Momentum Stock Watch: Griffon Corporation (GFF)

Company Profile:

Griffon Corporation, is a diversified management and holding company that conducts business through its wholly-owned subsidiaries. The Home & Building Products (HBP) segment of the Company, consists of two companies, Ames True Temper, Inc. (ATT) and Clopay Building Products (CBP). ATT provides non-powered landscaping products for homeowners and professionals. CBP manufactures and sells residential, commercial and industrial garage doors to professional installing dealers and major home center retail chains. Telephonics Corporation (Telephonics) designs, develops and manufactures high-technology integrated information, communication and sensor system solutions for military and commercial markets. Clopay Plastic Products Company (Plastics) develops and produces embossed, laminated and printed specialty plastic films used in a variety of hygienic, health-care and industrial applications. The company was founded in 1959 and is headquartered in New York, New York.

Recent News:

 The Board of Directors of Griffon Corporation authorized the repurchase of an additional $50 million of Griffon’s outstanding common stock. Prior to this authorization and after giving effect to the purchase of 630,185 shares for a total of $10.1 million in the current quarter through and including July 29, 2015, $21.6 million was available from the March 2015 authorization.

For the fiscal third quarter ended June 30, 2015, revenue totaled $511.7 million, increasing 1% from the prior year quarter. Net income totaled $10.9 million, or $0.23 per share, compared to $14.5 million, or $0.29 per share, in the prior year quarter.

The Board of Directors of Griffon Corporation declared a regular quarterly cash dividend of $0.04 per share. The dividend is payable on September 23, 2015 to shareholders of record as of the close of business on August 20, 2015.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

@@@@@

Profitability – Measures the historical price movement of the stock.

@@@@@

Solvency – Measures the solvency of the company based on several ratios.

@@@@@

Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

@@@@@

Conclusion:

GFF’s strengths can be seen in its better efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 51.23. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Griffon Corporation (GFF) a Strong BUY.