Griffon (GFF) AI Stock Analysis

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Griffon

(Frankfurt:GFF)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong Cash GenerationSubstantial operating and free cash flow supports internal funding for debt reduction, reinvestment, and shareholder returns. Because free cash flow remains close to reported earnings, the company’s earnings quality is supported by cash conversion rather than relying solely on accounting profitability.

Negative Factors

Elevated LeverageVery high debt relative to equity leaves Griffon with a limited balance-sheet cushion if operating conditions weaken. Leverage can amplify returns when performance is strong, but it also raises financial risk, restricts capital-allocation flexibility, and makes sustained cash generation important.

Griffon (GFF) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 4.87B
Dividend Yield: 0.81%
Average Volume (3M): ―
Price to Earnings (P/E): 23.5
Beta (1Y): 0.45
Revenue Growth: -18.01%
EPS Growth: 160.02%
Country: Germany
Employees: 5,100
Sector: Industrials
Sector Strength: 63
Industry: Construction Materials

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, Austra...

Griffon Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q3-2026)|% Change Since:22.21%|Next Earnings Date:Nov 17, 2026

Earnings Call SentimentPositive

The call conveyed strong operational execution, disciplined capital allocation and meaningful strategic progress (transaction proceeds, debt paydown, share buybacks and maintained guidance). Key positives include revenue growth (+7%), adjusted EBITDA improvement, improved leverage, substantial cash proceeds from strategic transactions and continued shareholder returns. Headwinds include margin compression (gross margin down 1.7 pts), ongoing inflationary cost pressures, slight year-to-date free cash flow decline versus prior year and residential volume softness tied to housing market dynamics. Overall, the positives (growth, balance sheet repair, strategic monetizations and capital returns) meaningfully outweigh the negatives, though management notes cyclical demand risk tied to housing and commercial recovery.

Positive Updates

Quarterly Revenue Growth

Third quarter revenue of $481.0 million, up 7% year-over-year organically (benefiting from ~6% favorable price/mix and ~1% volume). Company maintained full-year revenue guidance of $1.8 billion.

Negative Updates

Gross Margin Decline

Gross profit was $226 million with a gross margin of 47.0% versus prior-year gross margin of 48.7% (a decline of 1.7 percentage points), reflecting margin pressure despite higher revenue.

Company Guidance

Griffon reiterated fiscal 2026 guidance for continuing operations, targeting revenue of $1.8 billion and adjusted EBITDA of $458 million (ex‑GAAP comparability adjustments), and said free cash flow from continuing operations is expected to exceed net income; they also forecast capital expenditures of $50 million, depreciation of $27 million, amortization of $15 million, fiscal 2026 interest expense of about $80 million (a $13 million reduction from prior guidance) and a normalized tax rate of 28%. As of June 30, net debt was $1.2 billion with net debt/EBITDA leverage of 2.2x (pro forma ~2.0x after the Australasia JV) and a new target leverage range of 1.5x–2.5x; management reaffirmed its capital-allocation strategy—a $0.22 quarterly dividend payable Sept. 16 and continued opportunistic buybacks (Q3 repurchases $53 million; $194 million remaining authorization).

Griffon Risk Analysis

Griffon disclosed 31 risk factors in its most recent earnings report. Griffon reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Griffon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:GFF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TREX	74Outperform	$5.44B	31.56	17.59%	―	8.58%	-6.44%
NX	65Neutral	$970.14M	21.13	6.19%	1.52%	1.26%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FBIN	56Neutral	$5.90B	46.39	5.48%	2.09%	-2.97%	-60.33%
JBI	55Neutral	$533.46M	119.38	0.84%	―	0.78%	-90.47%
BLDR	42Neutral	$6.77B	168.49	0.99%	―	-8.25%	-92.83%

* Industrials Sector Average

Performance Comparison

DE:GFF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:GFF	Griffon	94.50	33.63	55.25%
BLDR	Builders Firstsource	62.34	-41.55	-39.99%
FBIN	Fortune Brands Innovations, Inc.	49.17	1.44	3.02%
NX	Quanex Building Products	20.99	8.16	63.65%
TREX	Trex Company	54.28	21.97	68.00%
JBI	Janus International Group, Inc.	3.88	-2.16	-35.76%

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.

Griffon AI Stock Analysis