Grafton (GFTU) AI Stock Analysis

• Market Cap: £1.75B
• Dividend Yield: 4.11%
• Average Volume (3M): 511.19K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.98
• Revenue Growth: 5.75%
• EPS Growth: 5.86%
• Country: UK
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.35
• Shares Outstanding: 192,921,810
• 10 Day Avg. Volume: 633,753
• 30 Day Avg. Volume: 511,192
• PEG Ratio: -1.23
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 9.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,100.00
• Price Target Upside: 21.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: 1,022.00p ▲(12.69% Upside)

Grafton's overall stock score is driven by solid financial performance and positive earnings call highlights, including profit growth and strong capital returns. The valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical analysis indicates a neutral trend, with no significant momentum. Challenges in specific markets like Finland and the UK are noted but do not overshadow the positive aspects.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Strong Capital Returns

Robust capital returns reflect a healthy financial position and management's commitment to shareholder value, enhancing investor confidence.

Performance in Ireland and Spain

Strong performance in key regions like Ireland and Spain highlights successful market penetration and strategic positioning, supporting future growth.

Negative Factors

Challenges in Finland

Operational challenges and declining revenue in Finland indicate potential market saturation or competitive pressures, which could hinder growth.

Weaker UK Market Conditions

Weak demand in the UK market, particularly in RMI, suggests structural challenges that may affect revenue and profitability in a key region.

Decline in Net Profit Margin

A declining net profit margin indicates pressure on profitability, which could impact the company's ability to invest in growth and innovation.

Grafton Business Overview & Revenue Model

Company Description

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building and plumbing materials to professional trades people engaged in residential repair, maintenance, and improvement projects, as well as in residential and other new build construction. This segment operates 302 branches primarily under the Selco, MacBlair, and Leyland SDM brands in the United Kingdom; the Chadwicks brand in the Republic of Ireland; the Isero and Polvo brands in the Netherlands; and the IKH brand in Finland. The company's Retailing segment engages in DIY and home improvement business that supplies a range of products, including paints, lighting products, homestyle products, housewares, bathroom products, and kitchens, as well as gardening and Christmas products. This segment operates 35 stores primarily under the Woodie's brand. Its Manufacturing segment manufactures dry mortar for residential and commercial construction projects; and plastics and wooden staircase. Grafton Group plc was founded in 1902 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Grafton generates revenue primarily through the sale of building materials and related products to construction and trade professionals. The company operates through several subsidiaries, which contribute to its diverse revenue streams by targeting different market segments, including merchants, retailers, and online platforms. Key revenue streams include sales from branches and distribution centers, e-commerce sales, and value-added services such as delivery and logistics. Grafton also benefits from strategic partnerships with well-known manufacturers and suppliers, enhancing its product offerings and market reach. Additionally, the company's focus on expanding its digital presence and improving operational efficiency plays a significant role in driving profitability.

Grafton Financial Statement Overview

Summary

Grafton has a stable financial position with strong equity and moderate leverage, though there are concerns regarding profitability and cash flow trends. While the company manages its costs effectively, leading to healthy gross margins, there are challenges in growing revenue and maintaining net profitability. Cash flow management appears tighter, limiting flexibility for future growth opportunities.

Income Statement

The gross profit margin is robust, indicating effective cost management, with a gross profit margin of approximately 37.1% in 2024. However, the net profit margin declined from 6.4% in 2023 to 5.3% in 2024, suggesting pressure on bottom-line profitability. Revenue growth has been stagnant, with a slight decrease in revenue from 2023 to 2024, reflecting potential market challenges. The EBIT margin decreased from 7.9% to 6.7%, and EBITDA margin also saw a marginal decline, indicating reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio remains stable at approximately 0.40 in 2024, indicating moderate leverage. Return on equity (ROE) was about 7.6% in 2024, showing a decline from 9.0% in 2023, which suggests a decrease in profitability relative to shareholder equity. The equity ratio remains strong at around 58%, reflecting a solid capital structure with considerable equity financing.

Cash Flow

Operating cash flow decreased from 2023 to 2024, yet the operating cash flow to net income ratio remains healthy, indicating efficient conversion of net income into cash. Free cash flow also decreased, impacting the free cash flow to net income ratio, suggesting less cash available for expansion or debt repayment. Free cash flow growth has been negative, indicating potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.40B	2.28B	2.32B	2.30B	2.11B	2.51B
Gross Profit	158.39M	845.89M	374.45M	868.65M	830.91M	855.72M
EBITDA	274.52M	310.55M	333.39M	386.80M	371.06M	246.80M
Net Income	133.40M	122.01M	148.72M	208.62M	206.84M	107.54M
Balance Sheet
Total Assets	2.87B	2.75B	2.81B	2.99B	2.95B	2.98B
Cash, Cash Equivalents and Short-Term Investments	494.50M	509.43M	583.94M	711.72M	844.66M	456.03M
Total Debt	641.82M	641.10M	633.20M	702.80M	705.63M	810.96M
Total Liabilities	1.26B	1.16B	1.15B	1.24B	1.23B	1.52B
Stockholders Equity	1.61B	1.60B	1.66B	1.75B	1.72B	1.47B
Cash Flow
Free Cash Flow	207.13M	199.97M	220.04M	159.50M	194.59M	279.26M
Operating Cash Flow	240.23M	246.82M	272.82M	217.34M	239.03M	316.33M
Investing Cash Flow	-121.05M	-37.10M	-255.44M	-70.58M	353.22M	-76.69M
Financing Cash Flow	-192.22M	-233.79M	-342.29M	-289.54M	-193.10M	-141.20M

Grafton Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 906.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GFTU, the sentiment is Positive. The current price of 906.9 is above the 20-day moving average (MA) of 880.44, above the 50-day MA of 879.91, and above the 200-day MA of 895.50, indicating a bullish trend. The MACD of 4.76 indicates Negative momentum. The RSI at 59.82 is Neutral, neither overbought nor oversold. The STOCH value of 75.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GFTU.

Grafton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFTU	77 Outperform	£1.75B	13.43	8.33%	4.11%	5.75%	5.86%
LTHP	64 Neutral	£209.85M	―	8.23%	6.53%	―	―
RS1	64 Neutral	£2.67B	17.35	11.27%	3.98%	-1.32%	-16.36%
LORD	63 Neutral	£52.36M	-21.88	-4.30%	2.67%	0.10%	-32.11%
BRCK	61 Neutral	£184.91M	28.14	3.46%	6.11%	7.23%	-59.68%
SHI	50 Neutral	£110.24M	-1.58	-27.03%	―	-2.08%	-9.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Grafton Corporate Events

Grafton Group Advances Share Buyback Program with Recent Purchase

Grafton Group plc, a company involved in the building materials industry, announced the purchase and cancellation of 75,000 ordinary shares on the London Stock Exchange as part of its ongoing GBP25 million share buyback program. This transaction, executed through Goodbody Stockbrokers UC, reflects Grafton’s commitment to enhancing shareholder value and optimizing its capital structure. The buyback program, which began on 4 September 2025, has seen a total of 595,000 shares purchased for cancellation, indicating the company’s strategic approach to managing its equity base.

The most recent analyst rating on (GB:GFTU) stock is a Buy with a £1022.00 price target. To see the full list of analyst forecasts on Grafton stock, see the GB:GFTU Stock Forecast page.

Grafton Group Enhances Shareholder Value with Share Buyback

Grafton Group plc, a company engaged in a share buyback program, announced the purchase and cancellation of 65,000 ordinary shares on the London Stock Exchange as part of its GBP25,000,000 buyback initiative. This transaction, executed through Goodbody Stockbrokers UC, is part of a broader strategy to enhance shareholder value, with a total of 520,000 shares repurchased since the program’s inception.

The most recent analyst rating on (GB:GFTU) stock is a Buy with a £1022.00 price target. To see the full list of analyst forecasts on Grafton stock, see the GB:GFTU Stock Forecast page.

Grafton Group Advances Share Buyback Program with Recent Purchase

Grafton Group PLC, a company operating in the building materials and DIY retail sector, announced the purchase and cancellation of 65,000 ordinary shares as part of its £25 million share buyback program. This transaction, executed on the London Stock Exchange through Goodbody Stockbrokers, is part of a broader strategy to enhance shareholder value, with a total of 455,000 shares repurchased since the program’s commencement.

The most recent analyst rating on (GB:GFTU) stock is a Buy with a £1022.00 price target. To see the full list of analyst forecasts on Grafton stock, see the GB:GFTU Stock Forecast page.

Grafton Group Advances Share Buyback Program with Latest Purchase

Grafton Group plc, a company engaged in a share buyback program, announced the purchase and cancellation of 65,000 ordinary shares on the London Stock Exchange as part of its GBP25 million initiative. This transaction, executed through Goodbody Stockbrokers, marks a continuation of the program that began on 4 September 2025, with a total of 390,000 shares repurchased to date. The buyback program is a strategic move to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (GB:GFTU) stock is a Buy with a £969.00 price target. To see the full list of analyst forecasts on Grafton stock, see the GB:GFTU Stock Forecast page.

Grafton Group Advances Share Buyback Program

Grafton Group plc, a company involved in the building materials industry, has executed a share buyback program on the London Stock Exchange. On September 11, 2025, Grafton purchased 65,000 ordinary shares at an average price of GBP 8.9288 as part of its GBP 25 million buyback initiative, which began on September 4, 2025. This move is part of Grafton’s broader strategy to enhance shareholder value by reducing the number of shares outstanding, potentially increasing earnings per share and improving market perception.

The most recent analyst rating on (GB:GFTU) stock is a Buy with a £969.00 price target. To see the full list of analyst forecasts on Grafton stock, see the GB:GFTU Stock Forecast page.

Grafton Group Advances Share Buyback Program with Latest Acquisition

Grafton Group plc has executed a share buyback transaction, acquiring 65,000 ordinary shares on the London Stock Exchange as part of its £25 million share buyback program. This move, which follows the purchase of 325,000 shares since the program’s initiation on September 4, 2025, is aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (GB:GFTU) stock is a Buy with a £969.00 price target. To see the full list of analyst forecasts on Grafton stock, see the GB:GFTU Stock Forecast page.

Grafton Group Advances Share Buyback Program with Recent Share Purchase

Grafton Group plc, a company involved in the building materials industry, has announced the purchase and cancellation of 65,000 ordinary shares as part of its GBP25 million share buyback program. This transaction, executed on the London Stock Exchange through Goodbody Stockbrokers, is part of a broader strategy to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (GB:GFTU) stock is a Buy with a £969.00 price target. To see the full list of analyst forecasts on Grafton stock, see the GB:GFTU Stock Forecast page.

Grafton Group Advances Share Buyback Program with Latest Purchase

Grafton Group plc has announced the purchase and cancellation of 65,000 ordinary shares on the London Stock Exchange as part of its GBP25 million share buyback program. This transaction, executed through Goodbody Stockbrokers, is part of a broader strategy to enhance shareholder value, with a total of 195,000 shares purchased since the program’s commencement.

The most recent analyst rating on (GB:GFTU) stock is a Buy with a £969.00 price target. To see the full list of analyst forecasts on Grafton stock, see the GB:GFTU Stock Forecast page.