# Grafton Group plc (GFTU.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Building Products. Price 979p, market value 1.9 billionp.

## Valuation
- **P/E (trailing): 12.2×** (5-yr avg 1305.0×, 3-yr avg 1403.0×). Grafton Group plc trades at 12.2× trailing earnings, well below its own five-year average of 1305.0×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 11.7×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.79**. A PEG of 0.79 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.1×**. The shares trade at 1.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.8×**. Enterprise value is 3.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 23.2%** (5-yr avg 0.1%). Free cash flow equals 23.2% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 8.2%**. The inverse of the P/E: 8.2% of the price is earned each year.

## Profitability
- **Gross margin: 11.4%**. Grafton Group plc keeps 11.4% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 6.5%**. 6.5% of revenue is left after running the business.
- **Net margin: 5.4%**. 5.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.3%**. 8.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 14.3%**. Return on all capital, debt included, is 14.3%.
- **Return on assets: 9.2%**. Each dollar of assets produces 9.2% of profit.

## Growth
- **Revenue growth (1 yr): 10.4%** (3-yr 3.1%/yr, 5-yr 0.1%/yr). Revenue grew 10.4% over the last year, against 0.1% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 14.8%** (3-yr -7.7%/yr, 5-yr 9.2%/yr). Earnings per share rose 14.8%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 13.3%/yr**. Free cash flow has compounded at 13.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.38**. Debt is 0.38 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.2×**. It would take 0.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 6.6×**. Operating profit covers interest 6.6× over, a safe margin.
- **Current ratio: 2.11** (quick 1.43). Current assets cover the next year's liabilities 2.11 times.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 3.77%** (0p per share, trailing). Grafton Group plc yields 3.77%, an income-level yield.
- **Payout ratio: 53%** (45% of free cash flow). 53% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Shareholder yield: 10.9%**. Dividends plus net buybacks return 10.9% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (11 analysts). 11 analysts cover Grafton Group plc; the consensus is strong_buy, with an average price target of 1156p (+18% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 15.3%** (YTD 9.0%, 3-mo 23.2%). The shares are up 15.3% over twelve months including dividends.
- **From 52-week high: -7.9%** (24.2% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 54**. An RSI of 54 is neutral.
- **Beta (1 yr): 1.07** (volatility 23%). Beta of 1.07 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=GFTU.L · Page: https://foliofundamentals.com/stocks/gftu.l

Not investment advice.