📊 GFF Key Takeaways
Is Griffon Corp. (GFF) a Good Investment?
Griffon faces severe operational deterioration with revenue declining 3.9% YoY and net income collapsing 75.6%, while burdened by an unsustainable leverage ratio of 14.77x debt/equity. Although positive free cash flow and strong liquidity provide near-term stability, the company's constrained financial flexibility and declining profitability trajectory present material downside risk.
Griffon shows solid core operating profitability, with a 41.1% gross margin, 17.5% operating margin, and positive free cash flow generation despite a modest revenue decline. However, the sharp drop in net income and EPS, combined with very high leverage and a thin equity base, materially weakens the quality of the current earnings profile. The fundamentals support a neutral stance: the business remains cash-generative, but balance-sheet risk and earnings volatility limit conviction.
Why Buy Griffon Corp. Stock? GFF Key Strengths
- Strong gross margin of 45.7% demonstrates underlying pricing power and core business efficiency
- Positive free cash flow of $72.5M with healthy operating cash flow of $90.1M provides operational liquidity
- Robust short-term liquidity with current ratio of 2.86x and $109.7M cash buffer
- Strong operating profitability with healthy gross and operating margins
- Positive operating cash flow and free cash flow with a 12.7% FCF margin
- Good near-term liquidity, supported by 2.55x current ratio and 1.27x quick ratio
GFF Stock Risks: Griffon Corp. Investment Risks
- Extreme leverage with debt/equity ratio of 14.77x ($1.4B long-term debt vs $94.4M equity) severely constrains financial flexibility
- Revenue contracting 3.9% YoY with net income plummeting 75.6% indicates significant operational or structural deterioration
- Interest coverage of 4.3x provides limited cushion; if business conditions worsen further, debt servicing capability becomes questionable
- Net income and diluted EPS declined sharply year over year, indicating weaker earnings quality or unusually tough comparisons
- Very high leverage with 12.36x debt-to-equity and only $108.90M of equity
- Interest coverage of 5.1x is acceptable but leaves less room if operating income weakens further
Key Metrics to Watch
- Revenue stabilization and YoY growth trajectory
- Net margin recovery and explanation of 75.6% earnings decline
- Debt reduction progress and deleveraging path toward sustainable leverage ratios
- Net income and EPS recovery versus operating income stability
- Debt reduction progress and interest coverage trend
Griffon Corp. (GFF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.86x current ratio provides a solid financial cushion.
GFF Profit Margin, ROE & Profitability Analysis
GFF vs Materials Sector: How Griffon Corp. Compares
How Griffon Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Griffon Corp. Stock Overvalued? GFF Valuation Analysis 2026
Based on fundamental analysis, Griffon Corp. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Griffon Corp. Balance Sheet: GFF Debt, Cash & Liquidity
GFF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Griffon Corp.'s revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.42 reflects profitable operations.
GFF Revenue Growth, EPS Growth & YoY Performance
GFF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $421.9M | $19.3M | $0.42 |
| Q1 2026 | $632.4M | $64.4M | $1.41 |
| Q3 2025 | $613.6M | $7.5M | $0.16 |
| Q2 2025 | $611.7M | $42.2M | $1.21 |
| Q1 2025 | $632.4M | $42.2M | $0.82 |
| Q3 2024 | $647.8M | $35.7M | $0.65 |
| Q2 2024 | $672.9M | -$13.6M | $-0.26 |
| Q1 2024 | $643.2M | $42.2M | $0.82 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Griffon Corp. Dividends, Buybacks & Capital Allocation
GFF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Griffon Corp. (CIK: 0000050725)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GFF
What is the AI rating for GFF?
Griffon Corp. (GFF) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GFF's key strengths?
Claude: Strong gross margin of 45.7% demonstrates underlying pricing power and core business efficiency. Positive free cash flow of $72.5M with healthy operating cash flow of $90.1M provides operational liquidity. ChatGPT: Strong operating profitability with healthy gross and operating margins. Positive operating cash flow and free cash flow with a 12.7% FCF margin.
What are the risks of investing in GFF?
Claude: Extreme leverage with debt/equity ratio of 14.77x ($1.4B long-term debt vs $94.4M equity) severely constrains financial flexibility. Revenue contracting 3.9% YoY with net income plummeting 75.6% indicates significant operational or structural deterioration. ChatGPT: Net income and diluted EPS declined sharply year over year, indicating weaker earnings quality or unusually tough comparisons. Very high leverage with 12.36x debt-to-equity and only $108.90M of equity.
What is GFF's revenue and growth?
Griffon Corp. reported revenue of $876.1M.
Does GFF pay dividends?
Griffon Corp. pays dividends, with $21.2M distributed to shareholders in the trailing twelve months.
Where can I find GFF SEC filings?
Official SEC filings for Griffon Corp. (CIK: 0000050725) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GFF's EPS?
Griffon Corp. has a diluted EPS of $1.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GFF a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Griffon Corp. has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GFF stock overvalued or undervalued?
Valuation metrics for GFF: ROE of 88.6% (sector avg: 14%), net margin of 9.6% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy GFF stock in 2026?
Our dual AI analysis gives Griffon Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GFF's free cash flow?
Griffon Corp.'s operating cash flow is $90.1M, with capital expenditures of $17.7M. FCF margin is 8.3%.
How does GFF compare to other Materials stocks?
Vs Materials sector averages: Net margin 9.6% (avg: 10%), ROE 88.6% (avg: 14%), current ratio 2.86 (avg: 1.6).
Is Griffon Corp. carrying too much debt?
GFF has a debt-to-equity ratio of 14.77x, which is above the Materials sector average of 0.6x. However, the current ratio of 2.86 suggests adequate short-term liquidity.
Why is GFF's return on equity (ROE) so high?
Griffon Corp. has a return on equity of 88.6%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 9.6% net margin.