Griffon (GFF), mcap=$1.5bn, price $26.09 vs $29.69

Cheap building products company in the process of a strategic review.
– Stock is depressed due to entrenched management and seemingly unrelated business segments under one roof.
– Activist Voss Capital won 1 board seat and has already brought positive changes, strategic review being one of them.
– Comp was acquired at 13xEBITDA vs 7.4 fwd valuation for GFF.
– Well-positioned to compound value if no sale scenario.
– Key garage door business segment (70% of EBITDA) is most likely an acquisition candidate in a hot sector.

– Trades at 7.4x forward EBITDA, 14% FCF yield.
– SOTP model indicates a $61/share target based on 2022 financials.

Exp. gain: +105% to $61/share in 1 year.

Full GFF write-up (free guest account required):


Leave a Comment