4. Griffon Corporation (NYSE:GFF)
Number of Hedge Fund Holders: 28
Griffon Corporation (NYSE:GFF) is a leading global conglomerate that operates through three segments: Telephonics, Building Products, and Plastics. Griffon Corporation (NYSE:GFF) was spotted on 28 hedge funds’ portfolios at the close of Q4 2022. These funds disclosed positions worth $295 million in the company. As of December 31, Voss Capital is the most prominent shareholder and has a stake worth $103 million.
On April 20, Griffon Corporation (NYSE:GFF) announced a special cash dividend of $2.00 per share. The dividend is payable on May 19 to stockholders of record at the close of business on May 9. As of April 28, the stock is offering a forward dividend yield of 1.44% and has gained 26.84% over the past 12 months. Griffon Corporation (NYSE:GFF) is ranked fourth on our list of the best conglomerate stocks to buy now.
Greystone Capital Management made the following comment about Griffon Corporation (NYSE:GFF) in its Q4 2022 investor letter:
“Last quarter I wrote about a new position in a small cap consumer products business that manufactures tools and home improvement items as well as residential and commercial garage doors. The company is Griffon Corporation (NYSE:GFF), and is one of our top five positions heading into 2023. This is an attractive situation for several reasons, but mostly due to the strength of Griffon’s Home and Building Products segment and the significant corporate governance improvements recently enacted.
Griffon Corp. is made up of two business segments, Consumer and Professional Products (‘CPP’) and Home and Building Products (‘HBP’). CPP manufactures popular home accessories and garden tools through quality brand names such as ClosetMaid and Ames. HBP is one of the leading manufacturers in the US of residential garage doors and rolling steel doors, with a nearly 50% market share through their Clopay and CornellCookson brands. CPP has struggled under the weight of poor acquisitions, lack of cohesiveness and underinvestment, but possesses strong market share in garden tools and has typically done well through various business cycles. Griffon’s HBP segment has cockroach-like elements, with a history of strong organic growth and resilience over multiple decades. Today, Clopay and CornellCookson are responsible for nearly half of Griffon’s revenue and around 60% of EBITDA. Given their strong characteristics of resiliency, cash flows and returns on capital, these businesses make great acquisition candidates and recent industry consolidation adds a valuable element to the mix. Valuing HBP using an EBITDA multiple in line with similar businesses as well as recent transaction comps reflects a per share price that could exceed Griffon’s current enterprise value…” (Click here to read the full text)
Follow Griffon Corp (NYSE:GFF)
Follow Griffon Corp (NYSE:GFF)
