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Griffon
(NYSE:GFF)
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Rating:57Neutral
Price Target:
$94.00
▲(7.05% Upside)
Action:Reiterated
Date:06/12/26
The score is held back primarily by mixed financial performance (profitability and revenue compression plus historical balance-sheet risk) and unattractive valuation (very high P/E). Offsetting factors include strong cash generation, a technically positive price trend, maintained guidance with ongoing capital returns, and positive portfolio/JV actions that improve liquidity and risk profile.
Positive Factors
Cash generation
Consistent trailing-twelve-month operating cash flow and free cash flow provide durable internal funding for capex, buybacks, dividends and debt paydown. Strong cash conversion versus earnings gives Griffon flexibility to weather cyclical end markets and fund strategic initiatives over months.
Negative Factors
Revenue and earnings compression
A multi-percent revenue decline and very thin net margins indicate structural demand pressure and limited earnings resiliency. Even with pricing and mix actions, compressed margins reduce retained earnings and limit the firm's capacity to consistently fund growth, returns, or absorb commodity shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent trailing-twelve-month operating cash flow and free cash flow provide durable internal funding for capex, buybacks, dividends and debt paydown. Strong cash conversion versus earnings gives Griffon flexibility to weather cyclical end markets and fund strategic initiatives over months.
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
$4.24B
Dividend Yield1.01%
Average Volume (3M)351.61K
Price to Earnings (P/E)130.1
Beta (1Y)1.06
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. Volume381,748
30 Day Avg. Volume351,613
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 Cap1.28
Enterprise Value/Revenue2.32
Enterprise Value/Gross Profit5.44
Enterprise Value/Ebitda21.29
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)$1.84B
Griffon Business Overview & Revenue Model
Company Description
Griffon Corporation is a global enterprise that operates through its various subsidiaries, providing an extensive range of consumer, professional, and home & building products. Its market reach extends across the United States, Europe, Canada, Aus...
How the Company Makes Money
Griffon makes money primarily by manufacturing and selling branded and private-label products through its operating subsidiaries. A major revenue stream comes from its Home & Building Products segment, which sells residential building components (...
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 | 255.57M | 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
Positive
87.81
Price Trends
89.29
Positive
84.60
Positive
80.24
Positive
Market Momentum
2.22
Negative
52.20
Neutral
73.05
Neutral
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 87.81 is below the 20-day moving average (MA) of 91.91, below the 50-day MA of 89.29, and above the 200-day MA of 80.24, indicating a bullish trend. The MACD of 2.22 indicates Negative momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 73.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $10.85B | 31.73 | 21.43% | 0.63% | 2.40% | 4.95% | |
64 Neutral | $4.45B | 23.10 | 6.80% | 2.76% | -45.41% | -28.15% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $4.24B | 130.10 | 34.99% | 1.01% | -8.03% | -85.98% | |
56 Neutral | $831.54M | 83.28 | 1.89% | 3.87% | -28.90% | ― | |
50 Neutral | $760.64M | ― | -46.27% | 20.53% | 7.52% | -1.67% | |
46 Neutral | $4.83B | -13.85 | -13.03% | 27.59% | 1.28% | 69.04% |
* Industrials Sector Average
GFF
Griffon
92.37
15.30
19.85%
CODI
Compass Diversified Holdings
11.59
4.97
75.08%
IEP
Icahn Enterprises
7.18
0.45
6.65%
MATW
Matthews International
26.65
2.20
8.99%
MDU
Mdu Resources Group
20.71
4.38
26.84%
VMI
Valmont
559.02
219.74
64.77%
Griffon Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Griffon Reshapes AMES Through North American Joint Venture
Positive
Jun 11, 2026
On June 9, 2026, Griffon closed a joint venture combining its AMES U.S. and Canada businesses with Venanpri Tools, with the buyer paying $100 million in cash, issuing $161.1 million of 10% payment-in-kind second-lien term loans maturing in 2029, a...
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.