GFF - Griffon's Risks: Interest Rate Increase Supply Disruptions
- Founded in 1959, Griffon Corporation is a holding company.
- More than 80% of the company's business model is related to the consumer and professional tools industry and the building products sector.
- If we assume 2023 EBITDA of $276 million, the company's net debt/EBITDA is more than 3x. So, the company is highly leveraged.
- if interest rates increase in the coming years, the company may have to negotiate its debt with debt holders. If debtholders don’t offer good refinancing terms, the company’s net income may diminish.
- Management noted supply disruptions in its most recent quarterly earnings call. They may eventually increase costs of goods.
For further details see:
Griffon's Risks: Interest Rate Increase, Supply Disruptions