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Griffon Corp. (GFF)
NYSE:GFF
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Griffon
(NYSE:GFF)
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Rating:60Neutral
Price Target:
$82.00
â–¼(-2.28% Downside)
The score is primarily held back by pressured profitability and high leverage in the financials, and a very high P/E with a low yield. Support comes from solid cash-flow quality and moderately positive technical momentum with the stock trading above major moving averages.
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 (GFF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.88B
Dividend Yield1.01%
Average Volume (3M)259.82K
Price to Earnings (P/E)76.6
Beta (1Y)1.01
Revenue Growth-3.95%
EPS Growth-74.65%
CountryUS
Employees5,300
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)1.54
Shares Outstanding46,231,090
10 Day Avg. Volume195,298
30 Day Avg. Volume259,817
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 Cap1.29
Enterprise Value/Revenue1.98
Enterprise Value/Gross Profit4.72
Enterprise Value/Ebitda17.35
Forecast
1Y Price Target
$92.00Price Target Upside9.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.94
Revenue Forecast (FY)$2.53B
Griffon Business Overview & Revenue Model
Company DescriptionGriffon 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 MoneyGriffon 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 03, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong performance in the Home & Building Products segment and successful financial maneuvers in stock repurchase and dividend growth. However, significant challenges were noted in the Consumer and Professional Products segment, notably a large impairment charge and reduced revenue expectations. Overall, the sentiment is balanced with notable strengths and significant weaknesses.Q3-2025 Updates
Positive Updates
Home & Building Products Segment Performance
For the first 9 months, HBP profitability exceeded expectations with an EBITDA margin of 31.4%. Revenue for Home and Building Products increased 2% from the prior year, driven by favorable price and mix.
Improved EBITDA Margins
Adjusted EBITDA before unallocated amounts increased 5% compared to the prior year quarter, with EBITDA margin before unallocated amounts increasing by 240 basis points.
Successful Stock Repurchase Program
Repurchased $40 million of stock during the third quarter, totaling a reduction of Griffon's outstanding shares by 18.4% relative to the total shares outstanding at the end of the second quarter of fiscal 2023.
Consistent Dividend Growth
Authorized a regular quarterly dividend of $0.18 per share, marking the 56th consecutive quarterly dividend, with dividends growing at an annualized compound rate of more than 18% since 2012.
Strong Balance Sheet and Liquidity
Net debt-to-EBITDA leverage reduced to 2.5x, down from 2.7x at the end of last year's third quarter.
Negative Updates
Consumer and Professional Products Segment Weakness
CPP revenue decreased 16% compared to the prior year quarter, primarily driven by a 19% decrease in volume due to reduced consumer demand and disrupted ordering patterns from increased tariffs.
Significant Goodwill Impairment Charge
Recorded a pretax charge of $244 million for impairment on goodwill and indefinite-lived intangible assets related to the acquisition of Hunter Fan, caused by ongoing weak consumer demand and increased tariffs.
Reduced Revenue Expectations
Revenue expectations reduced by $100 million to $2.5 billion due to ongoing consumer weakness at CPP.
GAAP Net Loss
Third quarter GAAP net loss was $120 million or $2.65 per share compared to net income of $41 million in the prior year quarter.
Company Guidance
During Griffon Corporation's Fiscal Third Quarter 2025 earnings call, the company reaffirmed its full-year EBITDA guidance of $575 million to $600 million, despite lowering revenue expectations by $100 million to $2.5 billion due to ongoing consumer weakness in the Consumer and Professional Products (CPP) segment. The Home & Building Products (HBP) segment exceeded expectations with an EBITDA margin of 31.4% for the first nine months, driven by favorable price and mix. In contrast, CPP faced weak demand and increased tariffs that disrupted customer ordering patterns, although its EBITDA margin improved by 270 basis points year-over-year. The company repurchased $40 million of stock in the third quarter, reducing outstanding shares by 18.4% since the end of fiscal 2023. Additionally, a regular quarterly dividend of $0.18 per share was authorized. Griffon's net debt was $1.3 billion with a leverage ratio of 2.5x, down from 2.7x the previous year. The company revised its net interest expense guidance to $95 million and capital expenditures to $60 million. Despite challenges, Griffon remains optimistic about its long-term strategic plan and expects to generate over $1 billion in free cash flow this fiscal year and the next two years.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.65
Positive
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.55
Neutral
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.70
Positive
| 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
Positive
83.91
Price Trends
74.47
Positive
75.36
Positive
73.65
Positive
Market Momentum
1.95
Negative
72.81
Negative
96.55
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 83.91 is above the 20-day moving average (MA) of 77.13, above the 50-day MA of 74.47, and above the 200-day MA of 73.65, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 72.81 is Negative, neither overbought nor oversold. The STOCH value of 96.55 is Negative, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $8.43B | 36.84 | 14.90% | 0.63% | 1.23% | -22.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $3.88B | 76.64 | 34.20% | 1.01% | -3.95% | -74.65% | |
57 Neutral | $4.15B | 24.62 | 6.42% | 2.76% | -57.80% | -57.40% | |
55 Neutral | $864.89M | -35.87 | -5.33% | 3.87% | -16.60% | 58.86% | |
48 Neutral | $4.72B | -9.95 | -12.71% | 27.59% | -8.45% | 27.66% | |
45 Neutral | $405.52M | -0.98 | -41.05% | 20.53% | -15.85% | -59.42% |
* Industrials Sector Average
GFF
Griffon
85.20
9.37
12.36%
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5.40
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7.86
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28.69
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-3.47%
MDU
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VMI
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31.85%
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.