels should be priorities to enhance financial health.

Income Statement

Griffon's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 40.95%, indicating strong cost management. However, the revenue growth rate is negative, suggesting a decline in sales. The net profit margin improved to 9.06% in TTM, reflecting better profitability compared to previous years. EBIT and EBITDA margins are also strong, indicating efficient operations. Overall, the company demonstrates solid profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 0.85 in TTM, which is a significant improvement from previous years but still indicates high leverage. Return on equity is robust at 38.27%, showing effective use of equity to generate profits. The equity ratio is low, suggesting a reliance on debt financing. While the company is profitable, the high leverage poses a risk to financial stability.

Cash Flow

Griffon's cash flow statement is strong, with a positive free cash flow growth rate of 4.86% in TTM. The operating cash flow to net income ratio is 1.07, indicating good cash generation relative to net income. The free cash flow to net income ratio is high at 0.90, reflecting efficient cash management. Overall, the company shows solid cash flow performance, supporting its operational needs and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.52B	2.62B	2.69B	2.85B	2.27B	2.07B
Gross Profit	1.05B	1.02B	948.82M	936.89M	641.11M	641.43M
EBITDA	274.99M	461.44M	463.13M	-121.84M	245.21M	187.35M
Net Income	69.97M	209.90M	77.62M	-299.07M	79.21M	53.43M
Balance Sheet
Total Assets	2.09B	2.37B	2.42B	2.82B	2.60B	2.46B
Cash, Cash Equivalents and Short-Term Investments	107.28M	114.44M	102.89M	120.18M	248.65M	218.09M
Total Debt	1.63B	1.71B	1.65B	1.76B	1.19B	1.21B
Total Liabilities	2.02B	2.15B	2.10B	2.34B	1.80B	1.76B
Stockholders Equity	63.90M	224.89M	315.24M	477.57M	807.16M	700.15M
Cash Flow
Free Cash Flow	325.74M	308.87M	365.17M	26.95M	74.82M	85.01M
Operating Cash Flow	354.99M	377.27M	428.77M	69.44M	111.77M	134.01M
Investing Cash Flow	-52.56M	-65.00M	-45.21M	-585.85M	-49.42M	-58.86M
Financing Cash Flow	-329.57M	-298.75M	-400.16M	393.35M	-28.25M	68.19M

Griffon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 71.59 is below the 20-day moving average (MA) of 74.57, below the 50-day MA of 75.96, and below the 200-day MA of 73.45, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 37.14 is Neutral, neither overbought nor oversold. The STOCH value of 18.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GFF.

Griffon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	78 Outperform	$8.09B	35.32	14.90%	0.63%	1.23%	-22.77%
GFF	65 Neutral	$3.35B	53.75	48.69%	1.01%	-3.37%	-61.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MDU	62 Neutral	$4.31B	25.57	6.42%	2.48%	-57.80%	-57.40%
CODI	53 Neutral	$447.65M	―	―	17.95%	6.77%	9.95%
IEP	51 Neutral	$5.40B	―	-12.71%	22.65%	-8.45%	27.66%
MATW	48 Neutral	$719.28M	-11.16	-12.81%	4.24%	-11.13%	-351.71%

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.