Griffin Industrial Realty, Inc. :GRIF-US: Earnings Analysis: 2016 By the Numbers : February 17, 2017

Griffin Industrial Realty, Inc. reports financial results for the year ended November 30, 2016.


  • Gross margins widened from 40.48% to 42.12% compared to the same period last year, operating (EBITDA) margins now 36.42% from 33.99%.
  • Change in operating cash flow of -44.32% compared to same period last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth from operating margin improvements as well as one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2016 2015 2014 2013 2012
Relevant Numbers (Annual)
Revenues 30.85 28.09 24.22 25.53 36.59
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings 0.58 0.43 -1.25 1.91 -0.68
Earnings Growth (YOY) 35.53 134.05 -165.34 380.47 77.28
Net Margin 1.87 1.51 -5.15 7.48 -1.86
EPS 0.11 0.08 -0.21 0.37 -0.11
Return on Equity 0.62 0.45 -1.29 1.89 -0.66
Return on Assets 0.26 0.21 -0.66 1.02 -0.38

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Earnings Growth Analysis

The company’s earnings growth was influenced by year-on-year improvement in gross margins from 40.48% to 42.12% as well as better cost controls. As a result, operating margins (EBITDA margins) rose from 33.99% to 36.42% compared to the same period last year. For comparison, gross margins were 40.48% and EBITDA margins were 33.99% in the last reporting period.

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

GRIF-US‘s year-on-year change in operating cash flow of -44.32% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.


The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from 6.69% to 7.91% and (2) one-time items. The company’s pretax margins are now 4.25% compared to 2.87% for the same period last year.

EBIT Margin History
PreTax Margin History

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Company Profile

Griffin Industrial Realty, Inc. engages in the ownership, operation, and development of real estate properties. Its property portfolio includes industrial properties, warehouses, offices, land, flex properties, restaurant, and distribution centers. The company was founded in 1970 and is headquartered in New York, NY.

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