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Griffon
(NYSE:GFF)
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Rating:57Neutral
Price Target:
$97.00
▲(7.04% Upside)
Action:Reiterated
Date:08/05/26
The score is held back mainly by high balance-sheet leverage and weak recent revenue trends, despite strong cash generation. The latest earnings call was constructive (maintained guidance, improving leverage, and shareholder returns), and technicals are mildly supportive, but valuation is a notable headwind given the very high P/E and modest yield.
Positive Factors
Cash generation
Consistent high operating and free cash flow (TTM OCF ~$292M; FCF ~$280M) provides durable internal funding for debt reduction, buybacks, dividends and capex. Strong cash conversion (FCF ~0.88x net income) supports financial flexibility and cushions cyclical revenue volatility over months.
Negative Factors
Elevated leverage
Extremely high debt relative to equity amplifies financial risk and reduces resilience to cyclical downturns. While management is improving leverage, a thin equity cushion means adverse demand or margin shocks could strain liquidity, constrain strategic investments, or force asset sales to meet covenants.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent high operating and free cash flow (TTM OCF ~$292M; FCF ~$280M) provides durable internal funding for debt reduction, buybacks, dividends and capex. Strong cash conversion (FCF ~0.88x net income) supports financial flexibility and cushions cyclical revenue volatility 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
$4.86B
Dividend Yield0.78%
Average Volume (3M)351.12K
Price to Earnings (P/E)23.7
Beta (1Y)1.17
Revenue Growth-12.03%
EPS Growth209.72%
CountryUS
Employees5,100
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)4.52
Shares Outstanding45,294,716
10 Day Avg. Volume253,722
30 Day Avg. Volume351,124
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$121.33Price Target Upside33.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)5.29
Revenue Forecast (FY)$1.83B
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:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
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.
Read all updates
Q3-2026 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
28
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.21B | 2.52B | 2.62B | 2.69B | 2.85B | 2.27B |
| Gross Profit | 961.08M | 1.06B | 1.02B | 948.82M | 950.25M | 641.11M |
| EBITDA | 477.90M | 286.40M | 461.44M | 279.57M | 428.36M | 225.43M |
| Net Income | 201.62M | 51.11M | 209.90M | 77.62M | -191.56M | 79.21M |
Balance Sheet | ||||||
| Total Assets | 1.84B | 2.06B | 2.37B | 2.42B | 2.82B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 110.35M | 99.05M | 114.44M | 102.89M | 120.18M | 248.65M |
| Total Debt | 1.34B | 1.59B | 1.71B | 1.65B | 1.76B | 1.19B |
| Total Liabilities | 1.71B | 1.99B | 2.15B | 2.10B | 2.34B | 1.80B |
| Stockholders Equity | 129.16M | 73.97M | 224.89M | 315.24M | 477.57M | 807.16M |
Cash Flow | ||||||
| Free Cash Flow | 287.78M | 303.58M | 308.87M | 365.17M | 26.95M | 74.82M |
| Operating Cash Flow | 324.09M | 356.02M | 377.27M | 428.77M | 69.44M | 111.77M |
| Investing Cash Flow | 58.05M | -34.29M | -65.00M | -45.21M | -585.85M | -49.42M |
| Financing Cash Flow | -368.60M | -338.75M | -298.75M | -400.16M | 393.35M | -28.25M |
Griffon Technical Analysis
Positive
90.62
Price Trends
91.75
Positive
86.75
Positive
82.47
Positive
Market Momentum
2.69
Negative
71.63
Negative
93.40
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 90.62 is below the 20-day moving average (MA) of 92.61, below the 50-day MA of 91.75, and above the 200-day MA of 82.47, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 71.63 is Negative, neither overbought nor oversold. The STOCH value of 93.40 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $9.53B | 19.48 | 29.84% | 0.60% | 3.80% | 138.85% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $4.86B | 23.72 | 34.99% | 0.93% | -12.03% | 209.72% | |
57 Neutral | $4.32B | 21.63 | 6.95% | 2.64% | -29.93% | -9.34% | |
51 Neutral | $5.30B | -10.10 | -21.64% | 25.67% | 12.39% | 40.27% | |
47 Neutral | $827.60M | -2.89 | -46.27% | 2.49% | 7.52% | -1.67% | |
43 Neutral | $739.50M | -131.67 | -5.81% | 3.61% | -31.82% | ― |
* Industrials Sector Average
GFF
Griffon
107.22
38.22
55.38%
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IEP
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MATW
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23.70
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4.31%
MDU
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20.55
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28.45%
VMI
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493.64
128.33
35.13%
Griffon Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Griffon Reshapes Capital Structure After AMES Australasia Sale
Positive
Aug 4, 2026
On July 31, 2026, Griffon Corporation closed the sale of its AMES Australasia business into a new joint venture with an investment group led by the unit’s management and supported by Australian financial investors. Griffon’s indirect s...
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.