Is Griffon Corp (GFF) Trading at a Discount?

Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q2 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell 2500 Value Index, in the second quarter. The underperformance was primarily driven by stock selection, while the allocation effect had a small positive impact. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Riverwater Sustainable Value Strategy highlighted stocks such as Griffon Corporation (NYSE:GFF). Headquartered in New York, New York, Griffon Corporation (NYSE:GFF) operates through consumer and professional, and home and building products segments. The one-month return of Griffon Corporation (NYSE:GFF) was 16.67%, and its shares gained 31.00% of their value over the last 52 weeks. On September 05, 2025, Griffon Corporation (NYSE:GFF) stock closed at $81.34 per share, with a market capitalization of $3.787 billion.

Riverwater Sustainable Value Strategy stated the following regarding Griffon Corporation (NYSE:GFF) in its second quarter 2025 investor letter:

“Griffon Corporation (NYSE:GFF): Griffon Corporation (GFF) Griffon operates through consumer/professional products (True Temper, AMES, ClosetMaid) and home/building products (Clopay garage doors). It’s possible you may be a customer of Griffon without even knowing it. Riverwater has been a customer since 2017. We installed their Clopay garage doors for our conference room walls. We met with management recently in our office and they were surprisingly impressed with our design, which they had not seen before. Maybe we’ll be able to take credit for a future growth opportunity!

The company has methodically streamlined its portfolio and is gaining market share through attractive product design and innovation. It has also significantly improved operating margins over the last five years. While the stock has performed well, it still trades at a significant discount to the market and what we believe to be the true intrinsic value – currently it is trading at 12.4x the next 12 month’s earnings. We see potential for continued expansion in the fragmented commercial door market.”

Is Griffon Corporation (GFF) The Stock With The Most Insider Sales In The Last Quarter?

Griffon Corporation (NYSE:GFF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Griffon Corporation (NYSE:GFF) at the end of the second quarter, which was 28 in the previous quarter. Griffon Corporation’s (NYSE:GFF) fiscal third-quarter revenue was $614 million, a decrease of 5%, while adjusted EBITDA before unallocated amounts increased by 5% to $148 million, both compared to fiscal Q3 2024.While we acknowledge the risk and potential Griffon Corporation (NYSE:GFF) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Griffon Corporation (NYSE:GFF) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.