Grafton Group GFTU.L
IrelandIndustrials · Industrial DistributionLondon Stock Exchange · GBP
11.75 GBP (+26.0%)
11 analysts
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Grafton Group is a distributor of building materials and DIY products, with operations in Ireland, the UK, and Europe, selling through a network of stores and distribution centers.
Listed on London Stock Exchange · Symbol GFTU.L · LON: GFTU · Currency GBP
Key points
from its scores- ✓Attractive dividend8.1
- ✓Attractive valuation7.7
- ✕Weak growth4.2
- !Average business quality5.1
- !Weak share-price trend5.2
AI analysis
bottom line, main risk, context and newsThe valuation is reasonable and the dividend is attractive, but the lack of growth and cyclical exposure to the construction sector warrant caution until an improvement in demand is confirmed.
Grafton Group has solid financial health (Net Debt/EBITDA of 1.57) and an attractive valuation (P/E 13.72, FCF yield 8.55%), but earnings growth is negative (-6.50%) and the operating margin is thin (6.44%), making it vulnerable to a slowdown in the construction sector in a rising interest rate environment in Europe.
The main risk is a slowdown in the construction sector in Ireland and the UK, exacerbated by the ECB's monetary policy tightening, which could further compress the 6.44% operating margin and prolong negative earnings growth.
Context and risks
Grafton Group, a building materials distributor headquartered in Ireland, operates in a rising interest rate environment in Europe (ECB hiking), which pressures construction demand and debt refinancing. Its Net Debt/EBITDA ratio of 1.57 is moderate, but the operating margin of 6.44% is thin, amplifying the impact of any slowdown in the construction sector.
Is Grafton Group stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 37% below the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 13.7 | 25.4 | −46% |
| EV / EBITDA | 10.4 | 14.5 | −28% |
| Price / book | 1.1 | 4.1 | −73% |
| Price / sales | 0.7 | 2.1 | −68% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.7 out of 10 (median for Industrials: 5.0).
Average analyst target: 11.75 GBP, +26.0% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.2 (sector 6.4), Growth 4.2 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 13.7
- Forward P/E
- 11.2
- EV / EBITDA
- 10.4
- Price / book
- 1.1
- Price / sales
- 0.7
- PEG
- 1.58
- Market cap
- 1.7B GBP
- Enterprise value
- 2.1B GBP
Profitability
- ROE
- 8.0%
- ROA
- 3.6%
- ROIC (approx.)
- 7.3%
- Gross margin
- 37.0%
- Operating margin
- 6.4%
- Net margin
- 5.0%
- Free cash flow
- 148.6M GBP
- FCF yield
- 8.6%
- Cash conversion
- 74%
Solvency
- Total debt
- 710.3M GBP
- Net debt
- 315.4M GBP
- Cash
- 394.9M GBP
- EBITDA
- 200.7M GBP
- Net debt / EBITDA
- 1.57
- Debt / equity
- 43.55
- Current ratio
- 1.82
- Quick ratio
- 1.16
Growth
- Revenue growth
- +6.7%
- Earnings growth
- −6.5%
- EPS (TTM)
- 0.68 GBP
- EPS (forward)
- 0.84 GBP
Dividend
- Dividend yield
- 4.1%
- Payout
- 55.5%
Risk and market
- Beta
- 1.07
- Analyst consensus
- none (11)
- Target price
- 11.75 GBP
Recent news
All GFTU.L news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Grafton Group
Is Grafton Group stock cheap or expensive?
On P/E and EV / EBITDA, it trades 37% below the Industrials median on average. Valuation score: 7.7 out of 10 (median for Industrials: 5.0). Average analyst target: 11.75 GBP, +26.0% versus the price. This is not investment advice.
What score does Grafton Group get on MeridIAn Screener?
It scores 6.1 out of 10, rank 899 of 2,130 (better than 55% of the companies analysed). Its strongest category is Dividend (8.1) and its weakest, Growth (4.2). Analysis of 08/10/2026.
What is Grafton Group's P/E ratio?
Its P/E is 13.7: the share price equals 13.7 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 11.2.
How much is Grafton Group worth on the stock market?
Its market capitalisation is 1.7B GBP and its enterprise value, debt included, is 2.1B GBP.
How much debt does Grafton Group have?
Its net debt (debt minus cash) is 315.4M GBP. That is 1.57 times its EBITDA; the Industrials median is 1.58.
Does Grafton Group pay a dividend?
Yes: its dividend yield is 4.07% and it pays out 56% of its earnings.
How has Grafton Group stock performed over the last year?
It has risen 3.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 10.63 GBP. Past performance does not guarantee future results.
What do analysts think of Grafton Group?
11 analysts cover it; their average recommendation is “none” and their average target is 11.75 GBP (+26.0% versus the price). It is an estimate, not market data.