SPY - Griffon's Global Sourcing Strategy Is Improving Potential Returns
2024-05-18 05:43:03 ET
Summary
- Griffon Corporation has restructured its business to improve profitability and reduce vulnerability to market downturns.
- KPIs are improving, and the foundation has been laid for sustainable free cash flow generation.
- The company's focus on efficiency and margin improvements, along with raised guidance, make it a potential market beater.
- Q2 2024 earnings report showed a decline in total revenue but improvements in gross profit, operating income, and net income.
Investment Thesis
Griffon Corporation ( GFF ) has restructured its business to be more profitable and less vulnerable to market downturns. The future growth expectations by the market may not match the potential outcome for the company, making an expected expansion of EBITDA margins an opportunity for investors to potentially cash in on a stock that has already delivered incredible returns for shareholders over the past year. The stock has the potential to beat the market and is considered a buy.