How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Griffon (GFF) ten years ago? It may not have been easy to hold on to GFF for all that time, but if you did, how much would your investment be worth today?
Griffon's Business In-Depth
With that in mind, let's take a look at Griffon's main business drivers.
Based in New York, NY, Griffon Corporation is a diversified holding company with exposure in several industries. The company engages in the manufacture and sale of a wide range of consumer and professional, and home and building products including garage doors, shutters, materials for disposable diapers and disposable health care products.
The company operates through several subsidiaries that engage in end markets including industrial, retail, residential and commercial construction, residential repair and remodel and others. Griffon manages the operations of its subsidiaries, distributes resources across them and oversees their capital structures.
The company's diversified range of product offerings is sold in multiple countries through several sales and distribution channels. On a geographical basis, Griffon has operations in the United States (82.3% of fiscal 2024 net revenues), Europe (2%), Canada (4.9%), Australia (10%) and all other countries (0.8%). Exiting fiscal 2024 (ended Sept. 30, 2024), it has an employee base of 5,300 people.
Griffon reports quarterly results in two segments. A brief discussion of the segments is provided below:
Home and Building Products Segment (HBP) (accounting for 60.6% of fiscal 2024 revenues): This segment produces and sells residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for commercial construction and home remodeling projects. It also offers related items, including garage door openers. Residential and commercial sectional garage doors are marketed through professional dealers and home center retail chains across North America under the Clopay, Ideal, and Holmes brands. Products like rolling steel doors and grilles, designed for commercial, industrial, institutional, and retail applications, are offered under the Cornell and Cookson brands.
Consumer and Professional Products Segment (CPP) (39.4% of fiscal 2024 revenues): The segment offers industrial and commercial fans, branded consumer and professional tools, home storage and organization products, and products that improve both indoor and outdoor living experiences. It sells products globally through a portfolio of leading brands including AMES, since 1886, since 1774, Hunter, True Temper, and ClosetMaid.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Griffon, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in April 2015 would be worth $4,190.37, or a gain of 319.04%, as of April 2, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 173.49% and the price of gold increased 152.81% over the same time frame in comparison.
Going forward, analysts are expecting more upside for GFF.
Griffon is benefiting from strength across the Home and Building Products (HBP) segment. Increased residential volume, driven by the resiliency of repair and remodeling activity in the construction market, is aiding the segment. The company’s investment in productivity, innovation and capacity expansion is driving its growth. The accretive acquisitions spark optimism in the stock. Griffon’s efforts to reward its shareholders also add to its appeal. Due to these tailwinds, the company’s shares have outperformed in the past six months. However, weakness in the Consumer and Professional Products (CPP) segment due to reduced consumer demand in North America is concerning for the company. Given Griffon’s substantial international exposure, foreign currency headwinds are likely to weigh on its performance.
The stock is up 7.38% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2025. The consensus estimate has moved up as well.
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Griffon Corporation (GFF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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