Griffon Corp. (GFF)
NYSE:GFF
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Griffon
(NYSE:GFF)
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Rating:62Neutral
Price Target:
$76.00
â–²(0.26% Upside)
Action:ReiteratedDate: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
Free Cash Flow Strength
Consistently strong free cash flow (TTM and quarterly) provides durable internal funding for capital expenditure, debt paydown, dividends and buybacks. This reduces reliance on external financing, supports strategic optionality, and cushions the business through housing-cycle variability.
Negative Factors
Elevated/Volatile Leverage
Sharp swings in reported leverage and historically high debt-to-equity raise refinancing and interest‑cost sensitivity. A small equity base magnifies downside risk if profits or cash flow weaken, constraining long-term financial flexibility during downturns or strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistently strong free cash flow (TTM and quarterly) provides durable internal funding for capital expenditure, debt paydown, dividends and buybacks. This reduces reliance on external financing, supports strategic optionality, and cushions the business through housing-cycle variability.
Read all positive factors
Griffon (GFF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.53B
Dividend Yield1.01%
Average Volume (3M)310.08K
Price to Earnings (P/E)12.8
Beta (1Y)0.99
Revenue Growth-3.95%
EPS Growth-74.65%
CountryUS
Employees5,300
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)1.45
Shares Outstanding46,579,174
10 Day Avg. Volume222,828
30 Day Avg. Volume310,079
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 Cap1.46
Enterprise Value/Revenue2.03
Enterprise Value/Gross Profit4.85
Enterprise Value/Ebitda18.62
Forecast
1Y Price Target
$111.50Price Target Upside47.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.25
Revenue Forecast (FY)$1.99B
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 Key Performance Indicators (KPIs)
Griffon Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlights solid cash generation ($99M FCF), measured revenue growth (+3%), improved CPP profitability (+19% EBITDA) and a strategic transaction (JV with ONCAP) that delivers immediate proceeds ($100M) and potential long-term value while preserving a material equity stake. The company also returned capital via buybacks and sustained dividend growth and improved leverage (net debt/EBITDA 2.3x). Offsetting these positives are volume softness in residential markets (-4%), margin pressure from material and labor costs, a GAAP net income decline (~10%), the AMES U.K. negative EBITDA, and execution/timing risks tied to the portfolio actions and a 10% PIK second-lien position. Overall the positives (strong cash flow, strategic monetization, shareholder returns, and maintained guidance for continuing operations) outweigh the operational challenges and near-term headwinds, but the situation retains execution and macro risk.Positive Updates
Strong Free Cash Flow
Generated $99 million of free cash flow in the quarter, providing liquidity to support buybacks, dividends and debt reduction.
Negative Updates
Residential Volume Weakness Hurts HBP
HBP experienced a -4% decline in residential volumes which partially offset a +7% price/mix benefit and contributed to lower absorption.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Free Cash Flow
Generated $99 million of free cash flow in the quarter, providing liquidity to support buybacks, dividends and debt reduction.
Read all positive updates
Company Guidance
Griffon updated full‑year fiscal 2026 guidance for continuing operations: revenue of $1.8 billion, adjusted EBITDA of $520 million (excluding $62 million of unallocated costs), capital expenditures ~$50 million, free cash flow expected to exceed net income, depreciation $27 million, amortization $15 million, interest expense ~$93 million and a normalized tax rate of ~28%. At quarter end (Dec 31) net debt was $1.26 billion with net‑debt/EBITDA leverage of 2.3x (down from 2.4x year‑ago), and the company paid down $60 million of Term Loan B in Q1. Q1 results included revenue $649 million (+3%), adjusted EBITDA before unallocated amounts $145 million (EBITDA margin 22.3%), gross profit $267 million (41.1% gross margin), GAAP net income $64 million ($1.41/share) and adjusted net income $66 million ($1.45/share), plus free cash flow of $99 million; segment detail: HBP revenue +3% with price/mix +7% and volume -4% (HBP EBITDA margin 30.1%), CPP revenue +2% to $241 million and CPP adjusted EBITDA +19% to $22 million. Strategic transaction terms impacting the outlook include expected discontinued‑business EBITDA of ~$60 million (AMES NA ~$25M, Australia ~$40M, U.K. negative), and proceeds from the AMES JV of $100 million cash plus $160 million of second‑lien debt (10% PIK) with Griffon retaining a 43% equity stake (JV expected to close by end of June).Griffon Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
38
Negative
Cash Flow
72
Positive
| 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
Neutral
75.80
Price Trends
80.08
Negative
78.00
Negative
76.82
Negative
Market Momentum
-1.73
Negative
53.41
Neutral
63.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFF, the sentiment is Neutral. The current price of 75.8 is above the 20-day moving average (MA) of 71.73, below the 50-day MA of 80.08, and below the 200-day MA of 76.82, indicating a neutral trend. The MACD of -1.73 indicates Negative momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 63.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.36B | 23.29 | 20.28% | 0.63% | 1.23% | -22.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $3.53B | 12.77 | 38.69% | 1.01% | -3.95% | -74.65% | |
57 Neutral | $821.73M | 4.71 | 4.65% | 3.87% | -16.60% | 58.86% | |
57 Neutral | $4.53B | 20.95 | 6.94% | 2.76% | -57.80% | -57.40% | |
56 Neutral | $722.27M | -1.57 | -40.36% | 20.53% | -15.85% | -59.42% | |
49 Neutral | $4.92B | -14.82 | -10.91% | 27.59% | -8.45% | 27.66% |
* Industrials Sector Average
GFF
Griffon
75.80
4.38
6.13%
CODI
Compass Diversified Holdings
9.60
-7.50
-43.86%
IEP
Icahn Enterprises
7.72
1.02
15.24%
MATW
Matthews International
26.40
6.55
33.00%
MDU
Mdu Resources Group
22.17
6.37
40.35%
VMI
Valmont
427.81
144.97
51.26%
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.