Griffon AI Stock Analysis
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Griffon (GFF) AI Stock Analysis
Griffon
(NYSE:GFF)
GFF’s score is driven primarily by solid cash generation but constrained by elevated balance-sheet leverage and thin/volatile profitability. Technicals are supportive with price above key moving averages and positive momentum. Guidance and capital returns from the earnings call are constructive, while valuation is only moderate and the dividend yield is low.
Griffon Key Performance Indicators (KPIs)
Revenue by GeographyShows 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.
The U.S. still drives virtually all consolidated revenue, so small U.S. volume weakness meaningfully pressures results; Canada and Australia have recently provided offsetting lift and helped fuel CPP’s margin recovery despite softer U.S. demand. Management’s ONCAP JV will monetize AMES (near‑term cash plus retained minority equity) but will move portions of Australia/NA revenue into discontinued operations, so expect continuing‑operations revenue to look more volatile even as strong free cash flow and buybacks support shareholder returns.
The FlyGriffon (GFF) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $4.79B
- Dividend Yield
- 0.83%
- Average Volume (3M)
- 330.88K
- Price to Earnings (P/E)
- 23.5
- Beta (1Y)
- 1.02
- Revenue Growth
- -12.03%
- EPS Growth
- 209.72%
- Country
- US
- 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...
How the Company Makes Money
Griffon makes money primarily by manufacturing and selling branded and private-label products through its operating subsidiaries and recognizing revenue when products are delivered to customers. Its core revenue streams are (1) Home & Building Produc...
Griffon Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative 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
Cash flow is a clear strength (TTM operating cash flow ~$292M and free cash flow ~$280M, with FCF close to earnings at ~0.88x net income). However, profitability is uneven and the bottom line is thin (TTM net margin ~1.3%) alongside meaningful TTM revenue contraction (~-13.9%). Balance-sheet risk is the main drag, with extremely elevated debt-to-equity (TTM ~15.6x; 2025 ~21.5x), reducing flexibility if demand weakens.
Income Statement
56NeutralBalance Sheet
28NegativeCash Flow
72Positive| 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 | 488.18M | 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
Price Trends
Market Momentum
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 106.16 is above the 20-day moving average (MA) of 99.94, above the 50-day MA of 96.77, and above the 200-day MA of 89.90, indicating a bullish trend. The MACD of 2.75 indicates Negative momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 62.18 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.
Latest Risks Added
2 New RisksGriffon Peers Comparison
Overall Rating
TREX74Outperform- GFF67Neutral
NX65Neutral
FBIN56Neutral
JBI55Neutral
BLDR42Neutral
Financial Indicators
| 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% |
| GFF | 67Neutral | $4.73B | 23.49 | 198.41% | 0.83% | -12.03% | 209.72% |
| 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
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GFF | Griffon | 106.16 | 36.14 | 51.61% | |
| 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% |
Griffon Corporate Events
Griffon Completes Major Debt Offering and Credit Refinance
PositiveOn August 18, 2026, Griffon Corporation completed a private offering of $800 million in 6.25% senior unsecured notes due October 1, 2034, generating approximately $792 million in net proceeds from sales to qualified institutional buyers and certain n...
Griffon Announces New Senior Notes Offering and Refinancing
PositiveOn August 10, 2026, Griffon Corporation entered into a purchase agreement to issue and sell $800 million of 6.25% senior notes due 2034 to a syndicate of initial purchasers led by BofA Securities, with the notes offered in a private placement under e...
Griffon Announces $800 Million Senior Notes Offering
PositiveOn August 10, 2026, Griffon Corporation announced plans to launch a private placement offering of $800 million in senior unsecured notes due 2034, guaranteed by select domestic subsidiaries. The transaction is aimed at institutional investors in the...
Griffon Recasts Financials After Strategic AMES Transactions
NeutralGriffon Corporation has recast financial information for fiscal years 2023, 2024, and 2025 to reflect the classification of its AMES U.S., Canada, Australia, and U.K. operations as discontinued operations and to present its business as a single repor...
Griffon Reshapes Capital Structure After AMES Australasia Sale
PositiveOn 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 subsidiary Griff...
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.
Date of analysis: Aug 19, 2026