Griffon Corp. (GFF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Simpson Manufacturing Co., Inc.

The AZEK Co., Inc.

Watsco, Inc.

Allegion Plc

SPX Technologies, Inc.

A. O. Smith Corp.

Carlisle Cos., Inc.

Fortune Brands Innovations, Inc.

Griffon Corp.

Masco Corp.

Otis Worldwide Corp.

Why is Griffon Corp. ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.71 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.71 times

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 354.58 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBT-EQUITY RATIO (HY) Highest at 2,375.44 %

With ROCE of 26.38%, it has a fair valuation with a 4.05 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.96%, its profits have risen by 11.3% ; the PEG ratio of the company is 1.3

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.96% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Griffon Corp. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Griffon Corp.

-11.53%

0.40

36.68%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.64%

EBIT Growth (5y)

22.19%

EBIT to Interest (avg)

3.83

Debt to EBITDA (avg)

3.71

Net Debt to Equity (avg)

6.71

Sales to Capital Employed (avg)

1.48

Tax Ratio

28.64%

Dividend Payout Ratio

14.20%

Pledged Shares

Institutional Holding

88.04%

ROCE (avg)

18.82%

ROE (avg)

65.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

24.52

EV to EBIT

15.35

EV to EBITDA

13.44

EV to Capital Employed

4.05

EV to Sales

2.63

PEG Ratio

1.33

Dividend Yield

0.69%

ROCE (Latest)

26.38%

ROE (Latest)

116.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 8.5

INTEREST COVERAGE RATIO(Q)

Highest at 548.98

RAW MATERIAL COST(Y)

Fallen by -5.35% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 21.59 %

NET PROFIT(Q)

Highest at USD 123.91 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 354.58 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 2,375.44 %

EPS(Q)

Lowest at USD -2.65

Here's what is working for Griffon Corp.

Interest Coverage Ratio

Highest at 548.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At USD 123.91 MM has Grown at 97.7%

over average net sales of the previous four periods of USD 62.68 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 8.5 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit Margin

Highest at 21.59 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at USD 123.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -5.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 15.82 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Griffon Corp.

Operating Cash Flow

Lowest at USD 354.58 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

EPS

Lowest at USD -2.65

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 2,375.44 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)